2019-08-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                           6 AUGUST 2019


4                        PEREGIAN DIGITAL HUB - FULL YEAR TO 30 JUNE 2019
DOCUMENT INFORM AT ION




Author                            Economic Development Manager, Anthony Dow
                                  Environment and Sustainable Development Department

Index                             ECM/ Subject/ 45.04 Economic Development

Attachments                       1.   Peregian Digital Hub E-newsletters – February to June 2019 (46 page
                                       attachment provided separately to this agenda)



EXECUTIVE SUMMARY
This report provides an update and review of the performance and activities at the Peregian
Digital Hub (The Hub), over the first 12 months of its operation and seeks approval from Council
for the continuation of the Council facilitated model for the operation of The Hub. A detailed half-
year report was presented to Council in February 2019.

The objective of The Hub is to operate a commercially sustainable co-work facility whilst
delivering public service outcomes that develop the digital ecosystem and assist to meet the
objectives of Council’s Local Economic Plan, with a particular focus on accelerating the
diversification of the local economy i.e. strengthen the community’s resilience to a downturn in
tourism.

The 1st year performance of the Hub has exceeded budgeted financials and the early signs are
that the focus on talent development and business mentoring is delivering a positive economic
impact.

The inspirational leadership of Chris Boden, Digital Hub Director is being rewarded with
outcomes that include:
   2 new companies birthed at the Hub;
   Hosted multiple machine learning workshops, 7 digital skills workshops for >110 adults, 3
     workshops on 3D design& printing and 12 skills workshops for young inventors, taught by
     young inventors;
   After-school Inventor & Robotics clubs and programs for girls in robotics and engineering;
   Actively mentoring 10 high school inventors;
   12 senior kids learning entrepreneurial skills & earning $ from paid workshops;
   Providing entrepreneurial support to 27 companies - 40% not based at Hub;
   Hosted 21 monthly events for ecosystem groups, over 500 unique attendees, thousands of
     new connections facilitated;
   $75k incubator support grant secured from Queensland Government’s Advance
     Queensland program. This will support digital ecosystem development over the next 3
     years.

The financial results for the full-year period ended 30 June 2019, show the operating result is
$70k ahead of budget, with revenue $47k above budget and expenditure $23k below budget.
Revenues include a grant amount of $18k - the associated expenditure will occur in FY20.
Overall, the final net position of $103k deficit is significantly ahead of the $173k deficit target in
the FY19 budget.

Following a seasonal dip over the December holiday period with monthly revenues at $10k, a
strong second half performance has grown monthly revenue to $16k. The revenue growth and
overall strong KPIs are a result of a deliberate strategy to strengthen the digital ecosystem via
the establishment and support of specialist digital industry subgroups.


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