Page 1


WESTS’ BOARD OF DIRECTORS 2016-2017

HONORARY LIFE MEMBERS + Edward Harrison

+ Pat McKinnon

+ Joan Chillingworth

+ Augustus Yates

+ S.H (Lee) Allen

John McClelland

+ John Hinkelbein

+ John Kelly

+ Jack McGilvray

+ Albert Lee

+ M. McKinnon

Max Sharpe

+ John Meincke

+ L. Bettison

Rod Laing

+ Ken Chillingworth

+ Stan Cole

Dennis Gross

+ Jack Bradley

+ Len Walters

Alice Edmunds

+ Norm Young

+ Reg Cognet

Ken Thompson

+ Jack Whitmore

+ Adrian Solomons

Nita Blake + Dennis Condon

+ Member Deceased

2016/2017 AT A GLANCE Income

$23.3m Increase 10.24%

Net Assets

$28m 2

Operating Profit (Before provisions, finance costs and extra-ordinary revenue items)

$3.04m

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

Amalgamated with The Tamworth Tennis Club Opened Mercure Tamworth Members 21,429


PRESIDENT’S REPORT

Dear members As president of the Wests Entertainment Group it is, once again, my pleasure to present the club’s annual report for the financial year ending June 2017. This report is to be considered at the Annual General Meeting (AGM) to be held on Tuesday 28 November 2017 at Wests, Phillip Street commencing at 6.30pm. Sadly, this report will be my last as president and director of Wests Entertainment Group. I have decided not to stand for re-election and will retire from the board. Although this decision is for personal reasons, I firmly believe our board needs directors that are perhaps younger and more energised to take our clubs forward in the future. The past 12-months have certainly been a year of challenges and opportunities. The opening of the Mercure Tamworth and the amalgamation of the Tamworth Tennis Club all of which happened in the same month certainly added to the pressure. In saying that, club trading has again been very good and has produced a terrific result. This year’s results include a combined result from Wests, Wests’ Diggers, The Courts @ East and Mercure Tamworth. Our combined businesses recorded an operating profit before provisions and finance costs and including revenue recognition from amalgamation with the Tamworth Tennis Club of $4.172 million. This is an outstanding result. The combined club poker machine profits were $12.930 million, the Wests group had a net turnover of $23.311 million in the last financial year, a wages bill of $6.199 million, purchases of food and beverages of $2.561 million, repairs and maintenance of $421,032, poker machine and payroll tax of $3.012 million and payments made to members and guests as gaming prizes, amenities, entertainment and promotions of $54.237 million. These results cannot be obtained without wise decisions being made. The board has now entered the next chapter of our masterplan with the opening of the Mercure Tamworth and the completion of two outdoor areas, The Terrace and The Patio both of which are receiving positive comments from our members. As a board we strive to deliver worldclass facilities for our membership. Club treasurer Max Sharpe has again done an excellent job in controlling the finances and he will present a full finance report at our AGM. This will also be Max’s last treasurers report as, if approved at the AGM, the position of treasurer will cease. To Rod Laing, his management team and all staff – whether you are in food, beverage, cleaning, grounds, gaming, marketing & entertainment, administration or hotel staff – on behalf of the board of directors, we say thank you for a magnificent effort.

I have certainly met some extremely inspirational people over my time. The club achievements of the past 31 years speak for themselves and I am proud that I have been part of the team who had a simple dream – to develop a club that supported its local community and members. When I first joined the board back in 1985, our membership was around 3000 while today membership stands at 21,000 – say no more. I just mentioned the team; this team is your board and club management. I would like to extend my sincere thanks to the current board as well as past board members in allowing me to be their president. To Rod Laing and his team, may I extend my sincere appreciation for your support over the years. Rod and I go back many years, members may be interested to learn that I first employed Rod at Cablemakers, a business I managed in Tamworth. He was a young man back in the 1980’s and today I am very proud of his achievements and I thank him for his support. As I have said before, I am totally amazed at how Rod and his team handle the pressure and stress of clubland today. Rod continually works with the board in the development of projects for the improvement of our businesses. There are a number of projects that are currently being considered and once finalised these projects will add value to our business. I look forward with interest to see these projects develop and hopefully prove a success to our group. Certainly the last 31 years has had its ups and downs and riding this rollercoaster with me has been my family. No director could sustain their role without the support of their family. I have been blessed by my families support. To my wife Marie and my son Stephen and daughter Julie, I take this opportunity to thank you all and I hope I have made you proud. In closing, I thank you the member for your support and patronage, you have all been a part of the West Entertainment Group success. The board and I welcome your comments, suggestions or concerns. You may contact us by either mail or email at info@tamworthwests.com.au I look forward to seeing you at the Annual General Meeting.

John McClelland President

The group plays a major role in financially supporting your community. This year was no exception as we supported in excess of 150 individuals, community groups and sporting bodies both in-kind and financially. We are firm believers of being involved in the community in which we do business. Scully Park Regional Sporting Precinct has certainly proven to be a great community asset. In just a short time, media outlets have referred to the ground as iconic. Comments from A-League and Rugby Union players as well as NRL representatives are encouraging as they report – the facility is just first-class. In 2018, history will be written as the NRL host their first premiership game ever to be played in our city. The game between Wests Tigers and Newcastle Knights is expected to be a sell-out. Sadly, a year does not pass without the loss of someone near and dear to us. The group extends its deepest sympathies to our members who have lost loved ones this year. Finally, it is extremely difficult not to become emotional as I reflect over my 31 years of being a board member and president of Wests Entertainment Group.

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

3


CHIEF EXECUTIVE OFFICER’S REPORT Dear members

On behalf of our board of directors, management and staff, I thank you for your continued patronage and loyalty to our clubs. As another financial year comes to an end, it is my pleasure to submit the 56th annual report and balance sheets for the year ending June 30, 2017. Financially, the group has recorded another fantastic result. An operating profit of $4.172 million before provisions, finance costs and extra ordinary items, a net profit of $1.155 million was realised. This result is even more pleasing when you consider the hotel construction period and the amalgamation costs with Tamworth Tennis Club. Wests’ trading has been outstanding resulting in an operating profit of $3.435 million before provisions and finance costs, while Diggers returned an operating profit of $794,798. The Courts @ East (formerly Tamworth Tennis Club) produced a loss of $66,733 while the Mercure Tamworth had an operating profit of $8,370. This year has certainly been very challenging and rewarding at the same time. Management has been extremely busy with the opening of the Mercure Tamworth and the amalgamation with the Tamworth Tennis Club. We are very pleased with the early trading of our hotel and our guests experience and comments are encouraging. This is truly a first-class facility and we will soon be offering guests 24-hour room service along with 5 star luxuries. The opening of our new outdoor areas have quickly become a member favourite and the building works continue with our new function centre set to open in 2018. Another rewarding project was the amalgamation of the Tamworth Tennis Club, now known as The Courts. The board and management have been busy working on a masterplan for The Courts which is very exciting and will ensure the viability of this club in East Tamworth. The plan is to offer members a food and beverage concept that is unique to our existing clubs. Once the board is happy with the plan, it will be placed on display before DA lodgment for comment. The upgrade of the tennis courts is continuing. It is hoped that our membership and the community will embrace the redevelopment and the tennis club which has had a history of over 100 years continues for another 100 years. Earlier this year the board announced a new management structure. The new executive structure consists of CEO, chief finance officer, chief operations officer and chief food & beverage officer. These positions were filled by Eileen Smyth, Geoff Shanley and Peter Carlyle respectively. As I have stated in the past, our people make the difference. I know that talented, committed team members and managers are a very important part of the equation – we are blessed to have this team and I thank everyone for your contribution to our success. We are a group of registered clubs and a hotel, so hospitality is always at the top of our mind. But what we do starts with people. Ultimately it is our more than the 200 team members across three clubs and Mercure Tamworth, who brings to life our strategy and fulfills our mission by building loyalty, one club, one hotel, one shift and one customer at a time – that is why we strive to be an employer of choice.

