2014-2015 Canberra Southern Cross Club Annual Report

ACN 008 488 855

2014–2015

ANNUALREPORT

Canberra Southern Cross Club Ltd Annual Report 2014–2015 ACN 008 488 855

President’s Report

It is with pride and pleasure that I reflect on the successes of the Canberra Southern Cross Club this year. The Board’s focus has been on significant renewal of the club’s facilities and services. This focus is showing positive results which will ensure that we are sustainable into the future. We know that above all, our Members are our greatest asset. Your continued support is what makes the club the leading destination for families in Canberra.

Our CEO Ian Mackay and his management team are making improvements across the Club, as I am sure you will have noticed. In 2014/15 we conducted a greater level of research into our business than we have undertaken for many years. This included having industry experts review how efficient we are at providing our services to Members; asking you, our Members what you want from your Club; and a review of our staffing. This research was fundamental in the creation and approval by the Board of a new Five Year Canberra Southern Cross Club Strategic Plan. This plan acknowledges the need for change and sets out the improvements required, such as the need to improve our technology, to diversify our income streams and invest in core assets – our venues and our Members.

We have started to implement this plan, and we hope you are already starting to notice some of the changes that are improving services for Members and their guests. These include:

• the opening of ‘Snapper on the Lake’ serving fresh fish and chips and Lonsdale Street Roasters coffee;

• a renewal of the Henry’s Family Restaurant experience, reinforcing our commitment to prioritise families and family entertainment;

• the introduction of Members Pricing for the immediate benefit of Members;

• ongoing Member initiatives such as our $3 happy hour every day of the week from 4-6pm, the ‘Captains Call’ at the Yacht Club and our $8.90 lunchtime value meals;

• sell-out events across all our venues, such as The Chefs Signature Dinner, French Nights, Wine Dinners, our inaugural Truffle Night and James Squire craft beer dinners;

• venue refurbishments completed at Jamison and Tuggeranong;

• the removal of gaming machines at the Yacht Club;

• facilities upgrade at the Yacht Club, which are due for completion in September 2015;

• the development of a Woden Master Plan which will be presented to Members at Woden in early November 2015;

• an upgrade at our main gym in Irving Street, plus the commencement of the design stage for a new fit for purpose Health and Wellness Centre at Section 79 (the old Pitch and Putt site); and

• sell out shows for big name acts such as The Wiggles, Lah Lahs and Hot Chocolate to name a few.

We are confident we have developed a strategy and a structure that will enable the Club to grow and be better equipped to handle future economic downturns and the evolving Clubs environment in the ACT.

The action by AUSTRAC in requiring the Club to undergo an external compliance audit was a serious concern and has resulted in significant effort to review our risk management framework and internal controls. Your Board holds compliance to regulatory procedures as non-negotiable and the management team has developed a strong anti-money laundering policy that will not see a repeat of the issue.

The business reform program that we have embarked on naturally involves upheaval and cost. It resulted in a number of long standing employees leaving during the year. We appreciate and recognise the many years of faithful service provided by them and wish them every success into the future.

We also took leadership on the issue of gaming machines by voluntarily withdrawing 100 machines from our venues, to assist with the current Government’s stated desire to reduce the number of machines in the market in Canberra. We were the first Club to do this and we firmly believe this is the right thing for your Club and the community.

We provided $1.38 million back to the community, well above the required legislated amount. This figure includes our Community Grants program, which provided support to 90 small and medium not for profit organisations in Canberra and the surrounding districts, sponsorship of numerous sporting groups, assistance to schools and elderly care services plus many donations and in-kind support.


ContentsPresident’s Report 2

Directors’ Report 4

Auditor’s Independence Declaration 9

Concise Financial Report 10

Director’s Declaration 21

Auditor’s Report 22

Graphs 24

Board of Directors 26

Corporate Information 27

In total we helped over 300 groups deliver their services to the Canberra community in 2014/15.

Even so, we continued to experience difficult trading conditions throughout the year, due to both the local economic environment and increased Government regulatory requirements relating to our decreasing gaming activities.

