Page 1

ANNUAL

REPORT 2014–2015

ACN 008 488 855


Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

President’s Report It is with pride and pleasure that I reflect on the successes of the Canberra Southern Cross Club this year. The Board’s focus has been on significant renewal of the club’s facilities and services. This focus is showing positive results which will ensure that we are sustainable into the future. We know that above all, our Members are our greatest asset. Your continued support is what makes the club the leading destination for families in Canberra. Our CEO Ian Mackay and his management team are making improvements across the Club, as I am sure you will have noticed. In 2014/15 we conducted a greater level of research into our business than we have undertaken for many years. This included having industry experts review how efficient we are at providing our services to Members; asking you, our Members what you want from your Club; and a review of our staffing. This research was fundamental in the creation and approval by the Board of a new Five Year Canberra Southern Cross Club Strategic Plan. This plan acknowledges the need for change and sets out the improvements required, such as the need to improve our technology, to diversify our income streams and invest in core assets – our venues and our Members. We have started to implement this plan, and we hope you are already starting to notice some of the changes that are improving services for Members and their guests. These include: • the opening of ‘Snapper on the Lake’ serving fresh fish and chips and Lonsdale Street Roasters coffee; • a renewal of the Henry’s Family Restaurant experience, reinforcing our commitment to prioritise families and family entertainment; • the introduction of Members Pricing for the immediate benefit of Members; • ongoing Member initiatives such as our $3 happy hour every day of the week from 4-6pm, the ‘Captains Call’ at the Yacht Club and our $8.90 lunchtime value meals; • sell-out events across all our venues, such as The Chefs Signature Dinner, French Nights, Wine Dinners, our inaugural Truffle Night and James Squire craft beer dinners; • venue refurbishments completed at Jamison and Tuggeranong;

• the removal of gaming machines at the Yacht Club; • facilities upgrade at the Yacht Club, which are due for completion in September 2015; • the development of a Woden Master Plan which will be presented to Members at Woden in early November 2015; • an upgrade at our main gym in Irving Street, plus the commencement of the design stage for a new fit for purpose Health and Wellness Centre at Section 79 (the old Pitch and Putt site); and • sell out shows for big name acts such as The Wiggles, Lah Lahs and Hot Chocolate to name a few. We are confident we have developed a strategy and a structure that will enable the Club to grow and be better equipped to handle future economic downturns and the evolving Clubs environment in the ACT. The action by AUSTRAC in requiring the Club to undergo an external compliance audit was a serious concern and has resulted in significant effort to review our risk management framework and internal controls. Your Board holds compliance to regulatory procedures as non-negotiable and the management team has developed a strong anti-money laundering policy that will not see a repeat of the issue. The business reform program that we have embarked on naturally involves upheaval and cost. It resulted in a number of long standing employees leaving during the year. We appreciate and recognise the many years of faithful service provided by them and wish them every success into the future. We also took leadership on the issue of gaming machines by voluntarily withdrawing 100 machines from our venues, to assist with the current Government’s stated desire to reduce the number of machines in the market in Canberra. We were the first Club to do this and we firmly believe this is the right thing for your Club and the community. We provided $1.38 million back to the community, well above the required legislated amount. This figure includes our Community Grants program, which provided support to 90 small and medium not for profit organisations in Canberra and the surrounding districts, sponsorship of numerous sporting groups, assistance to schools and elderly care services plus many donations and in-kind support.


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

In total we helped over 300 groups deliver their services to the Canberra community in 2014/15. Even so, we continued to experience difficult trading conditions throughout the year, due to both the local economic environment and increased Government regulatory requirements relating to our decreasing gaming activities. Total revenue was down 2.3% compared to 2013/14. Notable factors in this financial result are that total gaming revenue was down 4.1%; and membership income, including gym memberships from both the Southern Cross Health Centre and Anytime franchises, was down 6% compared to 2013/14. Nonetheless, our chefs and hospitality teams showed that the quality of our food and service still shone through, with our food sales being up over 5% and beverage sales up 1.6% across our business. In addition, our costs reduced overall in 2014/15 with management working hard to keep costs contained during the difficult trading period and as we worked through our strategic imperatives. The level of activity and drive is the highest that I have seen since my time on the Board. We are confident that we have a sound strategy with a dedicated and professional team that will steadily improve services, facilities and ensure your club remains the premier club in the ACT.

