Ettalong Club shows profit

The Ettalong Beach War Memorial Club has reported an after tax profit of $295,652 on the back of generous financial arrangements from its lender Suncorp Banking.

The club's accounts at the end of June 2011 show borrowings of $34.3 million and "financial costs and interest" payments of less than $1.25 millon - less than 3.7 per cent.

However, the club has yet to recover its financial position, with liabilities outstripping assets by more than $14.8 million.

The club's auditors, Bracey and Associates, have reported that "whilst the company's bankers have provided financial support to date, they have indicated that the financial support will only continue whilst the company complies with certain conditions imposed by the bank after the restructure of the various bank facilities".

"These conditions ... 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."

The club's annual report stated that the company's goals were to "maintain and grow profitability" and to "provide amenities" for members, the RSL, clubs and community groups.

The report stated: "To achieve these through diversification, the company has adopted the following strategies: Increase membership and grow the company's profitability; Provide high standard facilities to members and guests."

The club reported a 4.1 per cent decrease in bar sales for the year, with sales totalling $2,222,679. Net profit decreased over last year by $55,402 or 6.1 per cent.

Poker machine trading for the year totalled $8,714,665, a decrease from 2010 of $966,750 or 9.9 per cent.

The trading profit on poker machines showed a decrease of $582,394, which was "due mainly to the decrease in net takings ($966,750), Duty Tax ($282,579) and Poker Machine Rentals ($89,423)".

Annual report, 14 Sep 2011 Ettalong Beach War Memorial Club