Transcript RUIMSIG COUNTRY CLUB

ANNUAL GENERAL MEETING
16 April 2014
The Club is committed to providing sustainable
golfing, commercial and other facilities that will
meet stakeholders’ demands
Chairman's report in respect of the
2013 financial year
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We broke our record set in 2012 for the
number of golf rounds
Our lease was renewed for a further 10 years
Completed 95% of the improvements to the
golf course
Funded the golf course improvements
through normal trade income
Changed outsourcing partners which has
resulted in improved quality outputs and
significantly increased revenue
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RCC was allocated the SA Mid Amateur
Championship
RCC Mid-amateur motivation.pdf Sept
2013.pdf
Created a new 5 year Strategic Plan and
finalised an Operation Plan which outlines
how we will achieve the strategic objectives
Digital
Catering
Membership
• Free WiFi introduced for members
• Festive Friday
• Reintroduction of Sunday Lunches
• Additional Membership Structures
1,200
Social
1,000
Other
800
Weekday
-27
600
400
-15
200
-14
WDO
Students
Juniors
Full lady
Full male
0
2011
2012
2013
2014
Deswik
Mining
Consultants
Associated
Automotive
Distributors
B2IT
Klinkenberg
Attorney
Konica
Minolta
Labournet
Mercedes
Benz
PDTSA
Shimadzu
Guvon
Hotels
Meintjes
Plant
Hire
Sautech
R613,154
Itec
East
Lexus
Security
Vega
Instruments
6,000
5,000
2009
4,000
2010
2011
3,000
2012
2,000
2013
1,000
2014
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
6,000
5,000
2009
4,000
2010
2011
3,000
2012
2,000
2013
1,000
2014
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
60,000
50,000
40,000
30,000
20,000
10,000
2014 – 283 rounds
more than
YTD Feb ’13
2009
2013 – 51,009
2012 – 50,519
2010
2011 – 40,169
25% increase 2011
and maintained
2012
2010 – 41,525
2013
2009 – 43,784
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014
60,000
50,000
LEAGUE
+125
40,000
MEMB
VIST
-1,622
30,000
G/PARTY
-1,899
20,000
P/CARDS
WDO
+2,967
10,000
PMG
+535
0
2012
2013
165
155
145
135
2011
125
2012
115
2013
105
95
85
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
165
155
145
135
2011
125
2012
115
2013
105
2014
95
85
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
RCC income
% of Deco sales
January ’12
49 532
11.6%
February ’12
52 376
12.1%
March ’12
52 895
11.7%
April ’12
46 482
12.9%
May ’12
64 064
11.0%
June ’12
51 785
13.3%
July ’12
72 335
13.5%
August ’12
57 153
12.6%
September ’12
64 594
11.4%
October ’12
68 194
10.2%
November ’12
81 047
11.5%
December ’12
65 771
11.2%
726 228
11.8%
TOTAL
Dec-13
Nov-13
Oct-13
50,000
Sep-13
R378k
Aug-13
Jul-13
Jun-13
May-13
Apr-13
100,000
Mar-13
150,000
Feb-13
Jan-13
200,000
6,5 months
5,5 months
Guvon
R891k
Deco
0
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Greenkeeper
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Security
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Marketing
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In sourcing of Golf operations
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Finance Committee
60
55
50
45
2011
40
2012
35
2013
30
25
20
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Golf Course
Clubhouse
Driving Range
Additional income Streams
Membership Growth
Environmental plan
RCC product
Brand/Logo
5 Star Golf Experience
Security
Strategic Plan
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Cash Flow
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Solvency
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SARS
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Utilities
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Lease
Ensure that these aspects are completely resolved in
2013
Cash Flow
Solvency
SARS
Utilities
Lease
City of JHB
Operations
Membership
• Ensure the utility account is resolved
• Maintain and improve on the successes of 2012 & 2013
• Achieve the metrics outlined in the Operational Plan
• Continue to enhance the members experience
• Membership Growth
• Improvement of the value proposition
Ops Plan
Club
Constitution
Going Green
Succession
Plan
• Essential to revamp
• Laborious and Time Consuming Task
• Formalise Environmental Plan
• Final year of my term as Chairman
• Structured change of the EC members
Short Term Goals (1st Year)
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Adopt the CEO Concept immediately and begin the
process of implementing a Professionally Driven
Operational Plan and Structure by March 31, 2013.
