Club reports $2.9M loss
The Ettalong Beach Club has reported a loss of more than $2.9 million during the last financial year in its Concise Financial Report.
According to the report, the implementation of no-smoking regulations caused a "significant impact" on the club's operation.
The report stated: "The company has considered and planned for the impact of the no-smoking regulations implemented in July 2007.
"The company will be incurring significant costs in relation to the regulations for a proposed alfresco gaming area."
The club experienced a 22.2 per cent drop in poker machine trading from the 2006-2007 financial year.
A loss was also seen in bar trading, with a 13.5 per cent drop compared to 2006-2007 financial year figures.
According to the report, the club's executive officer received an income of between $400,000 to $409,999 for the year ending June 30 this year.
"The company's bankers have provided financial support by way of a term loan and, since the end of the financial year, a further temporary overdraft facility based upon certain conditions being met by the company," the report stated.
"The directors are of the opinion that the conditions of the term loan will be met by the company if the proposed alfresco gaming installation meets expectations."
As stated in the report, the club's bankers have "provided financial support by way of a term loan and, since the end of the financial year, a temporary overdraft facility based upon certain conditions being met by the company".
"The directors are of the opinion that these conditions have been or will be met by the company including the repayment of some of the company's debt via asset sales," the report stated.
"The bankers have not indicated that this support of the company will be continuing but are currently supporting the company on a restructure of the company's business which will be based upon a report that is currently being prepared by a firm of external consultants [Bracey and Associates Chartered Accountants].
"The report and the restructure will then be considered by the bankers and the company."
The Independent Audit Report prepared by Bracey and Associates Chartered Accountants states: "We draw attention to Note 1 in the financial report which indicates that the company incurred a loss of $2,953,717 during the year ended 30 June 2008".
"Whilst the company's bankers have provided financial support to date, they have not indicated that this support of the company will be continuing due to the company's inability to comply with the terms of the financing agreements; but the bankers are currently supporting the company on a restructure of the company's business which will be based upon a report that is currently being prepared by a firm of external consultants," the Independent Audit Report stated.
"The restructure is ongoing.
"These conditions, along with the matters as set forth in Note 1, indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern, and, therefore, whether the company will realise its assets and extinguish its liabilities in the normal course of business and the amounts stated in the financial report."
In his Chairman's Report club, Mr Donald Young said it was "no news to any member that this year has been a great battle for the club, and in fact, all clubs in NSW, to survive".
"We are still here and with your help we are planning and working towards being so for many years to come.
"To the members, we also owe a debt to them for staying with us and putting up with the many changes that have occurred over the past 12 months.
"We hope you will continue that support as it is only with your support that we can continue. "Please remember that although you may not like some of the changes that been made, they were very necessary for our continued survival and financial recovery from the position we were in.
"I know that in the 20-odd years I have been a member I did not have a clue what was going on behind the scenes.
"Now I do and I realise how much work is done by the dedicated people it takes to keep a club like ours going.
"So members, get involved and give us your support, we need it."
In the Acting General Manager's Report Ms Melissa Hamilton said her role as acting general manager has been both "challenging and rewarding".
"To say that the six months to June 2008 have been interesting for the club and me personally would be a huge understatement," the Acting General Manager's Report stated.
"In December last year I was approached by Campbell Advisory to take on the role of acting general manager through the restructure of the club.
"Throughout the restructure process there have obviously been some very difficult decisions to make and implement, but they have been done fairly and equitably across all sections and departments of the club.
"The restructure process has been engineered by Campbell Advisory in cooperation with the club's bank, Suncorp Metway.
"The club is very appreciative of the assistance and support Suncorp has provided in working through the issues that the club has faced."
According to the report, as of June 30 this year, there were 17,489 members of the company.
The full report is available on the club's website at www.ettalongbeachclub.com.au
Report, 20 Nov 2008
Ettalong Beach Club