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Football => Richmond Rant => Topic started by: mightytiges on November 30, 2004, 03:40:19 PM

Title: 2004 Annual Report - Treasurer's Report
Post by: mightytiges on November 30, 2004, 03:40:19 PM

TREASURER'S REPORT

The consolidated entity has recorded a loss of $2,194,974.

The following table presents a review of the Club's trading performance during 2003 and 2004.

Importantly, the 2005 budgets are included.

	2003	2004	2004	Variance	2005
	Actual	Budget	Actual	Fav/(Unfav)	Budget
	$M	$M	$M	$M	$M
Football Income	4.2	4.8	4.5	(0.3)	4.6
Membership Income	3.6	4.3	4.1	(0.2)	4.2
Match Day Income	1.3	1.4	1.7	0.3	1.6
Merchandise Income	0.2	0.2	0.2	0.0	0.2
Corporate Income	4.6	5.5	3.9	(1.6)	4.3
Event & Function Income	1.1	1.3	1.2	(0.1)	1.2
Other Income	0.5	0.3	0.1	(0.2)	0.0
Communication Income	0.3	0.3	0.3	0.0	0.3
Total Income	15.9	18.1	16.0	(2.1)	16.4
Football Expenditure	10.2	10.1	10.6	(0.5)	9.8
Membership Expenditure	1.6	2.3	2.2	0.1	1.7
Match Day Expenditure	0.1	0.1	0.1	0.0	0.1
Corporate Expenditure	2.2	2.4	2.0	0.4	1.7
Event & Function Expenditure	0.7	0.5	0.6	(0.1)	0.6
Other Expenditure	0.5	0.6	0.5	0.1	0.5
Communication Expenditure	0.4	0.4	0.3	0.1	0.2
Property	0.6	0.7	0.7	0.0	0.7
Administration	1.1	1.2	1.5	(0.3)	1.6
Total Expenditure	17.4	18.3	18.5	(0.2)	16.9
Surplus / (Deficit)	(1.5)	(0.2)	(2.5)	(2.2)	(0.5)
Social Clubs (1)	0.2	0.4	0.1	(0.4)	0.2
Operating Profit / (Loss)	(1.3)	0.2	(2.4)	(2.6)	(0.3)
JDF Net Income	0.5	0.2	0.2	0.0	0.1
Net Profit / (Loss)	(0.8 )	0.4	(2.2)	(2.6)	(0.2)

(1) Income from Social Clubs accounted for on a nett basis.
It should be noted that the loss was communicated to members in June.
As a result of the actions undertaken by the Board, there has been no
significant increase in the extent of the loss, despite poor on-field
performances during the 2004 season.

KEY 2004 VARIANCES

A summary of the key variances between the 2004 budget and the actual result are as follows:

	Variance	Reason
	Fav/(Unfav)	for
	$M	Variance
Original 2004	0.4
Forecast Surplus
Significant Variations
Football Income	(0.3)	Optimistic revenue targets associated with the sale of football "experiences". Revenues were also negatively impacted upon by poor on-field performance.
Match Day Income	0.3	Conservative forecast match day attendances were exceeded.
Nett Corporate Income	(1.1)	Optimistic revenue targets associated with sales of sponsorship, coteries, and corporate hospitality. Revenues also negatively impacted by poor on-field performance.
Nett Event & Function Income	(0.3)	Optimistic revenue targets, particularly related to Grand Final week activities.
Football Department	(0.5)	Higher player and staffing Expenditure costs than forecast. Player and registration fees exceeded budget as a result of the youth policy adopted.
Administration	(0.3)	Finance costs exceeded Expenditure budget as a result of extended overdraft facilities.
Nett Social Club	(0.5)	Proceeds generated from Income gaming continue to decline in line with overall market conditions. In 2001, the Club generated net income in excess of $800,000 from gaming activities. In 2004, gaming activities generated net income of $85,000.
Other Variances	0.1
2004 Loss	(2.2)

2.5% which is less than the projected Consumer Price Index
for the year.

The forecast result for the year ended 31 October 2005 is a
loss of $150,000, which represents an improvement of over
$2 million on the 2004 result.

The Directors are of the view that the forecast position is
almost a "worst-case" scenario. Importantly, the targets will
eliminate the heavy financial losses incurred in 2004.
Other actions that have been, or are in the process of being,
undertaken by the Board and Senior Management include:

* The implementation of enhanced processes and controls
over expenditure authorisation to ensure that the 2005
targets are effectively monitored.

* An organisational restructure to provide clearer lines of
reporting and accountability.

* A restructure of the Club's committee structure to
provide improved Governance over the operation of the
Club.

The detailed cash flow forecasts, supporting the 2005
targets, have the Club operating within a level that can be
supported by the existing bank security (that is, an AFL
redirection order).

As referred to above, representatives of the AFL have worked
closely with the Club in the completion of the Crowe Lovett
consultancy and in supporting the Club in its overall
endeavours to significantly improve all facets of our
operations. The Directors are grateful for the support
provided.

Whilst the Club is economically dependant on the ongoing
financial assistance of the AFL, it should be noted that the
security provided by the AFL (in the form of a redirection
order) is not an advance of funds, but a commitment to our
financiers of annual distributions that would be received by
the Club in the normal course of operations.
The Club has not sought to access the AFL's Competitive
Balance Fund and the Directors are confident that there will
be no necessity to do so, however the AFL has confirmed it
could provide access to this fund if the Club makes an
application and meets the required conditions.

_____________________
GARRY CAMERON
Treasurer
           

Title: Re: 2004 Annual Report - Treasurer's Report
Post by: WilliamPowell on November 30, 2004, 04:22:47 PM

I am glad they have put this info in the report for us (not b4 time IMO been asking for this sort of info for yonks)

Quote from: mightytiges on November 30, 2004, 03:40:19 PM

TREASURER'S REPORT

Merchandise Income

0.2

0.2

0.2

0.0

0.2

this is area the CLub has struggled in for a long long time - it is an area tha needs fixing/developing. Get you merchandising rights and you can make a packet $$$$$$$$. $200K is a poor result in anyones language

 Just think Clubs like the Saints, Pies and Dons make over a $1 million a year in merchandise sales

Title: Re: 2004 Annual Report - Treasurer's Report
Post by: H Tiger on November 30, 2004, 07:21:52 PM

Quote from: WilliamPowell on November 30, 2004, 04:22:47 PM

Just think Clubs like the Saints, Pies and Dons make over a $1 million a year in merchandise sales

WP, the Saints made a packet this year in merchandise because they finally showed their long suffering supporters (who proberbly had jumpers and beanies from the last time they won a flag) some success.

Even then they have done better than us with an appearance in a GF in 1997.

Skunks - Same deal.

Bummers - Consistently successful.

Tigers - Nothing much that I can remember as I am only 25 & was in the UK in 2001 when we last made the finals.

If we have some success look at the sash flying off the racks!