I am pleased to announce that public demand for taxis via our national number 131-008 remains very strong indeed with almost 28.3 million successful calls processed by our licenced networks in the 2014 financial year. The incursion into the market of smartphone taxi booking applications, mainly in the capital cities, has nevertheless contributed to a decline in call volumes and the company has budgeted for a further decrease in the 2015 financial year.
National taxi industry statistics indicate a reduction in taxi patronage, which is almost treble the percentage decline in successful calls to our national number. This clearly indicates the underlying value that 131 008 brings to those taxi businesses operated by our licensees. There are numerous factors contributing to the decreasing use of taxis, including the unregulated and unauthorised incursion into our industry by well financed, technology entities masquerading as taxi booking companies. Notwithstanding this fact, there has been no significant variation in the number of taxi networks accessing taxi bookings via the 131-008 service over the last few years, nor is the exposure of the 131-008 number any less Australia wide.
In response to the public acceptance of smartphone booking applications and the Australian Taxi Industry Association’s call for a united industry response to the very real threat from unauthorised booking applications, our company, earlier this year released its much anticipated Australia Wide Taxi Booking Application. 131-008 taxi networks now have access to a low-cost, industry developed and endorsed taxi booking smartphone application. The Australia Wide Taxi App has been developed for the benefit of our 131-008 taxi networks as a defence against the non-industry endorsed applications. I call upon our member taxi services to facilitate and expedite the rollout of the Australia Wide Taxi App across the country and to support and promote it locally.
The Australia Wide Taxi App compliments the 131-008 national phone booking service in competing with the unauthorised and un-accredited third party counterparts. Once the rollout of the Australia Wide Taxi App is complete, the company intends to explore the addition of payment and trip rating functionality to the Australia Wide Taxi App to further increase its appeal to taxi users.
This years financial results encompass a minor change in reporting with the inclusion of a wholly owned subsidiary private company, Taxi Pty Ltd, whose sole function is to develop the Australia Wide Taxi App, which is classified as a research and development project.
Our external advisors were consulted on the required accounting and income tax treatment of expenses incurred in developing this software. In simple terms, expenses that could be directly attributed to the development of the software were identified and then capitalised as an asset on the balance sheet instead of being expensed in the profit and loss account.
The drop in 131-008 call volumes contributed to a decrease in total company revenue in the 2014 financial year of 9%. The overall administrative and operational expenses of the group, which includes expenses associated with the Australia Wide Taxi App, increased by 11%. This resulted in an increase in net profit before tax of 58%.
The Call Rebate Scheme was introduced in 2009 as a means of distributing excess company revenue to our member taxi services. In 2014, the company concluded the scheme and those funds have been diverted to the development, support and maintenance of the Australia Wide Taxi App booking system. The cessation of the Call Rebate Scheme together with the capitalisation of the relevant research and development expenses has contributed to the large increase in net profit before tax. The net profit after tax for the year of $174,340.00 arises as a result of the Federal Government’s research and development tax incentive offset concessions to which the Company is entitled to in relation to the development of the Australia Wide Taxi App.
Security of access to the 131-008 service continues to be a valuable and sought after asset for taxi services and the company continues to welcome new shareholder taxi services. In the 2014 financial year, the share register expanded to include new shareholders representing taxi services from Port Douglas in Queensland, Devonport in Tasmania and Gunnedah in New South Wales.
Finally, on behalf of the Directors and management, I thank all members for their ongoing support.
Andrew Gilmartin
Chairman
27 November 2014
More Bulletins
