Page 1

2017–2018

ANNUAL REPORT ACN 008 488 855


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

President’s Report Dear Members It has been a ‘Stellar’ year for your club with the opening of Stellar Canberra in March 2018 and the opening of our new food and beverage offer ‘Woden Central’ in September. We are proud of both developments. They are sure to quickly become Canberra landmarks. We farewelled the famous ‘Golden Grille’ where generations of Canberrans and their families celebrated special occasions or a night out. The new Woden Central is a development fit for the next generation and a must visit destination for young and old. Club revenues grew over the year as we moved along a path of diversification. Our surplus was modest but initial indications are that our new developments will be successful and deliver strong revenues into the future. During the year we opened 3 new businesses, all operating out of Stellar Canberra • Stellar Swim – providing learn to swim for kids as well as aqua aerobics and hydrotherapy • FloatAbove – Our zero-gravity sensory deprivation float business • Unfolding Light – Our dance, Yoga and Pilates studio Our Anytime Fitness Franchises continued to perform well. We operate Anytime Fitness outlets at Woden, Tuggeranong, Jamison, Weston and Stellar Canberra. We now have over 8,000 members of our gyms and other fitness units, which highlights our desire as a Club to help keep Canberra fit and healthy. Your Club continues to provide quality food, beverage and hospitality services. Our chef and management team successfully introduced a range of new menus at Yacht, Tuggeranong and Jamison venues, including the wonderful ‘200-Mile’ menu featuring locallysourced produce.

Woden Central has been warmly received by members and guests.

During the year we presented more than 100 live shows, attended by more than 20,000 members and guests. In any given week there may be a dozen or more concerts, dinners or other member events. Personal favourites included the Billy Joel Tribute Show and the magnificent Chefs’ Signature Dinner featuring our team of executive chefs. The Wiggles also returned for several sold-out shows! We hosted wine, beer and produce-focussed dinners at our Woden, Tuggeranong, Jamison and Yacht venues, including ‘truffle’ dinners and guest speakers such as former Olympian Robert de Castella. We also hosted our first ever vegetarian dinner (sold out). In December 2017 we opened our second Snapper outlet, with Snapper at Jamison joining the incredibly successful Snapper by the Lake at the Canberra Southern Cross Yacht Club. Snapper at the Yacht Club exceeded $2 million in sales for the year which highlights the incredible popularity of our fresh fish and chips by the Lake. Our gaming offer continues to be an important focus for the Club and we are constantly striving to provide a good member offer and experience. Gaming revenue fell slightly in 2017/18 following further changes in government regulations. We remain committed to gaming but acknowledge the ACT Government’s desire to reduce poker machine numbers and to reduce harm from problem gambling. Regrettably the Club’s relationship with the ACT Government has been poor for some time and we look forward to constructive dialogue with the ACT Government and improved relations in the near future. On an equally concerning note the ACT Government has foreshadowed changes to the unique club-managed community contributions scheme. Over many decades


