Despite challenges of COVID-19, Bamaga Enterprises Ltd reports healthy growth and stable operations

Bamaga Enterprises Ltd (BEL) has reported a net profit of $777,578 and total revenues of just over $13.5m for the 2019/20 financial year, up 60% and 7% respectively on the previous year. The increased profit was boosted by various Federal Government COVID-19 relief packages, including JobKeeper, the $100,000 working capital assistance program, and a similar amount in grants and loans from Indigenous Business Australia.

The community-owned, not-for-profit Indigenous organisation operates Bamaga BP Service Station, Bamaga Tavern and Cape York Peninsula Lodge; it leases out Bamaga Bakery and owns various investment properties including the Centrelink building.

The impact of COVID-19, which required BEL to place parts of its businesses into hibernation during the last quarter of 2020, resulted in temporary reduced employment across its operations. Nevertheless, BEL continued to be the largest private sector employer in the Northern Peninsula Area (NPA).

“COVID-19 and its related restrictions have been the major factor impacting BEL’s operations and businesses generally,” said Chairperson for Bamaga Enterprises, Robert Poipoi. “All businesses in the NPA rely heavily on the significant income from the tourist season to help sustain their operations and provide cash flow to get them through the October to May off-season.

“Fortunately, most of BEL’s operations were deemed essential services and, apart from the Cape York Peninsula Lodge (CYPL) restaurant and Bamaga Tavern bar and bistro being shut down for almost a third of the financial year, our operations have continued as normal.”

BEL’s General Manager, Chris Foord, said the organisation was quick to restructure its operations due to COVID-19 to ensure it remained in a strong position.

“The JobSeeker program and the ability to withdraw up to $10,000 in superannuation have significantly increased consumer demand in the local community. This has, to some degree, offset the loss of income usually derived from the influx of tourists.”

 BEL’s profits are reinvested into the community under its Socio Support policy. While funding is Bamaga-centric, consideration is given to the wider NPA communities, especially when organisations service the entire region, such as the NPA College.

In 2019/20, Bamaga Enterprises provided $296,000 towards sponsorships and donations, covering a wide range of support across the community including scholarships, arts and culture, training, and funerals.

“We’d like to thank all of BEL’s employees and the community for their support during 2019/20. BEL’s strong financial position means we can continue our important work both locally and in the wider region,” Mr Poipoi said.

Further detail on the separate BEL operations follows.

 

Bamaga BP Service Station

Bamaga BP Service Station continues to improve its overall performance through offering an expanded and varied range of products in its store and café areas. Revenue was $7.2m, an increase of 10% on last year despite significantly lower fuel prices, with net profit showing an increase of 39%.

BEL plans to increase the size of the service station by 80 square metres to allow more floor space for groceries, and to expand and re-locate the café area to be more customer friendly. A new car and boat wash are also planned. However, these developments will involve a significant investment by BEL and cannot take place until a secure, registered lease has been negotiated with Council, which is currently in progress.

 

Bamaga Tavern

COVID-19 regulations required Bamaga Tavern’s bar and bistro to close from March 2020, however the drive-thru was allowed to remain open as an essential service and was well patronised during the lockdown. Ultimately, revenues were up 6% on last year with net profit increasing by $32,000.

With the closure of the Tavern’s bistro, BEL took the opportunity to undertake upgrades, with the floor being re-tiled, walls painted and installing new screening for the kitchen area.

 

Cape York Peninsula Lodge

Cape York Peninsula Lodge (CYPL) is operated as a community service due to its essential role in the economic development of the NPA, accommodating government representatives, corporates and tourists.

With the lockdown of NPA communities, no tourist season and the disruption to daily flights, the Lodge was empty from mid-March onward until the end of the financial year, aside from essential services staff and those quarantining for 14 days after entering the community. Revenue was down more than $400,000, resulting in a very significant loss despite running a skeleton staff structure to minimise costs.

BEL was determined to keep CYPL operational during the lockdown as an essential service, ensuring COVID-19 related practices were in place. The lockdown presented a good opportunity to carry out major upgrades on the lodge, with new decking and balustrade installed and internal painting of the restaurant area together with replanting the garden beds.

 

 

Looking ahead

To secure the continued growth of BEL and the NPA, the region requires more investment in commercial and residential infrastructure. A lack of rental housing means it is difficult to attract and retain employees, and building new infrastructure could present new income avenues, such as leasing accommodation to the Federal and State Governments.

BEL is also trying to secure a land lease to construct a Trade Centre, which will house various trades and allow for the creation of a local manufacturing facility. The Trade Centre will create a significant number of additional job opportunities.

“BEL’s relationship with the new Council has been positive with regular communication and meetings with the Mayor, Councillor Gebadi and executive staff who have brought a fresh approach to resolving long outstanding lease issues. BEL hopes that projects which have been on hold can soon be brought to fruition, but Native Title issues will still then need to be resolved,” Mr Poipoi said.

haven’t decided on what I want to do after school is finished yet, but I might look for something in mining. It’s great to have the support of BEL.”

To view the full annual report, click here.