FINANCIAL REPORT 1 st January 2012 to 31 st December 2012

Transcription

1 FINANCIAL REPORT 1 st January 2012 to 31 st December 2012 All pictures are the property of Nexus-Carbon for Development or its members and cannot be republished without prior consent.

2 This document contains a review of the company s financial performance for 2012 including profit and loss statement, balance sheet and cash flow statement. The following financial statements have been audited by Nexus auditor, AUDIT ALLIANCE, certified public accountants. All figures are in USD unless stated otherwise. 1. Financial performance highlights Overall, Nexus 2012 financial performance exceeded expectations and achieved a total profit of $47k, which was above the forecasted amount of $23K. This resulted in Nexus generating sufficient profit to cover last year s loss of $14k and to retain a surplus of $33k. Nexus generated $915k of total revenue in 2012; of which $651k came from grants received and $262k from revenue generating activities; technical assistance and carbon asset management were the main generators of revenue. The remaining $2K came from various other sources of revenue. In 2012, Nexus still heavily relied on two core grants to cover its structural costs. This reliance will lessen once the core activities generate sufficient revenue. Nexus expenses for 2012 totaled $868k, a 27% overall increase from Human resources costs ($497k) accounted for 57% of these expenses, a 50% increase from The remaining 43% of expenses occurred from non-human resources areas, a 6% increase from 2011; however, 41% of these are direct project expenses and are fully funded. Annual Financial Report 2012 Page 2 of 9

3 2. Profit and loss statement The following table lists and compares Nexus actual expenses and revenue of 2012 with the actual expenses and revenues of Table 1: Revenue and expenses of 2011 and % Change Revenue Revenue from grants $ 564,280 $ 651,745 16% Revenue from activities $ 107,815 $ 261, % Other - foreign exchange gains/ $ 2,731 $ 1,942 (29%) losses, refunds Total revenue $ 674,826 $ 915,410 36% Expenses Internal human resources $ 249,751 $ 445,375 78% External experts $ 81,916 $ 51,794 (37%) Travel $ 125,376 $ 108,240 (14%) Offices, equipment, IT $ 63,105 $ 75,623 20% Events, communication and $ 41,572 $ 24,367 (41%) marketing Grants to members $ 15,000 $0 (100%) Professional services $ 91,943 $ 141,315 54% Financial charges, tax $ 12,532 $ 21,780 74% Total expenses $ 681,195 $ 868,494 27% Profit / (Loss) $ (6,369) $ 46,916 Revenue 2012 saw revenue generated by activities increase by 143% compared to 2011; with significant success being achieved in identifying carbon buyers and securing long term contracts. The following activities saw revenue increases from 2011: carbon asset management, technical assistance services, and for the first time Nexus saw revenue come from short / medium term consultancies. Revenue generated from carbon asset management and technical assistance is the result of seeds sown in 2011 and Nexus is now recognized as a reliable and competitive player in these fields. Historical donors continued to show confidence in Nexus and supported various projects, events and member projects. New donors were also secured. Expenses The change in internal human resources costs is mostly due to having a larger number of staff throughout the year in both offices. The 78% increase in internal human resources costs correlates with the 80% increase in equivalent full time positions from 2011 to In 2012, revenue generating activities covered 30% of the total expenses; this is a significant increase from Annual Financial Report 2012 Page 3 of 9

