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$7.14 million annual projection for Methodist Church business arm

The Methodist Church in Fiji cash flow projection for the next 18 months is expected to be $7.14 million starting July, 2017. This figure was presented to the Bose Ko
23 Aug 2017 12:27
$7.14 million annual projection for  Methodist Church business arm
Caqalai Island in Lomaiviti is one of the Methodist Church of Fiji tourism properties on lease..

The Methodist Church in Fiji cash flow projection for the next 18 months is expected to be $7.14 million starting July, 2017.

This figure was presented to the Bose Ko Viti members by Lako Yani Management Private Limited Managing Director, Sereana Qoro.

She presented the Company’s 10-year strategic plan. The projections are calculated for Year 1 of the plan, ending December, 2018.

“Cash flow projections are divided into three categories. What to be achieved in the first year, what to be achieved in Year 2-5 and 6 to 10 years. If there are changes within the next 18 months than there will be changes in the figures,” Mrs Qoro said.

She said the church had 7 channels of which will guarantee cash inflow. They are the lease premium, annual lease, land sales (if any), rent arrears paid by tenants who have outstanding rent, hotel revenue (from future business ventures/developments. Not for Year 1), sale or transfer of lease, and returns from investments.

The cash flow will be earned from the 10 church properties, 8 of which have been developed in the seven months leading up to July of this year.

The church also has three potential tourism properties all of which are out in the market for lease. They are Kaba Island, Caqalai Island and Vunidilo Island.

Furthermore, Mrs Qoro said that of the $7.14m projected church income, about $1.27m will be used for expenses.

Cash expenditure: land valuation, marketing expenses both local and international, survey and development costs, consultancy costs.

Finance cost: finance cost within the trust.

Capital gains tax: example, if the car park is sold, 10% of the profit earned is given to the government.

Joint venture cost
Annual cost: trustees’ expenses.
Contingency: unforeseen cost critical to the business.
Management fee: electricity, logistics, office equipment, that is used in the day to day running of the board.

The final projected income is expected to be $5.87million.

“There are policies, guidelines to be followed. Some will be used and some will be kept for investments for future generations and plans,” Mrs Qoro said.

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