2015–2016
ANNUAL
ACN 008 488 855
REPORT
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
President’s Report I am delighted to report a year of great success with continued improvements in services to members and the return of a healthy profit. This has been achieved within year one of the new five-year strategic plan (2015-2019) reported to you last year. Forward strategic priorities include a continued focus on diversifying our Club business model to ensure our long term sustainability and planning significant facility upgrades at our venues. Members will have noticed some changes in the Club over the last year, be it a new and improved menu, ordering your meal through one of our new easy order kiosks, attending one of our fabulous dining events, or just noticing that our staff are some of the nicest, most pleasant people working in Canberra. Some specific highlights of 2015-16 include: • Facility improvements: »» An upgrade to the Yacht Club, including the complete removal of poker machines at the venue. We are very proud that the Yacht Club went on to win the ClubsACT Small Club of the Year and Best Restaurant awards. • Member service improvements: »» We took our humble fish and chip shop ‘Snapper by the Lake’ to being one of the best destinations in Canberra, with great food and live music on the lawn of the Yacht Club each weekend through spring and summer. »» We cemented our Family Day at Yacht Club in September and our Chefs Signature Dinner at Woden in March as two standout events we hold each year. »» We launched our new contemporary menu at Tuggeranong which has been extremely popular with members. »» We increased our fabulous array of dining events including Wine dinners, Beer dinners, Truffle dinners, our ‘Taste of’ series along with French nights and our ever popular Christmas Day celebrations. »» We relaunched our Henry’s Kids menu, offering better and healthier choices for kids at value prices. »» We made significant progress on improving our technology for Members including wi-fi in venues, ‘Discgo’ portable mobile phone chargers, ‘easy order’ food kiosks at Woden and the car park directional system at Woden.
»» We introduced 5 year memberships and have made it easier to renew via an online membership renewal option. • Health and wellness improvements: »» Our main Health Club moved to 24 hour opening – making it easier for all our members to choose when they want to work out, regardless of the time of day or night. »» We forged ahead with our diversification into health and wellness services with the DA for our exciting new development on Section 79 which includes a gym, childcare, indoor program pool, rehab rooms and learn to swim school plus best in market group exercise and allied health facilities. We expect this 5 level development on the old Pitch and Putt site to open in early 2018. »» We completed preparatory works for our Anytime Fitness Gym at Tuggeranong to move into the top floor of our Tuggeranong Club in October 2016. • Environmental improvements: »» In addition to our groundwater harvesting program, we installed solar at our Woden and Jamison venues, and at Tuggeranong Stadium. • Our extensive community involvement with: »» The launch of the CSCC Community Rewards Program which is unique to Canberra as members nominate their community group of choice to receive financial support. The Club donates 10% of every dollar members spend on food and drinks to that group. Over 8,000 members have joined the program, helping over 60 local schools, and community, charity and sporting groups. »» Over $1.4 million in cash and kind in total has been donated to the Canberra community in 2015/16. »» Over $90,000 in dedicated funding has been provided to 73 groups through the CSCC Community Grants Program. »» Major sponsorship of the annual Commonwealth Park Carols by Candlelight on Stage 88 held by Woden Valley Youth Choir for the 13th straight year. »» Over 21,000 meals provided to those most in need through partnerships with St Vincent de Paul’s Night Patrol, Woden Youth Centre, Palliative Care ACT and the Red Cross Roadhouse Program. »» Sponsorship of sporting Clubs including Royals, Tuggeranong Hawks, Wests Rugby, and Woden Weston Football Club plus tennis, baseball, golf and triathlon clubs.
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
We have achieved all this within an environment of political uncertainty. In early May the ACT Labor/Greens Government told the foreign-owned casino it would allow 200 poker machines in its redevelopment proposal. We strongly believe this is the wrong decision for Canberra. While the CSCC and the club industry have always enjoyed great bipartisan relationships we must make a strong stand against the Government’s broken promise to retain the community gaming model. An expanded foreign-owned casino directly risks community services provided to the more than 200,000 people in the ACT who belong to a club. The club community supports more than 1,000 sporting, cultural and charitable organisations and provides more than 2,300 jobs. That is why the CSCC Board fully supports the actions of our industry association, ClubsACT, to protect Canberra’s unique community club environment by lobbying the ACT Government through the media and in-club information and materials. As part of this campaigning, visitors to our venues may have noticed banners warning of the danger the Government’s plan presents to all community clubs. Additionally, over the last four years large rates and tax hikes have caused more than 10% of Canberra clubs to close. The ACT Labor/Greens coalition has made it increasingly difficult for clubs to stay in business.
