Finance Update

BGC FINANCE SUMMARY AS AT 31 JULY 2020

This year has not been like any other with the effects of COVID-19 being felt everywhere.  Overall though the golf club has come through the experience well and profit year to date is strong.  Membership and membership income is favourable to last year and this has also flowed into food and beverage, merchandise and golf services income which are all up on last year.  Golf shop merchandise income is well up on last year and at this stage sales should total approximately 4 times stock turnover for the full year which is a great result.

The lighting strike on the course earlier in the year resulted in the necessary total replacement of our course irrigation system at a cost of approximately $250,000.  We were very fortunate with our insurance claim being successful and we recouped approximately $200,000 of this cost.  Due to COVID-19 a lot of work was also rescheduled on the course and the bulk of this work is now complete.  No 6 green is due to open mid-September and with the onset of spring our fairways and greens will recover and be back to the normal high standard we expect.

Because of COVID-19 most other capital projects were put on hold and our operating expenses have been managed well year to date.  We have managed to pay down debt of approximately $150,000 this year which is in line with our development plan targets.  We have also formed a Grounds Redevelopment sub committee and they have been completing a lot of work behind the scenes and a staged project plan is nearing completion for action as soon as practicable.  Some grounds machinery should be replaced shortly and some spending will also happen towards the kitchen improvements.

Due to many reasons including good cost management, good COVID-19 effect management plus government incentives such as job keeper and other cash assistance our cash-flow position is strong.  The club will go into the new year in a strong financial position.  The Board have just completed a Strategic Review of future projects and this will give some vision for the future.

Mark Thomas

BGC – Director of Finance