Club's future in hands of bankers

The business world is littered with examples of grand ambition thwarted by reality.

It looks like Ettalong Beach Club will provide a further example.

The result for the year to June 30, 2007 - after excluding the exceptional profit from the sale of poker machine entitlements - was a loss of $1.58m.

The previous year's result, after excluding poker machine entitlements and the "one-off" settlement by Multiplex on the re-development of the Club, shows a loss of $0.79m.

The accounts have been qualified by the auditors.

They are unable to form an opinion as to whether the amount included in the accounts for the valuation of "Land, New Clubhouse, Car Park and Plant And Equipment" is fair and reasonable.

They note the value of Land and Buildings "would be significantly reduced if a revaluation was carried out by the company".

The auditors also note that the company's bankers have not indicated their continuing support of the company due to the company's inability to comply with the terms of the financing agreements - thus creating "material uncertainty regarding [the Club's] continuation as a going concern".

The Club's future would now appear to be firmly in the hands of its bankers who at end June were owed $28.7m.

Their first priority must be to protect the interests of Suncorp Banking shareholders and any proposed re-structure will be targetted to that end.

Michael Gillian Ettalong Beach