The global financial crisis has sent shockwaves through Queensland's peak horticulture organisation, Growcom, which last night announced an $841,235 net after-tax loss at its AGM in Brisbane.
It is the organisation's seventh consecutive loss since 2001-02, two years before statutory levies from growers were abolished by the State Government, drying up valuable revenue sources.
But newly installed chief executive Alex Livingstone says he has retained the confidence of the Growcom board to steer the grower advocacy group to a break-even position by June 30 next year.
Mr Livingstone said the figures for Growcom were trending in the right direction, despite revenue for the financial year at $5.5million, down marginally from the previous year of $5.6m. He based his upbeat assessment on the decision by accountants to write down the organisation's assets by $610,000 ? a figure blown out by the carnage on global stock markets.
Mr Livingstone said the devaluation was out of Growcom's control and in an interview with Queensland Country Life before last night's meeting, took solace from the fact that Growcom's actual cash loss for the year was $230,000.
This compares with Growcom's $699,975 loss tabled in the 2006-07 annual report, a figure which also included an upwards revaluation of the organisation's investments of $1.232m taken up through its profit and loss.
That accounting standard wasn't employed this year.
According to Growcom chairman John Bishop, auditors instead advised that Growcom should allow an impairment or devaluation figure of $610,000 against its income for the year.
"Together with many Australians, Growcom has suffered as a result of the financial downturn with investments in equities nearly halved," Mr Bishop said.
But Mr Livingstone concedes the situation is still unacceptable, with the asset write-down weakening Growcom's overall position going into what will be in all probability a difficult 2009, marked by ever deteriorating economic conditions.
"Mr Livingstone said he remained confident Growcom would improve its position with no cuts to staff, closure of offices or services throughout the State, and a contraction in projects.
He also ruled out moving the headquarters of Growcom from the inner city Brisbane suburb of Spring Hill, despite the organisation paying $280,786 on rent last year.
The Board of Growcom is seemingly pinning its hopes on winning more government money to fund projects, with a plan articulated in a prepared statement reaffirming that the organisation's prime goal in 2008/2009 remains the provision of advocacy services on behalf of horticulture growers in Queensland.
A secondary role is to provide commercial services to its members in order for the business to remain sustainable and continue its primary task, the statement said.