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NRMA Motoring & Services profit turnaround
Australias largest mutual, NRMA Motoring & Services, today announced an impressive financial turnaround for the year ending 30 June 2004.
NRMAs operating losses reduced by 56 per cent, from $58 million to $25.5 million After investment income, the company recorded an $800,000 operating profit. NRMA Motoring & Services CEO, Mr Tony Stuart, said that the 56 per cent reduction in operating losses - from $58 million in 2003 to $25.5 million - was particularly pleasing. A combination of pricing, operational and industrial reforms have contributed to the turnaround of the companys financial position, Mr Stuart said.Difficult decisions - such as increasing membership fees and reducing the number of non-customer-facing staff by around 25 per cent - were essential to the turnaround.Significant growth of NRMAs investment portfolio has resulted in a net profit after tax of $50.6 million, compared with an overall net loss of $51.1 million in 2002-03.Mr Stuart said the company had remained focused on creating a healthier organisation and further improving member value.The turnaround has not come at expense of service. Last year NRMA patrols attended more than 1.8 million roadside assists. In more than nine out of ten instances NRMA patrols successfully got the members vehicle going again, Mr Stuart said. Member satisfaction with road service has remained steady at around 90 percent.Mr Stuart said the new enterprise agreement for the patrol workforce finalised in June would continue to deliver efficiencies and a more flexible workforce in the coming financial year.NRMA is out of the red and in a position to successfully operate as a standalone business following demutualisation. We will maintain the momentum to regain our position as Australias most successful mutual organisation, Mr Stuart said.We have made many tough decisions in the past year to ensure that NRMA has a future. Todays results confirm that NRMA is back on track.We are now in a better position to deliver roadside assistance and many other member benefits for years to come.NRMA President Mr Ross Turnbull said that management and staff had done a terrific job implementing the companys turnaround program.These results demonstrate what can be achieved when the companys attention is firmly on the business, Mr Turnbull said.
NRMAs operating losses reduced by 56 per cent, from $58 million to $25.5 million After investment income, the company recorded an $800,000 operating profit. NRMA Motoring & Services CEO, Mr Tony Stuart, said that the 56 per cent reduction in operating losses - from $58 million in 2003 to $25.5 million - was particularly pleasing. A combination of pricing, operational and industrial reforms have contributed to the turnaround of the companys financial position, Mr Stuart said.Difficult decisions - such as increasing membership fees and reducing the number of non-customer-facing staff by around 25 per cent - were essential to the turnaround.Significant growth of NRMAs investment portfolio has resulted in a net profit after tax of $50.6 million, compared with an overall net loss of $51.1 million in 2002-03.Mr Stuart said the company had remained focused on creating a healthier organisation and further improving member value.The turnaround has not come at expense of service. Last year NRMA patrols attended more than 1.8 million roadside assists. In more than nine out of ten instances NRMA patrols successfully got the members vehicle going again, Mr Stuart said. Member satisfaction with road service has remained steady at around 90 percent.Mr Stuart said the new enterprise agreement for the patrol workforce finalised in June would continue to deliver efficiencies and a more flexible workforce in the coming financial year.NRMA is out of the red and in a position to successfully operate as a standalone business following demutualisation. We will maintain the momentum to regain our position as Australias most successful mutual organisation, Mr Stuart said.We have made many tough decisions in the past year to ensure that NRMA has a future. Todays results confirm that NRMA is back on track.We are now in a better position to deliver roadside assistance and many other member benefits for years to come.NRMA President Mr Ross Turnbull said that management and staff had done a terrific job implementing the companys turnaround program.These results demonstrate what can be achieved when the companys attention is firmly on the business, Mr Turnbull said.
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