Contents President’s Report 2 Directors’ Report 4 Auditor’s Independence Declaration 9
Despite these very troubling events we look forward to working in partnership with our elected political representatives to ensure clubs are supported and continue to provide vital and sustainable community services. The CSCC Board, senior management and dedicated staff are determined to ensure our Club is the best club in Canberra. I mentioned last year that the level of activity and drive is the highest that I had seen since my time on the Board. If anything, this activity and drive has increased, and I have to thank our CEO, Ian Mackay, his executive team and all CSCC staff who made all these successes possible. I would also like to thank the Board for another significant year which has seen their workload increase through the creation of new sub committees focused on the Yacht Club precinct, Innovation and Diversification opportunities, Section 79 Health and Wellness Centre Development and a new Risk Management and Audit committee. At the time of writing this report, an election is being held for three Board positions with four candidates contesting. I would like to recognise the efforts of the incumbents over these past years, being David Earle, David Grimmond and Chris Behrens. I also wish all the candidates good luck and look forward to working with the new Board. Finally, and most importantly, I want to thank all Members who attend our functions, events or that come for drinks or a meal – it is you that make the Southern Cross Club the fantastic community it is.
Concise Financial Report 10 Director’s Declaration 19 Auditor’s Report 20 Graphs 22 Board of Directors 24 Corporate Information 25
John Lewis
Cover image: from left, Jess Geria, Callum Daly, Kimberely Parker, Carleigh Tongs and Antonio Marques from the Tuggeranong team.
Canberra Southern Cross Club Ltd Annual Report 2015–2016
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 27 June 2016. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:
Directors
Long term objectives To enrich the lives of the people of Canberra by: • 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;
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:
• Exploring and developing opportunities for diversifying investments;
JJ Lewis
• Being recognised for providing positive and constructive community support.
RW Lloyd K Marshall C Behrens DN Grimmond PM Jones MB Laughlin JJ Rice PL Rollings was a director from the beginning of the financial period until his resignation on 7 October 2015. DR Earle was appointed a director on 19 October 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. Short term objectives • 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 • To provide support to the community either financially, through donation of food or by providing facilities.
4
• Fostering family values; and
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 2015–2016
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 profit from ordinary activities after income tax amounted to $1,104,814 (2015 loss: $501,441).
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 27 June 2016 that has significantly affected, or may significantly affect: • the consolidated entity’s operations in future financial periods, or • the results of those operations in future financial periods, or • 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 concise 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.
5
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Directors’ Report (continued) Information on directors Years Service
Name
Special Responsibilities
JJ Lewis BA (Acc) Grad Diploma IT, FAICD, CPA
President
13
Company Manager
C Behrens BEc/LLB
Senior Vice President
10
Senior Executive Lawyer
RW Lloyd MAICD
Director
19
Retired
K Marshall M.IntlCustomsLaw&Admin, Assoc Dip Bus (Acc & Fin), MAICD
Director
13
Retired
DN Grimmond OAM FREIA
Director
15
Real Estate Agent
PM Jones BA Comm/PR, MAICD
Director
2
Communications Manager
MB Laughlin BA
Director
23
Retired
JJ Rice BEcon
Director
35
Retired
PL Rollings (resigned: 7 October 2015)
Director
25
Retired
DR Earle BComm, CA (appointed:19 October 2015)
Director
1
Chartered Accountant
Company secretary The Company Secretary is Ian Mackay, who is also the Chief Executive Officer.
