TREASURER'S REPORT
Star Health continued its run of sound financial performances by finishing the 2021-22 financial year with a strong operational surplus.
Responding to the COVID-19 epidemic created many continuing challenges and opportunities for the organisation and is the primary reason for the significant increase in revenue and operating surplus for the period.
Financial Performance
Total operating revenue for the year was $68M, representing a 30% increase from the $52.3M achieved in the 2020-21 year and a 90% increase in revenue compared with the 2019-20 year.
Our operating expenditure for the year was $61.9M, a 34% increase over the previous year’s figure of $46.3M. Star Health continues to invest heavily in ICT infrastructure and other system improvements. Our platform has continued to evolve, allowing us to work in a hybrid manner including working from home where necessary. It has continued to allow us to scale up quickly with a disproportionally small amount of overhead costs involved.
The operating surplus for the year was $6.0M, at the same level as last year’s excellent result. The result was predominantly due to COVID activities. Financially, the 2021-22 and 2020-21 years have been the most operationally successful for Star Health.
Other Comprehensive Income for the year was -$1.3M (prior year was a profit of $1.1M), reflecting the unrealised capital losses in our investment portfolio during the period, arriving at a Total Comprehensive Income for the year of $4.6M.
Cashflow for the year remained positive with the business generating $4.8M 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 enables us to continue to grow our services and reach, whilst maintaining our focus on those who 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.
Nick Capes
Treasurer Board of Directors