Richmond Financial Result 2021

[mightytiges]

Did you find anything interesting WP

Sorry Ramps, haven't had the time to sit a read them fully.

Tomorrow's afternoon reading 

WP, did the full financials say what we sold?

Any other interesting tidbits (i.e. reasons for the increase in cash)?

Have to say the full financials are disappointing. I've said this many times they only have to report to a minimum level. It is up to each organisation to what level of detail they go into. For whatever reason our Club is one of the Clubs that are of a low level. Go read othe Club's reports and they are high in detail. Will admit it peeves me no end. Will repeat again though they aren't hiding anything they are just detailing what they have to, nothing more.

Absolutely no details on "proceeds from sale of investments". Will be a question for the AGM me thinks

The increase in cash is interesting

There has been a huge increase in "income received in advance" +$7.2 million. This is income received that relates to future accounting periods. This gets recorded in the balance sheet (statement of financial position) and not as revenue. It is made up of 2 main components

1/ funds received from the State Government for the redevelopment
2/ memberships paid in advance - reading through the notes this appears to relate to Aligned Leisure. You need to remember that the Club controls Aligned Leisure so its result is included in the Club's result


Having gone through the report. I'd be asking the following

1/ sales of investments- what?
2/ the new "revaluation of investments" reserve- what?

Cheers WP. Good questions. Will wait until Monday to hopefully hear the answers.

[one-eyed]

From Prez Peggy O'Neal:


Could you please update the membership on the Club’s plans to divest itself from poker machine revenue?

There has been a long-running matter before the courts relating to rental costs at the Wantirna Club. The matter was finally resolved in favour of the Club earlier this year. The implementation of the legal decision continues to be worked through.

Until these matters are finalised, the Club won’t be making any firm decision on the future of the Wantirna Club. As a Board, we are of the view that any decision to divest needs to be commercially responsible to ensure we do not risk the financial wellbeing of the Club.

The Board has a standing committee whose function is to monitor these matters and to provide advice.


It is disappointing that the Aligned Leisure business doesn’t get an explicit line item (in the financial report) but I assume it must be within the “Health, Fitness and Community Groups” – can you confirm?

Yes, the Health and Fitness line in our financial reports refers to our Aligned Leisure business. The business generated a profit of $700K last financial year. This is a significant contribution to the Club’s balance sheet, and we look forward to growing that even further in the coming years (and COVID-free we hope) as the business matures and opportunities arise for us to expand.

https://www.richmondfc.com.au/news/1041478/from-the-president-december-2021

[mightytiges]

1/ sales of investments- what?

I didn't hear them say what the specific investments were. Just that it was "covid" investments bought and sold.

2/ the new "revaluation of investments" reserve- what?

Mentioned Koda.


Well I'm not the wiser  .

WP please explain for us mere mortals? 

[WilliamPowell]

1/ sales of investments- what?

I didn't hear them say what the specific investments were. Just that it was "covid" investments bought and sold.

They didn't, was a nothing answer really. It wasn't COVID, it was Koda investments bought and sold. But no Idea what was sold

2/ the new "revaluation of investments" reserve- what?

Mentioned Koda.


Well I'm not the wiser  .

WP please explain for us mere mortals? 

Really can't offer much to be honest.

They have engaged a Fund's Manager; Koda. They invest in various things for the Club (have no idea what)

Anyway, each year the Fund Manager would review and revalue our investments (this is outside income received on said investment) based on that advice the Club (under accounting standards) can revalue the investments held in the Balance Sheet. So the revaluation increases the BS amount and the credit side goes to the P&L as an item under standard profit. It is similar to a business being able to revalue assets.

[mightytiges]

1/ sales of investments- what?

I didn't hear them say what the specific investments were. Just that it was "covid" investments bought and sold.

They didn't, was a nothing answer really. It wasn't COVID, it was Koda investments bought and sold. But no Idea what was sold

(Clears out ears) 

2/ the new "revaluation of investments" reserve- what?

Mentioned Koda.


Well I'm not the wiser  .

WP please explain for us mere mortals? 

Really can't offer much to be honest.

They have engaged a Fund's Manager; Koda. They invest in various things for the Club (have no idea what)

Anyway, each year the Fund Manager would review and revalue our investments (this is outside income received on said investment) based on that advice the Club (under accounting standards) can revalue the investments held in the Balance Sheet. So the revaluation increases the BS amount and the credit side goes to the P&L as an item under standard profit. It is similar to a business being able to revalue assets.

Cheers WP.

As you say an investment fund could be anything - a portfolio of shares, property, venture capital, etc.

You can correct me if I'm wrong but I'm now understanding it as we've simply reduced the size of the investment fund portfolio (sold part of it) and turned that 'part' into cash. Presumably the value of the portfolio (the asset) increased over the past year and we've sold some of the excess. The value of the asset remains the same or higher depending on how much of the 'excess' was sold and we grab some cash at the same time. Being a non-for-profit organisation we don't pay any Capital Gains Tax so it's all clear money?

[WilliamPowell]

Cheers WP.

As you say an investment fund could be anything - a portfolio of shares, property, venture capital, etc.

You can correct me if I'm wrong but I'm now understanding it as we've simply reduced the size of the investment fund portfolio (sold part of it) and turned that 'part' into cash. Presumably the value of the portfolio (the asset) increased over the past year and we've sold some of the excess. The value of the asset remains the same or higher depending on how much of the 'excess' was sold and we grab some cash at the same time. Being a non-for-profit organisation we don't pay any Capital Gains Tax so it's all clear money?

taxation is not my discipline but yes I think you are right re CGT

Again, I would assume that what was sold was turned mainly into cash or alternatively it was used for other investment purchases.