Half-Yearly Financial Update

On behalf of the Board, I am pleased to present the Half Yearly Financial Update for The Brisbane Golf Club for the six month period from 1 October 2025 to 31 March 2026.

The reporting period was significantly impacted by the greens replacement program, with the course operating with only nine holes available for approximately three months. Despite these operational constraints, the Club delivered a solid financial performance, generating EBITDA (Earnings Before Interest, Tax and Depreciation) of $512,048. This result was 32.8% above budget and 2.6% below the prior year.

The favourable variance to budget was driven by the greens replacement program being completed earlier than anticipated, together with stronger than expected golfing participation while the course was restricted to nine holes. Given the limited course availability for half of the period, this represents a pleasing outcome. The Club remains on track to achieve its full year budgeted EBITDA.

Profit and Loss

The six month result was underpinned by strong membership renewal outcomes, with total membership in line with budget and 4.0% higher than the prior period. Following the reopening of all eighteen holes in February, post renewal vacancies were filled quickly, with increased entrance fee income further contributing to performance.

Golf Retail revenue increased 1.2% compared to the prior year. However, profit declined by 58.3% ($33k), reflecting higher cost of sales driven by our commitment to price matching with external retailers, ensuring members consistently receive competitive pricing and greater value.

Golf Operations profit decreased 35.7% compared with the prior year, largely due to reduced course availability during the greens replacement program. Notwithstanding this, Golf Operations outperformed budget by 62.9%, driven by higher than anticipated rounds played during the construction period and the earlier than budgeted completion of the works.

Food and Beverage operations experienced a challenging period, with reduced golfer numbers for several months and only three corporate golf days held during the reporting period. Despite these challenges, Food and Beverage revenue declined by just 8.0% compared with the prior year, supported by enhanced offerings in the Members’ Lounge and continued patronage from members and guests. Overall, Food and Beverage profit was 21.5% below the prior year and 7.2% below budget. Considering the operating challenges and increased supplier costs, this remains a commendable result, and the outlook for the second half of the year is positive.

Total operating expenses, including wages, were well controlled. Expenses were 6.0% below budget and 0.3% higher than the prior period, reflecting continued disciplined cost management. Through strong oversight and operational management, expenditure has been maintained within the financial parameters established by the Board.

Management and staff are to be commended for their effective stewardship of the Club during a challenging six month period, positioning the club well for the remainder of the financial year.

Key Financial Metrics
Year-to-Date to 31 March 2026

Highlights for the Period

• Membership growth continued the positive trend of recent years, with a strong renewal outcome and rapid filling of post renewal vacancies. Membership is currently closed, with a waitlist exceeding 25 applicants.
• Despite reduced rounds during the greens replacement program, the Golf Operations and Retail teams combined successfully and met their profit budget.
• Food and Beverage performance was resilient in a difficult operating environment, with a strong pipeline of events supporting expectations of an improved second half.
• Overheads were well controlled across all operational areas.
• Management continued to diversify income streams beyond member contributions, including increased tennis car park revenues and parking on land adjacent to the 8th fairway, while also investigating additional revenue opportunities.
• The Foundation contributed $50,000 towards the new Foundation Green, which is included in the net operating profit.
• The Club received $615,146 in insurance proceeds during the period, also reflected in the net operating profit.

Cashflow and Capital Expenditure

During the six month period, the Club completed several significant capital projects, including:

• Resurfacing of the remaining 17 greens with TifEagle grass.
• Construction of the new 1st hole tee and Foundation Green.
• Replacement of chairs in the Members’ Lounge.
• Acquisition of Ventrac mower.
• Acquisition of a robotic mower for the driving range.
• Acquisition of a new ice machine.
• Installation of additional security cameras throughout the premises.
• Approximately $10k of replacement kitchen equipment.

The only significant capital expenditure planned for the second half of the year is the bunker improvement program for holes 14, 15 and 16 as previously communicated to members.

Bank debt facilities with CBA are currently in place until 30 September 2030. Following a review of the Club’s financial position, it was determined that winter loan notes will not be required for the current financial year.

Summary

Overall, the Club delivered a sound financial result in the context of a challenging operating environment. While performance continues to improve year on year, current profitability levels are not yet sufficient to fully fund both essential stay in business capital requirements and the ongoing facility enhancements increasingly expected by members.

The Board has therefore presented a proposal to members to address these capital funding requirements. This approach is considered fair and appropriate, and the Board encourages members to support the proposal at the upcoming Extraordinary General Meeting, ensuring the Club can continue to meet its long term capital and sustainability objectives.

Thank you to all members for your continued support of The Brisbane Golf Club during what has been a challenging, yet rewarding, six month period.

Should you have any questions in relation to this report, please do not hesitate to contact me at phil@davisco.net.au, or speak with me when I am at the Club.

Kind regards

Phil Abood
Hon. Treasurer
The Brisbane Golf Club