CCI posts profit on reduced revenue

The Chamber of Commerce and Industry of WA has returned to profit after three years of major restructuring that has cut staff numbers and revenue to one third of 2014 levels.

It reported a profit of $2.1 million for the year to June 2018.

The profit result comes after two years of losses for the industry body and despite a 42 per cent reduction in revenue from last year to $27.9 million.

Service revenue totalled $17.1 million for the year, while subscriptions ($4.8 million) and service contracts ($2.5 million) were also major contributors.

Employee benefits accounted for $16.4 million of CCIWA’s expenses, which was down from $37.5 million the previous year.

The revenue fall was attributed primarily to the sale of its training and migration services business in 2017 and the closure of the industrial training institute in Kwinana this year.

“CCI initiated and delivered a significant change program over the past 18 months to address a declining revenue base driven from changes in the market place,” CCI said in its annual report.

“Total revenues reduced by 42 per cent year on year primarily due to the successful divestment of the group training organisation and migration services business in 2017 and the close down of industrial training institute in 2018 which were part of the change program plan.

“These changes will enable CCI to focus on delivering excellence to members in the core service areas of advocacy and membership services.”

The organisation recorded a $930,000 loss last year on revenue of $48.1 million.

In 2014, CCIWA generated revenue of $73 million and had over 500 employees.

This year the company has 150 staff.

CCI has dropped to second on the list of WA associations on the BNiQ Search Engine, behind the Australian Medical Association.