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The Citycare Group has reported a net loss after tax of $724k for the 2019 financial year.

Term debt has reduced by 32%, from $18.4m in the 2017/18 year to $12.6m in the 2018/19 financial year, due to effective cash management and improved operating cash flow.

“The 2019 result is largely attributed to losses incurred in our Civil sector business. We incurred $2m of excess costs on a single construction contract, in a line of work that the company has subsequently discontinued, and a $1m loss to wind up a previously profitable joint venture operation. Our subsidiary business, Apex Environmental, also incurred a trading loss for the year. The Citycare share of that loss was $700k.

We have subsequently completed a comprehensive review of the Civil business and reset our focus and priorities under new leadership in a downsized operation,” said Citycare CEO, Onno Mulder.

Apex Environmental has a new General Manager and a strong future order book with international interest in their containerised packaged wastewater treatment plants.  Reflecting this positive outlook, Citycare has increased their shareholding in Apex from 57% to 75%.

Citycare Water and Citycare Property have both delivered profitable performance during the 2018/19 financial year.

 Citycare Water’s future focus is on re-winning cornerstone contracts by growing its reputation and capabilities as a specialist partner of choice in the maintenance of our country’s water infrastructure. Initiatives to reset and enhance Citycare Water’s service proposition include continuing investment in industry leading technology to provide our clients with real time asset information.

Over the past year Citycare Water has secured new contracts with Clutha and Stratford District Councils and re-secured the Masterton District Council contract.

The future focus for Citycare Property is to drive new processes for workplace planning and scheduling and to increase productivity and profitability through lean delivery models and increased use of technology.

Key contract successes for Citycare Property in 2018/19 included achieving requisite community outcomes on the Auckland Council full facilities contract which resulted in increased contract scope to include Auckland Transport assets, renewal of the Christchurch City Council facilities management contract for up to a three-year term and re-securing the Tauranga City Council reserves maintenance contract in a competitive market.

Mulder concludes: “As one of the largest local authority maintenance providers in New Zealand our three sectors are now in a strong position and we expect a return to profit over the next year. The Citycare focus will be on driving profitability while acknowledging our responsibilities as a safe employer and sustainable operator in delivery of expert and excellent operations.”