Crown research institutes record after-tax surplus

Crown research institutes' (CRIs) after-tax surplus was $22.5 million in the year ended 30 June 2011, due to the fall in taxes paid by CRIs, Statistics New Zealand said today. This follows a deficit of $12.4 million in the previous year. Before tax, CRIs' operating surplus decreased $3.2 million in the year ended 30 June 2011.

In May 2010, the tax rules changed. Changes to depreciation rules for buildings caused a big increase in taxes paid in the year ended 30 June 2010. This was a one-off depreciation tax adjustment. In the year ended 30 June 2011, the taxes paid by CRIs decreased to $4.1 million.

CRIs' operating income decreased $3.1 million to $684.8 million for the year ended 30 June 2011. The largest contributor to the decrease in operating income was (commercial) sales, which decreased $3.7 million. Operating income decreased for the first time since Statistics New Zealand started to measure the financial performance of CRIs.

Employee costs and interest paid rose $9.2 million (2.7 percent) and $0.4 million (31.2 percent), respectively. These rises were offset by a decrease in all other expenses and depreciation of $8.8 million (3.4 percent) and $0.7 million (1.3 percent), respectively. This resulted in a small increase in total operating expenses (up $0.1 million to $657.5 million) in the year ended 30 June 2011.

See also:
Crown Research Institute Statistics: Year ended 30 June 2011 – Information release