XXXX DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021
For the month of August 2021 the Company was eligible for the Jobsaver program. Liquidity and Funding At 30 June 2021 the group had net current assets of $3,443,015. At 30 June 2021 the group had undrawn bank facilities of $3,062,268. During the year, the Group generated operating cashflows of $1,215,883. Based upon its cash reserves, undrawn finance facilities and expected ongoing earnings, the Group is comfortable it has sufficient funding capacity to continue to grow the business and meet all its obligations. Significant Changes in the State of Affairs There were no significant changes during the year, except for the impacts of COVID-19 as discussed in this report. Likely Developments and future operations The board and management meet annually to develop a strategic plan for the business. In the 2022 financial year the key strategic priorities are to: 1. Broaden Go Vita Group Limited’s focus and services to improve Members’ businesses 2. Refresh the Value Proposition and broaden the communities it serves 3. Significantly grow and diversify revenue streams and profit performance for Members and the Go Vita Group. 4. Embrace the opportunities and commitment to purpose, people, planet and profit in our decision making for a sustainable future 5. Invest in people, technology and digital capability to improve the efficiency and performance of the business
2021
2020
Profit before tax
844,074 904,708
Add back trading rebate paid 198,587 104,334 1,042,661 1,009,042 The results of the business for the financial year ending 30 June 2021 compared to the financial year ending 30 June 2020 are very similar. Underlying profit after tax for the year of $630,991 decreased by 6% compared to the prior year result of $668,988. The key reasons were: Factors increasing profits: Higher earnings from 0.8% higher sales. Higher earnings from 0.3% increase in gross margin percentage. Higher marketing gross profit because of four magazines published compared to three the prior year. Factors decreasing profits: Rebate of $198,587 (Increase of $94,253 compared to the $104,334 paid in 2020) returned to members based on product purchases from the warehouse. Lower member levies because a large corporate group were members in the 2020 financial year.
COVID-19 Assistance and Support Received
Subsidies During the financial year, the Group received COVID-19 related support subsidies as outlined below:
Subsidy FY 2021
Subsidy FY 2020
Government Subsidy
ATO Cashflow boost
71,373 65,835
NSW payroll tax refund (25% reduction)
-
26,971
71,373 92,806
GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 33
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