CHAIRMAN’S REPORT

CHAIRMEN’S REPORT

Chris King

I hope this report meets you safe and well. At the outset, I would like to pass on, on behalf of the Board our most sincere condolences to the family and friends of members who have passed away over the last 12 months.

This year we continued to endure the COVID-19 pandemic, but we have so far managed through it and congratulations to everyone that has been involved in our wonderful Club. Particularly during the restrictions when our primary focus has been on ensuring the health and hygiene of our Staff, Members and Guests while minimising the financial impact in terms of managing our expenses and protecting our financial holdings. It is important that we all remain vigilant to avoid any cases being contracted locally and being shut down again. During these unprecedented times, the Board also continued to advocate for your Clubs future through regular liaison with stakeholders and regulators, including ClubsNSW, our Local Government Member, and other Clubs.

Even with these challenges, our focus is still about consolidating on the extension and refurbishment and carrying out due diligence on other options, including development opportunities that will help ensure the future and growth of our Club. Particularly, those areas that have the most potential to generate diversified and ongoing revenue. These plans include the extension of our Drift Café which is in the final stages of approval and expected to commence shortly. This will provide an outside al-fresco dining facility with some 80 additional seats and a working kitchen environment that will meet our needs well into the future. To better service this area the Board also approved and extension of the Drift Bar and the installation of an additional coffee and cake bar adjacent to the lounge. As I have previously reported this extension will mean taking out 3-4 rinks of the current No. 1 Green. As a result of your feedback and consultation with other Clubs and bowling green experts the Board reviewed their decision to install a synthetic green on the remainder of the No. 1 Green and the existing smaller green. Consequently, the Board approved the retention of a grass green for this consolidated area. Construction is expected to commence in Spring. During the year we lost the upstairs Eastern Tiger Restaurant who were unable to recover financially from the impact that the COVID-19 pandemic had on their business model. This has provided us with a temporary venue for the Drift Café while construction is underway on the extension of the Café downstairs. Planning is also underway to explore future uses of this area once construction is completed. Including function areas and other food and beverage options. The Board is also

considering the installation of another elevator to assist patrons accessing in this area and is currently sourcing designs and planning approvals. This year has also seen the replacement of the older section of the Club’s roof and air conditioning ducts, the construction of the Adrift Bar and BBQ, redesigning of the gaming room floor and planning for is expansion, refurbishment of the entertainment area. Planning has also commenced on improving the internal ceiling, which has water damage and requires ongoing maintenance. We now have 13,936 Members as of 31st May 2021 and thanks to their support and good management I am proud to report that the Club managed to post an audited trading profit of $1,886,894 in the past year, which is a fantastic outcome under the circumstances. Understandably, our overall visitor numbers have decreased due to COVID-19.

I can also report that our fixed loan currently stands at just over $500k. However, our goal is still to continue to reduce and eliminate this loan during the upcoming financial year and to minimise any future borrowings while continuing to satisfy the needs of our members. Including utilising our financial holdings, which currently stand at circa $4.0m, to undertake the roof replacement and the Drift extension without the need for any borrowings. While doing this we need to continue building on our brand and our vision as being a locally owned family entertainment venue with excellent bowling facilities. Your Board is committed to continually reviewing and improving our products and services, examining opportunities to diversify our offering, improve our revenue stream, look at other revenue opportunities and ensure that we continue to meet if not exceed your expectations. While our real estate holdings may put us in a strong position to pursue hotel and residential accommodation as a possible line of alternative income the timing of this has been reviewed in terms of our 10-year master plan. However, your Board continues to keep this on its radar and in this regard is currently working with a property consultant to explore various options for our property while building on our financial holdings. We will keep you informed as we continue to explore this possibility. Feedback I continue to receive is that our members are very proud of their Club, particularly our Drift Café, which is booked out most evenings. Visitors and other organisations also continue to acknowledge our Club and its staff. However, we always welcome your suggestions on how we can improve. The suggestion box, which we consistently review, is one way you can do this. While doing the above your Club has and will continue to support community groups though donations and the grants program. This year we continued our strategic partnership with Willing & Able Foundation. The Club provided more than $100,000 in category 1 & 2 grants including $15,000 to Willing & Able Foundation. The Club will also continue to sponsor and support local sporting groups, including the Hastings Valley Vikings. These sponsorships have proved to be successful with all parties benefiting from the arrangement.

Over the last year, the Board continued to pay particular attention to ensuring the Club had good corporate governance in place. Including implementing the initiatives outlined in the Club’s strategic plan, developing, and reviewing key

policies and placing greater rigour around risk and audit compliance.

The Bowls Coordinator in collaboration with the Men’s and Women’s Bowling Clubs have again done a fantastic job in putting on events to encourage new Members and increasing participation levels, including events that support very worthy causes. Congratulations also to the Men’s Grade 1 team and the Women’s Grade 1 Team for reaching the State Pennant Finals. I would also like to thank the Travelling Bowlers for their contribution to the Club and the work that they do to support charities and other worthy causes. The Board is proud of our Bowls history and will continue to undertake and explore every opportunity in collaboration with both Sub Clubs to ensure this tradition is continued. We will continue to consider opportunities to reduce maintenance costs, increase bowler participation numbers, provide more game options to attract social members and visitors, project the number of greens that will be required over the next 10 years, assess the types of bowls surface best suited to our environment and which greens are best covered to maximise their usage. While we continue with our plans for No. 1 Green, as mentioned earlier, I welcome any suggestions you may have in this regard. I would like to take this opportunity to thank our CEO David Gearing who joined us in September 2020, David has proved to be a valuable addition to our Club. His previous experience as well as his initiative, drive, professionalism and commitment to our Staff and Members contributed greatly to our successful year. I would also like to thank Glen Stewart, our Operations Manager who acted as CEO up until David’s commencement. Glen continues to provide valuable support and his knowledge and experience is greatly appreciated. The level of service from Staff to our Members continues to be at the highest level and the recognition they consistently receive is well deserved. I would also like to thank our auditors, Northcorp and pleased to report that we have received an unqualified audit report for the past 12 months. I welcome all of our new Members and thank all our loyal Members for supporting us over the past year, especially during these uncertain times. I am sure you will continue to enjoy your Club as we endeavour to achieve our vision of being the best bowling and entertainment venue on the Mid North Coast. In closing it would be remiss of me not to thank my Board of Directors for the support they have given me and the results they have achieved this year. A lot of time and effort goes into being a Director, particularly during the COVID-19 restrictions and the fact we have managed to come out of this so well and post a resounding profit is testament to their input. I particularly would like to thank Mark Parry who has continued to serve as Deputy Chairman, although being appointed earlier this year to the position of CEO at Urunga Bowling Club. To finish my report, I would like to thank fellow Board Members, Mick Hayes and Ralph Gibbons for their contribution to the Club during their time on the Board and wish them the best of luck if they choose to re-elect. Kind regards