Annual Report - The Greens The Entrance

of costs whilst simultaneously pursuing new avenues to re-establish income growth.I firmly believe that some of these new initiatives have borne fruit as the last 3 months of July,August and September have all been up on last year so much so that our result for the first quarterof this financial year reflects a net profit of $49,898 compared to a net loss of $19,859 last year.Furthermore, based on the last 3 week’s trading figures, I can almost guarantee that this currentmonth of October will similarly be a profitable month. The outgoing Board therefore is handing overto the incoming Board a very healthy year to date profit for the first 4 months of the current financialyear.I am also confident that with our catering and general club facilities and an energetic and proactiveCEO and, hopefully, a Board of Directors committed to supporting the CEO and allowing him tomanage, the club will maintain the forward momentum and we will not only protect our identity,autonomy and assets but remain profitable.From a personal point of view, it was very disappointing to me that, although we religiously met our$20,000 per month offset against the principal amount of $1.4 million borrowed, we were requiredthrough the year to draw back all of this amount to pay bills and pay cash for a number of capitalexpenditure improvements we undertook. Thus the principal outstanding on the $1.4 million at 30June 2010 stood at $1,255,000, $35,000 greater than it was 12 months ago.I am pleased to advise members that, because of improved trading in the last 4 months, we havepaid $80,000 collectively off this principal in July, August, September and October so it now standsat $1,175,000 and we do have money in the bank. Indeed, our liquidity is solid due to the last fewmonths outstanding trading and the injection of funds emanating from the sale of the poker machineentitlements.Thank youBrian Hoscke asked the Treasurer John Ellison about The Star Buffet restaurant (Feastcorp) if theypaid rent and what the agreement was between them and The Club.John Ellison replied:- CATERERSI’m comfortable in explaining the rationale behind the Board’s decision, over 3 years ago, to allowthe club’s caterers, Feastcorp, to run their business in our premises rent free. This decision wasarrived at following contractual negotiations with Feastcorp’s two partners, Andrew Kong andAndrew Chan and their business advisor, Vic Smith.Before I go any further, I will now point out that, after approximately a 3 year rent free period,Feastcorp are now voluntarily paying $10,400 per annum in rent and, for those members whobelieve restaurant patrons do not contribute to club revenue, I will highlight that bar takings upstairsfor the year were well in excess of $100,000 and the keno terminal in the restaurant is a significantcontributor to our keno commission revenue.Let me emphasise that the caterers are not the enemy. Indeed, the Star Buffet is the number oneattraction to our club of social members and visitors and it is, by and large, the social members andvisitors who contribute the majority of the club’s revenue through the gaming lounge. Simply put,without the Star Buffet our club would severely struggle to survive.13