John is an unselfish man who devotes his time to our great community. Whether he is helping out with Meals on Wheels and Co-Care or meeting with community organisations to assist with their fundraising, John is a man of his word and certainly walks the talk. The group has certainly come a long way under John’s reign as president and, if our walls could talk, there would be plenty of great stories to tell. John has been a major part of our group’s success and our Club of the Year award, business awards and tourism awards are a testament to this. Recently at a board function to farewell John, John was honoured to have one of our new function/meeting rooms named after him, The John McClelland Room. May I extend my congratulations to John for his 31 years of club service and I wish him well, I am sure that we will see John around our clubs checking on the progress of our future projects. Talking about the future and future projects, there are many in the pipeline. Next year will see the opening of our new function centre. There are also many exciting projects in the planning stage that will be sure to engage all members. Our group is currently developing new food and beverage concepts that will enhance our position of being the No. 1 hospitality provider in the North West. In another first for our group, Wests will trade on Christmas Day under restricted opening hours, likely to be 11am to 5pm. The decision to open Christmas Day is based on our hotel offering and the desire to host an affordable Christmas lunch. I would also like to take this opportunity to thank executive assistant, Michelle Bullock and executive officers, Eileen Smyth, Geoff Shanley and Peter Carlyle for their support over the past 12 months. Finally, my thanks to all members for their support and friendship over the past 12 months. It is an exciting time to be a Wests Entertainment Group member, financially 2017 was a good year, but we have more work to be done to drive our businesses forward while continuing to earn your trust and loyalty. I am very grateful for your support. I trust you will see that this report confirms the commitment of the Wests Entertainment Group to its members and the wider community. I look forward to seeing you at the Annual General Meeting on Tuesday 28 November 2017.

While the Wests Entertainment Group has clubs located in the Tamworth community, our definition of service extends beyond the walls of our clubs and into the communities that we serve. As a group of registered clubs that has around 21,000 members we are uniquely positioned to make a difference in our community. In a year when the club industry continued to be challenged, we are proud of the progress we made to create member value, build member loyalty, strengthen team member engagement and make a difference in the communities we serve. This year’s Annual General Meeting will be the end of an era with the retirement of long-serving president, John McClelland. I’m honoured to call John a friend and I have appreciated his support over the last 31 years.

4

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

Rod Laing Chief Executive Officer


TREASURER’S REPORT Dear members

On behalf of the board of directors, it is once again my pleasure to submit the annual financial reports for the year ending June 30, 2017. This is my 22nd consecutive report and final one as the position of treasurer will cease as of the AGM in November (if passed by the members). The 12-month period has resulted in the Wests Entertainment Group recording a net profit after provisions and finance costs of $1.155 million. This figure is increased by a once off transfer of the Tennis Club assets of $1,132,134 which is shown as income. West Tamworth League Club (Wests) made a profit before provisions and finance costs of $3.435 million and Wests’ Diggers made $794,798. The Mercure Tamworth made $8,370 and The Courts @ East a loss of $66,733. The groups’ overall profit before provisions and finance costs was $4.172 million. Income for the group was $23.311 million, up $2.386 million. Expenses were $19.140 million, up $1.803 million. The profit increase before provisions and finance costs from $3.589 million in 2015/16 to $4.172 million in 2016/17, was due in part to an increase at Wests of $593,000 and Wests’ Diggers $48,000. Wests’ Diggers is now standing on its own and making a substantial contribution to the groups’ overall profit result. The Courts @ East loss of $66,733 is due to the costs of bringing the club up to scratch with some minor alterations. The cost of upgrading the electricity input is in excess of $450,000 and is only partially complete. The Mercure Tamworth made a small profit of $8,370 however, when you take finance costs and depreciation into account, the loss exceeds $608,000. With its large debt for construction this will always be the case. We have spent around $16 million to date with another $2 million allowed for the completion of the function centre. Interest on this debt will be approximately $1 million per year and will need to be met by the group overall. The Scully Park Regional Sporting Precinct project is complete and with monthly instalments of $37,100 (principal & interest) the debt is down to $2.661 million with seven years remaining. I will again be delivering a detailed financial report at our Annual General Meeting on Tuesday, November 28, 2017. Questions regarding the report will be accepted from the floor on the night however, it would be appreciated if any questions could be put in writing and submitted to the club secretary, Rod Laing no later than Monday, November 13, 2017.

Max Sharpe Treasurer

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

5


DIRECTORS REPORT

2015 - 2016

DIRECTORS’ REPORT

DIRECTORS Your directors in office at any time during, or since the end of, the year are: Names John McClelland Terry Psarakis Maxwell Sharpe Robert Both Alice Edmunds Dennis Gross Chris Watson Ken Thompson Wally Franklin

Position President Vice President Treasurer Director Director Director Director Director Director

Appointed/Resigned Board Appointed 29/11/2016 Not elected 29/11/2016 Retired 29/11/2016 Elected 29/11/2016 Board Appointed 26/04/2017

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. COMPANY SECRETARY Mr Rodney John Laing held the position of the company secretary at the end of the financial year. PRINCIPAL ACTIVITIES The principal activities of West Tamworth League Club Limited during the financial year were:  

Operating a Licensed Club including the activities of liquor, gaming, catering, sports, community, the provision of entertainment and hotel operations; Providing facilities for members.

The only significant change in the nature of these activities that occurred during the year was the commencement of hotel operations. OBJECTIVES AND STRATEGIES Objectives The short-term objectives of the Club are capital improvements to facilities and the enhancement of the customer experience through products and services. The Company strives as a matter of priority to be a responsible provider of products within the community. The long term objectives of the Company are to provide facilities and entertainment for its members and support to the wider community through provision of amenities for sport and recreation. The Company assists in the promotion of rugby league and through its memorandum of amalgamation supports the traditions of the RSL movement and the sport of tennis. Strategies The strategies to meet these objectives are centred on maintenance of existing operations with the development of new enhanced facilities and amenities. Core activities were the consistent provision of service and entertainment to the membership and community support. Performance Measures The Company regularly measures its performance through budgetary control and individual KPI’s placed on projects or areas of operations. Monthly the Club benchmarks its performance including earnings before interest, tax, depreciation and amortisation (EBITDA) against other clubs through Astute BI. DIRECTOR INFORMATION

6

Name

Position

Qualifications

Experience

Special Responsibilities

John McClelland

President

Retired

31 years as Director

Membership Committee

Terry Psarakis

Vice President

Accountant

7 years as Director

Finance Committee

Maxwell Sharpe

Treasurer

Company Director

23 years as Director

Membership Committee, Finance Committee, Sponsorship Committee

Robert Both

Director

Retired

19 years as Director

Sponsorship Committee

Alice Edmunds

Director

Retired

11 years as Director

Dennis Gross

Director

Retired

11 years as Director

Chris Watson

Director

Business Owner/Operator

3 years as Director

Sponsorship Committee

Ken Thompson

Director

Retired

1 year as Director

Membership Committee

Wally Franklin

Director

Retired

2 months as Director

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017


Meetings of Directors During the financial year, 39 meetings of directors (including committees of directors) were held. Meetings of Directors Attendances by each director during the year were as follows: During the financial year, 39 meetings of directors (including committees of directors) were held. Membership Sponsorship Finance Committee Attendances by each director during the year were as follows: Directors' Meetings Committee Committee Meetings Meetings Meetings Sponsorship Membership Eligible Number Eligible Number Eligible Number Eligible Committee Number Finance Directors' Committee Committee to attend Meetings attended to attend attended to attend attended to attend attended Meetings Meetings Meetings John McClelland 13 13 12 12 Eligible 13 to attend