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Convert and align IPA’S to strategy for execution
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Evaluate current business model and reshape it so
structure and operational plan can be aligned.
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Balance target rounds and pricing for 2013
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Grow membership from 974 to 1250 by January 2015
Stretch Goals 2017
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Develop a sustainable business model that will produce
cash reserves of R8 million in 10 years time 2022
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A balanced value offering including a top quality golf
course (Top 40 in rankings) and recreational facilities.
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Maintain an optimal number of rounds of golf per annum
48-50,000 per annum
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Optimise returns through a professionally driven
management structure with succession planning as a key
component.
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Club Management
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Outsourced Partners
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Sports Committees
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Product Committee
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Finance Committee
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Executive Committee
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You the members
Audited Financial Statements
2013
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Completeness of sales in bowls club
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Revaluation of Assets
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Removal of completeness of cash sales in the
golf club qualification
Qualifications should fall away in 2015
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Raised by the auditors due to the loss and
insolvent position
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Operating profit of R818,760
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Insolvent position due to COJ Account
Extreme level of comfort about the clubs future
as a going concern
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Historical Arrears of R3m
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Following 3 years of attempted engagement
we took the matter to Court
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They offered a settlement of half which we
declined
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Confident there are little to no arrears
A positive settlement will immediately move us into a solvent
position
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Completely outsourced this 2 years ago
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Did not include in 2012 financials
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Still trade under our entity so included in
2013 AFS
Will resolve with them on 2014
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Query issued by SARS to all Clubs in 2013
Have submitted a response explaining our
position and rejecting any tax liability
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We expect an assessment
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Deemed it prudent to raise a provision.
2013
Total revenue
2012
13,251,233
12,966,357
-13,262,493
-12,480,952
Operating profit/loss
-11,260
485,405
Net finance charges
-57,160
-94,949
Taxation
-15,532
0
(Loss)/profit for the year
-83,952
390,456
Total expenditure
2013
2012
RECONCILING
BALANCING
CONTROL ACCOUNTS
ADDING
BACK AND
DORMANT
CREDITORS
Total revenue
13,251,233
12,966,357
Control accounts
set up tosince
balance
cash receipts/payments to
-- Amounts
due to creditors
2010
Total
-13,262,493
-12,480,952
not reconciled)
-billing/invoices
Noexpenditure
claims from(historically
any creditors
or statements
being produced
errors
2013 and
multiple
previous
-- Rolling
Possibility
thisaffecting
was previously
expensed
twice,
onceyears
raising 485,405
Operating
profit/loss
-11,260
creditor and once when payment made and not offset against
- creditor
Accounts
affected
Net
finance charges
-57,160
-94,949
* Amounts received in advance (R370,859)
Taxation
-15,532
0
(some 2013 subs apportioned to 2012)
* Amounts paid in advance (R350,395)
(Loss)/profit for the year
-83,952
390,456
(Affiliation and handicap fees debit to this acc and not cleared)
* Prepaid
and voucher control accounts (R377,286)
Adding
back dormant