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2017–2018

the Canberra Southern Cross Club has supported community organisations in the areas of sport, culture, welfare and education. This year the ACT Government announced that it would require clubs to contribute to the ACT Chief Minister’s Fund, to be managed by its nominee. The Club opposed this initiative. It appears likely that the Government will reject the Club’s preferred approach and introduce additional taxation to fund the Chief Minister’s Fund. This will impact on the Club’s capacity to support community organisations into the future. The Club continues to strongly support the community with our contribution once again being around $1.5 million through our five key programs of Community Key Partner (Karinya House), our Community Grants Program, Community Sports, Community Welfare and our innovative Community Rewards Program. Another highlight of the year was the refurbishment of the best boat on the lake, the M V Southern Cross during the year. The vessel now offers an unrivalled experience in Canberra offering cruises on Lake Burley Griffin as well as weekly scheduled dinners and lunches. The ‘MVSX’ remains also very popular for bookings for private functions and events. I thank our wonderful staff who, as ever, performed admirably across the year. Our diversification into new businesses has provided great employment opportunities. We now employ around 550 Canberrans across our Club in permanent, part time and casual roles. Many of these are young people in their first jobs who will always remember their experience and training with the Canberra Southern Cross Club. We also have many loyal and long serving staff. During the year we congratulated our popular Woden venue manager, Matthew Walshe, on achieving 25 years of service with the Club – an outstanding achievement. We also farewelled Gordon Hunt who provided a similar length of service to the Club in a range of chef roles through Epicurean Catering. Thank you to Matthew and Gordon for your service. During the year we were pleased to offer another five staff members the chance to ‘Live their Dream’ through our employee incentive program that gives a group of our staff the chance to ‘tick off their bucket list’ something they have always wanted to achieve. Good luck to the winners of this year’s program; Nick Percival (Woden), Greg Chamberlain (Stellar), Oliver Campbell (Tuggeranong), and Demi Smith (Stellar) and Emma Turton (Yacht Club/Stellar). I thank CEO Ian Mackay for his ongoing work in guiding the Club through recent major developments. Ian is a dynamic and inspiring leader and has transformed the Club since joining in 2014. Ian is assisted by a fine executive management team and I mention in

particular our Chief Financial Officer, Wesley Willcott and Chief Operating Officer, Lance Prior, who both acted as CEO during the year. The Club is well served by its management team. At a board level I thank my Vice-Presidents, John Lewis and Kim Marshall, who provide support and assistance in my role as President. I also mention the work of longstanding directors Bob Lloyd and Jack Rice, who have both been outstanding servants of the Club over many years. There are many strategic challenges facing the Club and the club industry at the present time. The Board has created sub-committees comprising board, management and external expert representatives to assess and respond to these challenges. This includes; Risk and Audit, Innovation as well as site-specific planning and development committees. The work of these committees is invaluable and I thank all members for their service. Looking ahead our Board and management team will be developing our new five-year strategic plan in this coming year. Our 2015-2019 plan has served us well and we look forward to stretching our horizon out to 2023. Our future includes master planning and development at the Yacht Club precinct as well as planning for significant renewal at Tuggeranong and Jamison venues. As ever, we have an exciting year for the Club ahead of us.

Christopher Behrens President

Contents President’s Report2 Directors’ Report4 Auditor’s Independence Declaration9 Concise Financial Report10 Director’s Declaration17 Auditor’s Report18 Graphs22 Board of Directors24 Corporate Information25


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

Directors’ Report The directors of the Canberra Southern Cross Club Limited submit herewith the financial report for the financial period ended 25 June 2018.

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 C. Behrens K. Marshall R.W. Lloyd

The entity’s long term objectives are: 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; • Exploring and developing opportunities for diversifying investments; • Fostering family values; and • Being recognised for providing positive and constructive community support.

D.N. Grimmond

To achieve these objectives, the entity has adopted the following strategies:

M.B. Laughlin

• A core business focus;

J.J. Rice

• Diversification into non-traditional business activities;

D.R. Earle

• Embracing technology and ‘smarter’ business systems;

B. Maher

Principal activities

• An ethos of family values; • A performance culture; and

The company’s activity in the course of the financial period was the operation of licensed clubs, sporting and health and fitness facilities.

• A leader in supplying and promoting health and wellbeing services.

There was no significant change in the nature of the activity of the company during the year.

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.

Objectives 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 • To provide support to the community either financially, through donation of food or by providing facilities.

