The NRMA has posted a 37 percent increase in its operating profit to $38.3 million.
The NRMA has also recorded a profit before income tax of $111.0 million (2016: $35.2 million). This includes:
- The profit from NRMA’s operating businesses of $38.3 million (2016: $28 million)
- NRMA’s share of equity accounted investments (including Travelodge) of $21.8 million
- Revaluation of investments of $35.1 million (2016: $7.5 million) due to the strength of the property market;
- And an increase in net fair value of the investment portfolio to $21.1 million (2016: $13.7 million decrease).
The result comes 12 months after the launch of the NRMA’s new strategy with improved performances across NRMA’s group of businesses, strong returns on the company’s investment portfolio and a reduction in corporate costs and overheads.
Total revenue across the NRMA Group grew three per cent to $527.4 million (2016: $511.0 million) while the company further strengthened its cash position with a 17 per cent increase in operating cash flow to $99.3 million. The organisation has also experienced solid growth in membership to over 2.6 million Members.
Net profits across the NRMA Group increased significantly to $93.0 million (2016: $34.1 million), while net assets have increased 11 per cent to $983.8 million (2016: $884.0 million).
NRMA Group CEO Rohan Lund said the financial turnaround came on the back of year one of the Group’s three-year Light on the Hill strategy and created the foundation for the NRMA as it moves towards its 2020 centenary celebrations.
“A stronger financial performance means we are better placed to future proof the NRMA and while we are making good progress on our strategy we know the work must continue so that we can invest in new transport and tourism businesses and deliver more value to more Members more of the time,” Mr Lund said.
“The last 12 months has seen the NRMA focus on our Members and customers by realigning its spending and taking costs out of head office. This has allowed us to reinvest in the frontline and our work to progress social change in three areas: Safe Mobility, Access for All and Sustainable Communities.
“Despite membership growth, the strong result came off the back of growth in the use of NRMA services from non-members.
“We have seen significant improvement on the performance of our Motoring businesses – with an almost $20 million turnaround on last year’s results – and profit increases in our Travel and Holiday Parks businesses.”
Earlier this year, the NRMA significantly grew its holiday parks footprint with the acquisition of Australian Tourist Park Management. The NRMA now owns or operates 39 parks across Australia.
Mr Lund said the NRMA’s strategy would focus on providing access solutions to Members around transport and mobility, using digital technology and the Group’s membership scale to continue to invest in Australia’s transport and domestic tourism sectors.
“Motoring remains at our core and this year the NRMA has significantly increased investment in training and technology for our patrols so that we can maximise the commercial opportunities arising from a future with electric and autonomous vehicles, and began rolling out the Connected Car technology,” Mr Lund said.
“We have also grown our network of car servicing centres with a new state-of-the-art facility in Gladesville and plans to open more this year.
“However, with one eye to our centenary in 2020, we believe there are exciting opportunities for the NRMA to provide meaningful solutions to how our Members get around, access services and spend time relaxing with their family and friends.
“These services will make an NRMA Membership of the future essential and this year’s financial results provides the platform we need to bring that strategy to life.”
For more information on how the NRMA creates value for our Members, our business and our community, download the NRMA Annual Report 2017.