Total revenue was down 2.3% compared to 2013/14. Notable factors in this financial result are that total gaming revenue was down 4.1%; and membership income, including gym memberships from both the Southern Cross Health Centre and Anytime franchises, was down 6% compared to 2013/14.

Nonetheless, our chefs and hospitality teams showed that the quality of our food and service still shone through, with our food sales being up over 5% and beverage sales up 1.6% across our business.

In addition, our costs reduced overall in 2014/15 with management working hard to keep costs contained during the difficult trading period and as we worked through our strategic imperatives.

The level of activity and drive is the highest that I have seen since my time on the Board. We are confident that we have a sound strategy with a dedicated and professional team that will steadily improve services, facilities and ensure your club remains the premier club in the ACT.

In closing, I would like to thank the Board for their efforts in what has been a pivotal year for the club. I would like to thank Simon Plummer who was elected President at the last AGM, and who stood down in February to take on the role of General Manager at the Canberra Southern Cross Yacht Club, for his drive and efforts as President and since then as General Manager. I also recognise the efforts of Ian Mackay and his team who work diligently on improving your club.

And finally, I thank you, our Members who are the reason the club exists.

John Lewis

4


Directors’ Report

The directors of the Canberra Southern Cross Club Limited submit herewith the financial report on the consolidated entity for the financial period ended 29 June 2015. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

DirectorsThe following persons were directors of Canberra Southern Cross Club Limited during the whole of the financial period and up to the date of this report, unless otherwise stated:

J.J. Lewis

R.W. Lloyd

K. Marshall

C. Behrens

D.N. Grimmond

P.M. Jones

M.B. Laughlin

J.J. Rice

P.L. Rollings

S.C. Plummer was a director from the beginning of the financial period until his resignation on 2 February 2015.

Principal activitiesThe consolidated entity’s activity in the course of the financial period was the operation of licensed clubs, sporting and health and fitness facilities.

There was no significant change in the nature of the activity of the Group during the year.

The entity’s short term objectives are:

• To provide a diverse range of services and amenities for the enjoyment of members and their guests;

• Providing for families through offering family friendly facilities; and

• To provide support to the community either financially, through donation of food or by providing facilities.

The entity’s long term objectives are:

To enrich the lives of the people of Canberra by:

• Developing and reviewing strategies for investment in services and products that are demanded by our members;

• Maintaining innovative, diverse, responsible cost effective services to members;

• Exploring and developing opportunities for diversifying investments;

• Fostering family values; and

• Being recognised for providing positive and constructive community support.

To achieve these objectives, the entity has adopted the following strategies:

• A core business focus;

• Diversification into non-traditional business activities;

• Embracing technology and ‘smarter’ business systems;

• An ethos of family values;

• A performance culture; and

• A leader in supplying and promoting health and wellbeing services.

The Club continues to meet consistent high levels of community support through the annual grants program together with a comprehensive sporting grants program. In addition to these major programs the Club is committed to the wider community by providing facilities and donated food, this is evidenced by ongoing support of various community groups.

The Club has strong financial management and corporate governance systems which is managed through the Club’s business plan, key performance indicators, risk management plan and internal audit program. Monitoring of financial performance is reviewed on a monthly basis by executive management and Directors.

5


Directors’ Report (continued)

DividendsIn accordance with the constitution, the Group is a company limited by guarantee to the extent of $2.00 per member, and accordingly no shares or debentures have been issued and no dividends have been recommended or paid since the start of the financial period.

Review of operationsOperations comprised the running of licensed club facilities and the provision of member services.

The loss from ordinary activities after income tax amounted to $501,441 (2014 profit: $393,025).

Significant changes in the state of affairsThere have been no significant changes in the state of affairs of the Group during the year other than that referred to in the financial statements or notes thereto.

Matters subsequent to the end of the financial yearNo matter or circumstance has arisen since 29 June 2015 that has significantly affected, or may significantly affect:

a. the consolidated entity’s operations in future financial periods, or

b. the results of those operations in future financial periods, or

c. the consolidated entity’s state of affairs in future financial periods.

