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Reflection

2017


Contents From the Boardroom

1

Upcoming Shows

2

From Behind the Desk

3–5

Facts and Figures

7–9

Giving Back

10

Giving Back | Pink October

11

Giving Back | Club Grants

12

Giving Back | Raise Mentoring

13

On the Beat

14–15

Promotions

16–17

Good Times

18–19

Dining @ Pittwater

20–21


From the Boardroom Members, I am pleased, on behalf of the Pittwater RSL Club Board of Directors, to present the 2017 report. It has been another very eventful and busy year. Since the completion of our renovations in late 2016, the Club has achieved growth in all areas of operations and has met all financial requirements due to the hard work and diligence of the Executive Leadership team and my fellow Board of Directors. Pleasingly, the Club has seen a large increase in Memberships throughout the year, with a large portion of that being the young family market, who appear to be enjoying our new look Club, particularly the undercover playground in Potter’s Café. Our Glasshouse restaurant has gone from strength to strength since opening in December 2016. We have seen record numbers of people enjoying the large selection of food available every night of the week with rave reviews. Club Management will continue to evolve the food operations within the Club in 2018, with some exciting changes afoot. In 2017, the Club, once again, donated more than $400,000 through the ClubGRANTS program to various, local charities, volunteer organisations and sporting groups. This of course would not have been achievable

without you, the Members, supporting and patronising this great Club. We are extremely thankful. In addition to this, the Club participated in Pink October in 2017, raising over $35,000 for Breast Cancer research and to bring much needed specialist nurses to the Northern Beaches. Our staff, once again, participated in the Raise mentoring program alongside Pittwater High School. With such a large portion of our precious youth battling relentless bullying and in-turn suffering from anxiety and depression, it is so important to check-in regularly and help where you can and that is what the Raise program offers these students. Jason and his team will no doubt continue to align with the Board’s strategic direction in 2018 and beyond, transforming your Club into an industry leading organisation. In-closing, I wish to thank my fellow Board Members for their continued support, Jason Manning for his unwavering leadership as well as the Management and Staff for your dedication, effort and support, and to you, the Members THANK YOU for your loyalty, trust and support.

Aldo Sirotic

Aldo Sirotic President

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Upcoming Shows

Frankie Valli & The Beach Boys TRIBUTE SHOW

Saturday

9th JUNE

James Morrison QUINTET

Saturday

30th JUNE

Wendy Matthews

Saturday

28th JULY

Tickets on sale at reception or visit our website www.pittwaterrsl.com.au

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From Behind the Desk “The second year of a new beginning… And what a year it was!”

7) Able to meet amortisation payment of debts. (Achieved)

As predicted, the impacts of the 2015/16 capital works program continued to have a legacy effect, both beneficially and non-beneficially, on the Club’s business operations.

8) Complete review of assets – feasibility of core property development (Ongoing)

I am pleased to advise that the Board and Management came close to achieving their targeted financial goal of a net break even result for 2017. However, some late adjustments to employee entitlements/accruals altered the actual net result to -$119,320.00. More importantly, however, our overall EBITDA achievements resulted in a $3M+ result which was an increase of over $600,000.00 on 2016 (highlights of this will be identified as you read on). Aligned with the above, the Board continued to provide Management with its strategic direction for 2016/17, which I am pleased to outline the below detail along with the relevant actions and achievements: 1) Grow EBITDA (Achieved) a. Increase foot traffic (Achieved) b. Increase average spend (Achieved) c. Increase family spend/visitation (Achieved)

9) Strategy plan 1, 3, & 5 years (Ongoing) 10) Review policy of transporting customers (Achieved) 11) Be a sustainable business (Achieved – Ongoing) 12) Review lazy assets (Achieved – Ongoing) 13) Be the employer of choice; culture, remuneration, WHS, etc. (Ongoing) As we continually progress forward, and our business demographics continue to change, we are experiencing exponential growth in ‘new’ Memberships as a result of both the Club’s renovations and some strategic Membership incentives and or initiatives.

See below table: New Members per Month 2016

2017

2) Improve industry gaming position by 5-10% (Achieved) 3) Improve catering – average spend, foot traffic (Achieved) 4) Improve beverage – increase revenue, increase prices relative to cost increase (Achieved) 5) Risk management investigation – internal and external (Achieved – Ongoing) 6) Feasibility study on bulk purchases – food, energy, beverage (Ongoing)

The above table highlights a significant increase in new Memberships of over 87% compared to pre-renovations.