4

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 2017–2018

Directors’ Report (continued) Information on directors Years Service

Name

Special Responsibilities

Occupation

C Behrens BEc/LLB

President

12

Senior Executive Lawyer

JJ Lewis BA (Acc) Grad Diploma IT, FAICD, FCPA

Senior Vice President

15

Company Manager

K Marshall M.Intl Customs Law/Adm, ADip B (Acc & Fin), MAICD

Vice President

15

Retired

RW Lloyd MAICD

Director

21

Retired

DN Grimmond OAM FREIA

Director

17

Real Estate Agent

MB Laughlin BA

Director

25

Retired

JJ Rice BEcon

Director

37

Retired

DR Earle BComm, CA

Director

3

Chartered Accountant

B Maher BComm/Advtg Marketing, MFIA

Director

2

Company Manager

Company Secretary The Company Secretaries are: Mr Ian Mackay who is also the Chief Executive Officer; and Mr Wesley Willcott who is also the Chief Financial Officer (appointed 16 April 2018). .

5


Canberra Southern Cross Club Ltd Annual Report 2017–2018

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

Section 79 Committee

Risk & Audit Committee

Innovation & Diversification Committee

Yacht Club Masterplan Committee

Directors

A

B

A

B

A

B

A

B

A

B

C Behrens

12

11

6

2

5

4

4

4

JJ Lewis

12

12

7

6

3

2

K Marshall

12

11

5

2

7

6

RW Lloyd

12

9

11

8

DN Grimmond

12

8

11

6

MB Laughlin

12

11

3

2

JJ Rice

12

11

6

6

3

3

3

2

DR Earle

12

11

11

10

7

4

B Maher

12

9

6

6

3

2

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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ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2017–2018

Directors’ Report (continued) Member’s Guarantee Every member undertakes to contribute to the assets of the company in the event of and for the purposes of the winding up of the company, an amount not exceeding $2. There were 82,270 members at 25 June 2018 (2017: 83,103 members). 2018

2017

Ordinary

78,102

78,947

Religious

349

339

3,104

3,095

670

675

45

47

82,270

83,103

Membership classes

Country Contributing Life Members Honorary Life Members

The new Anytime Fitness gym at Stellar Canberra

7


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

Directors’ Report (continued) 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.

Canberra, ACT 17 September 2018

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ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2017–2018

9


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

Concise financial report – 25 June 2018 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 25 June 2018. 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 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 2017–2018

Statement of Profit or Loss and Other Comprehensive Income for the year ended 25 June 2018 Notes

2018 $

2017 $

53,474,256

53,127,883

Cost of goods and services

(14,585,458)

(14,272,496)

Employee expenses

(18,893,393)

(18,461,085)

Depreciation expenses

(6,022,774)

(5,836,560)

Administration expenses

(4,145,186)

(4,027,331)

Occupancy expenses

(5,423,082)

(5,486,366)

Marketing expenses

(2,066,509)

(1,978,658)

Entertainment expenses

(892,358)

(429,217)

Finance costs

(356,008)

(243,797)

Other expenses

(811,641)

(921,184)

277,847

1,471,189

-

-

277,847

1,471,189

277,847

1,471,189

Revenue

Profit for the year

1

Other comprehensive income Total comprehensive income for the year Total comprehensive income for the year is attributable to: Members of Canberra Southern Cross Club Limited

The above 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 2017–2018

ACN 008 488 855

Balance Sheet as at 25 June 2018 2018 $

2017 $

6,056,428

7,088,359

Trade receivables

436,973

781,706

Inventories

369,778

376,933

Prepayments

366,244

380,778

7,229,423

8,627,776

56,728

25,948

61,287,574

45,104,693

509,300

409,450

61,853,602

45,540,091

69,083,025

54,167,867

Trade and other payables

2,972,352

3,491,602

Borrowings

1,500,000

-

Provisions

1,239,827

1,163,253

773,465

678,615

6,485,644

5,333,470

18,616,530

5,213,032

168,778

87,139

18,785,308

5,300,171

Total liabilities

25,270,952

10,633,641

Net assets

43,812,073

43,534,226

43,812,073

43,534,226

43,812,073

43,534,226

Notes ASSETS Current assets Cash and cash equivalents

Total current assets Non-current assets Other financial assets Property, plant and equipment Intangible assets Total non-current assets Total assets LIABILITIES Current liabilities

