Star Health continued its run of sound financial performances by
finishing the 2020-21 financial year with a strong operational surplus.
Responding to the Covid-19 epidemic created many new challenges and opportunities for the organisation and is the primary reason for the significant increase in revenue and operating surplus for the period.
Total operating revenue for the year was $52.3M, representing a 46% increase from the $35.8M achieved in the 2019-20 year. Star Health did not apply for or receive any Job Keeper payments.
Our operating expenditure for the year was $46.3M, a 30% increase over the previous year’s figure of $35.6M. Star Health has been investing heavily in ICT infrastructure for some years now. Our platform allowed us to work from home with almost no changes or expenditure required to make the transition. It also allowed us to scale up quickly with a disproportionally small amount of over head costs involved. It was the investment over the last few years that allowed revenue to increase by 46% and costs to only increase by 30%
The operating surplus for the year was $6.0M, a significant increase on the previous year’s result of $0.2M, again predominantly due to COVID activities. Financially the 20/21 year has been the most operationally successful year for STAR HEALTH.
Other Comprehensive Income for the year was $1.0M (prior year a loss of $0.4M), reflecting the benefit from capital gains in our investment portfolio during the period, arriving at a Total Comprehensive Income for the year of $7.0M.
Cashflow for the year remained positive with the business generating $7.5M in cash. There was no significant capital expenditure during the year. Most of our activities see a direct correlation between operating profit and cash generation.
Our strong financial position will enable us to continue to grow our services and reach, whilst maintaining our focus on those who are vulnerable and need our services the most.
I would like to thank our funders who have supported us over the past year and helped with our ongoing success, enabling us to work with and support our community. I would also particularly like to thank our dedicated staff who have worked so tirelessly during this incredibly challenging COVID dominated year enabling us to continue to provide all our services whilst delivering strong financial results.
Finally, I would like to thank my board colleagues including those on the Finance and Audit Committee, for their support and ongoing commitment.
Treasurer Board of Directors