Contents President’s Report2 Directors’ Report4 Auditor’s Independence Declaration9 Concise Financial Report10 Director’s Declaration21 Auditor’s Report22 Graphs24 Board of Directors26 Corporate Information27

In closing, I would like to thank the Board for their efforts in what has been a pivotal year for the club. I would like to thank Simon Plummer who was elected President at the last AGM, and who stood down in February to take on the role of General Manager at the Canberra Southern Cross Yacht Club, for his drive and efforts as President and since then as General Manager. I also recognise the efforts of Ian Mackay and his team who work diligently on improving your club. And finally, I thank you, our Members who are the reason the club exists.

John Lewis


Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Directors’ Report The directors of the Canberra Southern Cross Club Limited submit herewith the financial report on the consolidated entity for the financial period ended 29 June 2015. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

• To provide support to the community either financially, through donation of food or by providing facilities. The entity’s long term objectives are: To enrich the lives of the people of Canberra by:

Directors The following persons were directors of Canberra Southern Cross Club Limited during the whole of the financial period and up to the date of this report, unless otherwise stated: J.J. Lewis R.W. Lloyd K. Marshall C. Behrens D.N. Grimmond P.M. Jones M.B. Laughlin J.J. Rice P.L. Rollings S.C. Plummer was a director from the beginning of the financial period until his resignation on 2 February 2015.

Principal activities The consolidated entity’s activity in the course of the financial period was the operation of licensed clubs, sporting and health and fitness facilities. There was no significant change in the nature of the activity of the Group during the year. The entity’s short term objectives are: • To provide a diverse range of services and amenities for the enjoyment of members and their guests; • Providing for families through offering family friendly facilities; and

4

• Developing and reviewing strategies for investment in services and products that are demanded by our members; • Maintaining innovative, diverse, responsible cost effective services to members; • Exploring and developing opportunities for diversifying investments; • Fostering family values; and • Being recognised for providing positive and constructive community support. To achieve these objectives, the entity has adopted the following strategies: • A core business focus; • Diversification into non-traditional business activities; • Embracing technology and ‘smarter’ business systems; • An ethos of family values; • A performance culture; and • A leader in supplying and promoting health and wellbeing services. The Club continues to meet consistent high levels of community support through the annual grants program together with a comprehensive sporting grants program. In addition to these major programs the Club is committed to the wider community by providing facilities and donated food, this is evidenced by ongoing support of various community groups. The Club has strong financial management and corporate governance systems which is managed through the Club’s business plan, key performance indicators, risk management plan and internal audit program. Monitoring of financial performance is reviewed on a monthly basis by executive management and Directors.


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

Directors’ Report (continued) Dividends In accordance with the constitution, the Group is a company limited by guarantee to the extent of $2.00 per member, and accordingly no shares or debentures have been issued and no dividends have been recommended or paid since the start of the financial period.

Review of operations Operations comprised the running of licensed club facilities and the provision of member services. The loss from ordinary activities after income tax amounted to $501,441 (2014 profit: $393,025).

Significant changes in the state of affairs There have been no significant changes in the state of affairs of the Group during the year other than that referred to in the financial statements or notes thereto.

Matters subsequent to the end of the financial year No matter or circumstance has arisen since 29 June 2015 that has significantly affected, or may significantly affect: a. the consolidated entity’s operations in future financial periods, or b. the results of those operations in future financial periods, or c. the consolidated entity’s state of affairs in future financial periods.

Likely developments and expected results of operations Information on likely developments in the operations of the consolidated entity and the expected results of operations have not been included in this financial report because the directors believe it would be likely to result in unreasonable prejudice to the consolidated entity.

Environmental regulation The Club is not affected by any significant environmental regulation in respect of its operations.

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Directors’ Report (continued) Information on directors Years Service

Name

Special Responsibilities

J.J. Lewis BA (Acc) Grad Diploma IT, FAICD, CPA

President

12

Company Manager

C. Behrens B.Ec/LLB

Senior Vice President

9

Senior Executive Lawyer

R.W. Lloyd MAICD

Director

18

Retired

K. Marshall

Director

12

Public Servant

D.N. Grimmond OAM FREIA

Director

14

Real Estate Agent

P.M. Jones BA Comm/PR, GradDiplomaProfCommProf WRTG, MAICD

Director

1

Communications Manager

M.B. Laughlin BA

Director

22

Public Servant

J.J. Rice B Econ.