Revenue in advance Total current liabilities Non-current liabilities Borrowings Provisions Total non-current liabilities

EQUITY Retained earnings Total equity

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

12


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2017–2018

Statement of Changes in Equity for the year ended 25 June 2018 Retained earnings $

Total Equity $

42,063,037

42,063,037

1,471,189

1,471,189

Balance at 26 June 2017

43,534,226

43,534,226

Balance at 27 June 2017

43,534,226

43,534,226

277,847

277,847

43,812,073

43,812,073

Balance at 28 June 2016 Profit for the year

Profit for the year Balance at 25 June 2018

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

13


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

Statement of Cash Flows for the year ended 25 June 2018 2018 $

2017 $

58,666,011

58,148,224

(51,658,951)

(50,711,166)

110,488

160,683

Interest paid

(356,008)

(243,797)

Net cash inflow from operating activities

6,761,540

7,353,944

(20,511)

-

Payments for purchase of property, plant and equipment

(22,645,678)

(9,326,901)

Net cash (outflow) from investing activities

(22,666,189)

(9,326,901)

Repayment of borrowings

-

(430,568)

Proceeds from borrowings

14,872,718

-

Net cash inflow (outflow) from financing activities

14,872,718

(430,568)

(1,031,931)

(2,403,525)

Cash and cash equivalents at the beginning of the financial year

7,088,359

9,491,884

Cash and cash equivalents at end of year

6,056,428

7,088,359

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received

Cash flows from investing activities Payments for purchase of intangible assets

Cash flows from financing activities

Net (decrease) in cash and cash equivalents

The above 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 2017–2018

Notes to the Financial Statements ended 25 June 2018 1 Revenue 2018 $

2017 $

12,249,707

12,482,876

Tuggeranong gaming

7,354,543

6,901,963

Jamison gaming

3,683,567

3,938,151

23,287,817

23,322,990

21,618,762

21,419,368

Membership income

5,354,608

5,218,690

Rental revenue

1,176,658

1,291,550

Interest revenue

110,488

160,683

Entertainment income

917,751

558,797

1,008,172

1,155,805

30,186,439

29,804,893

53,474,256

53,127,883

Revenue consisted of the following items:

Gaming revenue Woden gaming

Total gaming revenue

Other revenue Revenue from sale of goods

Other income Total other revenue Total revenue

15


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

Notes to the Financial Statements (continued) 2 Related parties (a) Key management personnel compensation The aggregate compensation of the key management personnel of the company is set out below: 2018 $

2017 $

841,777

884,674

841,777

884,674

Employee Benefits

(b) Directors’ honorarium Included within key management remuneration in note 2(a) above is honorarium paid or payable, or otherwise made available, in respect of the financial period, to all directors of the company, directly or indirectly, by the company or by any related party. This represents payments for out of pocket expenses as approved at the 2017 Annual General Meeting in accordance with item 12.6 of the Club’s constitution. 2018 2017 $ $ Directors’ honorarium

115,970

113,944

3 Summary of significant accounting policies The concise financial report is an extract from the full financial report for the year ended 25 June 2018. 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. 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 as the full financial report. Discussion and analysis of the Club’s financial results are set out in the President’s Report and in the analysis of Trading Results. 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.

16


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2017–2018

Directors’ Declaration 25 June 2018 The directors declare that in their opinion, the concise financial report of the Canberra Southern Cross Club Limited for the year ended 25 June 2018 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 25 June 2018. 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 directors.