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From Behind the Desk continued This increase in membership has also had a domino effect on the remainder of the business, which is pleasing, as well as not-so pleasing; • 47% increase in family/group visitation

Total Annual Integrated Value 0.86% RSL Sub-Branch (Class A) $140,567

• 23% increase in average spend per catering transaction • 21% increase in visitor traffic and or participation • 5-10% increase in food and beverage revenues respectively Over the past few months, the Club’s Board and Management have been working tirelessly on constitutional changes in an effort to better represent the interest of majority of our Members. Some of these proposed changes were thankfully approved at an Extraordinary Members meeting on the 8th of April 2018 by the Club’s Sub-Branch Members (Class “A” Members). Overwhelmingly, the industry majority, government regulators and myself believe more should be done in the areas of self-regulation, Club Governance and Constitutional appropriateness. However, presently your Club has an imbalance which needs to be addressed by self-regulation, prior to eventual Government regulation change. This includes more significant changes to the Club’s Constitution, in and around membership fairness. Please see the below graphs, as indicators to membership apportionment as well as integrated value/contribution of member by Membership “class” for 2017. It is hoped these graphs highlight a distinct underlying message that change is required sooner rather than later.

Membership Types

Total Number of Members 0.48% RSL Sub-Branch (Class A)

99.14% Ordinary Members (Class B) $16,279,068 RSL Sub-Branch (Class A) Ordinary Members (Class B) including Bowls, Darts, Golf, Fishing Sub-Clubs

I am also pleased to advise that the Club has seen a significant improvement in the stabilisation of its Leadership and Operational teams over the past 12 months and we are well on our way to being an employer of choice within the local LGA. Pittwater RSL Club has an amazing and committed team who have assisted in the many challenges throughout 2017 to deliver improved standards in product delivery and service whilst maintaining our financial obligations. The entire team are to be congratulated and I sincerely thank them for their tireless efforts. Culture, behaviours and values; Fun, Customer Focused, Safe, Inclusive and Integrity, will continue to be at the forefront of our Leadership Team’s focus along with the ultimate ambition; ‘to become a high performing team within an ever-increasing professional market’. I must thank the Board of 2016/17. The Directors, both past and present, have been on a significant professional transition over the past 12-24 months. Changes in draconian reporting, financial benchmarking, business/ industry changes and accountabilities as well as extended corporate governance compliance model has seen a huge leap forward.

99.52% Ordinary Members (Class B)

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Regrettably, due to personal and professional obligations, Board Members Mr Don Chessell and Ms Deidre Anderson resigned from the Board in 2017. Mr Chessell’s longstanding tenure of 11 years as a Board Member, 8 of those serving in the Honorary Treasurer position, must be recognised, respected and appreciated – thank you.


From Behind the Desk continued We have seen the inclusion of two very well respected and passionate Directors appointed over the past 3-6 months; Mr Norm Calthorpe and Mr Harry Crampton. Both new directors have been very quick to settle into their roles whilst upholding the Board’s strategic directions, to both I must also say thank you. Personally, I would like to thank the Club’s President, Mr Aldo Sirotic for his unwavering support of myself and the Club’s Executive Leadership Team. Aldo has endured many challenges over the past 12 months, however his unconditional love for this Club and its Members has been inspirational. Throughout the many ongoing challenges we endured as a Board and Management team, Aldo has always accepted, supported and respected the journey we, at times, had been forced to undertake - thank you Aldo.

In closing, 2018/19 will see us continue to build up the important foundations. Poor planning, inept leadership as well as a lack of accountabilities and masked performances prior to and including 2015 laid a new path and direction for Pittwater RSL Club. Although this directional change is as a result of the 2015/16 renovations, it could also be one of “great” opportunity. As the Club’s market and demographic continues to evolve, many other investment or growth opportunities will surface, we are looking forward to what the future brings. Please continue to support your great Club.

