Citywide has released its Year in Review and Annual Financial Report for FY2016, following a period of consolidation that lays the foundations for future growth.
The company posted a profit from ordinary activities before income tax equivalents of $8,555,000 (2015: $6,185,000), providing a total return (tax and dividend) of $7.2 million to the City of Melbourne – up 20 per cent from the previous financial year.
It follows the implementation of a new business strategy and organisational restructure that positions the company for solid growth in the years ahead, predicated on our Customer First operating model.
“2016 was a challenging year in a difficult, highly competitive market environment,” Chief Executive Officer Chris Campbell said.
“While our trading result was down slightly, the reality is many businesses are currently facing economic uncertainty and challenge. This is consistent with the declining Terms of Trade of Australia in line with an adjusting economy.
“We are no different in this respect and have seen increased pressure on our margins during the year. However, the road ahead for us is positive and our new operating model will continue to transform our business.”
In December, the company launched a 50-50 joint venture with Fulton Hogan Industries to operate the Citywide North Melbourne Asphalt Plant – a strategic decision that will deliver ongoing benefits, Mr Campbell said.
Securing substantial new contracts - including the City of Melton and City of Yarra – through the company’s new bundled services approach were also testimony to Citywide’s renewed Customer First focus, Mr Campbell said.
Read the full Annual Report here (opens in a digital flip book)