5. Discontinued operations In December 2022, Vector announced an agreement for the sale of a 50% interest in its New Zealand and Australian metering business (Vector metering), to investment vehicles managed and advised by QIC Private Capital Pty Limited (QIC). The sale was completed on 30 June 2023. Vector metering previously formed the group’s metering segment. The result of the disposal group for the year to 30 June 2023 is presented in the profit or loss from discontinued operations in the financial statements. Comparatives have been restated to show the discontinued operations separately from continuing operations. Vector has applied some of the proceeds to the repayment of group debt and most of the remaining funds have been placed on deposit, pending repayment of future debt maturities. However, Vector metering held no debt itself, so the results presented for discontinued operations do not include any finance costs.
30 JUN 2023 $M
30 JUN 2022 $M
Profit and loss of discontinued operations
258.8
Revenue
235.6
(70.6) (53.3)
Operating expenses
(61.9) (95.6)
Depreciation and amortisation Profit/(loss) before income tax Income tax benefit/(expense)
134.9
78.1
(41.6)
(19.7)
Net profit/(loss) for the period before gain on sale
93.3
58.4
1,509.9 1,603.2
Gain on sale (net of tax)
–
Net profit/(loss) for the period attributable to owners of the parents
58.4
30 JUN 2023 $M
30 JUN 2022 $M
187.7
Capital expenditure of discontinued operations
156.7
30 JUN 2023 $M
30 JUN 2022 $M
Cash flows from discontinued operations
190.8
Net cash flows from/(used) in operating activities Net cash flows from/(used) in investing activities Net cash flows from/(used) in financing activities
161.5
(180.2)
(144.4)
(11.7)
(17.5)
Net cash inflow/(outflow)
(1.1)
(0.4)
Revenue-metering services
The group receives revenue from business customers for providing electricity and gas metering and data services. Customers are predominantly energy retailers who have multiple customers (end users) consuming electricity and gas. Metering and metering data services comprise collection and provision of half-hourly data, utilising the group’s electricity and gas meter assets that are fitted at the premises of end users. Metering services are billed to the customer monthly, based on actual and validated metering and data services provided. Customers are billed a number of days after the end of the month to allow for data validation to take place. A contract asset is recognised at the end of each month for services provided but unbilled.
68
Vector Annual Report 2023
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