JasonManning

Jason Manning JP CCM Chief Executive Officer

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User experience Design

Facts and Figures 2017 was a year of rebuilding after the disruption caused by the extensive renovations completed in 2016. As we started the year the glasshouse restaurant had been open for less than four weeks, and there was still work to do to make the most of the new facilities. The 2015/16 renovations had been concentrated in the food areas of the Club, so this year there was a focus on investing in areas that generated more income. As noted at the last AGM, one of the impacts of the renovations was a persistent rise in the depreciation charge. Depreciation has risen a total of $1,256,000 since 2015, with a rise this year of $612,000 following the rise of $644,000 last year. There were two other key overhead costs which rose significantly this year:

Depreciation

Interest

Gas and electricity

Interest costs mainly related to the loan which was taken out to fund the renovation works, with some interest also incurred on leases to acquire gaming machines. The interest cost totalled $250,000 in the year, compared to $20,000 in 2016. The cost of gas used rose by $45,000, whilst the cost of electricity rose by around $160,000. $30,000 of this rise was due to increased consumption as all areas of the Club were open, whilst the rest was due to the increased market price of electricity. Thankfully due to past good due diligence the Club joined forces with a group of other clubs to purchase electricity in advance, which is estimated to have saved the Club at least $120,000 in the year. The audited financial statements for the year show a net loss of $119,320, compared with a net profit of $105,160 for the previous year.

The diagram below illustrates the size of the three key cost increases compared to the net profit or loss before tax for the years 2015 to 2017. Changes in gas, electricity and interest costs from 2015 to 2016 were negligible.

Net profit

Depreciation

Interest

Gas and electricity

Alongside net profit, Management and the Board use a measure called EBITDA (earnings before interest, taxation, depreciation and amortisation). By removing depreciation (which is fixed on the acquisition of assets) and interest (which depends on how assets are financed, not how they are used), EBITDA better reflects the effectiveness of the day-to-day operating decisions made by Management. It is also a closer reflection of operating cashflows than profit or loss. EBITDA for the year to 31 December 2017 was $3.2m (equivalent to 16.2% of total revenue) compared to $2.6m (14.2% of revenue) in 2016. Income It was pleasing that our total revenue increased by just under $1.5m compared to 2016. As shown below, this growth came from all areas of the Club’s operations.

Gaming

Bars

Catering

Other

This growth reflects the many satisfied customers returning after the disruption to our operations in 2016, and represents a quick return to the level of revenue in 2015, before the renovations.

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Facts and Figures continued Community donations and grants

Actual

Required

It gives us great pleasure to announce that once again your Club has provided community grants and donations far in excess of the requirements under legislation. The gaming tax year ends on 31 August each year, and in 2016/7 the Club made total cash and in-kind donations of $412,355 under the ClubGrants scheme, more than 46% above the minimum amount required. This enhances the position of your Club as an exceptional, community-focussed organisation. In the year to 31 December 2017, just over $52,000 was spent in donations and other support of the Pittwater RSL Sub-branch, compared to just under $36,000 in 2016 and $7,500 in 2015. In addition to these donations and grants, Management supported other fundraising efforts around the Club. The largest of these was October’s partnership with the McGrath Foundation, which raised over $35,000.

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Member benefits

Membership income

Benefits to members

Management believe in making Pittwater RSL Club your club of choice. Through a combination of birthday vouchers and loyalty scheme benefits (including additional discounts on food and beverage purchases), $327,000 was returned to members, compared with membership income of $118,000. This was broadly in line with 2016. In addition, for 2017 we introduced the “Rewards Club” programme, available to all members. Membership cards now entitle members to discounts at a range of local retailers, and many members have received discounts through the scheme that were worth more than the initial cost of Club membership.


Facts and Figures continued Cash

Investment in members’ assets Assets acquisitions, $m

The Club generated a total of $2.8 in cash through its operations and an increase in its borrowings. As shown below, most of this was used to fund the purchases of required assets, with some used to repay leases and the remainder retained in the Club. Sources of cash, $m

Uses of cash, $m

Gaming

Audi and Sports Bar

Building Works

Other

A total of $2.8m of assets were purchased during the year, including a major update of the gaming room and refurbishments of the Sports Bar and the Auditorium. The final payments were also made for the building works. Priorities for 2018

Operations

As we move forward into another year, Management are focussed on continuing to grow revenue across the Club. At the same time, we are looking to improve operating efficiencies and invest further in the facilities available to you.

Borrowings

Asset purchases Lease repayments Retained

Finally, I would like to thank the Board of Directors, Jason, the rest of the executive team and my accounts team for their support during the year.