Likely developments and expected results of operationsInformation on likely developments in the operations of the consolidated entity and the expected results of operations have not been included in this financial report because the directors believe it would be likely to result in unreasonable prejudice to the consolidated entity.

Environmental regulationThe Club is not affected by any significant environmental regulation in respect of its operations.

6



Information on directors

Name Special Responsibilities Years Service Occupation

J.J. Lewis BA (Acc) Grad Diploma IT, FAICD, CPA

President 12 Company Manager

C. Behrens B.Ec/LLB Senior Vice President 9 Senior Executive Lawyer

R.W. Lloyd MAICD Director 18 Retired

K. Marshall Director 12 Public Servant

D.N. Grimmond OAM FREIA Director 14 Real Estate Agent

P.M. Jones BA Comm/PR, GradDiplomaProfCommProf WRTG, MAICD

Director 1 Communications Manager

M.B. Laughlin BA Director 22 Public Servant

J.J. Rice B Econ. Director 34 Retired

P.L. Rollings Director 24 Retired

Company secretary The Company Secretary was Carol Sawyer until 20 April 2015.

Ian Mackay was appointed Company Secretary from 21 April 2015.

7


Board of Directors Meetings s79 Committee

Directors A B A B

J.J. Lewis 23 21 – –

S.C. Plummer 13 13 – –

R.W. Lloyd 23 20 8 6

K. Marshall 23 21 – –

C. Behrens 23 21 – –

D.N. Grimmond 23 20 8 6

P.M. Jones 23 21 8 5

M.B. Laughlin 23 19 – –

J.J. Rice 23 20 – –

P.L. Rollings 23 18 – –

A = Number of meetings held during the time the director held office or was a member of the committee during the year

B = Number of meetings attended

In all cases of absences, directors were absent on club business, on leave or absent due to work commitments. In all instances, leave of absence was sought and approved.

Meetings of directorsThe following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the financial period and the number of meetings attended by each director (while they were a director or committee member).


8


Indemnification of officersa. Insurance of officers

During the financial period, the Group paid a premium in respect of a contract insuring the directors of the Group (as named above), the Company secretary, and all executive officers of the Group and of any related body corporate against a liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

The consolidated entity has not otherwise, during or since the financial period, indemnified or agreed to indemnify an officer or auditor of the Group or of any related body corporate against a liability incurred as such an officer or auditor.

Proceedings on behalf of the companyNo person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of the Corporations Act 2001.

Auditor’s independence declarationA copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 9.

This report is made in accordance with a resolution of directors.

Signed in accordance with a resolution of the directors made pursuant to Section 298(2) of the Corporations Act 2001.

J.J. Lewis Director

C. Behrens Director

Canberra, ACT 7 September 2015


9


10


Concise financial report – 29 June 2015

These financial statements are the consolidated financial statements of the consolidated entity consisting of Canberra Southern Cross Club Limited and its subsidiaries. The financial statements are presented in the Australian currency.

Canberra Southern Cross Club Limited is a company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Canberra Southern Cross Club Limited 92-96 Corinna Street Woden ACT 2606

A description of the nature of the consolidated entity’s operations and its principal activities is included in the directors’ report on page 4, which is not part of these financial statements.

The financial statements were authorised for issue by the directors on 7 September 2015. The directors have the power to amend and reissue the financial statements.