6
Occupation
Canberra Southern Cross Club Ltd Annual Report 2015–2016
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
Risk & Audit Committee
Innovation & Diversification
Yacht Club Masterplan
Directors
A
B
A
B
A
B
A
B
A
B
JJ Lewis
20
18
–
–
4
3
–
–
–
–
C Behrens
20
16
–
–
4
4
–
–
2
2
RW Lloyd
20
16
12
10
–
–
–
–
–
–
K Marshall
20
16
–
–
4
3
–
–
2
1
DN Grimmond
20
15
12
9
–
–
–
–
–
–
PM Jones
20
18
12
11
–
–
2
2
–
–
MB Laughlin
20
15
–
–
–
–
2
2
–
–
JJ Rice
20
19
–
–
–
–
2
2
2
2
PL Rollings
8
7
–
–
–
–
–
–
–
–
DR Earle
11
9
–
–
4
4
–
–
2
1
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. • • • •
Board meetings moved to one per month on 18 April 2016 Risk & Audit Committee commenced 4 February 2016 Innovation & Diversification Committee commenced 3 May 2016 Yacht Club Masterplan Committee commenced 5 May 2016
7
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Directors’ Report (continued) Indemnification of officers 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.
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.
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.
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. 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.
8
Canberra, ACT 5 September 2016
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
9
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Concise financial report – 27 June 2016 Relationship of the concise financial report to the full financial report The concise financial report is an extract from the full financial report for the year ended 27 June 2016. The financial statements and specific disclosures included in the concise financial report have been derived from the full financial report. The concise financial report cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of Canberra Southern Cross Club Limited and its subsidiaries as the full financial report. Further financial information can be obtained from the full financial report. The full financial report and auditor’s report will be sent to members on request, free of charge.
10
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 27 June 2016 Notes
2016 $
2015 $
50,624,861
49,645,406
Cost of goods and services
(12,832,636)
(12,238,392)
Employee expenses
(16,765,565)
(17,161,815)
Depreciation expenses
(5,858,989)
(6,207,918)
Administration expenses
(8,343,250)
(8,675,045)
Occupancy expenses
(1,542,253)
(1,819,187)
Marketing expenses
(1,129,191)
(1,129,381)
(376,981)
(312,363)
(1,157,847)
(1,213,577)
(437,433)
(517,798)
(1,075,902)
(871,371)
1,104,814
(501,441)
–
–
1,104,814
(501,441)
1,104,814
(501,441)
Revenue
Show expenses Operating lease expenses Finance costs Other expenses 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.
11
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Consolidated Balance Sheet as at 27 June 2016 2016 $
2015 $
9,491,884
7,810,581
Trade receivables
690,983
511,164
Inventories
346,167
356,528
Prepayments
370,709
388,854
10,899,743
9,067,127
42,326,536
42,953,105
28,380
30,200
409,450
409,450
42,764,366
43,392,755
53,664,109
52,459,882
Trade and other payables
3,615,713
3,162,396
Borrowings
5,646,032
62,000
Provisions
878,933
1,079,627
Other current liabilities
728,384
850,989
10,869,062
5,155,012
–
5,632,132
Provisions
69,217
51,722
Total non-current liabilities
69,217
5,683,854
Total liabilities
10,938,279
10,838,866
Net assets
42,725,830
41,621,016
42,725,830
41,621,016
42,725,830
41,621,016
ASSETS Current assets Cash and cash equivalents
Total current assets Non-current assets Property, plant and equipment Advances Intangible assets Total non-current assets Total assets LIABILITIES Current liabilities
Total current liabilities Non-current liabilities Borrowings
EQUITY Retained earnings Total equity
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
12
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
Consolidated Statement of Changes in Equity for the year ending 27 June 2016 Retained earnings $
TOTAL EQUITY $
Balance at 1 July 2014
42,122,457
42,122,457
Profit/(loss) for the year
(501,441)
(501,441)
Balance at 29 June 2015
41,621,016
41,621,016
Balance at 29 June 2015
41,621,016
41,621,016
1,104,814
1,104,814
42,725,830
42,725,830
Profit/(loss) for the year Balance at 27 June 2016
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
13
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Consolidated Statement of Cash Flows for the year ending 27 June 2016 2016 $
2015 $
54,707,530
49,817,902
(47,674,315)
(43,847,276)
Interest and other costs of finance paid
(437,433)
(517,798)
Net cash inflow from operating activities
6,595,782
5,452,828
122,421
116,218
(5,274,276)
(3,101,400)
283,656
11,153
(4,868,199)
(2,974,029)
Repayment of borrowings
(46,280)
(1,192,319)
Net cash (outflow) inflow from financing activities
(46,280)
(1,192,319)
Net increase in cash and cash equivalents
1,681,303
1,286,480
Cash and cash equivalents at the beginning of the financial year
7,810,581
6,524,101
Cash and cash equivalents at end of year
9,491,884
7,810,581