-195,828
0
(Including member cards loaded and amounts not reconciled)
creditors
Reconciling and balancing
control accounts
Operational profit per MMAs
1,098,540
0
818,760
390,456
2013
Total revenue
2012
13,251,233
12,966,357
-13,262,493
9,385,417
-11,260
1,343,852
-57,160
1,106,885
-15,532
346,718
-83,952
179,768
-12,480,952
10,400,556
485,405
1,043,354
-94,949
619,603
0
292,425
390,456
268,820
722,551
0
Other
Sale of goods relate to Bowls and Tennis 166,042
341,599
Total expenditure
Rendering of services
Operating profit/loss
Golf cart rental
Net finance charges
F&B by members
Taxation
Non-related golf income
(Loss)/profit for the year
Insurance claims
Sale of goods
Related expenditure R729,215
2013
Total revenue
2012
13,251,233
12,966,357
-13,262,493
-12,480,952
Operating profit/loss
Employee cost
Net finance charges
Admin and mngt fees
-11,260
3,884,171
-57,160
1,145,336
485,405
3,612,415
-94,949
994,620
Taxation
Municipal charges
-15,532
1,053,226
0
991,516
(Loss)/profit
therental
year
Machine and for
equip
-83,952
913,711
390,456
1,154,537
Golf course maintenance
628,841
1,174,760
Bowls and Tennis Clubs exp
729,215
0
Total expenditure
Excluding bowls and tennis exp
(offset against income)
INCREASE IN EXPENDITURE 0,4%
2013
PPE – fixed assets
2012
3,263,115
3,859,252
Bowls bar
24,106
0
PPE
TradeReduction
and other in
receivables
R640k revaluation
Cash and cash equivalents
reduction in equity
TOTAL ASSETS
718,649
423,396
425,394
645,504
4,431,264
4,928,152
-2,281,050
-1,557,080
Non-current
794,947
1,098,902
Current
321,852
467,635
15,532
0
Trade and other payables
5,579,983
4,918,695
TOTAL EQUITY & LIABILITIES
4,431,264
4,928,152
Inventories
Equity
Other financial liabilities
Current tax payable
2013
PPE – fixed assets
2012
3,263,115
3,859,252
24,106
0
Trade and other receivables
718,649
423,396
Cash and cash equivalents
425,394
645,504
4,431,264
4,928,152
-2,281,050
-1,557,080
Non-current
794,947
1,098,902
Current
321,852
467,635
15,532
0
Trade and other payables
5,579,983
4,918,695
TOTAL EQUITY & LIABILITIES
4,431,264
4,928,152
Inventories
TOTAL ASSETS
Equity
Other financial liabilities
Current tax payable
Bowling club R24k
Guvon R151k
Nedbank R30k
PMG R179k
Tennis club R7k
415,963
Other debtors
Payment in advance
Golf days
45,525
21,510
Corporate members
181,045
Debtors by end of January 2014 was R189,226.
2013
PPE – fixed assets
2012
3,263,115
3,859,252
24,106
0
Trade and other receivables
718,649
423,396
Cash and cash equivalents
425,394
645,504
4,431,264
4,928,152
-2,281,050
-1,557,080
Non-current
794,947
1,098,902
Current
321,852
467,635
15,532
0
Trade and other payables
5,579,983
4,918,695
TOTAL EQUITY & LIABILITIES
4,431,264
4,928,152
Inventories
TOTAL ASSETS
Equity
Other financial liabilities
Current tax payable
0 00
1,135,519
Special m/ship
1,116,799
Club funds/control
898,596
416,042
CoJ
accounts
3,114,826
Subs received in
advance
Other payables
* PAYE/Prov fund R92k
Trade creditors end January 2014 R238,716
* Trade payables bowls
None due in excess of 60 days
and tennis clubs R102k
* VAT R268k
* Trade payables golf R673k
Special m/ship
1,135,519
2014
subs
received
in
2013
1,116,799
Club funds/control
898,596
416,042
CoJ
accounts
3,114,826
Subs received in
advance
Other payables
*
*
*
*
*
Captain/Trophy fund R111k * Ladies golf R75k
Vouchers held by members/visitors R42k
Prepaid cards R70k * Affiliation fees R59k
Guvon function funds paid into RCC R35k
Handicap fees R24k
Actual
REVENUE
Budget
2,239,813
2,250,443
Golf turnover
1,110,263
1,176,017
Subscriptions
735,757
730,712
Other income
393,793
343,714
-2,261,231
-2,227,802
-21,418
22,641
EXPENDITURE
SURPLUS/(LOSS) YTD 2014
1,000,000
800,000
Actual result
600,000
Budgeted result
400,000
Actual 2013
200,000
(before ye adj)
0
-200,000
Trailing budget by R44k
Revenue
•R13,5m
Expenditure
•R13m
Profit
•R539k
Operating profit maintained and improved
Financial Controls Improved and AFS Qualification lowered
Lease, SARS, Creditor Arrears fully resolved
Utilities – Close to full resolution which will return us to a
solvent and accumulated surplus position
Strategic and Operational Plan in place against which
performance can be objectively monitored and measured
We are in a very good space
Thank You
Purpose
The Executive Committee is responsible for the management of all affairs of
the Club.
Broad Functions:
•Finance
•Personnel
•Administration
•Marketing
•Capital and Resources
•Outsourced Arrangements
•Strategic planning & Risk management
•Membership growth and retention
•Management of Assets
•Club Constitution
•Governance including oversight of the functioning of all sub-committees