11


Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 29 June 2015

Notes 2015 $

2014 $

Revenue 1 49,645,406 50,911,983

Cost of sales and services (12,238,392) (12,022,349)

Administration expenses (25,836,860) (26,001,847)

Occupancy expenses (8,027,105) (8,269,171)

Marketing expenses (1,098,058) (1,148,585)

Show expenses (312,363) (367,763)

Operating lease expenses (1,213,577) (1,319,216)

Finance costs (517,798) (551,878)

Other expenses (902,694) (902,119)

Profit/(loss) before income tax (501,441) 329,055

Income tax benefit/(expense) – 63,970

Profit/(loss) for the year (501,441) 393,025

Other comprehensive income – –

Total comprehensive income/(loss) for the year (501,441) 393,025

Total comprehensive income/(loss) for the year is attributable to:

Owners of Canberra Southern Cross Club Limited (501,441) 393,025

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

12


Consolidated Balance Sheet as at 29 June 2015

2015 $

2014 $

ASSETS

Current assets

Cash and cash equivalents 7,810,581 6,524,101

Trade receivables 511,164 725,947

Inventories 356,528 368,025

Prepayments 388,854 272,031

Total current assets 9,067,127 7,890,104

Non-current assets

Property, plant and equipment 42,953,105 46,070,776

Other receivables – 73,931

Advances 30,200 32,020

Intangible assets 409,450 409,450

Total non-current assets 43,392,755 46,586,177

Total assets 52,459,882 54,476,281

LIABILITIES

Current liabilities

Trade and other payables 3,037,629 3,139,101

Borrowings 62,000 1,194,139

Provisions 1,079,627 1,320,642

Other current liabilities 850,989 831,077

Total current liabilities 5,030,245 6,484,959

Non-current liabilities

Borrowings 5,632,132 5,694,132

Provisions 51,722 49,966

Total non-current liabilities 5,683,854 5,744,098

Total liabilities 10,714,099 12,229,057

Net assets 41,745,783 42,247,224

EQUITY

Retained earnings 41,745,783 42,247,224

Total equity 41,745,783 42,247,224

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

13


Consolidated Statement of Changes in Equity for the year ending 29 June 2015

Retained earnings $

TOTAL EQUITY $

Balance at 25 June 2013 41,775,764 41,775,764

Profit/(loss) for the year 393,025 393,025

Other movement 78,435 78,435

Balance at 30 June 2014 42,247,224 42,247,224

Balance at 30 June 2014 42,247,224 42,247,224

Profit/(loss) for the year (501,441) (501,441)

Balance at 29 June 2015 41,745,783 41,745,783

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

14


Consolidated Statement of Cash Flows for the year ending 29 June 2015

2015 $

2014 $

Cash flows from operating activities

Receipts from customers 49,817,902 54,719,853

Payments to suppliers and employees (43,847,276) (48,289,312)

Interest and other costs of finance paid (517,798) (551,878)

Income taxes paid – 59,991

Net cash inflow from operating activities 5,452,828 5,938,654

Cash flows from investing activities

Interest received 116,218 75,569

Payments for business acquisition – (320,900)

Payments for purchase of property, plant and equipment (3,101,400) (4,077,227)

Proceeds from sale of property, plant and equipment 11,153 51,683

Net cash (outflow) from investing activities (2,974,029) (4,270,875)

Cash flows from financing activities

Repayment of borrowings (1,192,319) (1,059,197)

Proceeds from borrowings – 2,124,989

Net cash (outflow) inflow from financing activities (1,192,319) 1,065,792

Net increase in cash and cash equivalents 1,286,480 2,733,571

Cash and cash equivalents at the beginning of the financial year 6,524,101 3,790,530

Cash and cash equivalents at end of year 7,810,581 6,524,101

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

15


Notes to the Consolidated Financial Statements 29 June 20151 Revenue

2015 $

2014 $

Revenue consisted of the following items:

Gaming revenue

Woden gaming 11,425,296 11,684,905

Yacht gaming 114,368 149,796

Tuggeranong gaming 7,349,628 8,042,990

Jamison gaming 3,679,004 3,644,179

Turner gaming – 121,841

Total gaming revenue 22,568,296 23,643,711

Other revenue

Revenue from sale of goods and services 18,782,502 18,342,971

Membership income 5,561,805 5,919,630

Rental revenue 984,213 984,635

Interest revenue 116,218 75,569

Members entertainment income 217,450 262,293

Other 1,414,922 1,683,174

Total other revenue 27,077,110 27,268,272

Total revenue 49,645,406 50,911,983

16


Notes to the Consolidated Financial Statements (continued)

