2017 Annual Report

 

Thank you for our financial result!

In the 2016/17 financial year, the club maintained its improved financial performance with a net profit of $39,805. Adding back the depreciation expense of $219,655 provides a “cash generated” figure of $259,460. This is after interest & line fees relating to the Commercial Bill facility of $69,337 have been paid. Ignoring the timing of subscription income, the cash profit of the Club (after adding back depreciation) for FY17 was $328,797; (FY16, $377,757).  This is essential to build a buffer into the Commercial Bill debt position in the short term, and to facilitate material reinvestment into the club and course facilities over the longer term.

Click here to download the 2017 Annual Report.

The years result is made possible by the many aspects of our Burleigh Golf Club Community including members, sponsors, volunteers, Board & Committee members, and staff.  Thank you to all our members who maintain their membership at the club, frequent the venue with golf and hospitality trade, and introduce their friends and colleagues to the club. You make up the vast majority of the club’s trade and your activities at the club are fundamental to its financial success.

A number of dedicated members undertake sponsorship of golf events throughout the year for the benefit of all members. A big thank you to:

Nathan Dare of Dare and Turner Travel Associates;

Ashley Heritage of Heritage Brothers Funeral Services;

Jeff Bloomfield of Coastwide Roofing.

Our sponsors from within our local community include:

Gold Coast Hyundai;

Hoppys Car Wash;

Real Estate by Kylie;

Miramar Hair & Beauty.

Thank you all for the valuable contribution you make to Burleigh Golf Club.

Volunteer work is essential in all community clubs and Burleigh Golf Club receives the benefit of significant volunteer dedication through the efforts of the Board of Directors, Committee Members, the Ladies Committee, Working Bee and Course Volunteers, and those who wind up our golf competitions. Thank you all for rolling up your sleeves in assistance throughout the year.

Our enjoyable course facilities are provided by the efforts of Superintendent Darryl Edwards and his course team.  Thank you for another year of achieving great results on the course. The administration team, club staff and Brownies Pro Shop crew are the face of our business. A big thank you for your support through a year of many changes. Your assistance has been wonderful and is always appreciated.

The State of the Club

This year the club continued to receive the double-barrel benefit of low interest rates and wonderful Gold Coast weather. External to our business, several local private golf clubs changed their business model and will not be offering a golfing membership product for FY18. This change had a significant positive effect on the Club in late FY17 which will continue through the next financial year. The strong increase in golfing memberships and associated golf activity has seen Friday competitions revert to a two-tee start to accommodate the additional member activity, and Full Membership was closed in May.

Burleigh Golf Club completed FY17 with a small profit of $39,805, down on the FY16 profit of $49,988; maintaining its improved position compared to the 7 prior years. Revenue growth was at 6.0% for the year, to $3,075,003.  Prepaid membership subscriptions into FY18 are up 30.6% to $1,139,322; growth of $267,416 on the prior year, so the club is incredibly well positioned for the year ahead, before consideration of the RetireAustralia Development.

FY17 was the first full year of income from the Vodafone lease, producing $22,067 in income.

Through the last twelve months we continued progress of the RetireAustralia Development, finalising contracts, clarifying its status in relation to the club’s position with the ATO, and planning for 10^th hole modifications. An application for Development Approval has been made to Gold Coast City Council and we remain hopeful for a response in early 2018. Pleasingly the ANZ is much more comfortable with the club’s financial outlook and its capacity to meet its long term financial commitments.

Over the year, Competition Fees fell by 2.4% or $11,452 but remain flat against the last few years. Combined Green Fees and Social Group Fees grew by 13.0% or $39,192 to cap off a good year of revenue growth on the course.  Growth in capacity utilisation, particularly from visitors to our club, enables the club to meet its financial obligations with a lower corresponding draw on funds from members.  The patience of members in accommodating this increased visitor play is appreciated. Once the club’s debt is cleared, the requirement for such large visitor numbers will decrease.

Numbers of Full Members and 6 Day Members are up 18% and 20% respectively over the last two years, and after finalising membership renewals in June, attrition of Full and 6 Day Members is at 5.1% and 4.0% respectively. Golfing Membership Attraction grew 13.8% or 145 members at the end of the year and we have around 40 members on a wait list to transition to Full Membership as positions become available.

EBITDA dropped slightly in FY17 but remains stable when the FY16 result is adjusted for a one-off GST benefit, and other one-off expenses in FY17 such as legal fees.

EBITDA – earnings before interest, taxes, depreciation and amortization

	2017	2016	2015	2014	2013	2012
EBITDA	328,797	377,757	232,382	199,916	265,665	166,849
EBITDA %	10.7%	13.0%	8.1%	7.0%	9.6%	5.7%

 

Thank you again for your support of the club over the last year and I encourage you to attend our upcoming Annual General Meeting where we will be discussing our financial position in greater detail.

Ian Cottle – General Manager