Director

34

Retired

P.L. Rollings

Director

24

Retired

Company secretary The Company Secretary was Carol Sawyer until 20 April 2015. Ian Mackay was appointed Company Secretary from 21 April 2015.

6

Occupation


Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Directors’ Report (continued) Meetings of directors The following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the financial period and the number of meetings attended by each director (while they were a director or committee member). Board of Directors Meetings

s79 Committee

Directors

A

B

A

B

J.J. Lewis

23

21

S.C. Plummer

13

13

R.W. Lloyd

23

20

8

6

K. Marshall

23

21

C. Behrens

23

21

D.N. Grimmond

23

20

8

6

P.M. Jones

23

21

8

5

M.B. Laughlin

23

19

J.J. Rice

23

20

P.L. Rollings

23

18

A = Number of meetings held during the time the director held office or was a member of the committee during the year B = Number of meetings attended

In all cases of absences, directors were absent on club business, on leave or absent due to work commitments. In all instances, leave of absence was sought and approved.

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Directors’ Report (continued) Indemnification of officers a. Insurance of officers During the financial period, the Group paid a premium in respect of a contract insuring the directors of the Group (as named above), the Company secretary, and all executive officers of the Group and of any related body corporate against a liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The consolidated entity has not otherwise, during or since the financial period, indemnified or agreed to indemnify an officer or auditor of the Group or of any related body corporate against a liability incurred as such an officer or auditor.

Auditor’s independence declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 9. This report is made in accordance with a resolution of directors. Signed in accordance with a resolution of the directors made pursuant to Section 298(2) of the Corporations Act 2001.

Proceedings on behalf of the company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.

J.J. Lewis Director

No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of the Corporations Act 2001.

C. Behrens Director

Canberra, ACT 7 September 2015

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ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

9


Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Concise financial report – 29 June 2015 These financial statements are the consolidated financial statements of the consolidated entity consisting of Canberra Southern Cross Club Limited and its subsidiaries. The financial statements are presented in the Australian currency. Canberra Southern Cross Club Limited is a company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is: Canberra Southern Cross Club Limited 92-96 Corinna Street Woden ACT 2606 A description of the nature of the consolidated entity’s operations and its principal activities is included in the directors’ report on page 4, which is not part of these financial statements. The financial statements were authorised for issue by the directors on 7 September 2015. The directors have the power to amend and reissue the financial statements.

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ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 29 June 2015 Notes

2015 $

2014 $

49,645,406

50,911,983

Cost of sales and services

(12,238,392)

(12,022,349)

Administration expenses

(25,836,860)

(26,001,847)

Occupancy expenses

(8,027,105)

(8,269,171)

Marketing expenses

(1,098,058)

(1,148,585)

(312,363)

(367,763)

(1,213,577)

(1,319,216)

Finance costs

(517,798)

(551,878)

Other expenses

(902,694)

(902,119)

Profit/(loss) before income tax

(501,441)

329,055

63,970

(501,441)

393,025

(501,441)

393,025

(501,441)

393,025

Revenue

Show expenses Operating lease expenses

Income tax benefit/(expense) Profit/(loss) for the year Other comprehensive income Total comprehensive income/(loss) for the year

1

Total comprehensive income/(loss) for the year is attributable to: Owners of Canberra Southern Cross Club Limited

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Consolidated Balance Sheet as at 29 June 2015 2015 $

2014 $

7,810,581

6,524,101

Trade receivables

511,164

725,947

Inventories

356,528

368,025

Prepayments

388,854

272,031

9,067,127

7,890,104

42,953,105

46,070,776

–

73,931

30,200

32,020

409,450

409,450

43,392,755

46,586,177

52,459,882

54,476,281

3,037,629

3,139,101

62,000

1,194,139

1,079,627

1,320,642

850,989

831,077

5,030,245

6,484,959

5,632,132

5,694,132

51,722

49,966

5,683,854

5,744,098

Total liabilities

10,714,099

12,229,057

Net assets

41,745,783

42,247,224

41,745,783

42,247,224

41,745,783

42,247,224

ASSETS Current assets Cash and cash equivalents

Total current assets Non-current assets Property, plant and equipment Other receivables Advances Intangible assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Borrowings Provisions Other current liabilities Total current liabilities Non-current liabilities Borrowings Provisions Total non-current liabilities

EQUITY Retained earnings Total equity

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

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ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