Number 11 attended

Eligible to attend

Number attended

Eligible to attend

Number attended

Eligible 2 to attend

Number 2 attended

Maxwell Sharpe John McClelland RobertPsarakis Both Terry

13 13 13 13

13 13 13 11

12 12 -

12 12 -

12 12 --

12 12 --

22-

22-

Chris Watson Alice Edmunds Ken Thompson Dennis Gross

13 4 9 4

12 4 8 4

12 --

10 --

-6 4

-5 4

---

---

Terry Psarakis

Alice Edmunds Maxwell Sharpe Dennis Both Gross Robert

Wally Franklin Chris Watson

4 13 4 13

3 13

4 13 4 13

3 12

12 12

12

12 12

10

12 4-

--

12 4-

--

2--

--

2--

--

Ken Thompson 9 8 6 5 Incorporation and Member's Guarantee Wally Franklin 3 3 The Club is incorporated under the Corporations Act 2001 as a company limited by guarantee. If the Club is wound up, the Constitution states that each member is required to contribute a maximum of $4 towards meeting any Incorporation and Member's outstanding obligations of theGuarantee club. At 30 June 2017 the number of members was 21,429 (2016: 20,661). The Club is incorporated under the Corporations Act 2001 as a company limited by guarantee. If the ClubIndependence is wound up,Declaration the Constitution states that each member is required to contribute a maximum of $4 towards meeting any Auditor's outstanding of the club. Atdeclaration 30 June 2017 the number of members wasof21,429 (2016: 20,661). A copy of theobligations auditor's independence as required under section 307C the Corporations Act 2001 is set out at page 7. Auditor's Declaration Non-Core Independence Property A copy of the auditor's independence as required under section 307C of the Corporations Act 2001 is set out at page 7. Non-core property is disclosed in Notedeclaration 24. Non-Core Property Non-core property is disclosed in Note 24. Signed in accordance with a resolution of the Board of Directors: Signed in accordance with a resolution of the Board of Directors:

AUDITOR’S

Director John McClelland Dated 27 September 2017 Director John McClelland INDEPENDENCE DECLARATION Dated 27 September 2017

Director Maxwell Sharpe Director Maxwell Sharpe

AUDITOR’S INDEPENDENCE DECLARATION

Auditors Independence Declaration under Section 307C of the Corporations Act 2001 AUDITOR’S INDEPENDENCE DECLARATION I declare that, to the best of my knowledge and belief, during the year ended 30 June 2017 there have been: Auditors Independence Declaration under Section 307C ofrequirements the Corporations Act 2001 (i) no contraventions of the auditor independence as set out in the Corporations Act 2001 in relation to the audit; I declare that, toand the best of my knowledge and belief, during the year ended 30 June 2017 there have been: (ii) (i)

no contraventions of code of professional conduct audit. of any the applicable auditor independence requirements as in setrelation out in to thethe Corporations Act 2001 in relation to the audit; and

(ii)

no contraventions of any applicable code of professional conduct in relation to the audit. Paul Cornall Principal 27 September 2017 Paul Cornall Principal 92 Rusden St, 27 September Armidale NSW 2017 2350 P +61 2 6773 8400 92 Rusden St,9957 f +61 2 6772 Armidale NSW 2350 e armidale@forsyths.com.au P +6124 2 6773 8400 ABN 935 296 22 f +61 2 6772 9957 e armidale@forsyths.com.au ABN 24 935 296 22 WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

7


STATEMENT OF OF PROFIT OR LOSS OTHER COMPREHENSIVE INCOME STATEMENT PROFIT ORAND LOSS AND OTHER COMPREHENSIVE INCOME STATEMENT OF30PROFIT For the Year Ended June 2017OR LOSS AND OTHER COMPREHENSIVE INCOME For the Year Ended 30 June 2017 Sales revenue Cost of sales Sales revenue Gross profit Cost of sales Other income Gross profit Marketing expenses Other income Occupancy costs Marketing expenses Administrative expenses Occupancy costs Entertainment costs Administrative expenses Operating costs Entertainment costs Other expenses Operating costs Finance costs Other expenses Finance costs income tax Profit before Income tax expense

Note Note 2 3 2 3 2

2017 $ 2017 22,164,849 $

2016 $ 2016 $ 20,830,384

(5,247,605) 22,164,849 16,917,244 (5,247,605) 1,147,050 16,917,244 (1,643,247) 1,147,050 (204,675) (1,643,247) (2,697,655) (204,675) (888,416) (2,697,655) (8,375,751) (888,416) (2,243,101) (8,375,751) (856,283) (2,243,101) (856,283) 1,155,166 1,155,166 1,155,166-

(4,964,945) 20,830,384 15,865,439 (4,964,945) 94,814 15,865,439 (1,473,612) 94,814 (195,307) (1,473,612) (2,495,243) (195,307) (862,338) (2,495,243) (7,222,125) (862,338) (2,048,491) (7,222,125) (598,023) (2,048,491) (598,023) 1,065,114 1,065,114 1,065,114-

Other comprehensive income Profit for the year

1,155,166-

1,065,114-

Other comprehensiveincome incomefor the year Total comprehensive

1,155,166-

1,065,114-

Total comprehensive income for the year

1,155,166

1,065,114

Profit before income tax Income taxthe expense Profit for year

2

4 4

STATEMENT OF FINANCIAL POSITION

STATEMENT FINANCIAL POSITION STATEMENT OF30OF FINANCIAL POSITION For the year ended June 2017 For the year ended 30 June 2017 ASSETS

Current assets ASSETS Cash and cash equivalents Current Trade andassets other receivables

Note Note

2017 $ 2017 $

2016 $ 2016 $

7 8 7 9 8 10 9 10

3,021,570 119,299 3,021,570 235,854 119,299 266,080 235,854 3,642,803 266,080 3,642,803

4,883,867 112,922 4,883,867 204,916 112,922 227,991 204,916 5,429,696 227,991 5,429,696

Property, plant and equipment Non-current assets Intangible assets Property, plant and equipment Total non-current assets Intangible assets

11 12 11 12

43,235,888 983,615 43,235,888 44,219,503 983,615 47,862,306 44,219,503 47,862,306

34,283,471 792,812 34,283,471 35,076,283 792,812 40,505,979 35,076,283 40,505,979

Trade and benefits other payables Employee Borrowings Total current liabilities Employee benefits

13 14 13 15 14 15

2,112,223 318,763 2,112,223 1,294,917 318,763 3,725,903 1,294,917 3,725,903

1,897,349 303,078 1,897,349 1,236,267 303,078 3,436,694 1,236,267 3,436,694

14

16,126,824 16,126,824 16,126,824 19,852,727 16,126,824 19,852,727 28,009,579

10,214,872 10,214,872 10,214,872 13,651,566 10,214,872 13,651,566 26,854,413

28,009,579

26,854,413

Reserves EQUITY Retained earnings Reserves Retained earnings TOTAL EQUITY

6,459,878 21,549,701 6,459,878 21,549,701 28,009,579

6,459,878 20,394,535 6,459,878 20,394,535 26,854,413

TOTAL EQUITY

28,009,579

26,854,413

Cash and cash equivalents Inventories Trade and other receivables Other assets Inventories Total current assets Other assets

Total current assets Non-current assets

TOTAL ASSETS Total non-current assets TOTAL ASSETS LIABILITIES Current liabilities LIABILITIES Trade and other payables Current liabilities Borrowings

Total current liabilities Non-current liabilities Borrowings

Non-current liabilities Total non-current liabilities Borrowings TOTAL LIABILITIES Total non-current liabilities TOTAL LIABILITIES NET ASSETS NET ASSETS EQUITY

14

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

9


STATEMENT CHANGES IN EQUITY STATEMENT OF OF CHANGES IN EQUITY STATEMENT OF CHANGES IN EQUITY For the Year Ended 30 June 2017 For the Year Ended 30 June 2017