Cash flows from operating activities Receipts from customers Payments to suppliers and employees
Cash flows from investing activities Interest received 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
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
14
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
Notes to the Consolidated Financial Statements 27 June 2016 1 Revenue 2016 $
2015 $
11,676,264
11,425,296
5,347
114,368
Tuggeranong gaming
7,087,952
7,349,628
Jamison gaming
3,703,919
3,679,004
22,473,482
22,568,296
19,790,415
18,782,502
5,439,378
5,561,805
Rental revenue
938,244
984,213
Interest revenue
122,421
116,218
Members entertainment income
316,222
217,450
1,544,699
1,414,922
28,151,379
27,077,110
50,624,861
49,645,406
Revenue consisted of the following items:
Gaming revenue Woden gaming Yacht gaming
Total gaming revenue
Other revenue Revenue from sale of goods and services Membership income
Other Total other revenue Total revenue
15
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Notes to the Consolidated Financial Statements (continued) 2 Related parties (a) Key management personnel The specified directors of Canberra Southern Cross Club Limited during the financial period were: (i) President
(iii) Directors
JJ Lewis
DN Grimmond PM Jones MB Laughlin RW Lloyd K Marshall JJ Rice PL Rollings (resigned 7 October 2015) DR Earle (appointed 19 October 2015)
(ii) Senior Vice President C Behrens
The specified executives of the Group and the consolidated entity during the year were: I Mackay (Chief Executive Officer and Company Secretary) W Willcott (General Manager Finance) L Prior (Chief Operating Officer)
(b) Key management personnel compensation The aggregate compensation of the key management personnel of the consolidated entity is set out below::
Employee Benefits
2016 $
2015 $
870,856
789,951
(c) Other transactions with key management personnel During the year, key management personnel purchased goods which were domestic or trivial in nature, from the consolidated entity on the same terms and conditions available to other employees and customers.
(d) 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, 9 of whom received total remuneration between $100,000 and $200,000, and 1 who received greater than $200,000 (2015: 8 employees with remuneration between $100,000 and $200,000, and 2 who received greater than $200,000).
(e) Directors’ remuneration Included within key management remuneration in note 2(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 2015 Annual General meeting in accordance with item 12.6 of the Club’s constitution.
Directors’ Remuneration
16
2016 $
2015 $
111,522
119,458
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
Notes to the Consolidated Financial Statements (continued) 3 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
About Change
Consulting services
Ainsworth Game Technology
Gaming machine services
Alsco
Linen services
Best In Grass
Garden maintenance services
Elite Group (ACT)
Entertainment services
IGT (Australia)
Gaming machine services
J.J Richards & Sons
Waste management services
Leading Edge Amusements
Entertainment services
Lockbridge
Consulting services
M & J Chickens
Food purchases
Premier Venue Entertainment
Entertainment services
PricewaterhouseCoopers
Audit and consulting services
Prosegur Australia
Security services
$250,000 to $499,999 Name
Item
Abstract Entertainment
Entertainment services
CCS FM
Building maintenance services
Coca-Cola Amatil
Beverage purchases
Leader Security Electronics
Security services
OPC (Canberra)
IT services
$500,000+ Name
Item
ACTEWAGL Retail
Electricity, water & sewerage services
Andrews Meats
Food purchases
Aristocrat Leisure Industries
Gaming machine services
Australian Liquor Marketers
Beverage purchases
Epicurean Contract Caterers
Catering services
Fosters Australia
Beverage purchases
Rose Cleaning Services
Cleaning services
Shaw Building Group
Building construction
Tooheys
Beverage purchases
17
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Notes to the Consolidated Financial Statements (continued) 4 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
$4,834
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 club sponsored organisations.
Networking
$7,532
Canberra Southern Cross Club
Directors/Senior Mgt
Canberra Raiders season launch
Networking
$50
Canberra Raiders
Directors/Senior Mgt
Rugby League games
Networking
$4,395
Canberra Raiders
5 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 83,041 members at 27 June 2016 (2015: 83,014 members). 2016
2015
Ordinary
78,739
79,493
Religious
334
404
3,224
2,413
694
654
50
50
83,041
83,014
Membership classes
Country Contributing Life Members Honorary Life Members
18
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
Notes to the Consolidated Financial Statements (continued) 6 Summary of significant accounting policies The concise financial report is an extract from the full financial report for the year ended 27 June 2016. 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.
