RHODIUM ASSET SOLUTIONS LIMITED
Objectives
Rhodium Asset Solutions Limited provides fleet services to the government and the non‑government sectors.  
2005‑06 Highlights
Strategic and operational issues to be pursued in 2005‑06 include:
•	implementing a customer relations plan to ensure key clients are retained;
•	continuing to improve the range and quality of services provided to customers;
•	implementing a new information technology platform, which is required to maintain existing business and meet customer needs;
•	restructuring the business operations to be more customer focused;
•	completing a workforce skills gap analysis and implementing a plan to address the gaps; and
•	continuing to contribute to the local community through sponsorships and donations.

Rhodium Asset Solutions Ltd	
Operating Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		User Charges - Non ACT Government	6  840	17  878	161	25  474	34  125	41  552		
0		User Charges - ACT Government	1  746	3  614	107	3  740	3  870	4  005		
0		Interest	96	165	72	138	138	138		
0		Other Revenue	45	90	100	90	90	90		
0		Total Revenue	8  727	21  747	149	29  442	38  223	45  785		
		Gains								
0		Total Gains	0	0	-	0	0	0		
0		Total Income	8  727	21  747	149	29  442	38  223	45  785		
		Expenses								
0		Employee Expenses	1  170	2  128	82	2  199	2  711	3  293		
0		Superannuation Expenses	122	223	83	230	285	347		
0		Supplies and Services	693	1  807	161	2  017	2  078	2  140		
0		Depreciation and Amortisation	3  042	6  450	112	9  350	12  350	15  350		
0		Borrowing Costs	1  777	5  101	187	7  449	10  793	13  350		
0		Cost of Goods Sold	972	4  188	331	5  464	6  172	6  691		
0		Other Expenses	900	1  350	50	1  800	2  250	2  725		
0		Total Ordinary Expenses	8  676	21  247	145	28  509	36  639	43  896		
0		Operating Result From Ordinary Activities	51	500	880	933	1  584	1  889		
0		Income Tax Equivalent	15	150	900	280	475	567		
0		Operating Result	36	350	872	653	1  109	1  322		

Rhodium Asset Solutions Ltd	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
0		Cash	2  139	2  994	40	2  947	2  951	2  940		
0		Receivables	16  538	25  067	52	33  707	42  389	50  958		
0		Other	250	275	10	350	425	520		
0		Total Current Assets	18  927	28  336	50	37  004	45  765	54  418		
		Non Current Assets								
0		Property, Plant and Equipment	28  810	47  310	64	57  810	65  310	69  810		
0		Intangibles	69	1  019	#	919	819	719		
0		Other	30  667	47  057	53	63  205	79  259	95  325		
0		Total Non Current Assets	59  546	95  386	60	121  934	145  388	165  854		
0		TOTAL ASSETS	78  473	123  722	58	158  938	191  153	220  272		
		Current Liabilities								
0		Payables	4  467	4  748	6	5  405	6  088	6  693		
0		Finance Leases	22  975	37  288	62	48  515	58  686	67  855		
0		Employee Benefits	165	146	-12	167	192	222		
0		Total Current Liabilities	27  607	42  182	53	54  087	64  966	74  770		
		Non Current Liabilities								
0		Finance Leases	45  949	74  576	62	97  031	117  378	135  715		
0		Employee Benefits	23	28	22	35	40	48		
0		Other Provisions	600	792	32	988	1  188	1  386		
0		Total Non Current Liabilities	46  572	75  396	62	98  054	118  606	137  149		
0		TOTAL LIABILITIES	74  179	117  578	59	152  141	183  572	211  919		
0		NET ASSETS	4  294	6  144	43	6  797	7  581	8  353		
		REPRESENTED BY FUNDS EMPLOYED								
0		Accumulated Funds	4  294	6  144	43	6  797	7  581	8  353		
0		TOTAL FUNDS EMPLOYED	4  294	6  144	43	6  797	7  581	8  353		