2017 2017

Retained Earnings Retained Earnings $

Asset Revaluation Asset Reserve Revaluation Reserve $

Total Total $

Balance at 1 July 2016 Balance 1 July Profit foratthe year2016

$ 20,394,535 20,394,535 1,155,166

$ 6,459,878 6,459,878-

$ 26,854,413 26,854,413 1,155,166

Profit for the year

1,155,166 21,549,701 21,549,701

6,459,878 6,459,878

1,155,166 28,009,579 28,009,579

Retained Earnings Retained Earnings $

Asset Revaluation Asset Reserve Revaluation Reserve $

Total Total $

$ 19,329,421 19,329,421 1,065,114 1,065,114 20,394,535 20,394,535

$ 6,459,878 6,459,8786,459,878 6,459,878

$ 25,789,299 25,789,299 1,065,114 1,065,114 26,854,413 26,854,413

Balance at 30 June 2017 Balance at 30 June 2017 2016 2016

Balance at 1 July 2015 Balance 1 July Profit foratthe year2015 Profit for the year

Balance at 30 June 2016 Balance at 30 June 2016

STATEMENT OF CASHFLOWS

STATEMENT CASHFLOWS STATEMENT OF OF CASHFLOWS For the Year Ended 30 June 2017 For the Year Ended 30 June 2017

Cash from operating activities: Cash from operating activities:

Note Note

Receipts from customers Payments to suppliers and employees Receipts from customers Interest received Payments to suppliers and employees Finance costs Interest received Finance costs

Net cash provided by (used in) operating activities Net cash provided by (used in) operating activities

20 20

Cash flows from investing activities: Cash flows from activities: Proceeds from saleinvesting of plant and equipment Proceeds to from sale of plant andassets equipment Payment acquire intangible intangibleplant assetsand equipment Payment to acquire property, Payment to acquire property, plant and equipment Cash acquired on amalgamation Cash acquired on amalgamation

Net cash (used by) investing activities Net cash (used by) investing activities Cash flows from financing activities: Cash flows from financing activities: Proceeds of drawdowns of loans

20 20

Payment of leaseofliabilities Proceeds of finance drawdowns loans Payment of finance lease liabilities

Net cash used by financing activities Net cash used by financing activities Net cash increase (decreases) in cash and cash equivalents Cash and cash equivalents at beginning of year Net cash increase (decreases) in cash and cash equivalents Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year Cash and cash equivalents at end of year

10

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

7 7

2017 2017$ $

2016 2016$ $

24,375,748 (21,638,952) 24,375,748 14,916 (21,638,952) (856,283) 14,916 (856,283) 1,895,429 1,895,429

22,885,871 (19,831,257) 22,885,871 94,814 (19,831,257) (598,023) 94,814 (598,023) 2,551,405 2,551,405

331,533 331,533 (60,803) (60,803) (10,000,327)

125,048 125,048 (235,031) (235,031) (5,444,750)

(10,000,327) 44,234 44,234 (9,685,363) (9,685,363)

(5,444,750)(5,554,733) (5,554,733)

5,927,637 5,927,6375,927,637 5,927,637

4,674,940 (65,976) 4,674,940 (65,976) 4,608,964 4,608,964

(1,862,297) 4,883,867 (1,862,297) 4,883,867

1,605,636 3,278,231 1,605,636 3,278,231

3,021,570 3,021,570

4,883,867 4,883,867


NOTES TO THE FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies (a) General information The financial statements are for West Tamworth League Club Limited as an individual entity, incorporated and domiciled in Australia. West Tamworth League Club Limited is a Company limited by guarantee. (b) Basis of preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below. They have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. (c)

Tamworth Tennis Club Ltd Amalgamation

On 8 December 2016 the Company amalgamated with the Tamworth Tennis Club Ltd (TTC) taking control of all TTC's assets for nil consideration. The Company has recognised this amalgamation by applying the acquisition method where the Company is the acquiring entity. The acquisition date under this method is the date that the acquiring entity obtained control over the acquired entity. The fair value of identifiable assets acquired are recognised in the financial statements at the amalgamation date. These include cash, stock, property plant and equipment. A gain on amalgamation of $1,132,134 has been recognised in the Statement of Profit or Loss and Other Comprehensive Income as the Company acquired the assets for nil consideration and the fair value of assets acquired was $1,132,134. All amalgamation-related costs have been recognised as expenses in the period in which the costs are incurred. (d)

Revenue

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. Interest revenue is recognised on a proportional basis taking into account the interest rate applicable to the financial assets. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. Grants are recognised at their fair value when it is received. All revenue is stated net of the amount of goods and services tax (GST). (e)

Income taxes

The income tax expense/ (income) for the year comprises current income tax expense/ (income) and deferred tax expense/ (income). The Income Tax Act 1997 (as amended) provides that under the concept of member mutuality, clubs are only liable for income tax derived from non-members. Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities/ (assets) are therefore measured at the amounts expected to be paid to/ (recovered from) the relevant taxation authority. Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses. Current and deferred income tax expense/ (income) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity. Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

11


(f) Leases Finance leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the Company are classified as finance leases. Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets are depreciated on a straight-line basis over their estimated useful lives. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Operating leases - expense on straight-line basis over lease life Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term. (g) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. (h) Inventories Inventories are measured at the lower of cost and net realisable value. (i)

Property, plant and equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses. Property Freehold land and buildings are shown at their cost less, where applicable, any accumulated depreciation and impairment losses. Plant and equipment Plant and equipment are measured on the cost basis. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount of plant and equipment for not-for-profit entities is the current replacement cost discounted to current asset condition. Depreciation The depreciable amount of all fixed assets including buildings but excluding freehold land, is depreciated on a straight line basis over the asset's useful life to the Company commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Buildings and Improvements Plant and Equipment Furniture, Fixtures and Fittings Poker Machines Motor Vehicles Office Equipment

1.0% 10.0 - 20.0% 7.5 - 15.0% 27.0% 23.0% 10.0 - 30.0%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. (j)

Intangible assets

Poker Machine Entitlements The Company, as a result of state legislation, received for no cost, poker machine entitlements for those machines it held at the time the legislation was enacted. These entitlements can be sold should the Company decide to reduce or cease its poker machine activities. The Company has not recorded these initial poker machine entitlements in the financial statements as there was no fair value on acquisition of these entitlements and there is not a sufficiently deep and active market to determine changes in fair value as required by accounting standards. The Company has subsequently acquired a number of poker machine entitlements which were recognised at cost upon acquisition. In the 2017 financial year a number of entitlements were acquired for nil consideration as a result of the amalgamation with the Tamworth Tennis Club. As required by accounting standards, their acquisition fair value was determined by a broker involved in poker machine entitlement trading. Poker machine entitlements are considered to have an indefinite life and as a result entitlements acquired and capitalised since the legislation was enacted have not been amortised. Poker machine entitlements are tested for impairment annually or more frequently if events or changes in circumstances indicate that the poker machine entitlements might be impaired, and are carried at cost less accumulated impairment losses.