Directors’ Declaration 27 June 2016 The directors declare that in their opinion, the concise financial report of the consolidated entity for the year ended 27 June 2016 as set out on pages 10 to 19 complies with Accounting Standard AASB 1039 Concise Financial Reports. The concise financial report is an extract from the full financial report for the year ended 27 June 2016. The financial statements and specific disclosures included in the concise financial report have been derived from the full financial report. The concise financial report cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report, which is available on request. This declaration is made in accordance with a resolution of the directors.
Canberra, ACT 5 September 2016
19
Canberra Southern Cross Club Ltd Annual Report 2015–2016
20
ACN 008 488 855
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
21
6
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Canberra Southern Cross Club Ltd Trading Results 2. Consolidated Expenses from
1. Consolidated Revenue from
Consolidated Revenue From Ordinary Activities 2015/16 Consolidated Expenses From Ordinary Activities 2015/16 Gaming Tr Consolidated RevenueActivities From Ordinary Activities 2015/16 Consolidated Expenses From Ordinary Activities 2015/16 Ordinary Activities 2015/16 Ordinary 2015/16 1% 2%
1% 2%
11%
11%
Consolidated 19% Revenue From Ordinary Activities 2015/16 19% 1% 2%
Consolid
35%
35%
11% 13%
13%
4%
4% 44%
44% 4%
39%
4% 4%
13% 12%
44%
12%
4%
29%
29%
Wages and OnWag Cos OnMillion Costs $17.5 Million Wages and OnWages Costs $17.5 29% and Gam Gaming Machine L of Million Goods $12.8 Million Cost of GoodsCost $12.8 Gam Depreciation and Amortisation Gaming Promotion Depreciation and Amortisation $5.9 Million $5.9 Million Gaming$2.1 Promotions Depreciation Dep $2.0 Gaming Promotions Million $2.1 Million Gaming $22.5 Million W Othe Utilities (Electricity, Fuel, Telephone, Rates) $2.0 Million Other $1.6 Million Utilities (Electricity, Fuel, Telephone, Rates) $2.0 Million Food $14.6 Million Co Other $9.2 Million Ope Other $9.2 Million Operating Surplus Beverage $6.5 Million De Membership $5.4 Million Ga Club Members Entertainment Trading 2015/16 Sport and Rec Club Members Entertainment Trading 2015/16 Sp Member’s Entertainment $0.3 Million Ut Other $1.3 Million O -9%
Gaming $22.5Gaming Million $22.5 Million Food $14.6 Million Food $14.6 Million Beverage $6.5Beverage Million $6.5 Million Membership Membership $5.4 Million $5.4 Million Member’s Entertainment Member’s Entertainment $0.3 Million $0.3 Million Other $1.3 Million Other $1.3 Million
Food Trading 2015/16 Food Trading 2015/16 7%
7%
3.7%Beverage Trading 2015/16 7%Trading Beverage 2015/16
4.Food Food Trading 2015/16 Trading 2015/16
2% -36% 48%
26%
7% 12%
26%
26%
2%
1
39%
30%
32%
-36%
48%
Club 32%
7% 7%
2%
-36% 48% 45%
45%
23%
6%
36%
36%
13% 15%
2% Costs $7.1 Million Wages and OnWages Costs and $7.1On Million Goods $5.2 Million Cost of GoodsCost $5.2ofMillion Depreciation Depreciation $0.236% Million $0.2 Million Other $1.0 Million Other $1.0 Million Wages andSurplus OnOperating Costs $2.0 Million$1.1 Million Surplus Operating $1.1 Million Cost of Goods $2.3 Million Depreciation $0.1 Million Other $0.4 Million Operating Surplus $1.7 Million
15%
4%
13%
4%
36% Costs $1.0 Million Wages and OnWages Costs and $1.0On Million EntertainmentEntertainment $0.4 Million $0.4 Million Member’s Promotion Member’s Promotion $0.1 Million $0.1 Million Other $0.5 Million Other $0.5 Million Wages and On Costs $7.1 Million Operating Deficit ($1.1 Million) Operating Deficit ($1.1 Million) Cost of Goods $5.2 Million Depreciation $0.2 Million Other $1.0 Million Operating Surplus $1.1 Million
Note: The graphs 3 and 4 are attributable to the parent company Canberra Southern Cross Club Limited and not the consolidated entity.
