annual report 2008-2009 - V/Line

2007
2008
2008
2009
FINANCIAL SUMMARY: $M $M
Revenue
Operational 381.2 328.3
Non-operational 84.0 83.6
Expenditure 471.6 420.9
Loss before income
tax expenses 6.4 9.0
Net cash inflow from
operating activities 21.0 20.9
Total assets 169.7 173.0
Total liabilities 108.4 105.3
Net assets 61.3 67.7
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Record patronage saw our farebox revenue increase
15 per cent to $68.6 million. This is the second year of
strong farebox growth, and represents a 39 per cent
increase on the $49.3 million collected in ticket sales
back in 2005–06.
Total income for the V/Line business was up 13 per cent to
$465.2 million ($411.9 million last year). This included a
$28.9 million increase in government subsidies to
$255.6 million (a 12.7 per cent increase from last year’s
$226.7 million).
Importantly, the subsidy per passenger trip continued to
decrease this year to $19.42 as more people travel with
V/Line. This key efficiency measure has seen the rate drop
from $19.88 last year and $22.74 in 2006–07.
Revenue from access charges to other operators remains
flat – up just $188,000 on last year to $2.7 million.
The impact of the drought on harvest outcomes means this
is still down almost $2 million on access fees in 2006–07
and does not reflect the considerable costs of maintaining
the freight rail infrastructure.
However, total expenses also increased with the growing
business – up 12 per cent to $471.6 million ($420.9 million
in 2007–08). Major expenses included $58.9 million in
fleet maintenance ($47.8 million in 2007–08) as our trains
continue to travel further. With the demands of extreme
weather, particularly over summer, road coach costs also
increased to $6.8 million ($4.5 million last year). There was
only a modest increase in staff: labour costs increased to
$121.3 million ($107.2 million in 2007–08).
While fuel remains a major cost to our business
($24.4 million this year), efficiencies were realised as part
new commercial arrangements with our supplier which saw
savings of $626,000 in the first year of the new deal.
The business reported a consolidated loss before tax for
the year of $6.4 million. While this is an improvement on the
$9 million loss (before income tax expense) reported last
year and $23.4 million loss in 2006–07, it is important to
note that this is not a cash loss.
As a not-for-profit entity whose primary obligation is the
delivery of subsidised passenger transport services to
regional Victoria, neither V/Line’s Franchise Agreement
with the Director of Public Transport nor V/Line’s Corporate
Business Plan is based on the corporation making a profit.
GREENHOUSE E E CHALLENGE L E PLUS
Greenhouse Challenge Plus began as a voluntary program
for companies wanting to boost their green credentials.
To strengthen the program, the Commonwealth introduced
a mandatory category of membership for those companies
claiming more than $3 million in fuel tax credits per annum.
With a fuel usage of 26.5 million litres and a rebate of
$0.38143 per litre, membership of the program was worth
about $7 million per annum for V/Line.
Following new legislation recently passed by the
Commonwealth, the Greenhouse Challenge Plus
program ceased on 30 June 2009 and has not been
replaced by an alternative scheme.
ENGAGEMENT G E E N OF CONSULTANTS N T S PAID OVER $100,000
0 0 0 0
SUPPLIER/VENDOR DESCRIPTION $'000
Alphawest Information technology services 2,224
McCann Erickson Melbourne Marketing advertising services, including outbound growth campaign 1,830
Worley Parsons Engineering services 955
Corrs Chambers Westgarth Legal advice 899
Fujitsu Australia BMS implementation 358
Oakton Services Information technology services, including BMS implementation 314
Dimension Data Australia Information technology services 302
Barrington Centre Critical incident management and employee assistance program 215
Willis Australia Workcover administration, case management and insurance brokerage 199
Ernst & Young Taxation and internal audit services 173
Initiate Action Materials management improvements 155
Critical Risk Pty Ltd Risk management / security 128
Battiston Consulting Business management system consulting 92
Under $100,000 16 consultancies 605
V/LINE ANNUAL REPORT 2008-2009 FINANCE 62/63