Consolidated Statement of Changes in Equity for the year ending 29 June 2015 Retained earnings $

TOTAL EQUITY $

41,775,764

41,775,764

393,025

393,025

78,435

78,435

Balance at 30 June 2014

42,247,224

42,247,224

Balance at 30 June 2014

42,247,224

42,247,224

(501,441)

(501,441)

41,745,783

41,745,783

Balance at 25 June 2013 Profit/(loss) for the year Other movement

Profit/(loss) for the year Balance at 29 June 2015

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Consolidated Statement of Cash Flows for the year ending 29 June 2015 2015 $

2014 $

49,817,902

54,719,853

(43,847,276)

(48,289,312)

(517,798)

(551,878)

59,991

5,452,828

5,938,654

116,218

75,569

(320,900)

(3,101,400)

(4,077,227)

11,153

51,683

(2,974,029)

(4,270,875)

Repayment of borrowings

(1,192,319)

(1,059,197)

Proceeds from borrowings

2,124,989

(1,192,319)

1,065,792

Net increase in cash and cash equivalents

1,286,480

2,733,571

Cash and cash equivalents at the beginning of the financial year

6,524,101

3,790,530

Cash and cash equivalents at end of year

7,810,581

6,524,101

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest and other costs of finance paid Income taxes paid Net cash inflow from operating activities

Cash flows from investing activities Interest received Payments for business acquisition Payments for purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Net cash (outflow) from investing activities

Cash flows from financing activities

Net cash (outflow) inflow from financing activities

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

Notes to the Consolidated Financial Statements 29 June 2015 1 Revenue 2015 $

2014 $

11,425,296

11,684,905

114,368

149,796

Tuggeranong gaming

7,349,628

8,042,990

Jamison gaming

3,679,004

3,644,179

–

121,841

22,568,296

23,643,711

18,782,502

18,342,971

5,561,805

5,919,630

Rental revenue

984,213

984,635

Interest revenue

116,218

75,569

Members entertainment income

217,450

262,293

1,414,922

1,683,174

27,077,110

27,268,272

49,645,406

50,911,983

Revenue consisted of the following items:

Gaming revenue Woden gaming Yacht gaming

Turner gaming Total gaming revenue

Other revenue Revenue from sale of goods and services Membership income

Other Total other revenue Total revenue

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Notes to the Consolidated Financial Statements (continued) 2 Expenses 2015 $

2014 $

Buildings

2,236,383

2,154,214

Plant and equipment

3,971,535

4,370,908

Total depreciation

6,207,918

6,525,122

16,038,435

16,047,618

Profit (loss) before income tax includes the following specific expenses:

Depreciation

Employee benefits expenses

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ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

Notes to the Consolidated Financial Statements (continued) 3 Key management personnel disclosures (a) Directors The specified directors of Canberra Southern Cross Club Limited during the financial period were: (i) President

(iii) Directors

J.J. Lewis BA (Acc) Grad Diploma IT, FAICD, CPA

D.N. Grimmond OAM FREIA

S.C. Plummer (resigned 2 February 2015)

P.M. Jones BA Comm/PR, GradDiplomaProfCommProf WRTG, MAICD

(ii) Senior Vice President

M.B. Laughlin B Arts

C. Behrens B.Ec/LLB

R.W.Lloyd K. Marshall J.J. Rice, B. Econ. P.L. Rollings

The specified executives of the Group and the consolidated entity during the year were: I. Mackay (Chief Executive Officer from 1 July 2014 and Company Secretary from 21 April 2015) C. Sawyer (Chief Financial Officer & Company Secretary) (Resigned 6 May 2015) W. Willcott (Finance Manager and Acting Chief Financial Officer from 7 May 2015)

(b) Key management personnel compensation The aggregate compensation of the key management personnel of the consolidated entity, is set out below:

Employee benefits

2015 $

2014 $

789,951

908,471

(c) Employee remuneration Section 54 of the Gaming Machine Act 2004 requires employee remuneration above the prescribed amount of $100,000 to be reported in the financial report. During the year there were 10 employees, 8 of whom received total remuneration between $100,000 and $200,000, and 2 who received greater than $200,000 (2014: 9 employees with remuneration greater than $100,000).