22
Distribution of Poker Machine Dollar 2015/16 5%
3%
Wages and OnWag Cos Depreciation Depr $0.1 Othe Other Expenses $0 Ope( Operating Deficit W
En M O Op
29% 26% Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Gaming $22.5 Million Food $14.6 Million Beverage $6.5 Million Membership $5.4 Million Member’s Entertainment $0.3 Million Other $1.3 Million
ivities 2015/16
ivitiesActivities 2015/16 2015/16 inary
6. Members Entertainment
BeverageBeverage Trading 2015/16 Trading 2015/16 26%
2% 13%
13% 23%
26%
36% 7%
23%
2%
9%
on
on
45%
13%
6% 15% 36%
2%
Distribution of Poker Machine Dollar 2015/16 Operating Operating Surplus $1.7 Million Surplus $1.7 Million 3% 8.5% Distribution of Poker Machine Dollar 2015/16
Distribution of Poker Machine Dollar 2015/16 Distribution of Poker Machine Dollar 2015/16 5%
37%
Wages Deprec Other Operat
Cost of Goods Million$2.3 Million Cost$2.3 of Goods Depreciation $0.1 Million$0.1 Million Depreciation Other $0.4Other Million$0.4 Million
37%
-9%
4%
Cost of Goods $2.3 Million$0.4 Million Entertainment Depreciation $0.136% Million 36%$0.1 Million Member’s Promotion Other $0.4Other Million $0.5 Million Wages andOperating On Costs $2.0 Million Wages and On Costs $2.0 Million Operating Surplus $1.7 Million Deficit ($1.1 Million)
Trading 2015/16
32%
3% 5%
3%
37%
45%
%
%
30%
Wages andWages On Costs Million and$2.0 On Costs $1.0 Million
Sport andSport Recreation Trading 2015/16 and Recreation Trading 2015/16 -9%
32%
30%
2% 6%
9%
Wages andWages On Costs Million$7.1 Million and$2.9 On Costs 9% 9% Gaming Machine Levy $5.1 Million Cost of Goods $5.2 Million 7% 7% on Gaming Promotions $2.1 Million 9% $0.2 9% Depreciation Million Depreciation $2.0$1.0 Million Other Million Wages$1.6 andWages On Costs Million and$2.9 On Costs $2.9 Million )ion $2.0 Million Other Million Operating Surplus $1.1 Million Gaming Machine $5.1 Million GamingLevy Machine Levy $5.1 Million Operating Surplus $8.9 Million Gaming Promotions $2.1 Million$2.1 Million on$5.9 Million Gaming Promotions Depreciation $2.0 Million$2.0 Million Depreciation on 2015/16 Sport$1.6 and Recreation Trading 2015/16 Million ) $2.0Rates) Million$2.0 Million Other Other $1.6 Million hone, Operating Operating Surplus $8.9 Million$8.9 Million Surplus -9% 7. Sport & Recreation
32%
26%
6%
39% 23%
nt2015/16 Trading 2015/16
32%
48%
35% 39%
30%
-36%
39% 35%
Spor
13%
7% Trading Gaming Gaming2015/16 Trading 2015/16
35%
Gamin Gamin Deprec Other Opera
Beverage Trading 2015/16 Trading 2015/16Trading 2015/16 Club Members Entertainment
Gaming Trading 2015/16 5. Gaming Trading 2015/16 Food Trading 2015/16 7%
Wages
Wages and On Costs $17.5 Million Cost of Goods $12.8 Million Depreciation and Amortisation $5.9 Million Gaming Promotions $2.1 Million Utilities (Electricity, Fuel, Telephone, Rates) $2.0 Million Other $9.2 Million
45%
45% 9%
13%
Wages and On Costs $0.3 Million Depreciation $0.1 Million 9% 9% Other Expenses $0.4 Million Operating Deficit ($0.1 Million) Wages andWages On Costs Million$0.3 Million and$0.3 On Costs Depreciation $0.1 Million$0.1 Million Depreciation Other Expenses Million$0.4 Million Other $0.4 Expenses Operating Operating Deficit ($0.1 Million) Deficit ($0.1 Million)
92%
Return to Player Direct Expenses including taxes and community contributions Club Hold
92%
92%
Return to Player Return to Player Direct Expenses including taxes and community contributions Direct Expenses including taxes and community contributions Club Hold Club Hold
Note: The graphs 5 to 8 are attributable to the parent company Canberra Southern Cross Club Limited and not the consolidated entity.
