The Australian Marketing Institute (AMI) remains bullish about its 2017 prospects despite sliding back into loss for the 2015/2016 financial year, just a year after righting itself by asking members to pay a stipend last year.
The organisation revealed in its latest financial report that it posted a $168,186 loss for the last financial year despite posting a $149,299 surplus for the previous reporting period. The business's accumulated losses, when total liabilities and assets are taken into account, also blew out to $718,575 from a deficit of $550,389 the previous year.
CEO of the AMI, Lee Tonitto, told AdNews the reason the industry body made losses this year was due to continued pressure on membership subscriptions, as well as increased staff and infrastructure costs, adding however that such investments will lead to efficiencies in the long run.
Tonitto believes next year will see the AMI get back in the black, saying: “In 2017 the AMI will take a more focused and targeted approach to acquiring, retaining and servicing members. The FY16/17 1st quarter is showing improved performance, with a 20% increase in membership subscriptions compared to the previous year.”
“Our FY16/17 plan is to return to profit and increase cash reserves,” she added.
An independent auditor's assessment of the body notes there are several targets that need to be met by the business to return the offering to the black in 2017. Those are increasing membership by approximately 20%, reducing overheads by 12%. It also requires lenders to continue their current financial support.
One reason for the loss could be the doubling of the spend on consultants and contractors, which went from $77,058 in 2015, to $131,568 in 2016. Administration costs also rose, going from $280,629 in 2015 to $324,049 in 2016.
However Tonitto outlined that in the last financial year the AMI achieved strong profit growth in the functions division and the professional development division, an increase of 16% compared to 2015. Tonitto says this was driven by improved event management practices, partnership revenue, new online training courses and the accreditation program.
These numbers come after the organisation claimed earlier this year that it had turned itself around after turbulent times, digging its way out of a $300,000 deficit with the implementation of new member services and brining in the Service Enhancement Levy.
“Our members are our foremost priority. We look forward to continuing to provide them exclusive benefits including discounts for professional development and events, professional indemnity insurance cover and recognition through Certified Practicing Marketer membership of the pre-eminent professional marketing body in Australia,” Tonitto added.
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