Berry Street Web Docs Annual Report 2007 | Page 21

Discussion
and Analysis
of the Financial
Summary

Information on Berry Street
The financial summary presented in this Annual Report has been
Victoria Inc Financial Summary derived from the Financial Report of Berry Street for the year
ended 30 June 2007.
The discussion and analysis, together with the financial summary
has been included to provide an overview of the financial
performance of Berry Street for the year ended 30 June 2007
and of its financial position at 30 June 2007.
A copy of the full financial report and auditor’s report is
available free of charge, upon request.
Income Statement
Revenues:

The profit for the year ended 30 June 2007 is $2.1 million,
a decrease of $2.0 million on the previous year. The major
items contributing to this result were:
Government and other grants increased by $1.9 million.
The profit from sale of non current assets reduced by
$2.0 million, as the result for 2006 included profits from
the sale of two major properties.
Income from investments increased by $1.2 million.

Expenses:

Employee benefits expenses increased by $2.2 million.
Motor Vehicle expenses increased by $0.3 million due to an
increase in the motor vehicle fleet and increased vehicle utilisation.
Other Costs increased by $0.6 million due to additional one
off projects, including the relocation of the East Melbourne and
Dandenong offices to Richmond and Clayton.

Balance Sheet

Net Assets increased by $2.1 million to $23.5 million.
The major changes were as follows:
In Current Assets, a decrease in Trade and Other Receivables
of $4.9 million. This predominantly represents the payment
of balances due on settlement of two properties sold by
Berry Street in 2005/2006.
In Current Assets, an increase in Other Financial Assets of
$7.7 million representing the investment of the $4.9 million
received through the property settlements, a re-allocation of
$1.0 million out of cash assets and the reinvestment of
investment income and capital gains, surplus to operating
requirements, totalling $1.8 million.
An increase in Property, Plant and Equipment of $2.3 million
due to the fit out of the new Richmond and Clayton offices.
Short and long term borrowings increased by $2.1 million
representing an increase in finance lease liabilities used to
fund part of the motor vehicle fleet.
Short and long term provisions increased by $0.4 million
predominantly due to an increase in the Long Service Leave
provision to reflect a change in entitlement commencing
at 7 years rather than 10 years.

Statement of Changes
in Equity

Total equity increased by $2.1 million representing the profit
for the year.

Cash Flow Statement

There was a net increase of $4.2 million in cash holdings
during the year. The major changes in cash movements
during the year included the following:
Cash generated through operating activities contributed
$7.9 million, due to non-cash expenditure items such as