23
Canberra Southern Cross Club Ltd Annual Report 2015–2016
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
David Earle
President
Resigned 7 October 2015
Director
24
Director
Director Appointed 19 October 2015
Director
Director
Director
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
Corporate Information Notice to Members – Annual General Meeting Members are advised that the 45th Annual General Meeting (AGM) will be held in the Orion Room at the Southern Cross Club Woden at 8pm on Wednesday 5 October 2016.
AGENDA 1.
Apologies
2.
Minutes of the 44rd Annual General Meeting of 7 October 2015
3.
Presentation of Annual Report
4.
Presentation of Finance Reports and Balance Sheets
5.
Auditor’s Report
6.
Ordinary Resolutions:
»» 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 7th October 2015 to 5th October 2016.
»» THIRD RESOLUTION Amendments to the Club’s Constitution. Pursuant to section 248D of the Corporations Act. Clause 14.8 of the Constitution to include Directors’ attendance at meetings via video or teleconference. 14.8 The Directors must meet at least once in every month and may meet at such other times as they determine and may adjourn and otherwise regulate their meetings as they think fit. Directors may attend meetings via video or teleconference. Questions arising at any meeting shall be determined by a majority of votes. In case of an equality of votes, the Chairman shall have a second and casting vote. A copy of the amended Constitution, marked up to show the amendment is available prior to the meeting from the Club’s website at cscc.com.au identified as Resolution 3. Copies may also be obtained by emailing the Club: mail@cscc.com.au 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
APPOINTMENT OF PROXY
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.
John Lewis President Canberra Southern Cross Club
25
Canberra Southern Cross Club Ltd Annual Report 2015–2016
ACN 008 488 855
Corporate Information (continued) 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 Chris Behrens, David Grimmond and David Earle. All were eligible for re-election and these three Directors were re-nominated. Therefore nominations were called for on 20 June 2016 from members for election of three (3) Directors. Nominations closed on 4 July 2016, at which time the Club had received one other nomination for election and therefore we have four candidates standing for three positions to be declared vacant. Details of all candidates appear on the following page, and members will be requested to vote for the three vacant Directors positions. ACT Electoral Commission is to be responsible for counting votes for this year’s election and the Board has appointed Ian Mackay as the Returning Officer. After the ACT Electoral Commissioner has advised the results of the election, the successful candidates will meet with the other six Directors of the Club (prior to the Annual General Meeting on 5 October 2016) and elect the Board Executive for the forthcoming year, which will be announced at the AGM. The Directors who did not have to stand for election this year are John Lewis, Mary Laughlin, Bob Lloyd, Jack Rice, Paula Jones and Kim Marshall. Ian Mackay Company Secretary
26
ACN 008 488 855
Canberra Southern Cross Club Ltd Annual Report 2015–2016
Corporate Information (continued) Nominations for Directors CHRISTOPHER BEHRENS
DAVID EARLE
Senior Vice President since 2015, Chris has served on the Board for 9 years. Chris chairs the Risk and Audit, and Yacht Club Masterplan subcommittees. He is a lawyer with the Australian Government Solicitor. Chris is committed to improving Club facilities and services and is closely involved in planning future developments.
David first joined the club in 1988 and became a Board member in 2015. David is a Chartered Accountant with 30 years experience, including 20 years as Partner and CEO of Duesburys Nexia. David is a member of the Risk and Audit subcommittee and the Yacht Club Masterplan subcommittee.
JOHN McALISTER
DAVID GRIMMOND OAM, FREIA
John McAlister is a Senior Public Servant with the Australian government, and has a leading role in delivering aspects of whole-ofgovernment services. In both the public and private sectors, John has led the implementation of change, from old to new technology, through strong relationships with stakeholders and a user-centered perspective.
David has been a Director for 15 years, and is dedicated to ensuring the Club provides economical, high quality facilities. He is an active member of three subcommittees: Health and Wellness, Community Support, and Incidents. David represented Australia in Rugby and NSW in Rugby League, and was awarded an OAM for service to sport and community.
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