2 Expenses

2015 $

2014 $

Profit (loss) before income tax includes the following specific expenses:

Depreciation

Buildings 2,236,383 2,154,214

Plant and equipment 3,971,535 4,370,908

Total depreciation 6,207,918 6,525,122

Employee benefits expenses 16,038,435 16,047,618

17



3 Key management personnel disclosures

(a) Directors

The specified directors of Canberra Southern Cross Club Limited during the financial period were:

(i) President

J.J. Lewis BA (Acc) Grad Diploma IT, FAICD, CPA

S.C. Plummer (resigned 2 February 2015)

(ii) Senior Vice President

C. Behrens B.Ec/LLB

(iii) Directors

D.N. Grimmond OAM FREIA

P.M. Jones BA Comm/PR, GradDiplomaProfCommProf WRTG, MAICD

M.B. Laughlin B Arts

R.W.Lloyd

K. Marshall

J.J. Rice, B. Econ.

P.L. Rollings

The specified executives of the Group and the consolidated entity during the year were:

I. Mackay (Chief Executive Officer from 1 July 2014 and Company Secretary from 21 April 2015)

C. Sawyer (Chief Financial Officer & Company Secretary) (Resigned 6 May 2015)

W. Willcott (Finance Manager and Acting Chief Financial Officer from 7 May 2015)

(b) Key management personnel compensation

The aggregate compensation of the key management personnel of the consolidated entity, is set out below:

2015 $

2014 $

Employee benefits 789,951 908,471

(c) Employee remuneration

Section 54 of the Gaming Machine Act 2004 requires employee remuneration above the prescribed amount of $100,000 to be reported in the financial report. During the year there were 10 employees, 8 of whom received total remuneration between $100,000 and $200,000, and 2 who received greater than $200,000 (2014: 9 employees with remuneration greater than $100,000).

(d) Directors remuneration

Included within key management remuneration in note 3(b) above is remuneration paid or payable, or otherwise made available, in respect of the financial period, to all directors of the Group, directly or indirectly, by the Group or by any related party. This represents payments for out of pocket expenses as approved at the 2014 Annual General meeting in accordance with item 12.6 of the Club’s constitution.

2015 $

2014 $

Directors remuneration 119,458 118,721

18



4 Remuneration under contractual agreements and consultancies

Section 54 of the Gaming Machine Act 2004 requires that certain remuneration under contractual agreements and consultancies be disclosed. Contractors or consultants who received or were due to receive $100,000 or more under contractual arrangements are as follows:

$100,000 to $249,999Name Item

ACTEWGAS Gas services

Australian Liquor Marketers Beverage purchases

Best In Grass Garden maintenance services

Bigair Cloud Managed Services IT services

Capitol Chilled Foods Beverage purchases

CCS Facilities Maintenance Building maintenance services

Elite Group (ACT) Sound & Lighting services

I.G.T. (Australia) Gaming machine services

J.J. Richards & Sons Waste management services

LSR Coffee Group Wholesale Beverage purchases

OPC (Canberra) IT services

Premier Venue Entertainment Entertainment services

Prosegur Australia Security services

T.OK. Carpentry & Partitioning Building construction

The Sphere Organisation Entertainment services

Name Item

Coca-Cola Amatil Beverage purchases

Leader Security Electronics Security services

$250,000 to $499,999

$500,000+

Name Item

ACTEWAGL Retail Electricity, water & sewerage services

Ainsworth Game Technology Gaming machine services

Andrews Meats Food purchases

Aristocrat Leisure Industries Gaming machine services

Epicurean Contract Caterers Catering services

Fosters Australia Beverage purchases

Rose Cleaning Services Catering services

Lion Beverage purchases

19



5 Director benefits

Section 54(d) of the Gaming Machine Act 2004 requires that any benefits that have been taken by a person during the financial period be reported in the annual report. The Group has provided the following benefits during the financial period:

Position Description PurposeMonetary

value Who offered the benefit

Directors/Senior Mgt Hospitality provided to Directors/Senior Management and their spouse/guest while in attendance with Director/Senior Management at internal club events

