ANNUAL REPORT 2004â05 - V/Line
ANNUAL REPORT 2004â05 - V/Line ANNUAL REPORT 2004â05 - V/Line
FINANCEKEY STATISTICSV/Line's aim is to increase its patronage andfarebox revenue while controlling expenditure inorder to meet its budget targets.Similar to 2003–04, V/Line's financial performance for theyear ending 30 June 2005 was in line with budget expectations.Total revenues were $214.9 million, including fareboxrevenue of $47.6 million and the Government's subsidy of$155.5 million. Total expenses were $215.5 million, resultingin an operating deficit for the year of $0.65 million.The variation between the 2003–04 and 2004–05 operatingresults reflects arrangements made when V/Line PassengerPty Ltd was purchased. In 2003–04, V/Line Corporationrecorded a net profit of $126.1 million. This result included again of $136.8 million from the purchase of V/LinePassenger Pty Ltd. The transaction involved the acquisitionof net assets of $136.8 million for a consideration of $1.'GOING CONCERN' BASIS OF ACCOUNTINGV/Line's financial statements have been prepared on a'going concern' basis. The directors consider this basis tobe appropriate as a result of the Victorian Government'scommitment to fund V/Line's operations pursuant to thefranchise agreement, and to meet employee liabilities in theevent that V/Line is unable to do so.36 | V/LINE ANNUAL REPORT 2004–052004–05 FINANCIAL SUMMARYNOTESNOTERevenue – Operational $206.7m 1 $214.9m– Non-operational $8.2mExpenditure 2 $215.5mOperating deficitNet cash inflow from operating activities$0.65m$20.5mTotal assets 3 $183.5mTotal liabilities 4 $58.0mNet assetsTotal staff$125.5m727.5 (FTE)1 Operational revenue includes fares, government subsidy andrevenue from other operators.2 Expenditure includes track access charges, labour costs,rolling stock maintenance, depreciation and fuel.3 Total assets include rolling stock with a fair value of $160.3 million.4 Total liabilities include employee entitlements of $33.6 millionand creditors and other liabilities of $24.4 million.
CORPORATE GOVERNANCEFROM LEFT: MEREDITH DOIG, CATHERINE SCOTT, COLIN NICOLAND FRANK TAITV/LINE PASSENGER CORPORATION ANDV/LINE PASSENGER PTY LTDV/Line Passenger Corporation (VLPC) wasestablished on 15 July 2003 as a statutory railcorporation under the Rail Corporation Act 1966.The Corporation was set up to acquire NationalExpress Group Australia (V/Line Passenger) PtyLtd (NXVLP) from the National Express Groupfollowing that group's decision to withdraw fromthe operation of its rail transport franchises.V/Line Passenger Corporation's acquisition of NXVLP tookplace on 1 October 2003 when the name of NXVLP waschanged to V/Line Passenger Pty Ltd (‘V/Line’).V/Line has a franchise agreement with the Director of PublicTransport, representing the State Government of Victoria, tooperate regional rail and rail replacement coach services.It remains subject to a deed of company arrangement andhas been operating as a stand-alone organisation since1 October 2003 when it came out of receivership.In July 2004, in response to a direction from the Director ofPublic Transport, V/Line established a small, wholly ownedsubsidiary company, Victorian Rail Heritage Operations PtyLtd, to operate certain heritage (steam) rail services in Victoria.BOARD OF DIRECTORSThe boards of V/Line Passenger Corporation and V/LinePassenger Pty Ltd consist of the same four non-executivedirectors, with the board of the parent entity, V/Line PassengerCorporation, reporting to the Minister for Transport.Each board has established protocols and procedures toensure that corporate governance is maintained at thehighest levels and the strategic direction and overallperformance of the business can be developed andmonitored diligently.Victorian Rail Heritage Operations Pty Ltd is a one-directorentity.BOARD COMPOSITIONFRANK TAITMr Tait is the Chair of both V/Line boards and also runs aconsultancy business advising boards, executivemanagements and entrepreneurs on business strategy,organisational development and recruitment strategies. MrTait's distinguished career spans government and the railtransport and defence industries. Along with his role on theV/Line boards, Mr Tait is also executive director of theRegional Fast Rail Project.MEREDITH DOIGDr Doig is the deputy Chair of both V/Line boards. She isalso on the board of a number of organisations, includingthe Port of Melbourne Corporation and Bakers Delight, andis a member of the Council of the University of Melbourne.Dr Doig has held senior executive positions in ANZ, CRAand Ford and is currently the managing director of PotentiaAustralia.V/LINE ANNUAL REPORT 2004–05|37
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FINANCEKEY STATISTICSV/<strong>Line</strong>'s aim is to increase its patronage andfarebox revenue while controlling expenditure inorder to meet its budget targets.Similar to 2003–04, V/<strong>Line</strong>'s financial performance for theyear ending 30 June 2005 was in line with budget expectations.Total revenues were $214.9 million, including fareboxrevenue of $47.6 million and the Government's subsidy of$155.5 million. Total expenses were $215.5 million, resultingin an operating deficit for the year of $0.65 million.The variation between the 2003–04 and 2004–05 operatingresults reflects arrangements made when V/<strong>Line</strong> PassengerPty Ltd was purchased. In 2003–04, V/<strong>Line</strong> Corporationrecorded a net profit of $126.1 million. This result included again of $136.8 million from the purchase of V/<strong>Line</strong>Passenger Pty Ltd. The transaction involved the acquisitionof net assets of $136.8 million for a consideration of $1.'GOING CONCERN' BASIS OF ACCOUNTINGV/<strong>Line</strong>'s financial statements have been prepared on a'going concern' basis. The directors consider this basis tobe appropriate as a result of the Victorian Government'scommitment to fund V/<strong>Line</strong>'s operations pursuant to thefranchise agreement, and to meet employee liabilities in theevent that V/<strong>Line</strong> is unable to do so.36 | V/LINE <strong>ANNUAL</strong> <strong>REPORT</strong> 2004–052004–05 FINANCIAL SUMMARYNOTESNOTERevenue – Operational $206.7m 1 $214.9m– Non-operational $8.2mExpenditure 2 $215.5mOperating deficitNet cash inflow from operating activities$0.65m$20.5mTotal assets 3 $183.5mTotal liabilities 4 $58.0mNet assetsTotal staff$125.5m727.5 (FTE)1 Operational revenue includes fares, government subsidy andrevenue from other operators.2 Expenditure includes track access charges, labour costs,rolling stock maintenance, depreciation and fuel.3 Total assets include rolling stock with a fair value of $160.3 million.4 Total liabilities include employee entitlements of $33.6 millionand creditors and other liabilities of $24.4 million.
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