Discussion The HIA Limited group of companies reported a consolidated surplus of $0.6 million for the year ended 31 December 2017. This compares with a $0.8 million surplus for the 2016 year. and Analysis Statement of Profit or Loss and Other Comprehensive Income Home building activity remained quite strong during 2017 with high volumes of house construction seen in both detached houses and multi-units. Multi-unit construction saw a decline towards the end of the year as much of the construction which had commenced in 2016 and in the earlier parts of 2017, concluded. Home building activity in New South Wales, Victoria and South East Queensland remained strong whereas Western Australia and North Queensland continued to weaken. Whilst building activity remained strong in 2017, HIA achieved a range of results across the key commercial business units. A brief summary of the financial highlights includes: • An increase in group turnover of 4.3%, from $68.6 million in 2016 to $71.6 million in 2017. • Revenue improvements in the business units of HIA Apprentices, Stationery, Events, Home Inspirations Centres, HIA Vehicles and Affinity Programs. However, there were declines in Insurance, Safety Services, Property, Publications, Training Delivery and Apprenticeship Grants revenues. • HIA Group Apprenticeship Scheme assisted in HIA’s endeavours to address skill shortages in the building trade. Apprentice numbers increased during 2017 and the Association successfully completed 103 apprentices. HIA was able to secure state-based funding in New South Wales which greatly assists with the growth and completions of apprentices within the scheme in the New South Wales and Hunter regions. • The Home Inspirations Centres continued to provide a focal point for the regions of the ACT and Hunter and remain well supported by industry and consumers. Statement of Financial Position The Association’s financial position improved in 2017 due to the operating surplus made during the year, with net assets increasing to $65.7 million, up from $65.2 million in 2016. The increase in total assets was mainly attributed to improvement in the cash balance. HIA continues to maintain a very strong balance sheet with more than $65 million in net assets and five dollars of asset for every dollar of liability. Cash Flow HIA concluded the year with a $3.2 million cash balance, an increase of $2.4 million from 2016. The loan balance at the end of 2017 was nil, a reduction by $0.5 million during the year. The loan was taken out in prior years to fund the purchase of capital assets. Net cash inflows from operating activities in 2017 were $4.9 million, an increase on the net inflows in 2016 of $2.5 million. Net cash flows from investing activities saw an outflow of $2.0 million in 2017 which was mainly attributed to investment in information technology infrastructure and the business systems redevelopment program, compared with an outflow of $1.8 million in 2016. Net cash flows from financing activities in 2017 saw an outflow of $0.5 million, compared with an outflow of $0.1 million in 2016. 100 HOUSING MAY 2018