12

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017


(j)

Intangible assets continued

System Gaming Technology System Gaming Technology assets have not been capitalised as they are considered to not be material in value to the financial statements. The lease payments of these assets is expensed and this are considered to reflect the amortisation of these assets in the statement of profit or loss. Software Software is recorded at cost. Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses. Software is considered to have an estimated useful life of three years. Amortisation Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in the Statement of Profit or Loss and Other Comprehensive Income on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (k) Financial Instruments Recognition and Initial Measurement Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Classification and Subsequent Measurement Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation. (l) Employee benefits Provision is made for the Company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at present value of the estimated future cash outflows to be made for those benefits. (m) Borrowing Costs Borrowing costs are recognised in the income statement of profit or loss and other comprehensive income in the period in which they are incurred. (n) Trade and other payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Company during the reporting period which remain unpaid. The balance is recognised as a current liability. (o)

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (p)

Comparatives

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

13


(q)

Critical accounting estimates and judgments

The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and based on current trends and economic data, obtained both externally and within the company. Key estimates - impairment of plant and equipment The Company assesses impairment at the end of the reporting year by evaluating conditions specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. Key estimates - useful lives of assets The Company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. (r)

Adoption of new and revised accounting standards

During the current year, the Company adopted all of the new and revised Australian Accounting Standards and Interpretations applicable to its operations which became mandatory. (s)

New accounting standards for application in future periods

The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods. The company has decided against early adoption of these standards as none of the changes are expected to have a material effect on the company.

14

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017


2. Revenue 2017

2016

$

$

Sales revenue - Bar - Sales

2,868,973

2,773,351

- Catering Sales

3,089,265

3,045,173

291,023

302,047

- Bottle Shop Sales

12,961,770

12,313,585

- Gaming Commissions

107,963

106,253

- Bingo & Raffle Income

579,755

559,781

- Concert Ticket Sales

566,306

527,124

- Keno Income

218,398

213,012

- Other Income

536,286

848,655

- Membership Subscriptions

144,967

141,403

800,143 22,164,849

20,830,384

14,916 1,132,134 1,147,050

94,814 94,814

- Poker Machines - net clearances

- Hotel Revenue Total Revenue Other revenue: - Interest - cash at bank - Gain on amalgamation Total other income

Note 20

3. Profit for the year 2017

2016

$

$

856,283

598,023

Cost of Sales

5,247,605

4,964,945

Depreciation and amortisation

1,698,638

1,520,485

Expenses Total interest paid to banks

4. Income tax expense The prima facie tax on profit from ordinary activities before income tax is reconciled to the income tax as follows: 2017 $ Prima facie tax payable on profit from ordinary activities before income tax at 30% (2016: 30%)

2016 $

346,486

319,533

(511,038) 164,552 -

(399,416) 79,883 -

Add: Tax effect of: - Principal of Mutuality adjustment and permanent differences - Adjustment for unrecognised losses Income tax attributable to entity

The company has unrealised tax losses of $1,359,737 (2016: $1,195,185) at a tax rate of 30%. No deferred tax asset has been taken up, as it is not probable that these losses will be utilised in future years. 5. Key Management Personnel Compensation Key management personnel include the Chief Executive Officer/Company Secretary, Chief Financial Officer, Chief Operations Officer, Chief Food & Beverage Officer and Director's honorarium.

2017 Total compensation 2016 Total compensation

Short-term benefits $

Post-employment benefit $

Total $

541,498

60.379

601,877

389,041

43,177

432,218

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

15


6. Auditors’ Remuneration

Remuneration of the auditor of the Company for: - auditing the financial statements - taxation services

2017 $

2016 $

42,552 13,516 56,068

42,943 13,267 56,210

2017 $ 650,058 684,316 1,687,196 3,021,570

2016 $ 512,676 218,263 4,152,928 4,883,867

2017 $

2016 $

3,021,570

4,883,867

3,021,570

4,883,867

2017 $

2016 $

119,299 -

87,557 25,365

119,299

112,922

2017 $ 64,552 23,622 26,044 5,081

2016 $ 69,327 9,442 919 7,869

119,299

87,557

2017 $

2016 $

235,854

204,916

235,854

204,916

2017 $

2016 $

266,080 266,080

227,991 227,991

7. Cash and cash equivalents

Cash on hand Cash at bank Short-term bank deposits

Reconciliation of Cash

Cash at the end of the financial year as shown in the cash flow statement is reconciled to items in the balance sheet as follows: Cash and cash equivalents

8. Trade and other receivables

CURRENT Trade receivables Accrued revenue

Aged analysis The ageing analysis of receivables is as follows:

0-30 days 31-60 days 61-90 days (past due not impaired) 91+ days (past due not impaired) No provision for impairment was required for 2017 or 2016. 9. Inventories

CURRENT At Cost Finished goods 10. Other Assets

CURRENT Prepayments

16

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017


11. Property, plant and equipment 2017 $

LAND AND BUILDINGS Freehold land At cost Total Land

2016 $

1,000,000 1,000,000

1,000,000 1,000,000

Building At cost Accumulated depreciation

36,869,823 (2,513,443)

30,193,898 (2,211,553)

Total buildings

34,356,380

27,982,345

Total land and buildings

35,356,380

28,982,345

Plant and equipment At cost Accumulated depreciation Total plant and equipment

19,133,621 (11,389,092) 7,744,529

15,494,427 (10,316,071) 5,178,356

Computer equipment Under lease Accumulated amortisation Total computer equipment

184,206 (184,206) -

184,206 (184,206) -

Crockery, Glass & Linen At cost Total plant and equipment

134,979 7,879,508

122,770 5,301,126

43,235,888

34,283,471

Total property, plant and equipment

Movements in Carrying Amounts Movement in the carrying amount for each class of property, plant and equipment between the beginning and the end of the current financial year

Balance at the beginning of year

Land $ 1,000,000

Additions

-

Disposals - written down value

-

Depreciation expense

-

Carrying amount at the end of year

1,000,000

Crockery, Glass & Linen $ 122,770

Total $ 34,283,471 10,958,227

Buildings $ 27,982,345

Plant and Equipment $ 5,178,356

6,675,925

4,270,093

12,209

(307,172)

-

(307,172)

(301,890)

(1,396,748)

-

(1,698,638)

34,356,380

7,744,529

134,979

43,235,888

-

12. Intangible assets 2017 $

2016 $

15,000

-

Computer Software Cost

-

727,717

Accumulated amortisation and impairment

-

(727,717)

Poker Machines Entitlements Cost

968,615

792,812

Total Intangibles

983,615

792,812

Licenses and franchises Cost

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

17


13. Trade and other payables CURRENT Unsecured liabilities Trade payables Membership income in advance Other payables Revenue in advance 14. Borrowings and Lease Liability CURRENT Secured liabilities Bank loan - secured

NON-CURRENT Secured liabilities Bank loan - secured (a)

Total current and non-current secured liabilities

Bank loans (b)

2017 $

2016 $

1,407,666 116,160 383,762 204,635

1,249,961 153,484 395,639 98,265

2,112,223

1,897,349

2017 $

2016 $

318,763

303,078

318,763

303,078

2017 $

2016 $

16,126,824

10,214,872

16,126,824

10,214,872

2017 $ 16,445,587

2016 $ 10,517,950

16,445,587

10,517,950

2017 $ 35,356,380

2016 $ 28,982,345

35,356,380

28,982,345

2017 $

2016 $

658,186 636,731

612,729 623,538

The carrying amounts of non-current assets pledged as security are:

First mortgage over freehold land and buildings 15. Employee Benefits CURRENT Provision for long service leave Annual leave entitlements

1,294,917 1,236,267 16. Reserves Asset Revaluation Reserve The asset revaluation reserve records historical revaluations of non-current assets. When the Company adopted revised Accounting Standards it chose to treat previously revalued land and buildings as being deemed cost and has not performed any subsequent revaluations. 17. Capital Commitments Capital expenditure commitments Capital expenditure commitments contracted for: Internet gaming technology Solar Panels Payable: - no later than 1 year - between 1 year and 5 years

18

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

2017 $

2016 $

592,537 691,700

-

1,284,237

-

889,212 395,025

-

1,284,237

-


18. Financial Instruments Financial Risk Management Policies The Company's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable and bank loans. The main purpose of those financial instruments is to raise finance for the company's operations. The Board's overall risk management strategy seeks to meet the Company's financial targets, whilst minimising potential adverse effects on financial performance. The Board is focused on debt repayment and interest expense reduction as well as maintaining healthy cash reserves and borrowing capacity. The Company does not have any derivative instruments at 30 June 2017. The Company's main financial risks relate to credit, liquidity and interest rates discussed below. (a) Credit risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The profile of the Club's credit risk at 30 June 2017 was as follows: Percentage of sundry (unsecured) receivables - Current - Past due