Canberra, ACT 17 September 2018

17


Canberra Southern Cross Club Ltd Annual Report 2017–2018

18

ACN 008 488 855


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2017–2018

19


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

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

ALSCO BEST IN GRASS BEYOND BUILDING SOLUTIONS J J RICHARDS & SONS LEADER SECURITY ELECTRONICS LEADING EDGE AMUSEMENTS MULTILEVEL MUNNS SLY MOORE ARCHITECTS PONY DESIGN CO PREMIER VENUE ENTERTAINMENT PRICEWATERHOUSE COOPERS PROSEGUR AUSTRALIA SG GAMING

Linen services Garden maintenance services Building construction Waste management services Security services Entertainment services Building construction Consulting services Consulting services Entertainment services Audit services Security services Gaming machine services

THE BUSINESS DOCTOR WDCI

IT services Consulting services

$250,000 to $499,999 Name

Item

ABSTRACT ENTERTAINMENT AINSWORTH GAME TECHNOLOGY COCA-COLA AMATIL ELITE GROUP (ACT) I.G.T. (AUSTRALIA) ICON WATER LOCKBRIDGE PREFERRED BUILDERS

Entertainment services Gaming machine services Beverage purchases Entertainment services Gaming machine services Water & sewerage services Consulting services Building construction

ROSE CLEANING ASSET SERVICES TONIC REALTY YOUNGS CHICKEN

Cleaning services Property services Food purchases

$500,000+ Name

Item

ANDREWS MEATS ARISTOCRAT LEISURE INDUSTRIES AUSTRALIAN LIQUOR MARKETERS CCS FM EPICUREAN CONTRACT CATERERS FOSTERS AUSTRALIA MONARCH BUILDING SOLUTIONS ORIGIN ENERGY PROJEX BUILDING GROUP RICHARD CROOKES CONSTRUCTION

Food purchases Gaming machine services Beverage purchases Building maintenance services Catering services Beverage purchases Building construction Electricity & gas services Building construction Building construction

SMART CLEANING SOLUTIONS ACT

Cleaning services

20


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

Employee remuneration Section 54 of the Gaming Machine Act 2004 requires employee remuneration above the prescribed amount of $150,000 to be reported in the financial report. During 2018 there were 5 employees (2017: 4 employees).

Benefits taken during the year Section 54 of the Gaming Machine Act 2004 requires that any benefits that have been taken by a person during the financial year be reported in the annual report. The company has provided the following benefits during the financial year: Monetary Who offered the benefit value

Position

Description

Purpose

Directors/Senior Management

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

Networking

$4,262

Canberra Southern Cross Club

Directors/Senior Management

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 or sporting group.

Networking

$8,415

Canberra Southern Cross Club

Directors

Canberra Raiders Season Launch

Networking

$180

Canberra Raiders

Directors/Senior Management

Rugby league games

Networking

$3,652

Canberra Raiders

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Canberra Southern Cross Club Ltd Annual Report 2017–2018

Canberra Southern Cross Club Ltd Trading Results 1. Revenue from

2. Expenses from

Consolidated Revenue From Ordinary Activities 2017/18 Consolidated Expenses From Ordinary Activities 2017/18 Gaming Trading Consolidated Revenue From Ordinary Activities 2017/18 Consolidated Expenses From Ordinary Activities 2017/18 Gam Ordinary Activities 2017/18 Ordinary 2017/18 Consolidated RevenueActivities From Ordinary Activities 2017/18 Consolidated E 2% 2%

2% 2%

2% 2%

12%

12%

20% 12%

20%

20% 36%

36% 42% 15%

15%

42% 15% 4%

4%

4%

4%

4%

11%

11%

11%

27%

27%

Gaming $23.3Gaming Million $23.3 Million Food $14.8 Million Food $14.8 Million Beverage $8.2Beverage Million $8.2 Million Health$6.6 & Wellbeing Health & Wellbeing Million $6.6 Million Member’s Entertainment Member’s Entertainment $0.9 Million $0.9 Million Otherclub (inc membership licensed club membership Other (inc licensed subscriptions subscriptions $1.3 Million $1.3 Million In FY18 thecategory Membership was replaced by In FY18 the Membership was category replaced by Healthwhich & Wellbeing which includesassociated all revenues associated Health & Wellbeing includes all revenues the & Club's Healthdiversification & Wellbeing diversification activities. with the Club'swith Health Wellbeing activities.