Networking $6,280 Canberra Southern Cross Club

Directors/Senior Mgt Hospitality provided to Directors/Senior Management and their spouse/guest while in attendance with Director/Senior Management at official functions for a club sponsored charity group

Networking $8,355 Canberra Southern Cross Club

Directors/Senior Mgt Hospitality provided to Directors/Senior Management and their spouse/guest while in attendance with Director/Senior Management at official functions for a club sponsored sporting group

Networking $325 Canberra Southern Cross Club

Wests Rugby Union Club

Directors/Senior Mgt Hospitality provided to Directors/Senior Management and their spouse/guest while in attendance with Director/Senior Management at Club planning seminar

Club Planning and Strategy

$3,971 Canberra Southern Cross Club

DirectorsCanberra Raiders Season Launch

Networking $100 Canberra Raiders

Directors ClubsACT Charity golf day Networking $600Canberra Southern Cross Club

Directors/Senior Mgt Rugby league games Networking $1,400 Canberra Raiders

Senior Management ClubsACT Raceday Networking $675Canberra Southern Cross Club

Senior Management State of Origin game Networking $1,000 Carlton United Breweries

20



6 Additional company information

Every member undertakes to contribute to the assets of the Group in the event of and for the purposes of the winding up of the Group, an amount not exceeding $2. There were 83,014 members at 29 June 2015 (2014: 83,349 members).

2015 2014

Membership classes

Ordinary 79,493 79,003

Religious 404 381

Country 2,413 3,261

Contributing Life Members 654 656

Honorary Life Members 50 48

83,014 83,349

7 Summary of significant accounting policies

The concise financial report is an extract from the full financial report for the year ended 29 June 2015. The concise financial report has been prepared in accordance with Accounting Standard AASB 1039: Concise Financial Reports and the Corporations Act 2001.

The financial statements, specific disclosures and other information included in the concise financial report are derived from, and are consistent with, the full financial report of Canberra Southern Cross Club Limited and its subsidiaries. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of Canberra Southern Cross Club and its subsidiares as the full financial report. A copy of the full financial report and auditor’s report will be sent to any member, free of charge, upon request.

The presentation currency used in this concise financial report is Australian dollars.

21


Directors’ Declaration29 June 2015In the directors’ opinion:

a. the financial statements and notes set out on pages 10 to 20 are in accordance with the Corporations Act 2001, including:

(i) complying with Accounting Standards – Reduced Disclosure Requirements, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and

(ii) giving a true and fair view of the consolidated entity’s financial position as at 29 June 2015 and of its performance for the year ended on that date, and

b. there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable, and

c. the financial report is in accordance with the disclosure requirements of the Gaming Machine Act 2004 (ACT).

This declaration is made in accordance with a resolution of the directors.

J.J. Lewis Director

C. Behrens Director

Canberra, ACT 7 September 2015

22


23


24


Canberra Southern Cross Club Ltd Trading ResultsConsolidated Revenue From Ordinary Activities 2014/15

Gaming Revenue $22.6 MillionBeverage Revenue $6.3 MillionFood Revenue $13.9 MillionMembership Income $5.6 MillionMembers Entertainment Income $0.2 MillionOther Revenue $1.1 Million

46%

2%0%

11%

28%

13%

Consolidated Expenses From Ordinary Activities 2014/15

Depreciation and Amortisation $6.2 Million

Utilities (electricity, fuel, telephone and rates) $2.0 Million

Wages and On Costs $17.9 Million

Gaming Promotions $2.3 Million

Cost of Goods $12.2 Million

Other Expenses $9.5 Million

12%

4%

36%

5%

24%19%

Club Gaming Trading 2014/15

Gaming Machine Levy $5.0 MillionWages and On Costs $3.0 MillionGaming Promotions $2.3 MillionDepreciation $2.4 MillionOther Expenses $1.9 MillionOperating Surplus $8.0 Million

