- 2 November 2020
- Simone Keir
Thank you to all members who attended the Annual General Meeting of the Club, whether in person or by zoom.
The resolution regarding Australian Automobile Association (AAA) expenditure was not pursued since the AAA have amended their Constitution requiring annual subscription payment of $500,000 with the NRMA paying in excess of 41 million per annum. The Club has far more pressing capital expenditure such as the hoarding in Albert Street and other internal refurbishments.
The Bridge Club resolution was also withdrawn.
The main focus of my address was the outstanding job that Markus Friedler and his team have done to maintain operations, without compromising member services, to ensure that the significant reduction in revenue, due to COVID closure and restrictions, did not translate to significant loss. They deserve great acknowledgement during periods when businesses and Clubs have closed their doors.
The Club has also had three successful audits from Liquor and Gaming, again testimony to the responsible attitude displayed by management to the safety and well-being of members.
A summary given of the Club’s financial position was provided as follows:
1. We are currently trading without use of the overdraft.
2. Cash in 2019 is down on cash in 2020 by approximately $1 million.
3. Since the commencement of COVID trading revenue has dropped by $2 million, understandably due to the inability of our valued overseas, interstate and country members to access the club (who constitute approximately one third of membership) and local members.
4. That said the quarter to 30 September 2020 was a deficit of ($38,990) due to government stimulus and other controls implemented by management. Revenue for the quarter is down $1,040,116 on the same period in 2019.
5. As indicated to the meeting the 30 June 2020 trading result before depreciation of ($362,506) represents approximately $223 per member.
6. The question was asked what is the Board going to do about revenue. It was pointed out that we enjoy subscription levels way under other city clubs and there will in the future always be a capability for members to fund their club as necessary.
7. Notwithstanding the Board continues to carefully balance club needs with membership affordability.
8. Our chef and his staff have been regularly complimented in recent times for the quality of food and service provided to members on the whole.
In summary neither the elected Board nor management are complacent and, operating within our means, remain positive (despite the negativity of a small number) and ready to continue to strive to improve member satisfaction, services and carry out infrastructure upgrades as available capital permits (including the finalisation of a conservation management plan to optimise the potential to approach Sydney City Council to pursue the Heritage Floor Space Scheme). Stay safe and well.
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