Australian Marketing Institute draws up ‘critical’ measures amid growing financial peril
The cash-strapped Australian Marketing Institute (AMI) has been warned that a failure to hit a series of “critical” business targets will throw “material uncertainty” over its future after it reported a loss of almost $170,000 in the 2016 financial year.
An independent auditor’s report said “significant doubt” will hang over the AMI’s ability “to remain a going concern” if its business strategy is not successful.
Key targets over the next nine months include growing membership income by 20% and slashing costs by 12%.
Where is Lee Tonito’s comment in all this? Marketer body overspends on budget I’m sure the industry will be shocked.
Sure there’s a loss, but the AMI has had terrible audits for years. All except for the last two years have been removed from the library, but it’s almost a direct copy and paste:
Seems as though the auditor actually had a proper look this time.
2015: http://www.ami.org.au/imis15/l.....Report.pdf
The company’s ability to continue as a going concern is dependent on a number of factors including the successful implementation of various cost saving measures and the ability of the company to perform in line with cash flow projections. Should these factors, along with other matters as set forth in Note 2 not be realised, then a material uncertainty exists which may cast significant doubt about the company’s ability to continue as a going concern and therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business.
2016: http://www.ami.org.au/imis15/l.....ort%20.pdf
The company’s ability to continue as a going concern is dependent upon the continued financial support of its lenders and the ability of the company to successfully execute its approved business strategy and generate sufficient operating cash flows.
Should:
– the continued financial support provided throughout the financial year cease; and
– the company not be able to successfully execute its business strategy as outlined in Note 2 of the financial report; and
– the company not generate sufficient operating cash flows, including the realisation of the critical assumptions noted above; and
– other matters as set forth in Note 2 not be realised, then a material uncertainty exists which may cast significant doubt about the company’s ability to continue as a going concern and therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business.
No surprises here. Membership revenue has declined by 15% so to buck the negative trend and achieve 20% growth in 2017 would otherwise be known as a miracle given the status quo prevails.