22%

13%

10%

11%

9%

35%

Club Liquor Trading 2014/15


Depreciation Expense $0.1 MillionWages and On Costs $1.9 Million

Other Expenses $0.4 MillionOperating Surplus $1.5 Million

31%

2%

36%

25%

6%

Club Food Trading 2014/15

Cost of Goods $4.8 MillionWages and On Costs $7.0 MillionDepreciation $0.2 MillionOther Expenses $1.0 MillionOperating Surplus $0.8 Million

34%

51%

2%

7%

6%

Club Members Entertainment Trading 2014/15

Entertainment Expenses $0.3 Million

Members Promotion Expenses $0.2 MillionOther Expenses $0.5 Million


Operating De�cit ($1.3 Million)

-37%

10%

7%14%

32%

Sport and Recreation Trading 2014/15

8%

-1%

Wages and On Costs $0.3 MillionDepreciation $0.1 MillionOther Expenses $0.5 MillionOperating De�cit ($0.01 Million)

33%

58%

Distribution of Poker Machine Dollar 2014/15

Return to Player

Direct Expenses including taxes and community contributions

Club Hold

3%

91%

6%

2. Consolidated Expenses from Ordinary Activities 2014/15

Consolidated Revenue From Ordinary Activities 2014/15


46%

2%0%

11%

28%

13%








12%

4%

36%

5%

24%19%



22%

13%

10%

11%

9%

35%





31%

2%

36%

25%

6%



34%

51%

2%

7%

6%






-37%

10%

7%14%

32%


8%

-1%


33%

58%


Return to Player


Club Hold

3%

91%

6%

4. Food Trading 2014/15

1. Consolidated Revenue from Ordinary Activities 2014/15



46%

2%0%

11%

28%

13%








12%

4%

36%

5%

24%19%



22%

13%

10%

11%

9%

35%





31%

2%

36%

25%

6%



34%

51%

2%

7%

6%






-37%

10%

7%14%

32%


8%

-1%


33%

58%


Return to Player


Club Hold

3%

91%

6%

3. Liquor Trading 2014/15Consolidated Revenue From Ordinary Activities 2014/15


46%

2%0%

11%

28%

13%








12%

4%

36%

5%

24%19%



22%

13%

10%

11%

9%

35%





31%

2%

36%

25%

6%



34%

51%

2%

7%

6%






-37%

10%

7%14%

32%


8%

-1%


33%

58%


Return to Player


Club Hold

3%

91%

6%

Note: The graphs 3 and 4 are attributable to the parent company Canberra Southern Cross Club Limited and not the consolidated entity.

25


Note: The graphs 5 to 8 are attributable to the parent company Canberra Southern Cross Club Limited and not the consolidated entity.



46%

2%0%

11%

28%

13%








12%

4%

36%

5%

24%19%



22%

13%

10%

11%

9%

35%





31%

2%

36%

25%

6%



34%

51%

2%

7%

6%






-37%

10%

7%14%

32%


8%

-1%


33%

58%


Return to Player


Club Hold

3%

91%

6%



46%

2%0%

11%

28%

13%








12%

4%

36%

5%

24%19%



22%

13%

10%

11%

9%

35%





31%

2%

36%

25%

6%



34%

51%

2%

7%

6%






-37%

10%

7%14%

32%


8%

-1%


33%

58%


Return to Player


Club Hold

3%

91%

6%



46%

2%0%

11%

28%

13%








12%

4%

36%

5%

24%19%



22%

13%

10%

11%

9%

35%





31%

2%

36%

25%

6%



34%

51%

2%

7%

6%






-37%

10%

7%14%

32%


8%

-1%


33%

58%


Return to Player


Club Hold

3%

91%

6%

5. Gaming Trading 2014/15

7. Sport & Recreation Trading 2014/15

8. Distribution of Poker Machine Dollar 2014/15

6. Members Entertainment Trading 2014/15



46%

2%0%

11%

28%

13%








12%

4%

36%

5%

24%19%



22%

13%

10%

11%

9%

35%





31%

2%

36%

25%

6%



34%

51%

2%

7%

6%






-37%

10%

7%14%

32%


8%

-1%


33%

58%


Return to Player


Club Hold

3%

91%

6%

26


John LewisPresident

Simon PlummerPresident

(resigned 2/2/2015)

