2019/20 Financial Year

Mr Ross Cardiff Chief Financial Officer

While you will be reading this in 2021 the details discussed relate to both the 2019 and 2020 financial years. 2019 was a sound year financially for the School and this put us in a good position leading into the challenges of 2020.

We were extremely close in 2019 to being a $50 million business, with our income being $49.95 million for the financial year. Tuition and Boarding fees made up $33.2 million, government grants, both State and Commonwealth, were $13.9 million and our remaining income of $2.7 million included our commercial activities and ancillary income. In total we finished the year at $49.9 million.

Expenditure was $46.46 million leaving a surplus of $3.4 million. Salaries continued to be our primary expense at $27.5 million followed by Boarding and Teaching direct expenses of $4.8 million. Central administration costs, which include a myriad of items including Rates, Electricity and Insurance, totalled $5.28 million. Maintenance and Grounds, including cleaning costs, sat at $2.45 million and Commercial activities were $1.72 million. Expenses were rounded off with Interest and Depreciation at $4.59 million.

2020 was very different for us financially, as it was for many of our parents. Given the extended lockdown in Terms One and Two, the discounts and concessions offered to our parents saw our tuition and boarding income reduced to $31.8 million. Government grants totalled $14.8 million and we received additional income from our commercial activities, Covid related government support and ancillary income of $6.7 million which helped alleviate the reduced income. The School also received Capital income support, primarily from the Foundation, with donations by our community along with the P&F, of $933,000. Overall, the income was $54.3 million.

Expenditure was curtailed during the year. Overall, $43.04 million was undertaken operationally. This operational surplus was then utilised in the Annand Capital program. The overall project cost approached $23 million which includes the building itself, internal fit out and landscaping and the various consultants required for a building of this scope. The building is funded by Reserves, Donations and substantial Borrowings. Our loans totalled $9.6 million outstanding at the end of 2019 and they increased to $15.5 million with the Annand project. In addition, we completed the Uniform Store during 2020 at a cost of approximately $1 million.

Our enrolments have continued to grow over 2019 and we averaged 1633 students during the year with 309 boarders. In 2020 this increased to 1660 which is our capacity. This included 315 boarders. The demand for places at The Southport School remains strong.

In our annual parent survey, the School rates very highly in value for money, around 90% of our parents view the tuition they pay as good to high value for money. This is because the School has an extensive offering and this is part of our ‘All-Inclusive fee structure’. With the exception of holiday sporting camps and tours and some after school activities outside of organised sport, all activities at the School which are part of our Academic, Sporting or Cultural programs are covered in our tuition fees. Our Capital program, which enhances our world class facilities, is an important part in the value proposition for our parents.

Our financial position at the end of 2020 was sound having weathered the impacts of Covid while undertaking one of the largest Capital programs in the School’s history.