Message from Acting Manager
We have received the financials for 2016/2017 from GJ Walsh Accountants this week. I was able to send these to members via email on Friday. Copies are available for all members at the bar.
The overall view of the club's trading position for 2016/17 was a loss of $73,363.18. $35,480.65 of this was a write off as a bad debt of the claim made on Racing Queensland for flood relief.
This leaves us with an actual loss of $37,882.53. The majority of this can be explained by the reduction in bookmaker subsidy of $22,909.09. There was also a reduction in bar sales due mainly to Racing Queensland running a meeting with no bar etc on Cox Plate day our second biggest day after Melbourne Cup. Bar takings on Melbourne Cup day were down approximately $6,000 on the previous year due to the fact that Racing Queensland did not give permission for the club to operate until three days before.
Legal costs were $3,500 which was a small portion of the actual bill of $10,000 thanks to the generosity of Tim Fuller Special Counsel. Another $1600 was spent on a Human Resources Consultant to handle a Worker's Compensation claim.
Interest payments to ATO, Redlands Council and Work Cover accounted for $1110.65.
Despite our restricted cash flow the club was still able to allocated $6807.51 prizemoney additional to what was allocated by Racing Queensland, an increase of $1407.51 on the previous year.
All in all it is a good result considering the obstacles that confronted us in the last 12 months. Despite this I believe we are on the threshold of a new beginning. Regular meetings have been conducted with Racing Queensland with regard to our infrastructure grant of $181,000. The air conditioning upgrade will probably be the first project to be completed. There are minor issues with the water bore that need to be resolved. The fence between the club and the football field is an issue as Council require it to be built on our lease. This creates problems with a view to the future and SKY coverage. However, at a meeting with council on Thursday I have requested a meeting between all 3 parties in an effort to get permission to build the fence on the football club's lease.
Since February the committee has put in place a number of initiatives that have seen a turned around which should continue. The net result of our operations since February has seen a profit of approximately $30,000. There are more initiatives planned for the future to improve our financial position. If we use Ipswich as a guide they receive approximately $270,000 per annum from corporate bookmakers on an average of 3 meetings a week. The inclusion of our club on SKY based on those figures would see an income from corporate bookmakers of approximately $90,000 per annum.
Clearly, that is where the future of the club lies.