A link to the 2020 Annual Report is provided below. The signed document will be uploaded next week.
As for most businesses and sporting and other clubs in Australia, the 2019/20 year has been a very challenging one given what unfolded in Australia and around the world earlier this year. The Covid-19 Pandemic has caused significant disruption to both our way of life and the way that businesses and Burleigh Golf Club have operated since February/March of this year.
Fortunately, Burleigh Golf Club came in to the 2020 year in a strong financial position and trading profitably. Some of the key positives and negatives that have impacted the Club in the June half are:
Positives:
- A full membership and a waiting list of people wanting to join our Club
- A loyal and resilient staff who have accepted the changes to their working environment and have been supportive of the Club
- Members playing more golf when the rules allowed
- The Club qualifying for the Federal Government’s “JobSeeker” subsidy
- The vast majority of Members and staff respecting and adhering to the social distancing and other rules imposed by the State and Federal Governments
Negatives:
- Golf being restricted to two per group for 6 weeks (30 Mar to 15 May) and hence smaller fields during this period
- The clubhouse being closed for several weeks
- Bar sales well down on normal trading
- A small negative return being reported for the Club’s long-term investments in the “Land Lease Fund”.
Despite the above, the Club has recorded a trading profit for the year. This is before depreciation, the JobKeeper subsidy, the Federal Government’s Covid-19 stimulus payment, and income/losses from investments over the twelve months. After these items however, a loss for the year has been reported and further details of the results are provided below.
Profit & Loss – The Club recorded a net loss after interest, depreciation, Federal Government subsidies, and Investment income/losses of $177.3K for the 2019/20 year (2018/19 – profit of $6.285M) on total revenues of $3.128M (2018/19 -revenue of $9.428M). There are a number of one-off and material items impacting on the results in both years and these are highlighted in the following table. Importantly however, the net result from normal trading at the Club was a profit of $136.3K (last year – a net profit from trading of $309.9K). That is, despite the difficult trading conditions in the June half, the Club still recorded a trading profit.
The material one-off and other items effecting revenue and profitability in both the 2019/20 and 2018/19 years can be summarised as follows:
| Item | 2019/20 Year | 2018/19 Year |
| Lease Premium from the lease of land to RetireAustralia and Income Generated by the Land Lease Fund | ($66.5K) | $6.162M |
| Federal Government JobKeeper Subsidy & COVID-19 Cash Stimulus | $221.0K | N/A |
| Depreciation | ($402.6K) | ($207.3K) |
| Profit/(Loss) on Disposal and the Write Off of Certain Fixed Assets | ($71.3K) | $10.3K |
The following tables summarise this year’s financial performance compared to previous corresponding periods:
| Summary of Overall Results – $’s | 2019/20 | 2018/19 | 2017/18 | 2016/17 | 2015/16 |
| Net Profit/ (Loss) – Trading | $136,312 | $309,938 | $389,436 | $328,797 | $373,125 |
| Extraordinary items – Lease Premium & LLF Income/(Loss)* | ($66,530) | $6,161,840 | – | – | – |
| Depreciation Expense | ($402,590) | ($207,247) | ($212,503) | ($219,656) | ($228,634) |
| Gain/(Loss) on Disposal of Fixed Assets & the Write off of Certain Fixed Assets | ($71,288) | $10,323 | ($156) | Nil | $1,909 |
| Interest Earned/(Expense) | $5,763 | $10,602 | ($48,406) | ($69,336) | ($96,412) |
| Federal Government JobKeeper Subsidy & COVID-19 Cash Stimulus | $221,000 | N/A | N/A | N/A | N/A |
| Net Profit/ (Loss) | ($177,333) | $6,285,456 | $128,371 | $39,805 | $49,988 |
* Lease premium received from RetireAustralia and income/(loss) generated by the Land Lease Fund
Full financial details can be found in the Treasurers Report within the 2020 Annual Report.
