2016/17 represents the first financial year Landgate has been required to consolidate the financial results of Advara Limited, Landgate’s subsidiary, into its financial statements and key performance indicators.
Landgate, including Advara Limited, finished in a sound financial position despite continuing to be impacted by the subdued property market. Property market activity fell by approximately 9% compared to the previous year, with customer revenue below initial expectations. Landgate’s continued investment in strategic reform to achieve greater efficiency in the delivery of services enabled a positive return to the state for 2016/17.
Our profit ($m)
Landgate’s $26m gross profit was a significant achievement at a time when revenue was noticeably impacted by the subdued property market. The result reflects tight management of expenditure and the benefits of Landgate’s investment in systems automation and its ongoing reform program that enabled costs to be reduced.
Net assets ($m)
Landgate’s net assets grew by $19.7m to $220.4m, mainly as a result of the positive profit result. Landgate’s net asset base reflects a sound financial position which ensures solvent trading. It also funds investment in systems improvement and other initiatives for Landgate to deliver efficient services and other benefits to customers and the community.
Landgate continues to proactively manage expenditure and finished the year 2.3% below budget and 9.7% below the previous year. This occurred mainly within employee benefits due to tightly controlled recruitment practices, and savings realised from the implementation of a new operating model as part of Landgate’s business improvement program.
Landgate’s operating revenue was 2.7% below target due mainly to the sluggish property market which impacted key revenue streams including document registration and search activity levels (down 9% and 7% respectively compared to the previous year) and lower valuations activity. The decline in overall revenue was partially offset by an accounting gain in Landgate’s investment in PEXA Ltd due to a capital raising by PEXA Ltd in 2017. Landgate also received a service appropriation from the state government, which was 20% of total revenue.