Half Yearly Financial Update

On behalf of the Committee, I am pleased to present a financial update for The Brisbane Golf Club for the six-month period, 1 October 2022 to 31 March 2023.

Profit and Loss

The first six months of the 2022/23 year have been above expectations for The Brisbane Golf Club.  The Club’s total revenue has continued to grow, with each department recording strong revenue growth, both against prior year and budget.  The Committee had already budgeted for increased expenses in the half year reflecting planned additional course maintenance activities and higher staffing levels generally, as the Club returned to a post covid-19 world.  Wages were very well managed within budget expectations despite over budget revenue growth.  Operating expenses were higher than budget due to a combination of higher revenue, unplanned course equipment maintenance, higher than expected increases in power and utility costs and the impact of inflation more generally.  Despite these operating expense challenges EBITDA for the six months was well above budget in a very pleasing result, and I would like to thank the Club’s management team and staff for their efforts in achieving this result.

The below table summarises some of the key financial metrics for the period.

Some of the highlights for the six months are:

• Revenue is up by 18.1% on 2022 and is 12.7% better than budget.
• New membership growth has continued the trend of the last few years, with 88 new members joining the club in the last six months.
• Golf operations and retail performed particularly strongly with stronger revenue leading to an improved EBITDA result.
• Food and beverage has achieved higher revenue but this was offset by higher costs earlier in the year.  An improved result is expected in the second half.
• Total expenses were 88.5% of revenue for the six months, a 3.7% improvement on budget.  They were higher than in 2022 but were comparable to the prior two years.  As noted earlier the Committee had approved budgeted increases in staffing levels and course expenditure, but also experienced unplanned course equipment maintenance, higher than expected increases in power and utility costs and the impact of inflation more generally.

Cashflow

The Club generated positive free Cash Flow of $899,000 in the first half, inclusive of $901,000 from flood insurance proceeds less related flood asset replacements, and after recurring capital expenditure of $225,000 (including the cart storage hardstand carried forward from the prior year).  Current projections to 30 September 2023 are for the Club to have cash on hand exceeding debt by approximately $300,000, which would be an improvement of over $1 million on the prior year. This is after allowing for a further $170,000 of further flood replacement assets and $272,000 of recurring capital expenditure.

Proceeds from granting of the easement to Queensland Urban Utilities approved at the recent extraordinary general meeting are assumed to be received in the next financial year.

Winter Loan Notes were not offered this year because of the stronger financial position that the Club is currently in.  I would like to take this opportunity to thank those Members who participated in this program in recent years.

Summary

From a financial perspective the Club has continued to improve its overall financial position but at the same time is putting additional money into the course, golf operations and member hospitality, both in operating expenses and capital expenditure.  As previously highlighted the challenge remains to be able to fund major capital expenditure projects and your Committee and Management continue to evaluate options for how this can best be achieved.

In the short time I have been Treasurer I have been impressed with the teamwork that Geoff Kuehner has instilled in his management team and their hard work and dedication.  This sets the Club up for an even brighter future.

Thank you to all Members for your ongoing support of the Club.

If anyone has any questions in relation to this report, please do not hesitate to contact me. My email address is a.mullis@bigpond.com or catch me when I am at the Club.

Kind regards

Andrew Mullis, Hon. Treasurer