Geelong-based service provider genU posts loss as it prepares for significant growth in the face of multiple challenges

The organisation’s executives have backed in their plans to significantly grow the group as it reports a fall in revenue and an increase in expenses.

genU client Pam at the organisation’s Barwarre Gardens retirement village.

Geelong-based service provider genU has recorded a loss of almost $10m as it grapples with rising costs, a fall in government funding, and issues in finding suitable staff as it embarks on an aggressive growth phase.

The organisation’s revenue fell 3 per cent in the 2022-23 financial year to $410m, with almost all that amount stemming from its employment and training services ($255m), and disability and ageing services ($157m).

A small increase in expenses resulted in a $9.7m loss for the period.

While acknowledging the deficit, genU preferred to highlight its investments.

This included upgrades at its Barwarre Gardens and St Laurence Park retirement villages, costs associated with acquisitions in Tasmania, and implementing a long-term digital transformation strategy.

Board chair Michael Stanford presented the report findings at the not-for-profit’s annual meeting on Thursday.

He said genU’s revenue amount placed it in the top 30 not-for-profit organisations nationally.

He highlighted challenges such as further cost pressure from reductions in government funding and increased regulatory compliance on services.

Three-quarters of genU’s revenue stems from activities where the price is set by government.

“The strategic restructure and investment in new initiatives will help streamline operations and delivery nationally,” Mr Stanford said.

It was revealed last month that a recent redundancy round saw 55 jobs go, around half at management level as part of a push towards a more streamlined structure.

Nationally, genU has 220 offices and approximately 4200 staff, including almost 2000 in the Geelong region.

As the organisation seeks to significantly expand its footprint nationally, chief executive Clare Amies said there were challenges in finding suitable staff and then keeping them.

“Like many organisations, attracting and retaining staff has been challenging, however I applaud the team for their ongoing commitment to our mission, clients and families, our partners, and to each other,” she said.

To help combat staff shortages, particularly in priority growth areas such as home care, allied health and disability support, a referral program was trialled.

“Successful referrals provide both a valued new colleague, and monetary rewards for the referrer and the new employee,” the report stated.

“By encouraging our staff to refer new talent, we have successfully placed 92 candidates into roles with genU so far.”

In the 12 months to June, genU assisted 65,500 people through its support, training, employment and care services.

It provided 1.08m hours of disability service to 5100 people, while more than 4800 candidates were placed in temporary or permanent work and 15,000 job seekers were supported in their efforts to overcome barriers to employment.

Originally published as Geelong-based service provider genU posts loss as it prepares for significant growth in the face of multiple challenges