(d) Directors remuneration Included within key management remuneration in note 3(b) above is remuneration paid or payable, or otherwise made available, in respect of the financial period, to all directors of the Group, directly or indirectly, by the Group or by any related party. This represents payments for out of pocket expenses as approved at the 2014 Annual General meeting in accordance with item 12.6 of the Club’s constitution.

Directors remuneration

2015 $

2014 $

119,458

118,721

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Notes to the Consolidated Financial Statements (continued) 4 Remuneration under contractual agreements and consultancies Section 54 of the Gaming Machine Act 2004 requires that certain remuneration under contractual agreements and consultancies be disclosed. Contractors or consultants who received or were due to receive $100,000 or more under contractual arrangements are as follows:

$100,000 to $249,999 Name

Item

ACTEWGAS

Gas services

Australian Liquor Marketers

Beverage purchases

Best In Grass

Garden maintenance services

Bigair Cloud Managed Services

IT services

Capitol Chilled Foods

Beverage purchases

CCS Facilities Maintenance

Building maintenance services

Elite Group (ACT)

Sound & Lighting services

I.G.T. (Australia)

Gaming machine services

J.J. Richards & Sons

Waste management services

LSR Coffee Group Wholesale

Beverage purchases

OPC (Canberra)

IT services

Premier Venue Entertainment

Entertainment services

Prosegur Australia

Security services

T.OK. Carpentry & Partitioning

Building construction

The Sphere Organisation

Entertainment services

$250,000 to $499,999 Name

Item

Coca-Cola Amatil

Beverage purchases

Leader Security Electronics

Security services

$500,000+ Name

Item

ACTEWAGL Retail

Electricity, water & sewerage services

Ainsworth Game Technology

Gaming machine services

Andrews Meats

Food purchases

Aristocrat Leisure Industries

Gaming machine services

Epicurean Contract Caterers

Catering services

Fosters Australia

Beverage purchases

Rose Cleaning Services

Catering services

Lion

Beverage purchases

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Notes to the Consolidated Financial Statements (continued) 5 Director benefits Section 54(d) of the Gaming Machine Act 2004 requires that any benefits that have been taken by a person during the financial period be reported in the annual report. The Group has provided the following benefits during the financial period: Monetary Who offered the benefit value

Position

Description

Purpose

Directors/Senior Mgt

Hospitality provided to Directors/Senior Management and their spouse/guest while in attendance with Director/Senior Management at internal club events

Networking

$6,280

Canberra Southern Cross Club

Directors/Senior Mgt

Hospitality provided to Directors/Senior Management and their spouse/guest while in attendance with Director/Senior Management at official functions for a club sponsored charity group

Networking

$8,355

Canberra Southern Cross Club

Directors/Senior Mgt

Hospitality provided to Directors/Senior Management and their spouse/guest while in attendance with Director/Senior Management at official functions for a club sponsored sporting group

Networking

$325

Canberra Southern Cross Club

Hospitality provided to Directors/Senior Management and their spouse/guest while in attendance with Director/Senior Management at Club planning seminar

Club Planning and Strategy

Directors/Senior Mgt

Wests Rugby Union Club

$3,971

Canberra Southern Cross Club

Directors

Canberra Raiders Season Launch

Networking

$100

Canberra Raiders

Directors

ClubsACT Charity golf day

Networking

$600

Canberra Southern Cross Club

Directors/Senior Mgt

Rugby league games

Networking

$1,400

Senior Management

ClubsACT Raceday

Networking

$675

Senior Management

State of Origin game

Networking

$1,000

Canberra Raiders Canberra Southern Cross Club Carlton United Breweries

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Notes to the Consolidated Financial Statements (continued) 6 Additional company information Every member undertakes to contribute to the assets of the Group in the event of and for the purposes of the winding up of the Group, an amount not exceeding $2. There were 83,014 members at 29 June 2015 (2014: 83,349 members). 2015

2014

Ordinary

79,493

79,003

Religious

404

381

2,413

3,261

654

656

50

48

83,014

83,349

Membership classes

Country Contributing Life Members Honorary Life Members

7 Summary of significant accounting policies The concise financial report is an extract from the full financial report for the year ended 29 June 2015. The concise financial report has been prepared in accordance with Accounting Standard AASB 1039: Concise Financial Reports and the Corporations Act 2001. The financial statements, specific disclosures and other information included in the concise financial report are derived from, and are consistent with, the full financial report of Canberra Southern Cross Club Limited and its subsidiaries. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of Canberra Southern Cross Club and its subsidiares as the full financial report. A copy of the full financial report and auditor’s report will be sent to any member, free of charge, upon request. The presentation currency used in this concise financial report is Australian dollars.