Bob LloydDirector

Kim MarshallDirector

Paul RollingsDirector

Paula JonesDirector

Christopher BehrensSenior Vice President

Mary LaughlinDirector

David GrimmondDirector

Jack RiceDirector

Board of Directors

27


Notice to Members – Annual General MeetingMembers are advised that the 44th Annual General Meeting (AGM) will be held in Corinna Room 2 at the Southern Cross Club Woden on Wednesday, 7 October 2015 at 8.00pm.

AGENDA1. Apologies

2. Minutes of the 43rd Annual General Meeting of 8 October 2014

3. Presentation of Annual Report

4. Presentation of Finance Reports and Balance Sheets

5. Auditor’s Report

6. Ordinary Resolutions

FIRST ORDINARY RESOLUTIONPursuant to section 202A of the Corporations Act it is resolved that the Director’s honoraria for out of pocket expenses be set in accordance with Article 12.6 of the Constitution.

SECOND RESOLUTIONIt is a requirement of section 53 of the Gaming Machine Act 2004, that members approve expenditure incurred by the Club or third parties for staff, directors and partners to attend official functions, the directors annual seminar, sporting and other events on behalf of the Club as approved by the Board, as the expenditure may not relate to all members.

Accordingly;It is resolved that the expenditure incurred by the Club or third parties for staff, directors and partners (if appropriate) to attend official functions, the director’s annual seminar, sporting and other events on behalf of the Club as approved by the Board is approved up to a maximum of $25,000.00 for the period 8th October 2015 to 7th October 2016.

7. Such other business brought forward in conformity with the Constitution

8. Election of Directors

9. Election of Honorary Life Members

10. Appointment and remuneration of Auditors

11. General Business

APPOINTMENT OF PROXYAs a member you have the right to cast one vote at the Annual General Meeting, and you have a right to appoint a proxy (whether or not a Member) to attend and vote on your behalf on resolutions other than the election of Directors. Proxy forms can be obtained by telephoning 6283 7210.

John Lewis

President Canberra Southern Cross Club

NO BALLOT REQUIREDIn terms of the Club’s Constitution, three Directors are required to retire each year, but will be eligible for re-election.

This year, on a rotation basis the Directors to retire are Jack Rice, Kim Marshall and Mary Laughlin. All were eligible for re-election and these three Directors were re-nominated.

Therefore nominations were called for on 22nd June 2015 from members for election of three (3) Directors.

Nominations closed on 6 July 2015 at which time the Club had received only nominations for the three Directors.

Therefore there will be no need for an election this year.

Prior to the Annual General Meeting the Directors will meet to appoint the Board Executive, consisting of President and Senior Vice President for the forthcoming year, which will be announced at the Annual General Meeting on 7 October 2015.

The Directors who did not have to stand for election this year are John Lewis, Chris Behrens, Bob Lloyd, David Grimmond, Paula Jones and Paul Rollings.

Ian Mackay Company Secretary

Corporate Information

Woden 6283 720092-96 Corinna Street Phillip ACT 2606

Southern Cross Health Club6283 7340 Irving Street Phillip ACT 2606

Southern Cross Sports Stadium Woden 6293 2275 Irving Street Phillip ACT 2606

Jamison 6251 2255 Cnr Catchpole & Bowman Streets Macquarie ACT 2614

Yacht Club & Cruises 6273 1784 ‘Lotus Bay’ Mariner Place Yarralumla ACT 2600

Tuggeranong 6293 7200 Cnr Holwell & Pitman Streets Tuggeranong ACT 2900

Southern Cross Sports StadiumTuggeranong 6293 2275 Cnr Colishaw & Athllon Drive Tuggeranong ACT 2900

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2014-2015 Canberra Southern Cross Club Annual Report

Documents