Over the last few financial years, like many businesses, UnitingSA has been challenged by a range of external influences. This has included:

• the continuous changes to business models and compliance obligations brought about by Royal Commissions into Aged Care and NDIS;
• the rapidly changing population demographic driving changes to consumer expectations and care requirements; and
• the long and enduring impacts of the COVID-19 pandemic.

Having absorbed the challenges experienced in previous years, the organisation worked tirelessly to establish a more resilient and disciplined business model, without losing focus on our purpose and drive to deliver a great client experience at all times.

We have been strongly focused on building the capacity and capability of our workforce by embedding the new models associated with residential aged care and maximising the utilisation of assets. We have also been busy developing plans for future investments both internally, through digital transformation and workforce accommodation, and externally, through the utilisation of land for community housing, retirement living and provision of community services.

This year, we delivered a net surplus of $31.5m, up from $27.5m in the previous year. Much like last year, this year’s result includes significant upside from the annual revaluation of investment properties, which continued to benefit from Adelaide’s strong property market. The revaluation gain in 2022-23 was $24.1m compared to $25.8m in the previous year.

From a core business perspective (excluding revaluations), we delivered a strong financial result, improving from $1.7m in 2021-22 to $7.4m in 2022-23. Key contributors to the 2022-23 result include:

• an improved return from our Residential Aged Care business following the introduction of the AN-ACC funding model;
• recovery of a significant one-time COVID-19 related expenditure of $1.4m that was expensed in the previous year; and
• re-purposing our former aged care site at Regency Park in partnership with AMES Australia and Community Living Options.

A significant amount of work has been undertaken to strengthen our core business in 2022-23. We have focused on maximising the occupancy of bricks and mortar assets such as Residential Aged Care and Housing. This has allowed us to build strong partnerships with government and like-minded partners to deliver on community needs. It has also helped us build efficient and effective overhead cost structures.

Throughout 2022-23 we have maintained a strong cash position, grown equity and have a range of exciting growth projects in the pipeline. We now have the balance sheet, opportunity, and appetite to continue expanding our services and reach to the people of South Australia. Guided by our strategic plan, we will continue to invest in our surpluses in a way that allows us to deliver our purpose.