OK I will keep it simple
Firstly it is a very good result. Anytime you make a profit is a positive. The strengthening of the balance sheet is another positive.
I mentioned last year that some folks would look at the fact that our current liabilities -v- current asset ratios is not great and although I understand the argument I didn't necessarily subscribe to it. What is pleasing with this years numbers is although our current Liabilities ($6.7mil) are still greater than our current assets ($4.0mil) the gap between the 2 has reduced significantly in 12 months thanks to the reduction in debt and the write back of the onerous Contract re the Wantrina Club.
Regarding the new gaming machine licences these are recorded on the BS as an Intangible Assets and it will interesting to see over time what the long term impact of this "investment" has on the operation at Wantrina in regards to its profitablilty
On the P&L side of things pleasing is the fact that our our revenues have increased by over $3 mil without any Govt grants this year. The impact of the FTF is known at $3mil but considering last years revenue figure included the same amount in FTF contributions I think a case can be mounted for saying the extra $3.3mil has been generated from operations. Unfortunately as it stands the full financials dont shed any light on this
Now for the bit that isn't addressed in the accounts and it has been asked by a few people here and that is what is our operating profit excluding the FTF monies. It is an important question for a number of reasons but more so from point of view because the Club made the effort last year of highlighting this number
From the 2011 Treasurers report
"In what have been sustained difficult economic conditions, it is pleasing to report that the consolidated entity has recorded a net profit of $2,752,801 (2010: $2,846,065).
The club has also recorded a profit from purely trading operations (before gaming, fundraising, government grants and associated interest income) of $51,000 (2010: $431,000), which reflects the significant increase in investment in football department expenditure in the current year."I just think it is important we are told this number, it is relevant because I would think at some point the monies generated from the FTF are going to decrease and it's important that as a business we are able to perform profitably without this income
As it stands at the moment the 2012 Treasurers report isn't available so it would be unfair to be too critical about this point right now. Hopefully it will be available soon and the question will be answered one way or another
But when it is all said and one the result is a good one and one which the entire Club and it's members should be proud of
Any questions fire away
