Science & Innovation Sector

New Zealand Forest Research Institute Ltd (Scion)

Scion has embraced a plant-based biomaterials strategy and is rapidly evolving into a group of three related divisions. Its new biomaterials science and consumer solutions divisions will continue to develop within Scion and will target strategic partnering to increase its market access. The majority of the company’s traditional forestry sector research is delivered through an unincorporated joint venture with Australia’s CSIRO Forestry and Forest Products.

Website: www.scionresearch.com (opens in new window)

2008/11 Statement of Corporate Intent (.pdf 145kb)

Key Company Data

Company Form	Crown research institute
Year of Establishment	1992
Head Office	Rotorua
Major Campuses	Rotorua, Christchurch
Chair (term expiry)	Dr Russ Ballard (June 2010)
Deputy Chair	Bronwyn Monopoli (June 2010)
Board Membership	Peter Berg (June 2009)
	Sheldon Drummond (June 2011)
	Dr Kathy Garden (June 2009)
	Chris Insley (June 2011)
	Michael Ludbrook (June 2011)
	John R Palmer (June 2009)
CEO	Dr Tom Richardson
Balance Date	30 June
Number of FTE Staff	350

 

 

Key Financial Data ($ million)	2002/03	2003/04	2004/05	2005/06	2006/07
Financial Performance
Total Revenue	39.5	39.0	35.1	21.3	21.5
FRST + NSOF / Capability Fund	22.8	N/A	N/A	N/A	N/A
EBIT	1.2	0.8	1.1	(1.3)	(0.4)
Net Profit After Tax	0.6	0.7	0.6	(1.6)	(0.5)
EBIT Margin	3.0%	2.0%	3.2%	(6.1%)	(1.9%)
Return on Assets	3.5%	2.3%	1.8%	(3.8%)	(1.1%)
Return on Equity	3.0%	2.9%	2.5%	(6.9%)	(2.1%)
Financial Position
Total Assets	34.3	34.1	37.0	32.1	31.1
Equity	23.5	24.2	25.0	23.1	22.6
Equity Ratio	68.6%	70.9%	69.8%	69.4%	72.2%
Current Ratio	1.1	1.9	1.1	1.2	0.9

Financial data and staff member information correct as at 30 June 2007. Board information correct as at 1 July 2008.

The fall in revenue from 2004/05 is a result of the Ensis structure.  Revenue earned through Ensis is not included in the revenue line; rather, its contribution is recorded in the accounts.

CCMAU commentary on 2006/07 performance

Scion had another financially challenging year in 2006/07 with a $484,000 net loss in comparison with a budgeted $423,000 net profit.  This result was primarily due to below-budget returns from Ensis, the company’s unincorporated joint venture with CSIRO.  While Ensis has provided significant benefits from the combination of New Zealand and Australian forestry-related research teams, the Ensis structure has resulted in significant added complexity.  To address this issue, Scion is currently working on Ensis’ structure with CSIRO, with a new structure expected to be in place by mid-2007/08.

Scion’s biomaterials futures strategy, to move beyond ‘traditional’ forestry research, is yielding significant benefits in areas such as biofuels and the Waste 2 Gold programme which aims to create sustainable materials (eg bioplastics) from organic waste.