apr-11.pdf (2.07 MB) - Crown Ownership Monitoring Unit

OperationsLearning Media has reorganisedits operations to strengthen itscustomer focus and its ability togrow into diversified markets foreducational services, both locallyand internationally. It continues tobuild on its established expertise indesign and publishing by improvingits marketing and sales capabilityand reorientating its culture tofocus strongly on customer needsand solutions. This adjustmentis necessary as core educationand health markets become morecompetitive and more focused ondigital products. In April 2011,Learning Media acquired CWA New Media to further enhance its abilityto provide digital educational solutions. Learning Media also has strongexpertise in Te Reo M ori. Expansion and diversification of its customerbase and product range will be important drivers of Learning Media’s futureprosperity.Financial performanceIn the last two years, revenue and NPAT have been ahead of SCI targets andLearning Media is now trading profitably after several lean years. However,moving to a growth trajectory will hinge on the success of the repositioning ofthe business, and the synergies gained from the integration of CWA New Media.Learning Media will also need to successfully adjust to increased contestabilityin core markets, and to be successful in its marketing to new markets.Performance against planLearning Media exceeded its revenue and profit targets in 2010/11. In achallenging year of change, both internally and in the markets that LearningMedia serves, this represents a commendable performance. LearningMedia’s financial performance can be significantly influenced by its success(or otherwise) in securing one or two extra contested contracts, and LearningMedia’s underlying capability to compete is increasing.DividendsIt is pleasing that Learning Media has resumed dividend payments in 2010/11,after a number of years of not paying them. Interim and final dividendscombined total $573,000. (Note that cash from the final dividend is notreceived until the 2011/12 year.) This reflects not just the successful year in2010/11, but also the Board’s confidence to release a portion of retainedprofits from 2009/10.Major investmentsLearning Media’s investmentsconcentrate primarily on maintainingand improving its capability tocreate and deliver educationalmaterial using appropriate media.In this context, its purchase of CWANew Media in 2010/11 enhances itscapability in digital media as it hasacquired CWA New Media’s digitaland online expertise. This expandsthe suite of services that LearningMedia can offer to clients.Non-financial performanceAn increasing proportion ofLearning Media’s revenue isderived from contestable sources.It therefore measures a rangeof customer satisfaction factors.Learning Media’s overall customersatisfaction result of 89.5% was a2% improvement on 2009/10.Corporate social responsibilityLearning Media measures theenvironmental sustainability of itsprint and packaging output (scoring95% against Govt3 criteria).page | 81