Total revenue was $3,057,453 down $210,129 on last year's figure of $3,267,582
Without doubt, the ongoing effects of the non smoking ban, the combined effects of the global economy fallout and the appointment of administrators to the area's three property investment corporations (The Hastings, Donovan Oates Hannaford and Momentum) have all had a negative impact upon performance. The significant number of lost days due to inclement weather and the ongoing effects of not having golfing members passing through the club have also had a telling impact upon our trading.
No doubt others will comment further in their annual reports but briefly some of the actions taken by your board to combat these events are:-
- we are looking at a program of monthly or quarterly payments of subs
- we have installed 2 external poker machines on the north balcony to accommodate smokers
- we have changed our contract caterer
- we are negotiating with a marketing group to explore what opportunities we may be missing out on.
- we are looking at a program of redraining several of our worst greens in the short term
- we are looking to bring our cart path program forward to further combat wet conditions
- we have finally got the green light to proceed with an application to acquire Xmas Bells Plain lands to accommodate a further 10 holes
- we are in the process of upgrading the quality of our Friday night raffle prizes
- developing of holes 10 and 11 as a driving range and the 3 holes to the south
- we are improving our website
The performance of our individual cost centres for the year was as follows:-
Bar Trading
Net profit was $212,304, down $21,877 on last years result of $234,181
Gross profit margin was 57.22% against last year's 56.96%
Poker Machines
Net Profit was $466,391, down $122,169 on last year's result of $588,560
Gross takings for the year was $ 2,183,773, down $ 495,328 on last year's result of $2,679,101
We reported last year our trading was against industry trends. It appears we have now caught up with what is happening in other like clubs for reasons previously explained. Despite the adverse trend, GM Trevor continues his program of upgrades.
Course
Net Profit was $144,441, down $40,565 on last year's result of $185,006
Gross income of $1,306,287 was in line with last year's takings of $1,304,371
Expenses of $1,161,846 were also held to last year's figure of $1,119,365
The major movements were `Trophies and Members Rewards` of $136,928 up $50,725 on last year's figure of $86,203. This increase is a result of the Board taking the decision not to allow members to utilize their rewards/trophies towards subs because of the adverse effect upon our cashflow. To offset this we have allowed a further 12 months i.e. to 30/6/2010 to clear these accounts. The clearing of members accounts will be an annual requirement thereafter.
House
House figures also include net profits for both bar and poker machine cost centres.
Net profit was $154,150, down $205,905 on last year's result of $360,055
The major impact is the combined downturn in both the bar and poker machine net profits of $144,046. Expenses were $711,246 up $70,211 on last year's $641,035. The major movements here were members promotions of $37,796 up $17,764 on last year's $20,032 and this is a direct result of trying to get more members and guests to utilize the club's facilities. The balance of expenditure increases was fairly spread across the board.
Administration Expenses
Total cost for the year was $409,490, up $15,357 (or 3.9 %) on last year's $394,133
Increase is broadly in line with annual inflation with the major movement being staff training expenditure of $11,934 up $7,059 on last year's $4,875. These increases are a result of keeping staff updated with the latest local and world corporate governance.
Balance Sheet
| Assets | $4,352,017 | (+ $250,506) |
| Liabilities | $1,462,703 | (+ $361,406) |
| Equity | $2,889,314 | (- $110,900) |
The major movements are in Property, Plant and Equipment $3,532,740 up $245,937 which in the main is a result of the irrigation upgrade of $ 375,000
The other major movement is in Other Liabilities $401,964 up $241,284 which represents members subscriptions in advance of $232,384 (refer Note 15)
Serviceability
For a number of reasons we will revert to accrual accounting procedure to prove the club's ability to meet its current and proposed liabilities as follows:-
| 30/6/09 Loss | $(110,900) |
Add backs
| Depreciation | $488,298 | ||
| Finance costs | $ 35,168 | $ 523,466 | |
| Starting bank balance | $ 628,415 | $1,151,881 |
| Available cash to meet commitments | $1,040,981 |
| Bank loan $8,619 pm x 12 | $103,428 |
| Hire purchase contracts (14) – current | $226,940 |
Proposed new contracts
| New rough mower | $ 22,260 |
| New vacuum | $ 3,708 |
| 2 new poker machines | $ 13,985 |
| Plus other capital works funded by cash | $ 87,000 | $ 457,321 |
| Residual estimated cash reserves as at 30/6/10 | $ 583,660 |
The above demonstrates that our club continues to be in a very strong financial position and well placed to meet its current and proposed new expenditures.
Again, a special thank you to Trevor and his team for all their assistance not only this year but in the previous 9 years of my tenure here on the board.
Due to personal reasons, I must tender my resignation as your treasurer effective at this year's AGM. It has been my honour and privilege to have served the membership over the past 9 years. It has been an exciting time in the club's history and the final approval to proceed with an application to acquire crown lands to the south caps off a very memorable period in the club's and my own life. I would like to thank President Bill and my fellow board members over the last nine years for their input - for the most part my tenure has been both fun and exciting and if nothing else getting business done. My best wishes go to those board members that will follow - I know the club will go from strength to strength and continue to be the best facility on the mid north coast.
Thank you and good golfing
N. PETER STEPHENS JP
Treasurer
11 August 2009