FINANCE REPORT 2005

The year ended 30 September 2005 was a satisfactory one for the clubs finances. A significant change occurred in mid August 2005 when the bar and catering were leased to Country Caterers. This has impacted positively on the clubs finances and should continue to do so in the future.

INCOME

Most areas of income were up on the previous year. Subscriptions from members was up significantly, due mainly to an increase in new members in the last few months. Sponsorship of $24,500 ($19,500 in 2004) obtained from several charities was a welcome bonus, which we can only hope continues. Green fees were up about $8,000 on last year after declining from the previous year. Gaming machine turnover continues to decline, which could be due to the ageing games we have available.

EXPENSES

Expenses were close to last year with interest on mortgages being the only notable increase.

CAPITAL EXPENDITURE

Kitchen upgrade ($23,014) computer equipment ($1,985) and irrigation system extension ($17,397).

FINANCING

The term loan from the Southland Building Society of $239,653 is at a fixed rate of 7.85% until November 2007 and the SBS Flexiloan of $76,844 is currently at 8.8%.

BUDGET

Income from lease of the bar and catering is $30,000 p.a. to August 2006 and $40,000 for the following 12 months. Sponsorship of hole signage is up for renewal in March 2006 and $15,000 of income has been budgeted for. Expenditure of $6,500 has been budgeted for to cover cost of signage at the road entrance. An increase in contract green keeping of over $25,000 p.a. has been budgeted for from June 2006 onwards.

An additional $31,000 of fixed assets as detailed on the projected cashflow has also been budgeted for.

FINANCIAL OUTLOOK

With the new lease agreement for the bar and catering in place the club can attract more people to use our facilities. An increase in membership; green fee players and gaming machine users will hopefully be the benefits to the club. Therefore the outlook going forward looks far more positive than it did 12 months ago.

John Walter