2017

2016

54.1% 53.1%

79.18% 20.82%

Although the Company has a portion of receivables past due, the Company does not consider there to be sufficient risk of collection of these receivables to require a doubtful debts provision. The Company does not have any material credit risk exposure to any single receivable or group of receivables. (b) Interest rate risk (i) Interest rate risk Financial instrument composition and maturity analysis The Company's exposure to interest rate risk, which is the risk that a financial instruments value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows: Weighted Average Effective Interest Rate 2017 2016 % %

Maturing Within 1 Year

Maturing > 1 year

Non-interest Bearing

2017 $

2016 $

2017 $

2016 $

Total

2017 $

2016 $

2017 $

2016 $

Financial Assets: Cash and cash equivalents 0.42

2.67

2,372,213

4,372,191

-

-

649,357

511,676

3,021,570

4,883,867

-

-

-

-

-

-

119,299

112,922

119,299

112,922

2,372,213 4,372,191

-

-

768,656

624,598 3

3,140,869

4,996,789

- - 16,445,587

10,517,950

Receivables Total Financial Assets Financial Liabilities: Bank loans and overdrafts

6.34

6.34

Trade and sundry payables

-

-

Total Financial Liabilities

318,763

303,078

16,126,824

10,214,872

-

-

-

-

2,112,223 1,897,349

-

318,763

303,078

16,126,824

10,214,872

2,112,223 1,897,349

2,112,223

1,897,349

18,557,810 12,415,299

(c) Liquidity risk The company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. Further, the company maintains significant cash on hand and at bank to manage day to day operations. (d) Net fair values The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to the financial statements. (e) Sensitivity Analysis Interest rate risk The Company has not performed a sensitivity analysis relating to its exposure to interest rate risk at balance date as the directors do not believe the sensitivity analysis is material.

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

19


19. Capital Management Management controls the capital of the Company to ensure that adequate cash flows are generated to fund its operations and that returns from investments are maximised. The Company's capital consists of financial assets and liabilities. Management effectively managed the company's capital by assessing the Company's financial risks and responding to changes in these risks. Responses may include the consideration of debt levels and maintaining adequate cash reserves. There has been no change in the capital management strategy of the Company since the previous year. 20. Cash Flow Information (a) Reconciliation of Cash Flow from Operations with Profit after Income Tax 2017 $ 1,155,166

2016 $ 1,065,114

1,698,638 (24,361) (1,132,134)

1,520,485 (26,753) -

(6,377) (38,089) (30,938) 214,874 58,650 1,895,429

(25,047) 9,262 (7,359) 101,150 (85,447) 2,551,405

Profit for the year Cash flows excluded from profit attributable to operating activities Non-cash flows in profit Depreciation and amortisation Net (gain)/loss on disposal of property, plant and equipment Gain on amalgamation Changes in assets and liabilities (Increase)/decrease in trade and term receivables (Increase)/decrease in prepayments (Increase)/decrease in inventories Increase/(decrease) in trade payables and accruals Increase/(decrease) in provisions Cash flow from operations

(b) Non-cash financing and investing activities Acquisition of property plant and equipment for nil consideration as part of the amalgamation with the Tamworth Tennis Club:

Buildings and improvements Plant and equipment Poker machine entitlement Cash at bank and on hand Cash flow from operations

2017 $

2016 $

931,000 26,900 130,000 44,234 1,132,134

-

(c) Credit Standby Arrangement and Loan Facilities The Company has unused bank lending facilities amounting to $2,306,186. Interest rates are variable. 21. Contingent Liabilities and Contingent Assets In the opinion of the Directors, the Company did not have any contingencies at 30 June 2017 (30 June 2016: None). 22. Events after the end of the Reporting Period The financial statements was authorised for issue on 27 September 2017 by the Board of Directors. The Company has plans to develop their function centre. The project is to be funded by a $2 million loan from Westpac bank. This project is the final stage of the Hotel development which was approved by Tamworth Regional Council in June 2014. It will include a purpose build function centre as an extension to the current club. Except for the above, no other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years. 23. Related party transactions Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Executive managers are appointed by the board of the club. The following transactions occurred with related parties: Employee expenses relating to close family members $106,036.

20

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017


24. Core and Non-core property 24. Core and Non-core property Core property is defined as any real property owned by the company that comprises the defined premises of the club or any Core property defined asfor anythe real owned and by the facility providedisby the club useproperty of its members theircompany guests. that comprises the defined premises of the club or any facility provided by the forRegistered the use of Clubs its members and their guests.properties are considered core property of West Tamworth Pursuant to section 41Jclub of the Act 1976 the following Pursuant to section League Club Limited:41J of the Registered Clubs Act 1976 the following properties are considered core property of West Tamworth League Club Limited: 1) Wests Diggers Club, Lot 1 DP 1142453, 4 Kable Avenue, Tamworth NSW 2340. 1) Wests Diggers Club, Lot 1 DP 1142453, 4 Kable Avenue, Tamworth NSW 2340. 2) West Tamworth League Club, Lot 2 DP815862, 58 Phillip Street, West Tamworth NSW 2340. 2) West Tamworth League Club, Lot 2 DP815862, 58 Phillip Street, West Tamworth NSW 2340. 3) The Courts @ East, Lots 1, 2, 3, 4, 5, 6, 7, 8, 9 & 10 DP 758951, 102-128 Napier Steet, Tamworth NSW 2340 3) The Courts @ East, Lots 1, 2, 3, 4, 5, 6, 7, 8, 9 & 10 DP 758951, 102-128 Napier Steet, Tamworth NSW 2340 The company does not hold any non-core property as at 30 June 2017 or 2016. The company does not hold any non-core property as at 30 June 2017 or 2016. 25. Company Details 25. Company Details Registered office Registered office The registered office of the company is: The of the Westregistered Tamworthoffice League Clubcompany Limited is: West Tamworth 56 Phillip Street League Club Limited 56 Phillip Street Tamworth, NSW 2340 Tamworth, NSW 2340 Principal place of business Principal place of business The principal places of business are: The principal places of business are: West Tamworth League Club Limited West Tamworth 58 Phillip Street League Club Limited 58 Phillip Street Tamworth, NSW 2340 Tamworth, NSW 2340 and and Wests Diggers Wests 4 KableDiggers Avenue 4 Kable Avenue Tamworth, NSW 2340 Tamworth, NSW 2340 and and The Courts @ East The Courts @ East 102-128 Napier Street 102-128 Napier Tamworth, NSWStreet 2340 Tamworth, NSW 2340

DIRECTORS DECLARATION DIRECTORS DECLARATION

DIRECTORS DECLARATION The directors of the Company declare that: The directors of the Company declare that: 1. The financial statements and notes, as set out on pages 8 to 21, are in accordance with the Corporations Act 2001 and: 1. The financial statements and notes, as set out on pages 8 to 21, are in accordance with the Corporations Act 2001 and: (a) comply with Accounting Standards and the Corporations Regulations 2001; and (a) comply withand Accounting Standards and the Corporations 2001; andperformance for the year ended on that (b) give a true fair view of the financial position as at 30 Regulations June 2017 and of the (b) of the giveCompany. a true and fair view of the financial position as at 30 June 2017 and of the performance for the year ended on that date date of the Company. 2. In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when 2. In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors. This declaration is made in accordance with a resolution of the Board of Directors.