0% 10%

Wages and OnWages Costs and $2. Costs $19.6 Million Wages and OnWages Costs and $19.6On Million Gaming $23.3 Million Wages a Gaming Gaming Machine LevyM$ Goods$13.4 and Services Cost of GoodsCost and of Services Million $13.4 Million Food $14.8 Million Cost of Gaming$2.3 PrG Depreciation Gaming Promotions Depreciation $6.0 Million $6.0 Million Beverage $8.2 Million Deprecia Depreciatio Gaming$2.3 Promotions Depreciation $1.7 Million Gaming Promotions Million $2.3 Million Health & Wellbeing $6.6 Million Gaming Other $2.3 Utilities (Electricity, Fuel, Telephone, Rates) $2.4 Million Other $2.3 Million Utilities (Electricity, Fuel, Telephone, Rates) $2.4 Million Member’s Entertainment $0.9 Million Utilities Other $11.1 Million Operating Other $11.1 Million Operating Surplus $9.0 M Other (inc licensed club membership Other $ subscriptions $1.3 Million In FY18 the Membership category was replaced by Health & Wellbeing which includes all revenues associated with the Club's Health & Wellbeing diversification activities.

4. FoodEntertainment Trading ClubEntertainment Members Trading 2017/18 Health & Wellbeing Club Members Trading2017/18 2017/18 Health & Club Mem Food Trading 2017/18

Beverage Trading 2017/18 10%

0% 10%

2%

2%

2%

32%

25% 51%

-37%

2%

0% 26%

26%

-37%

-37%

51%

51%

15%

37%

34% Costs $7.5 Million Wages and OnWages Costs and $7.5On Million Wages OnCost Costs $2.0 Million ofMillion Goods $5.5 Million Cost of and Goods $5.5 Cost of GoodsDepreciation $2.8Million Million $0.2 Million Depreciation $0.2 Depreciation $0.1 Million Other $1.5 Million Other $1.5 Million Other $0.6Surplus Million Operating Surplus $0.1 Million Operating $0.1 Million Operating Surplus $2.7 Million

26%

6%

6% 1%

5%

26%

6% 3

5%

Costs $0.9 Million Wages and OnWages Costs and $0.9On Million Wages and On Costs $7.5 Million EntertainmentEntertainment $0.9 Million $0.9 Million Cost of Goods $5.5 Million Member’s Promotion Member’s Promotion $0.2 Million $0.2 Million Depreciation $0.2 Million Other $0.2 Million Other $0.2 Million Other $1.5Deficit Million Operating Operating Deficit ($1.3 Million) ($1.3 Million) Operating Surplus $0.1 Million

Wages and OnWages Costs and $2. Wages a (Re Utilities (Rent,Utilities Rates, Elec Entertain Depreciation Depreciatio $1.0 Million Member Other $1.3 Other $1.3 Million Other Operating Operating Surplus $0.2 $M Operatin Healthincludes & Wellb Health & Wellbeing previously clas previously classifed as Sport

Note: Graphs 1 and 2 include the revenue and expense resulting from Members redeeming their Star Rewards points for food and beverage items. These revenues and expenses are eliminated in the financial statements.

Distribution of Poker Machine Dollar 2017/18 5%

15%

37%

8%

22

20%

20%

23%

37%

10 7%

10%

25%

25%

27%

3. Beverage Trading 2017/18 Food Trading 2017/18 Food Trading 2017/18

38%

38% 42%

4%

0%

7/18

ACN 008 488 855

3%


ACN 008 488

Gaming $23.3 Million Food $14.8 Million Beverage $8.2 Million Health & Wellbeing $6.6 Million 855 Member’s Entertainment $0.9Canberra Million Other (inc licensed club membership subscriptions $1.3 Million

Southern Cross

Wages and O

Wages and On Costs $19.6 Million Cost of Goods and Services $13.4 Million Depreciation $6.0 Million Gaming Promotions $2.3 Million Club Ltd Annual Report 2017–2018 Utilities (Electricity, Fuel, Telephone, Rates) $2.4 Million Other $11.1 Million

Gaming Mac Gaming Prom Depreciation Other $2.3 M Operating Su

In FY18 the Membership category was replaced by Health & Wellbeing which includes all revenues associated with the Club's Health & Wellbeing diversification activities.