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ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

Directors’ Declaration 29 June 2015 In the directors’ opinion: a. the financial statements and notes set out on pages 10 to 20 are in accordance with the Corporations Act 2001, including: (i) complying with Accounting Standards – Reduced Disclosure Requirements, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and (ii) giving a true and fair view of the consolidated entity’s financial position as at 29 June 2015 and of its performance for the year ended on that date, and b. there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable, and c. the financial report is in accordance with the disclosure requirements of the Gaming Machine Act 2004 (ACT). This declaration is made in accordance with a resolution of the directors.

J.J. Lewis Director

C. Behrens Director

Canberra, ACT 7 September 2015

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

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ACN 008 488 855


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

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Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Canberra Southern Cross Club Ltd Trading Results Consolidated Revenue Ordinary Activities Consolidated Revenue From FromRevenue Ordinaryfrom Activities 2014/15 2014/15 1. Consolidated

Ordinary Activities 2014/15

Consolidated Expenses Activities Consolidated Expenses From From Ordinary Ordinary Activities 2014/15 2014/15 2. Consolidated Expenses from

Ordinary Activities 2014/15

Consolidated Revenue From Ordinary Activities 2014/15

0% 2% 0% 2%

19% 19%

11% 11%

0% 2%

Consoli

24% 24%

35% 35%

11%

4% 4% 46% 46% 4%

5% 5%

28% 28%

46% 5%

28% 12% 12%

12%

36% 36% 13% 13% Gaming Revenue Gaming Revenue $22.6 $22.6Million Million Beverage Revenue Beverage Revenue $6.3 $6.3Million Million Food FoodRevenue Revenue $13.9 $13.9Million Million Membership MembershipIncome Income $5.6 $5.6Million Million Members Entertainment Income Members Entertainment Income $0.2 $0.2Million Million Other OtherRevenue Revenue$1.1 $1.1Million Million

Club Club Food FoodTrading Trading 2014/15 2014/15

3. Liquor Trading Club Liquor Trading2014/15 2014/15

Ga G Wa W Ga G De D Ot O Op O

Cost Costof ofGoods Goods $12.2 $12.2Million Million 13% $17.9 Million Wages Wagesand andOn OnCosts Costs $17.9 Million Gaming Revenue $22.6 Million $6.2 Depreciation and Depreciation andAmortisation Amortisation $6.2Million Million Beverage Revenue $6.3 Million Gaming Promotions $2.3 Million Gaming Promotions $2.3 Million Food Revenue $13.9 Million Utilities (electricity, fuel, telephone Utilities (electricity, fuel, telephoneand andrates) rates) $2.0 $2.0Million Million Membership Income $5.6 Million Other OtherExpenses Expenses $9.5 $9.5Million Million Members Entertainment Income $0.2 Million Club Members Trading Other RevenueEntertainment $1.1 Million Club Members Entertainment Trading 2014/15 2014/15

SS

4. Food Trading 2014/15

Clu

Club Food Trading 2014/15 10%

6% 6%

10%

7% 7%

6%

2% 2% 25%

34% 34% 36%

7% -37% -37% 2%

32% 32% 34%

-37% 58% 58%

6%

3%

2% 51% 51%

14% 14%

Cost Costof ofGoods Goods $4.8 $4.8Million Million 31% Wages and On Costs Wages and On Costs $7.0 $7.0Million Million Cost of Goods $0.2 $2.3 Million Depreciation Depreciation $0.2Million Million Wages and On Costs Million Other $1.0 Million OtherExpenses Expenses $1.0$1.9 Million Depreciation Expense $0.1 Million Operating Surplus $0.8 Million Operating Surplus $0.8 Million Other Expenses $0.4 Million Operating Surplus $1.5 Million

7% 7%

51% Entertainment EntertainmentExpenses Expenses $0.3 $0.3Million Million Wages and On Costs $1.1 Wages and On Costs $1.1Million Million Cost of Goods $4.8 Million Members Promotion Expenses Members Promotion Expenses $0.2 $0.2Million Million Wages and On Costs $7.0 Million Other $0.5 OtherExpenses Expenses $0.5Million Million Depreciation $0.2($1.3 Million Operating Million) OperatingDeficit Deficit ($1.3 Million) Other Expenses $1.0 Million Operating Surplus $0.8 Million

Note: The graphs 3 and 4 are attributable to the parent company Canberra Southern Cross Club Limited and not the consolidated entity.