Robert Pryer

Robert Pryer FCA BA Finance Manager

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Giving Back For a medium size club, we are proud to go above and beyond in giving back to our Northern Beaches community. Between ClubGRANTS, private donations and fundraising initiatives, Pittwater RSL Club donated more than $400,000 to the local community in this past financial year. Above that we facilitated or hosted nearly $40,000 in further fundraising among our members and staff. When it comes to supporting the community, we know that every contribution matters, big or small. We couldn’t be prouder of the way our community bands together to create such positive outcomes. We have enjoyed participating in a number of staff-led fundraising initiatives such as RUOK Day, Jeans for Genes, Gambling Help and Pink October. We are so grateful to all members who donated directly to these efforts or contributed by attending our

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fundraising events, and we also want to thank our generous staff who donated out of their own pockets while working the events. We are proud to foster such an atmosphere of generosity and giving within our team. A brief overview of the other ways we give back to the community. For example, this year we have supported our RSL Sub Branch with over $50,000 in donations, as well as contributing over $10,000 to the various sub-clubs who support us in turn by helping with raffle nights and other events. We’ve donated over $3,000 to rugby league and we are tremendously proud to engage with our local school and education initiatives, donating over $14,000 to Learning Links this year, and a further $15,000 to Raise Mentoring, either in cash or in-kind donations.


Giving Back | Pink October raised over $35,000 One of the highlights of our year was turning the Club pink for the whole of October to raise as much money as possible for the wonderful McGrath Foundation. The goal was to contribute towards a dedicated breast care nurse for the Northern Beaches community. Our Club held a number of fundraising events throughout October and were grateful to receive the support of our Staff, our Members, and our Sub-Clubs, many of whom held their own fundraising initiatives.

CEO Jason Manning said “The Board, Management and Staff at Pittwater RSL are thrilled to be involved with this important fundraiser. The more people who visit the Club during the month of October and make a donation. The more we can help families who are dealing with breast cancer and its associated challenges within the Pittwater community”. We are so proud to have raised over $35,000 for this worthy cause.

McGrath Foundation Ambassador and Director, Tracy Bevan, says the McGrath Foundation continues to be blown away by the support from Australian communities, which directly helps the Foundation in its mission to ensure every family in Australia experiencing breast cancer has access to a breast care nurse no matter where they live – and always free.

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Giving Back | ClubGRANTS Every year we get together with other local clubs and make the very rewarding (and often difficult) decisions around ClubGRANT funding, which is allocated to different clubs and organisations in our local area. CATEGORY 1

CATEGORY 2

This year we were proud to support twenty-five different organisations with a total of over $65,000. Individual donations ranged from $500 to over $7,500, depending on each organisation’s needs

This year we supported thirty-one wonderful clubs and groups in Category 2 with over $103,000 of donations ranging between $150 and $30,000 depending on each club’s needs.

Sailability NSW Inc. Pittwater Branch Autism Spectrum Australia (Aspect) Elanora Heights Community Preschool Scout Association of Australia NSW Branch – Ingleside Camp Streetwork Incorporated Legacy NSW Associated Clubs – Northern Beaches Lifeline Northern Beaches Incorporated St Lucy’s School Northern Beaches Creative Leisure and Learning Inc The Leukaemia Foundation of Australia Limited Sydney Thistle Highland Pipe Band The Shepherd Centre – for Deaf Children Volunteer Marine Rescue NSW - Broken Bay Aboriginal Support Group – Manly Warringah Pittwater Rainbow Club Australia Inc – Warriewood Life Education NSW Limited Peninsula Senior Citizens Toy Repair Group Inc Northern Beaches Multiple Birth Club Early Education (EarlyEd) Inc Literacy Network Manly Warringah Inc Palm Beach Kindergarten Youth Off The Streets Limited Bowelcare Australia: a Division of Cancercare Australia Ltd Learning Links Marine Rescue NSW

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Bungan Beach SLSC Narrabeen Lakes Sailing Club Manly Warringah Basketball Newport Rugby Club Mona Vale Commodores Northern Beaches Outrigger Collaroy Beach Club Surf Life Saving Northern Beaches Childrens Medical Research Institute NB Lions Club of Pittwater Mona Vale Cricket Club Mona Vale Junior RL FC Mona Vale Raiders Kincare Pittwater Memorial Bowling Club Peninsula Cricket Club Peninsula Softball Pittwater RSL Darts Club Pittwater RSL FC Pittwater RSL Social Golf Club Pittwater Dragon Boat Racing Club Pittwater Softball Club Pittwater RSL Fishing Club Pittwater RSL Sub Branch Pittwater Tigers Junior AFL Club The Link Church Warriewood SLSC Warringah Concert Brass Youth Off the Streets Vinnies Pittwater RSL Day Club


Giving Back | Raise Mentoring Every year the club supports approximately ten staff to become mentors for youth at Pittwater High School, and this year was no exception. Our mentors range from members of the Executive Management Team to floor

staff and each one of them finds the experience to be truly rewarding. It’s a pleasure to see how our young people grow and develop with good leadership from within the community.