5. Gaming Trading 2017/18

ry Activities 2017/18 ryOrdinary ActivitiesActivities 2017/18 2017/18 m

0% 12% 12%

10% 2% 36% 36%

6. Members Entertainment

Beverage TradingEntertainment 2017/18 Club Members Trading 2017/18 Trading 2017/18 BeverageBeverage Trading 2017/18 Trading 2017/18

Gaming Trading 2017/18 Food Trading 2017/18 Gaming Trading Gaming2017/18 Trading 2017/18 12%

20% 32% 32%

36% 38% 38%

38%

23% 23%

25% 25%

32% -37%

26% 25%

51% 23% 15%

37% 8% 8% 10% 10%

10% 10%

26% 26%

2% 2%

20% 20%

9 Million

on .2 Million

Million)

26%

1%

26%

6% 1%

5%

34% 34%

34%

Wages andWages On Costs Million and$2.0 On Costs $0.9 Million Wages On $2.8 Costs $2.0 Million Wages and On Costs $2.0 Million Cost of and Goods Million Entertainment $0.9 Million

Wages and O Utilities (Ren Depreciation Other $1.3 M Operating Su

Cost of Goods $2.8 Million Cost of Goods $2.8 Million Depreciation $0.1 Million Member’s Promotion $0.2 Million Depreciation $0.1 Million Depreciation $0.1 Other $0.6Other Million $0.2 Million Million Other $0.6Operating Million$0.6 Other Million Deficit ($1.3 Million) Operating Surplus $2.7 Million Operating Operating Surplus $2.7 Million$2.7 Million Surplus

Health & Wellbei previously classif

8. Distribution of Poker Distribution of Poker Machine DollarMachine 2017/18 Distribution of Poker Machine Dollar 2017/18 Distribution of Poker Machine Dollar 2017/18 Dollar 2017/18 5% 5%

2%

3% 3% 5%

3%

20%

26%

33% 33%

15% 15%

26% 26%

10%

7. Health & Wellbeing Health & Wellbeing Trading 2017/18 Health Trading & Health Wellbeing Trading 2017/18 &2017/18 Wellbeing Trading 2017/18

ading 2017/18 ading 2017/18 nment Trading 2017/18

8% 1%

7% 10% 7% 7% Wages andWages On Costs Million$7.5 Million and$2.7 On Costs Wages and On Costs $2.7 Million Wages and On Costs $2.7 Million .6 Million Cost ofLevy Goods $5.5 Million Gaming Machine $5.3 Million illion Gaming Machine Levy $5.3 Million Gaming Machine Levy $5.3 Million illion ces $13.4 Million Depreciation Million Gaming Promotions $2.3 $0.2 Million Gaming Promotions $2.3 Million Gaming Promotions $2.3 Million n Other Million Depreciation $1.7 $1.5 Million Depreciation $1.7 Million Depreciation $1.7 Million Million Surplus $0.1 Million Rates) $2.4 Million Other $2.3 Operating Million Other $2.3Surplus Million$2.3 ,Telephone, Rates) $2.4Rates) Million$2.4 Million Operating Other Million $9.0 Million Operating Operating Surplus $9.0 Million$9.0 Million Surplus 25%