24

Distribution of Poker Machine Dollar 2014/15 6%

3%

Wa W De D Ot O Op O


36% 13%

Ltd Annual Report $22.6 Million Canberra Southern Cross Club Cost of Goods $12.2 Million2014–2015 Beverage Revenue $6.3 Million Wages and On Costs $17.9 Million Food Revenue $13.9 Million Depreciation and Amortisation $6.2 Million Membership Income $5.6 Million Gaming Promotions $2.3 Million Members Entertainment Income $0.2 Million Utilities (electricity, fuel, telephone and rates) $2.0 Million Other Revenue $1.1 Million Other Expenses $9.5 Million

ACN 008 488 855 Gaming Revenue

vities 2014/15

Liquor Trading 2014/15 6.Club Members Entertainment Club Members Entertainment Trading 2014/15 Trading 2014/15

Club Gaming Trading 2014/15 5. Gaming Trading 2014/15

Club Food Trading 2014/15 Club Gaming Trading 2014/15 Club Gaming Trading 2014/15

ies 2014/15 ivities 2014/15

Club Liquor Trading 2014/15 Club Liquor Trading 2014/15

6%

7%

10% 25%

22%

35%2%

%

36%

25%25% -37%

34%

22%22% 35%35%

36%36% 32% 58% 13% 13%13%

6% 2% 6% 6% 2% 2%

9%

n

es) on $2.0 Million

$2.0$2.0 Million tes) Million

2014/15

10%

51%

11% 9% 9% 10%10% Gaming Machine $5.0 Million Cost of Goods Levy $4.8 Million 11% 11% Wages andand On On Costs $3.0$7.0 Million Wages Costs Million Gaming Promotions $2.3 Million Gaming Machine Levy $5.0 Million Depreciation $0.2 Million Gaming Machine Levy $5.0 Million Depreciation $2.4 Million Wages andand On Costs $3.0 Million Other Expenses $1.0 Million Wages On Costs $3.0 Million Other Expenses $1.9 Million Gaming Promotions $2.3 Million Operating Surplus $0.8 Million Gaming Promotions $2.3 Operating Surplus $8.0 Million Depreciation $2.4 Million Depreciation $2.4 Million Other Expenses $1.9$1.9 Million Other Expenses Million Sport andSurplus Recreation Trading 2014/15 Operating Surplus $8.0$8.0 Million Operating Million

7. Sport & Recreation -1% Trading 2014/15 Sport and Recreation Trading 2014/15 Sport and Recreation Trading 2014/15

14/15 2014/15

-1%-1%

14% 31%

7%

Cost of Goods $2.3 Million $0.3 Million Entertainment Expenses 31% 31% Wages andand OnOn Costs $1.9 Million Wages Costs $1.1 Million Depreciation Expense $0.1 Million CostCost of Goods $2.3 Million of Goods $2.3 Million Members Promotion Expenses $0.2 Million Other Expenses $0.4 Million Wages and On Costs $1.9 Million Wages and On Costs $1.9 Million Other Expenses $0.5 Million Operating Surplus $1.5 Million Depreciation Expense $0.1 Million Depreciation Expense $0.1 Million Operating Deficit ($1.3 Million) Other Expenses $0.4$0.4 Million Other Expenses Million Operating Surplus $1.5$1.5 Million Operating Surplus Million

Distribution of Poker Machine Dollar 2014/15

8. Distribution of Poker Machine

Dollar 2014/15 Distribution Poker Machine Dollar 2014/15 Distribution of3% Poker Machine Dollar 2014/15 6%of 6% 6%

3% 3%

33% 32%

33%33%

32%32%

n

58% 58%58%

8% 8% 8% Wages and On Costs $0.3 Million Depreciation $0.1 Million Other Expenses $0.5 Million Wages and On Costs $0.3 Million Wages and On Costs $0.3 Million Operating Deficit ($0.01 Million) Depreciation $0.1$0.1 Million Depreciation Million Other Expenses $0.5$0.5 Million Other Expenses Million Operating Deficit ($0.01 Million) Operating Deficit ($0.01 Million)

91% Return to Player

91%91%

Direct Expenses including taxes and community contributions Club Hold Return to Player Return to Player Direct Expenses including taxestaxes and and community contributions Direct Expenses including community contributions ClubClub HoldHold

Note: The graphs 5 to 8 are attributable to the parent company Canberra Southern Cross Club Limited and not the consolidated entity.