For more information on the work of Raise Mentoring, please see the video on www.youtube.com/watch?v=KEFqZNmk9Lg&feature=youtu.be

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On the Beat During the peak months of Summer, our team hits the a few more locals! An excuse to hit the beach is nice, too. streets to make sure everyone stays happy and hydrated. We visited parks and sandy spots all across the Northern This year we spent weeks handing out frisbees and ice-cold Beaches and loved every day of it. bottles of water, and we loved the opportunity to meet

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Promotions This year has been an amazing year for our Members who have won holidays, cars, cash and more. Over the course of the year we have we have given away over $500,000 in promotions, raffles, bingo and more.

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Our latest promotion “Live It Up� TPL/18/21010 saw a lucky member win a 2017 Indian Motorcycle, but could have chosen a Seadoo or a trip for 2 to Las Vegas. Keep an eye on our Facebook page and website for our next exciting major promotion.


Not only to we have great major promotions but each week we have promotions for our members. • Join us for Bingo every Monday, Tuesday and Friday; • Cash Housie every Wednesday; • Raffles every Wednesday, Friday and Sunday;

• Trivia every Wednesday; • Poker every Tuesday to Saturday and • Member’s Birthday Draws the second and fourth Thursday of the month.

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Good Times With all else being said, one of our key responsibilities as a community club is to provide a place for our members to enjoy great food, drinks and entertainment in the company of great people! After the challenge of major renovations in 2016, our food and beverage team have gone from strength to strength in 2017, delivering a number of soldout culinary events. On Mother’s Day we served up complimentary bubbles and a stunning set menu to 240 people, and things

only got better from there. We experimented with a few boutique events which all sold out (such as the whisky tasting and craft beer degustation), and then topped it all off with a record-breaking Christmas lunch. We held a Christmas feast in the newly renovated auditorium with to 277 happy people entering our doors, and simultaneously served a mouth-watering set menu to 162 in glasshouse restaurant. Both events sold out by the beginning of December, so we can only assume the word is spreading about our fabulous food and service!

In February we had lots of fun transforming our Tuscan Terrace into the Aperol Terrace, serving up Aperol cocktails, Italian beer on tap, tapas and $1 oysters, all with the ambience of live music and fabulous new dĂŠcor.

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This summer we had guests creating their own pavlovas in glasshouse restaurant. There was plenty of culinary talent to be discovered!


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Dining @ Pittwater When dining at Pittwater RSL you are spoiled for choice, with three restaurants, a cafĂŠ and now a pop-up restaurant.

Glasshouse restaurant is the perfect place for the whole family. Combining traditional Australian club dishes with fresh NSW seafood, quality aged Australian steaks, and locally source fruit and vegetables. Our aim is to provide quality food and a reasonable price ensuring there is something for every appetite. Open 7 days for lunch and dinner

Nonna’s is a family-friendly casual dining restaurant. Serving Tuscan style pizzas using quality fresh ingredients alongside authentic Italian pastas and salads. Open Thursday to Sunday for lunch and Wednesday to Sunday for dinner

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In Potter’s Café, enjoy a relaxed, enjoyable atmosphere with great coffee, freshly made sandwiches, a delicious choice of cakes and pastries and contemporary hot dishes to share served from the glasshouse kitchen. Open 7 days from 9.30am

New to Pittwater RSL is Foley’s Fried Chicken, a pop-up eatery in Skillzone. Come in and build your dish. Choose between chicken or a burger, choose your heat, sauce and side. Now open on select days

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ACN 001 052 802 82 Mona Vale Rd, Mona Vale NSW 2103 02 9997 3833 info@pittwaterrsl.com.au www.pittwaterrsl.com.au

Pittwater RSL Club Reflection 2017  

Reflecting back on the many achievements of the Pittwater RSL Club in the year 2017.

Pittwater RSL Club Reflection 2017  

Reflecting back on the many achievements of the Pittwater RSL Club in the year 2017.

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