John McClelland John McClelland Director Director

Maxwell Sharpe Maxwell Director Sharpe Director

Dated 27 September 2017 Dated 27 September 2017

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017

21


INDEPENDENT AUDIT REPORT Report on the Audit of the Financial Statements Opinion We have audited the financial statements of West Tamworth League Club Limited (the Company), which comprises the statement of financial position as at 30 June 2017, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial statements of the Company are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Company's financial position as at 30 June 2017 and of its financial performance for the year ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial statements in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Directors for the Financial Statements The directors of the Company are responsible for the preparation of the financial statements that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial statements that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Paul Cornall Principal 27 September 2017 92 Rusden Street, Armidale NSW 2350 P +61 2 6773 8400 f +61 2 6772 9957 e armidale@forsyths.com.au ABN 24 935 296 22

22

WESTS, WESTS’ DIGGERS & THE COURTS @ EAST ANNUAL REPORT 2016 - 2017


Notice of AGM WEST TAMWORTH LEAGUE CLUB LIMITED ACN 001 037 832 NOTICE OF ANNUAL GENERAL MEETING AND RESOLUTIONS NOTICE is hereby given of the Annual General Meeting of WEST TAMWORTH LEAGUE CLUB LIMITED to be held on Tuesday 28 November 2017 commencing at 6.30pm at the premises of the Club, 58 Phillip Street, West Tamworth, New South Wales. AGENDA The following business will be dealt with at the Annual General Meeting: 1.

APOLOGIES.

2.

CONFIRMATION of the Minutes of the previous Annual General Meeting held on Tuesday 29 November 2016.

3.

REPORTS: To lay the Directors’ Report, Auditors’ Report and Financial Report for the year ended 30 June 2017 before the meeting. Please note: These reports can be viewed in PDF format on the Club’s website www.wtlc.com.au or on written request to the Chief Executive Officer – Company Secretary.

4.

ORDINARY RESOLUTIONS: To consider and if thought fit pass the three (3) Ordinary Resolutions set out below in this Notice.

5.

SPECIAL RESOLUTIONS: To consider and if thought fit pass the two (2) Special Resolutions set out below in this Notice.

6.

DECLARATION OF DIRECTORS.

7.

ELECTION OF OFFICE BEARERS.

8.

BALLOT PAPERS: To approve the ballot papers be destroyed after one month of this Annual General Meeting.

9.

GENERAL BUSINESS (of which due notice has been given) that may be brought before the meeting in accordance with the Club’s Constitution).

QUESTIONS ON THE REPORTS Members who may have any questions in relation to any report are requested to submit their questions in writing to the Chief Executive Officer – Company Secretary by 5:00pm on Friday 17 November 2017. This will allow sufficient time for information to be gathered or research undertaken. If questions are not submitted in this manner, the Club may not be able to provide a complete answer at the Annual General Meeting. PROCEDURAL MATTERS FOR RESOLUTIONS AT THE ANNUAL GENERAL MEETING 1.

ORDINARY RESOLUTIONS: To be passed, an Ordinary Resolution must receive votes from not less than a majority (50% + 1) of those members who, being eligible to do so, vote in person on the resolution at the meeting.

2.

SPECIAL RESOLUTIONS: To be passed, a Special Resolution must receive votes in its favour from not less than three-quarters (75%) of those members who, being eligible to do so, vote in person on the resolution at the meeting.

3.

VOTING ON RESOLUTIONS: Financial Full Fee, Pensioner, Tamworth RSL, Tamworth Tennis, Honorary Life and Gold Life members shall be eligible to vote on the resolutions at the meeting.

4.

Under the Registered Clubs Act: (a) members who are employees of the club are not entitled to vote; and (b) proxy voting is prohibited.


FIRST ORDINARY RESOLUTION [The First Ordinary Resolution is to be read in conjunction with the notes to members set out below.] That the members hereby: (a)

(b)

1. 2.

approve that the club’s board of directors are entitled to receive the following benefits for the twelve (12) month period preceding the 2018 Annual General Meeting: (i) reasonable food and refreshments for each director at board or committee meetings. (ii)

payment by the club of reasonable costs or expenses of attending functions whilst representing the club (with partners where appropriate) or in relation to such other duties including entertainment of special guests of the club and other promotional activities as may be approved from time to time by the board.

(iii)

reasonable costs or expenses in relation to the professional development and education of directors, including (but not limited to): (1) attending meetings of associations of which the club is a member or directors are members; (2) attending conferences, seminars, lectures, trade displays, organised study tours, fact finding tours and other similar events (whether held within Australia or overseas) as may be determined by the board from time to time; (3) attending other registered clubs or gaming venues for the purpose of observing their facilities and methods of operation; (4) attending conferences and training sessions in relation to director’s roles and responsibilities under the Registered Clubs Act 1976, the Corporations Act 2001 and any other relevant legislation.

(iv)

payment by the club for provision of a blazer and associated apparel.

(v)

provision of specially reserved parking spaces at the club without charge.

acknowledge that these benefits in paragraph (a) are not available for members generally but are only for those who are directors of the club (and their partners in the circumstances set out in paragraph (a)(ii) above). Notes to Members on First Ordinary Resolution The First Ordinary Resolution is to have the members approve expenditure by the club on directors (and their partners in certain circumstances) in respect of the matters set out in the First Ordinary Resolution. Included in the First Ordinary Resolution is the cost of directors attending seminars, lectures, trade displays and other similar events to be kept abreast of current trends and developments which may have a significant bearing on the club.

SECOND ORDINARY RESOLUTION [The Second Ordinary Resolution is to be read in conjunction with the notes to members set out below.] That the members hereby approve: (a) payment of the following honorariums (inclusive of any superannuation guarantee levy if payable) to the club’s board of directors for services as a director for the twelve (12) month period preceding the 2017 Annual General Meeting: (i) President - $7000; (ii) Vice President - $3500; (iii) Treasurer - $3000; and (iv) Directors (including Board Appointed Director) - $2000 each. (b)

1. 2.

such honorariums to be paid on a pro-rata basis if the president, vice president, treasurer or a director only held office for part of the twelve (12) month period preceding the 2017 Annual General Meeting. Notes to Members on Second Ordinary Resolution The Second Ordinary Resolution is to have the members approve honorariums for the directors of the club for duties to be performed by them during the twelve (12) month period preceding the 2017 Annual General Meeting. The honorariums will be paid on a pro-rata basis which means that if the president, vice president, treasurer or an ordinary director only held office for part of the year, that person will only receive a proportional part of the honorarium.


THIRD ORDINARY RESOLUTION [The Third Ordinary Resolution is to be read in conjunction with the notes to members set out below.] That the members hereby approve payment of an additional honorarium of $5000 (inclusive of any superannuation guarantee levy if payable) to Mr John McClelland. 1. 2.

Notes to Members on Third Ordinary Resolution The Third Ordinary Resolution is to have the members approve an additional honorarium to Mr John McClelland in recognition for his long and meritorious service to the club. For the avoidance of doubt: (a) if the Second Ordinary Resolution is passed, Mr McClelland will receive an honorarium of $7000 in respect of his services as president during the past twelve (12) months; (b) if the Third Ordinary Resolution is passed, Mr McClelland will receive an additional honorarium of $5000; and (c) if the Second and Third Ordinary Resolutions are passed, Mr McClelland will receive two (2) honorariums for a combined amount of $12,000 (inclusive of any superannuation guarantee levy if payable).

FIRST SPECIAL RESOLUTION [The First Special Resolution is to be read in conjunction with the notes to members set out below.] That the Constitution of West Tamworth League Club Limited be amended by: (a) deleting Rule 53 and in lieu thereof inserting the following new Rule 53: “53. Deleted.” (b) deleting from Rule 53A(a) the words “, Treasurer and two (2) Ordinary directors” and in lieu thereof inserting the words “and three (3) Ordinary directors”. (c) deleting from Rule 53C the words “Vice President and a Treasurer” and in lieu thereof inserting the words “and a Vice President”. 1. 2.