4 3. Balance sheet The following table lists and compares Nexus actual assets and liabilities of 2012 with the actual assets and liabilities of Table 2: 2011 and 2012 balance sheet Assets Current assets Cash and cash equivalent $ 211,561 $ 168,993 Inventories $ 30,582 $ 13,722 Trade receivables $ 3,894 $ 670,410 Other receivables $ 157,463 $ 321,609 Total current assets $ 403,500 $ 1,174,734 Non-current assets Property, plant and equipment $ 12,210 $ 3,837 Total non current assets $ 12,210 $ 3,837 Other assets Deposits $ 5,820 $ 5,689 Prepayments $ 7,498 $ 306 Total other assets $ 13,318 $ 5,995 Total assets $ 429,028 $ 1,184,565 Liabilities Current liabilities Trade payables $ 5,026 $ 477,342 Other payables $ 53,461 $ 67,515 Amount due to member $ 111,544 $ 100,238 Deferred grants $ 272,814 $ 506,371 Total liabilities $ 442,845 $ 1,151,466 Net assets ($ 13,817) $ 33,099 Funds Retained surplus ($ 13,817) $ 33,099 Total accumulated funds ($ 13,817) $ 33,099 Assets From 2011 to 2012, current assets have almost tripled to $1,175k. Most of this growth occurred in trade receivables. The increase in trade receivables was mainly due to Nexus growth of activities from carbon asset management and technical assistance. Other receivables referred to Nexus accrued revenue for the technical assistance provided to member as part of the revolving fund as well as the accrued grant from EDB. Nexus has not identified any risk of non-payment. Liabilities Current liabilities grew from $443k in 2011 to $1,151k in 2012 (+161%). The largest increase was in the trade payables. The purchase of carbon credits from Nexus member has increased Nexus trade payables. Annual Financial Report 2012 Page 4 of 9

5 4. Statement of cash flow Table 3 provides Nexus cash flow statement for the financial year ending on 31 st December Table 3: 2011 and 2012 cash flow statement Cash flow from operating activities Total gain/loss ($ 6,369) $ 46,916 Adjustment for depreciation $ 11,033 $ 8,374 Operating cash flows before working capital changes $ 4,664 $ 55,290 Changes in working capital Inventories ($ 30,582) $ 16,860 Trade and other receivables ($ 172,341) ($ 823,339) Trade and other payables $ 328,591 $ 719,927 Net cash provided by/(used in) operating activities $ 130,332 ($ 31,262) Cash flow from investing activities Additions to property, plant and equipment Net cash provided by/(used in) investing activities ($ 23,243) $ 0 ($ 23,243) $ 0 Cash flow from financing activities Changes in Amount due to member $ 104,472 ($ 11,306) Net cash provided by/(used in) financing activities $ 104,472 ($ 11,306) Net increase/(decrease) in cash and cash $ 211,561 ($ 42,568) equivalents Cash and cash equivalents Beginning of financial year $ 0 $ 211,561 End of financial year $ 211,561 $ 168,993 There has been a net decrease in cash and cash equivalents between 2011 and The decrease in cash and cash equivalent is a result of an increase in cash used for operating activities due to 2012 strong growth. In 2013 and beyond, given the growth foreseen, a new source of working capital will be needed. Annual Financial Report 2012 Page 5 of 9

6 5. Changes in Funds Table 4 (below) demonstrates Nexus change in funds for the financial year ending on 31 st December Table 4: Changes in funds in 2011 and 2012 Funds 2012 Beginning of financial year ($ 13,817) Total profit/(loss) for the $ 46,916 year End of financial year $ 33, Beginning of financial year ($ 7,448) Total profit/(loss) for the ($ 6,369) year End of financial year ($ 13,817) 2012 was the first year where Nexus generated a profit. The retained surplus at December 31 st 2012 was $33k. Annual Financial Report 2012 Page 6 of 9

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9 Nexus-Carbon for Development is a cooperative of development organizations that support vulnerable communities by scaling up successful climate-friendly projects. This nonprofit and collaborative structure enables members to share expertise and services, access technical assistance and international funding opportunities such as carbon finance. Acting together and committing to a common vision, Nexus members benefit from economies of scale, reduced risks, and a strong voice in the global community. 352 Tanglin Road #02-02 Singapore UEN: E #33 Sothearos boulevard Phnom Penh, Cambodia P.O. Box [email protected] Annual Financial Report 2012 Page 9 of 9