25


Canberra Southern Cross Club Ltd Annual Report 2014–2015

ACN 008 488 855

Board of Directors

John Lewis

Christopher Behrens

Kim Marshall

Senior Vice President

Director

Bob Lloyd

Paul Rollings

Mary Laughlin

David Grimmond

Paula Jones

Jack Rice

Simon Plummer

President

Director

Director

26

Director

President (resigned 2/2/2015)

Director

Director

Director


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2014–2015

Corporate Information Notice to Members – Annual General Meeting Members are advised that the 44th Annual General Meeting (AGM) will be held in Corinna Room 2 at the Southern Cross Club Woden on Wednesday, 7 October 2015 at 8.00pm.

AGENDA

APPOINTMENT OF PROXY

3. Presentation of Annual Report

As a member you have the right to cast one vote at the Annual General Meeting, and you have a right to appoint a proxy (whether or not a Member) to attend and vote on your behalf on resolutions other than the election of Directors. Proxy forms can be obtained by telephoning 6283 7210.

4. Presentation of Finance Reports and Balance Sheets

John Lewis

1. Apologies 2. Minutes of the 43rd Annual General Meeting of 8 October 2014

5. Auditor’s Report 6. Ordinary Resolutions

President Canberra Southern Cross Club

FIRST ORDINARY RESOLUTION

Pursuant to section 202A of the Corporations Act it is resolved that the Director’s honoraria for out of pocket expenses be set in accordance with Article 12.6 of the Constitution.

SECOND RESOLUTION

It is a requirement of section 53 of the Gaming Machine Act 2004, that members approve expenditure incurred by the Club or third parties for staff, directors and partners to attend official functions, the directors annual seminar, sporting and other events on behalf of the Club as approved by the Board, as the expenditure may not relate to all members.

Accordingly;

It is resolved that the expenditure incurred by the Club or third parties for staff, directors and partners (if appropriate) to attend official functions, the director’s annual seminar, sporting and other events on behalf of the Club as approved by the Board is approved up to a maximum of $25,000.00 for the period 8th October 2015 to 7th October 2016. 7. Such other business brought forward in conformity with the Constitution 8. Election of Directors 9. Election of Honorary Life Members 10. Appointment and remuneration of Auditors 11. General Business

NO BALLOT REQUIRED In terms of the Club’s Constitution, three Directors are required to retire each year, but will be eligible for re-election. This year, on a rotation basis the Directors to retire are Jack Rice, Kim Marshall and Mary Laughlin. All were eligible for re-election and these three Directors were re-nominated. Therefore nominations were called for on 22nd June 2015 from members for election of three (3) Directors. Nominations closed on 6 July 2015 at which time the Club had received only nominations for the three Directors. Therefore there will be no need for an election this year. Prior to the Annual General Meeting the Directors will meet to appoint the Board Executive, consisting of President and Senior Vice President for the forthcoming year, which will be announced at the Annual General Meeting on 7 October 2015. The Directors who did not have to stand for election this year are John Lewis, Chris Behrens, Bob Lloyd, David Grimmond, Paula Jones and Paul Rollings. Ian Mackay Company Secretary

27


Woden 6283 7200 92-96 Corinna Street Phillip ACT 2606

Southern Cross Sports Stadium Woden 6293 2275 Irving Street Phillip ACT 2606

Yacht Club & Cruises 6273 1784 ‘Lotus Bay’ Mariner Place Yarralumla ACT 2600

Southern Cross Health Club 6283 7340 Irving Street Phillip ACT 2606

Jamison 6251 2255 Cnr Catchpole & Bowman Streets Macquarie ACT 2614

Tuggeranong 6293 7200 Cnr Holwell & Pitman Streets Tuggeranong ACT 2900

Southern Cross Sports Stadium Tuggeranong 6293 2275 Cnr Colishaw & Athllon Drive Tuggeranong ACT 2900

Profile for Canberra Southern Cross Club

2014-2015 Canberra Southern Cross Club Annual Report  

The Annual report for the Canberra Southern Cross Club

2014-2015 Canberra Southern Cross Club Annual Report  

The Annual report for the Canberra Southern Cross Club