3.

Notes to Members on First Special Resolution The First Special Resolution proposes to amend the composition of the club’s board by replacing the position of treasurer with an ordinary director position. The board recommends the amendment because: (a) the duties that were historically performed by the treasurer are now performed by the club’s chief executive officer – company secretary, accountants, auditors and finance sub committees; and (b) all directors (not only the treasurer) have a duty of care and diligence with regard to the club’s financial affairs. If the First Special Resolution is passed, the amendment will take immediate effect.

SECOND SPECIAL RESOLUTION [The Second Special Resolution is to be read in conjunction with the notes to members set out below.] That the Constitution of West Tamworth League Club Limited be amended by deleting Rules 56(i) to (o) inclusive and in lieu thereof inserting the following new Rules 56(i) to (k) inclusive: “(i)

If an election is required pursuant to Rule 56(g), the following shall apply: (i) A ballot paper shall be prepared with the order of the names of the nominees determined by a lot conducted by the Returning Officer; (ii) At least five (5) days before the commencement of voting, the club must display a notice on the club’s website and on the club noticeboard which confirms: (1) the approved methods of voting – which may include voting by electronic means; (2) the procedures to be followed for voting; (3) the dates and times when members can vote; and (4) any other details which may be required for voting. (iii) The ballot shall be conducted in such manner and on such dates and during such times as may be determined by the board from time to time. (iv) Members must record their vote in such manner as may be prescribed by the board from time to time. Failure to comply with those requirements shall render the vote invalid. The decision of the Returning Officer as to the formality or informality of any vote shall be final.


(v) (vi)

(j)

(k)

1. 2. 3. 4.

5. 6.

7. 8.

The ballot shall be determined on the “first past the post” voting system. In the event of an equality of votes, the Returning Officer shall draw lots between the candidates and the candidate who is drawn first shall be declared elected to that position. (vii) The Returning Officer shall report the result of the ballot to the meeting. (viii) If the Returning Officer is not present, the Assistant Returning Officers shall perform the duties of the Returning Officer. (ix) The board may, at any time, engage the services of a professional electoral consultant or company to perform, or assist in performing, any or all of the duties of the Returning Officer or Assistant Returning Officers. (x) If at the close of the meeting any vacancies remain on the board, such vacancies shall be casual vacancies and may be filled by the board. If the election of the board is to be conducted electronically, members will be able to vote either by using their own personal computer without having to attend the club’s premises or by using a designated computer at the club’s premises. The board shall have the power to make by-laws regulating all matters in connection with the election of the board that are not inconsistent with this Rule 56.” Notes to Members on Second Special Resolution The Second Special Resolution proposes to amend Rule 56 of the club’s Constitution to provide the club with flexibility in relation to the manner in which the election of the board is conducted. Currently members must vote in the election of the board by attending the club’s premises and completing their ballot paper. The club is considering the possibility of introducing electronic voting for the election of the board in the future. The board is considering the possible introduction of electronic voting because it may: (a) make it easier and more convenient for members to vote in the election of the board; (b) increase member engagement in the voting process; and (c) reduce the costs of conducting board elections. However, the board has not made a decision as to if or when electronic voting will be introduced. In effect, electronic voting would operate as follows: (a) At least five (5) days before the commencement of voting, the club will display a notice on the club’s website and on the club’s noticeboard confirming: (i) members will be required to vote electronically in the election of the board; (ii) the procedure to be followed to vote; (iii) the dates and times for electronic voting; (iv) any other details necessary to vote in the election of the board (for example; user names and passwords). (b) Members then vote electronically (ie by using a computer); (c) The results are automatically collated; and (d) The results of the election are declared at the Annual General Meeting. If electronic voting is introduced, the club will provide members with access to a computer at the club’s premises so that they can vote in the election of the board if they do not have access to a personal computer. A number of listed public companies (such as Insurance Australia Group Ltd and NRMA Ltd) and a number of registered clubs allow for electronic voting in board elections. DATED: 27 September 2017 BY direction of the Board

Rod Laing Chief Executive Officer – Company Secretary


2017 BOARD ELECTION - GROUP 2 Voting Dates & Times

Voting will be conducted at West Tamworth League Club - Phillip Street, West Tamworth and Wests’ Diggers - Kable Avenue, Tamworth between the following posted times. Friday Saturday Sunday Monday

10 November 11 November 12 November 13 November

10am 10am 10am 10am

-

8pm 4pm 4pm 8pm

Tuesday Wednesday Thursday

14 November 15 November 16 November

10am - 8pm 8am - 8pm 8am - 8pm

Voting will be conducted at The Courts @ East - Napier Street, East Tamworth between the following posted times. Friday

10 November

3pm - 8pm

Saturday

11 November

1pm - 8pm

ANY ENQUIRIES CONCERNING THIS ELECTION SHOULD BE DIRECTED TO THE RETURNING OFFICER, MARK SLACK-SMITH OF FORSYTHS – 6763 0100

Meet the Candidates James TRELOAR

I have been a member of the Wests Entertainment Group for 20 years, a resident and business owner in Tamworth for more than 40 years. I have a strong interest in Tamworth serving on the Tamworth Council for 29 years and as Mayor for 14 years. I know how important Wests is to this community; it is the largest and most successful registered club in this region. I want to ensure that success continues, offering members modern and comfortable clubs with affordable facilities and attractions for members and guests to enjoy. I will support the board in continuing to offer quality and value for money food, entertainment facilities that attract national artists and sporting venues capable of hosting national events. I support the continued development of Wests and Diggers, and the upgrade of The Courts to ensure members have the best available facilities in Tamworth. I will encourage the board to continue looking at new facilities and opportunities that may lessen the club’s reliance on gaming revenue. I support the boards goal to reduce borrowings to ensure there is sufficient finance to accept any new and exciting opportunity as it may arise, to allow Wests to continue to offer members modern and comfortable facilities.

Christopher WATSON

I have been a board member of Wests Entertainment Group for the past 3 years. I am heavily involved in line dancing, charity work, a member of Rotary, a passionate Tamworthian and along with my wife, Gemma run Chris Watson Travel. I have received numerous awards for my work within the community including a Sapphire Paul Harris Fellow, OM commendation, Young Business Person of the Year 2012, Tamworth Young Citizen of the Year to name a few accolades but I say the biggest reward is being able to give back and make a difference. I have a passion for the local community and am proud to call Tamworth home. I aim to be re-elected onto the board to continue to make a difference for the members of Wests and to continue the great work the previous board has done in creating a successful, safe and respected club within our community, while growing the club and club facilities for all members.

Liz WHITE

My name is Liz White and I have lived in Tamworth for most of my adult life. I believe it’s time for a female member to have a strong voice to represent our members on the board. My previous employment record is 28 years as an employee of Wests and 30 years as senior telephonist at Tamworth Hospital. I am currently working as a volunteer at the welcome desk at the hospital and also at the Blood Bank. My business experience is in hotels & motels as licensee & manager also partner in a small trucking business before retiring. I know I have a lot to contribute to the board with my past business experience and customer service including 50 years in public & private sector. I am proud to have been a member of this great club for the past 30 years. It has been exciting to observe its growth and value to the community.


WEST TAMWORTH LEAGUE CLUB Phillip Street, West Tamworth NSW 2340 Ph: 02 6765 7588 Fax: 02 6765 1508

WESTS’ DIGGERS Kable Avenue, Tamworth NSW 2340 Ph: 02 6766 4661 Fax: 02 6766 4419 PO Box 3040 West Tamworth NSW 2340

THE COURTS @ EAST Cnr Napier Street & Roderick Street, East Tamworth NSW 2340 Ph: 02 6766 2070 Fax: 02 6766 7049

Wests Entertainment Group Annual report 2016 - 2017  
Advertisement