Yarram Herd Services 2020 Financials

Financial Reports 2020.pdf

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Covering note with the accounts.

Attached are the financial reports for the year ending 30 June 2020.

Please note that we have divided the reports into the 4 main sectors, being Semen, Services, Herd Testing and Merchandise.

We allocated the income and direct costs relevant to each of these sectors, with the view to being able to easily identify the performance of each sector.

This should allow for greater understanding of the contribution each sector makes to the overall business.

We have also shown the insurance proceeds together with the write back of the building costs after the main operation profit of the business. This was done so as not to 'blur' the results of the business for the 12 months.

Summary of the results

The 2019/20 financial year results showed a $175,108 net loss after depreciation and interest.

The semen services sector recorded a $37,422 operating profit after allowing for $46,587 of stock losses due to the fire.

The services sector recorded an operating profit of $71 ,680, some $33,798 higher that the previous years, off the back of a $61 ,882 increase in sales revenue.

The Herd Testing services reported an operating profit of $27,508 down from the $44,956 reported the previous year. Gross revenue was static so the profit downgrade was due to rising costs, attributable to the outsourcing of the testing.

The merchandise services reported an operating loss of $15,336. This was due to a significant purchase of new merchandise, resulting from the fire. The merchandise services had a gross sales revenue increase of $16,324 or 28%.

Operating costs before deprecation were $287,928 compared to $205,927. The increaarose primarily from rent, replacement tools, salaries and motor vehicle expenses.