Health & W

33%

15%

30% 30%

30%

Wages and On Costs $2.1 Million Wages and OnRates, Costs $2.1 Million Wages andElectricity) On Costs $2.1 Million Million Utilities (Rent, $2.0 Utilities (Rent, Rates, Electricity) $2.0 Million$2.0 Million Utilities (Rent, Rates, Electricity) Depreciation $1.0 Million Depreciation $1.0 Million$1.0 Million Other $1.3 Depreciation Million Other $1.3Surplus Million$1.3 Other Operating $0.2Million Million Operating Operating Surplus $0.2 Million$0.2 Million Surplus Health & Wellbeing includes revenues and expenses previously classifed as Sport & Recreation Health & Wellbeing includes revenues and expenses Health & Wellbeing includes revenues and expenses previously previously classifed asclassifed Sport & as Recreation Sport & Recreation

92% 92%

92%

Return to Player ReturnExpenses to Player Return to Player Direct including taxes and community contributions DirectHold Expenses including taxes and community contributions Direct Expenses including taxes and community contributions Club Club Hold Club Hold

23


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

Board of Directors

John Lewis

President

Senior Vice President

Kim Marshall

Bob Lloyd

Mary Laughlin

David Grimmond

Jack Rice

David Earle

Brendan Maher

Christopher Behrens

Director

Director

24

Director

Director

Vice President

Director

Director


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2017–2018

Corporate Information Notice to Members – Annual General Meeting Members are advised that the 47th Annual General Meeting (AGM) will be held in Corinna Room 2 at the Southern Cross Club Woden on 24 October 2018, at 6.00pm.

AGENDA 1.

Apologies

2.

Minutes of the 46th Annual General Meeting of 26 October 2017

3.

Presentation of Annual Report

4.

Presentation of Concise Financial Report

5.

Auditor’s Report

6.

Ordinary Resolutions

»» First Ordinary Resolution Pursuant to section 202A of the Corporations Act 2001 it is resolved that the Director’s honoraria for out of pocket expenses be set in accordance with Article 12.6 of the Constitution.

APPOINTMENT OF PROXY

As a member you have the right to cast one vote as the Annual General Meeting, 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. Chris Behrens President Canberra Southern Cross Club

»» Second Ordinary 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 25th October 2018 to 24 October 2019. 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

25


Canberra Southern Cross Club Ltd Annual Report 2017–2018

ACN 008 488 855

Corporate Information (continued) 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 18th June 2018 from members for election of three (3) Directors. Nominations closed on 2 July 2018 at which time the Club had received only nominations from the three incumbent Directors. Therefore there was no need for an election this year. Prior to the Annual General Meeting the Directors will meet to appoint the Board Executive, for the forthcoming year, which will be announced at the Annual General Meeting on 24 October 2018. The Directors who did not have to stand for election this year are David Grimmond, John Lewis, Chris Behrens, Bob Lloyd, David Earle and Brendan Maher. Ian Mackay Company Secretary

26


ACN 008 488 855

Canberra Southern Cross Club Ltd Annual Report 2017–2018

This page has been left intentionally blank

27


Cover images clockwise from left: Club President Christopher Behrens and Greens MLA Caroline Le Couteur cut the opening ribbon at Stellar Canberra, The Club’s new building Stellar Canberra, Southern Cross Club Staff participate in RUOK Day 2018.

Woden 6283 7200 92-96 Corinna Street Phillip ACT 2606

Jamison 6251 2255 Cnr Catchpole & Bowman Streets Macquarie ACT 2614

Tuggeranong 6293 7200 Cnr Holwell & Pitman Streets Tuggeranong ACT 2900

Stellar Canberra 6283 7340 50 Launceston Street Phillip ACT 2606

Southern Cross Yacht Club 6273 1784 Lotus Bay, Mariner Place Yarralumla ACT 2600

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

Profile for Canberra Southern Cross Club

Annual Report 2017-18 Canberra Southern Cross Club Ltd  

Annual Report 2017-18 Canberra Southern Cross Club Ltd