Treasurer's Report - Garry Cameron
RFC Annual Report 2008
On behalf of the Board, I am pleased to present the Club's financial report for the year ended 31 October 2008.
2008 REVIEW
It is pleasing to report that the consolidated entity has recorded a profit relating to football operations of $394,724 and a net profit of $8,010,285. The significant net profit is largely attributable to government grants associated with the redevelopment of Punt Road Oval.
Highlights of the result are as follows:
* The profit relating to football operations excluding the impact of the redevelopment and one-off items is $394,724.
* The net profit of $8,010,285 is the highest ever recorded by the Club.
* The Club has recorded profits for the past four consecutive years to rebalance the loss made in 2004.
YEAR NET PROFIT / (LOSS) $000
2008 8,010 (Profit from football operations - 395)
2007 1,031
2006 949
2005 41
2004 (2,195)
Importantly the Club has been able to achieve this significant, sustained increase in profitability while increasing Football Department expenditure by in excess of $3 million between 2005 and 2008:
YEAR FOOTBALL DEPT EXPENDITURE $000
2008 13,427
2007 12,000
2006 10,802
2005 10,277
2004 10,559
* As at 31 October 2008 the Club has net assets of $8.9 million which is a significant improvement on prior years.
YEAR NET ASSETS $000
2008 8,858
2007 848
2006 (183)
2005 (704)
2004 (745)
The Board has previously communicated to members the fact that comprehensive plans were established at the conclusion of the 2004 financial year to put the Club on a sounder financial footing for the future. This year's profit result and more importantly significant improvement in net assets again reaffirms the Board and management's commitment to this plan, and the finance and governance principles that were established to support our operations. It should be noted that the total debt has reduced from $5.2m in 2004 to $3.89m at the end of 2008 and it is the plan of the board to continue to reduce this debt whilst balancing the need for investment in both assets and football department operations to achieve a sustainable competitive position in the AFL.
2009 OUTLOOK
The Club's 2009 budget will target a low to breakeven operating profit as compared to that achieved in 2008 as a result of further reinvestment in the Club's resources (including the Football Department) and given the difficult economic conditions expected to prevail.
The 2008 profit and significant growth in net assets is an excellent result for the Club. The ability to generate a profit despite not making the AFL finals again highlights the dedication of our staff, players, sponsors, members, coterie members, donors and supporters.
Signed:
Garry Cameron
Treasurer