Rhodium Asset Solutions Ltd	
Cash Flow Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
0		User Charges	9  460	21  234	124	28  663	37  354	45  017		
0		Interest Received	96	165	72	138	138	138		
0		Operating Receipts	9  556	21  399	124	28  801	37  492	45  155		
		Payments								
0		Related to Employees	1  272	2  537	99	2  590	2  888	3  653		
0		Related to Supplies and Services	753	1  746	132	1  922	1  945	2  050		
0		Borrowing Costs	1  777	5  101	187	7  449	10  793	13  350		
0		Other	4  188	5  814	39	7  597	9  625	11  224		
0		Operating Payments	7  990	15  198	90	19  558	25  251	30  277		
0		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	1  566	6  201	296	9  243	12  241	14  878		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
0		Proceeds from Sale of Property, Plant & Equipment	750	1  800	140	1  850	1  925	1  980		
0		Investing Receipts	750	1  800	140	1  850	1  925	1  980		
		Payments								
0		Purchase of Property, Plant and Equipment	10  000	20  000	100	20  600	20  600	20  600		
0		Purchase of Land and Intangibles	0	1  000	#	0	0	0		
0		Investing Payments	10  000	21  000	110	20  600	20  600	20  600		
0		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-9  250	-19  200	-108	-18  750	-18  675	-18  620		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
0		Capital Injection from Government	0	1  500	#	0	0	0		
0		Borrowings Received	19  851	59  414	199	62  978	68  880	69  510		
0		Receipt of Transferred Cash Balances	3  954	0	-100	0	0	0		
0		Financing Receipts	23  805	60  914	156	62  978	68  880	69  510		
		Payments								
0		Dividends to Government	0	0	-	0	0	325		
0		Repayment of Borrowings	13  982	47  060	237	53  518	62  442	65  454		
0		Financing Payments	13  982	47  060	237	53  518	62  442	65  779		
0		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	9  823	13  854	41	9  460	6  438	3  731		
0		NET INCREASE/(DECREASE) IN CASH HELD	2  139	855	-60	-47	4	-11		
0		CASH AT BEGINNING OF REPORTING PERIOD	0	2  139	#	2  994	2  947	2  951		
0		CASH AT THE END OF THE REPORTING PERIOD	2  139	2  994	40	2  947	2  951	2  940		

Rhodium Asset Solutions Ltd	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
0		Opening Balance	0	4  294	#	6  144	6  797	7  581		
		Accumulated Funds								
0		Operating Result for the Period	36	350	872	653	1  109	1  322		
		Reserves								
0		Total Income And Expense For The Period	36	350	872	653	1  109	1  322		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
0		Capital Injections	0	1  500	#	0	0	0		
0		Inc/Dec in Net Assets due to Admin Restructure	4  258	0	-100	0	0	0		
0		Dividend Approved	0	0	-	0	-325	-550		
0		Closing Balance	4  294	6  144	43	6  797	7  581	8  353		
Notes to Budget Statements
The operations of Totalcare Fleet were transferred to Rhodium Asset Solutions Limited on 1 January 2005.  Consequently, there were no 2004‑05 Budget estimates and the figures for the 2004‑05 estimated outcome only represent the six month period between 1 January 2005 and 30 June 2005.  The majority of the variances between the 2004‑05 estimated outcome and the 2005‑06 Budget will therefore arise from the different reporting period durations.
Significant variations are as follows:
Operating Statement
The variances in the 2005‑06 Budget from the 2004‑05 estimated outcome in the operating statement are largely due to the effect of the half‑year trading in 2004‑05 versus the full‑year trading in 2005‑06.
Balance Sheet
•	cash:  the increase of $0.855m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to a capital injection and 2005-06 trading activities;
•	receivables:  the increase of $8.529m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to planned growth in the finance lease business;
•	property, plant and equipment:  the increase of $18.5m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects the increase in assets purchased due to planned growth in the operating lease business;
•	intangibles:  the increase of $0.950m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects the purchase of a new IT system;
•	other non current assets:  the increase of $16.390m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to planned growth in the finance lease business;
•	payables:  the increase of $0.281m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects the growth in the lease business;
•	current and non current finance leases:  the increase of $42.940m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to increased borrowings to fund the planned growth in the finance lease business; and
•	other provisions:  the increase of $0.192m in the 2005‑06 Budget from the 2004‑05 estimated outcome reflects the increase in the provision for diminution in the value of operating lease assets that are returned to Rhodium at the end of the lease period for disposal.