Fairfax Media books $401 million loss

BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.

The State Government has announced a grant of $50,000 to carry out the review.

The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.

Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.

“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.

“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”

Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.

“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,

“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.

“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”

Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.

“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.

“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”

Anthony Radford | Bendigo Weekly | 26-Aug-2011

Fairfax Media Limited has reported a loss of $400.9 million for the past financial year.

The company says the result represents a decrease of 1.8 per cent on last year and is ''slightly above market consensus''.

Shares in Fairfax Media, publishers of the Bendigo Advertiser, surged as much as 10 cents early today, or approximately 13 per cent, to 87.5 cents, despite today's release of the company's 2010/2011 results.

The company has written down the value of mastheads, customer relationships and goodwill by $650.7 million after tax. This write down is of a non-cash nature and is reflected as significant items in the accounts. Following this impairment, the carrying value of the Company’s intangible assets is $5.3 billion.

Fairfax has also incurred restructuring charges during the year totalling $23.9 million after tax. These amounts have also been recorded as significant items in the accounts.

Including these significant items, Fairfax has incurred a loss after tax and SPS dividend of $400.9 million, compared to a profit of $270.3 million last year.

Chief executive and managing director Greg Hywood said Fairfax Media was responding aggressively to structural changes in the media landscape while also dealing with the challenges of a prolonged cyclical downturn.

''We have the right strategy and are working to build long term shareholder value. Our focus is on improving operating performance and growing long term sustainable earnings.

“While we have reported an after tax loss for the year for statutory purposes, it is important to highlight that this is due to substantial impairment and restructuring charges,'' Mr Hywood said.

''The vast majority of these charges are of a non-cash nature and have no impact on the operating strength or debt levels of the Company.''

Mr Hywood said the past financial year had been a year of two halves, and he was pleased with the way Fairfax businesses responded to the deterioration in operating conditions that set in from November 2010.

“Our multi-platform strategy is delivering results. We are seeing the benefit of the diversity of operations, and the strong growth in digital earnings is providing some insulation as we manage changes in our metropolitan media business.

“We have recently launched a major cost reduction program that will further enhance our operating performance. We have looked very closely at all the processes and functions undertaken within the Company and I am confident that over the next two years we will be able to reduce costs by at least $85 million.''

Fairfax Media announced an interim dividend of 1.5 cents per share was paid in March 2011 and a final dividend of 1.5 cents per share would be paid on September 27 to shareholders registered on September 12.

The final dividend of 1.5 cents per share represents an increase of seven per cent over the final dividend paid last year and represents an increase in the total dividend payout ratio to 25.6 per cent.

The reporter is a Fairfax Media shareholder