Army and Air Force Canteen Service, trading as Frontline Defence Services (Frontline) was established under the Army and Air Force Canteen Service Regulations 1959. It is a Commonwealth statutory authority formed to provide goods, facilities and services to, or for the entertainment and recreation of, designated members of the ‘Defence family’.
The Commonwealth government owns Frontline. Key stakeholders include
• The responsible Minister
• Chief of the Defence Forces, Chief of Army and Chief of Air Force
• Customers (ADF members and their families, reservists, Defence civilians and contractors, former Defence members and their families)
• Amenity and welfare funds
• Frontline’s employees
• Suppliers and others.
Results and Review of Operations
The 2003/04 financial year was a challenging year for Frontline Defence Services (Frontline). For the year ended 30 June 2004, Frontline recorded revenues of $33,228k and a net operating deficit of $1,207k. Cash generated by the business over the period was $571k.
The business faced many planned and unexpected hurdles during the year, including:
• The winding up of overseas operations (East Timor and Solomon Islands)
• Deployment of troops to areas not serviced
• Low levels of personnel on base during most of 2003/04
• The continued downward trend in on-base recreation
• The identification and write off of $316k in bad debts relating to previous years.
Management responded by introducing new revenue-generating initiatives and cost-cutting programs:
• Launched Frontline Online, the new internet sales site
• Selected a new Point of Sale (POS) system
• Signed a preferred supplier agreement with Carlton United Beverages (CUB)
• Rationalised several outlets, in consultation with Base Commanders
• Continued to seek approval, in conjunction with Defence, to refurbish and consolidate operations at Lavarack Barracks (Townsville)
• Formed strategic alliances to expand the range of products and services offered
• Conducted and analysed customer surveys
• Paid Disbursements to bases of $150k
• Commissioned independent price checks of local businesses to ensure competitiveness.
Click here to download a PDF copy of the 2004 Annual Report
|