Geelong-based ‘profit-for-purpose’ organisation genU records $29m loss

Geelong-based genU is doing its best to put a positive spin on a financial result that even its two most senior figures have labelled “disappointing” and “deflating”.

genU chief executive Clare Amies. Picture: Supplied.

Geelong-based disability service provider genU has recorded a loss of almost $30m in what is another blow to an organisation that has been plagued by problems during the past 12 months.

In an email to staff on Friday morning that coincided with the release of its 2023/24 annual report, chief executive Clare Amies did her best to put a positive spin on a result that even she described as disappointing.

“I would like to address the financial result and while it may be disappointing – a $29m loss – this occurred through a period of big changes for us,” she wrote.

“Our loss can be largely apportioned to three areas: divestments, investments and properties being revaluated.”

The loss is double what insiders had flagged in July and follows a $10m loss in 2022/23.

While “realistic” about the organisation’s financial position, Ms Amies told staff there was light at the end of the tunnel.

She said genU was $1m ahead of budget in the first quarter of 2024/25.

Revenue of $345m was generated in 2023/24, a lower than expected result that stemmed from falls in the areas of disability employment services and allied health, which, in turn, was attributed to ongoing pricing constraints, wage pressures and staff shortages.

In June Ms Amies, with the support of the board, stared down a petition to oust her that was purportedly launched by an anonymous group of disgruntled employees.

It circulated around the same time chief operating officer Travis Heeney abruptly left the organisation, which followed the resignation of chief corporate officer and chief financial officer Travis Neal.

genU’s headquarters on Reynolds Rd in Belmont. Picture: Alison Wynd.

Other than Ms Amies, who was appointed in 2020, all genU executives are no more than 18 months into their roles.

This includes Brooke Draper, Michael van Oudtshoorn and Kelly Smith, who all transitioned from Western Australian organisation Activ Foundation, which genU acquired in mid-2024.

Kelly Heintz was listed in the annual report as interim chief financial officer, but her profile does not appear on genU’s website.

Board chair Ingrid Williams, a staunch supporter of Ms Amies, said while the $29.2m loss was deflating, strategic decisions such as the Activ acquisition would boost genU’s long-term sustainability.

Ms Williams claimed operating environment challenges and sector-wide reforms across the disability, aged care and employment services sectors significantly hindered genU during 2023/24.

On Friday, a Victorian police spokeswoman confirmed an investigation into suspected fraudulent activity at genU was ongoing.

The activity, reported to police early in 2023, is alleged to have occurred over five years and involves several million dollars.

Two men, aged 57 and 74, were arrested this year in relation to the matter, but later released pending further inquiries.

The spokeswoman said no charges had been laid and police continued to speak to both witnesses and persons of interest.

Among the key 2023/24 achievements highlighted by genU were 1.8 million hours of disability support and a 94 per cent client satisfaction rate.

Originally published as Geelong-based ‘profit-for-purpose’ organisation genU records $29m loss