genU takes a hit, eyes long-term sustainability

EMBATTLED disability and community support provider genU has recorded an almost $30 million loss over the 2023-24 financial year in its latest annual report, a result the organisation said reflects a “deliberate choice”.

Board chair Ingrid Williams acknowledged the past financial year had been undeniably difficult for the “profit-for-purpose” organisation, with significant reforms across the disability, aged care and employment sectors and a challenging operating environment presenting new hurdles.

“It is important to understand much of this loss was driven by strategic decisions designed to position genU for future stability,” Ms Williams said.

“Our decisive actions have been taken with short- and long-term ambitions in mind – a return to profitability as soon as possible and sustainability to ensure we remain serving our communities across Australia for decades to come.”

Of the $29.9 million loss posted by organisation, more than $22 million was due to the discontinuation of non-core services, as well as investments in digital projects and the revaluation of properties.

The services sold by the organisation over the past year include childcare provider Pipsqueaks, residential aged care service Costa House and recruitment agency IPA, a narrowing of the organisation’s focus that chief executive Clare Amies said was “needed for financial viability”.

The recent mergers between genU and support providers in Tasmania and Western Australia has also seen the organisation expand its footprint across the country.

“This strengthens our national presence and will enhance our capacity to deliver critical services and create opportunities for future growth,” Ms Willliams said.

Ms Amies said while difficult, the operating loss reported by the organisation “reflects a deliberate choice” to invest in the future.

“In the past year, we, like many organisations have faced significant financial challenges – pricing constraints that have remained stubborn, inflating operating costs and the applied pressure on delivering disability and community services efficiently and effectively in a changing landscape.”

She said the organisation had made strategic investments to modernise its systems and processes, and rather than cutting back, had positioned itself for “long-term sustainability”.

“These decisions – while contributing to our financial results in the short-term – ensure we can continue providing high-quality disability, ageing, employment and training services well into the future.”

Ms Williams said genU was already on track for a financial recovery, with the organisation presently $1 million ahead of its 2024-25 budget predictions.

Among this year’s highlights for the organisation are a 20 per cent increase in the number of supported employees benefiting from work, the placement of more than 20,500 jobseekers with barriers in employment and the provision of support to more than 2,600 clients to assist them to live independently in their homes.

Client satisfaction ratings also remain high for genU, with almost 95 per cent stating they were pleased with the quality of organisation’s services and that those services had improved their lives.