Ettalong Club 'back from brink'
The Ettalong Beach Club has reported a loss of $2.3 million for the last financial year, after a $2.9 million loss the previous year.
And the club now shows a net liability on its balance sheet of $15.5 million, compared to net assets last year of almost $3 million.
However, club general manager Ms Melissa Hamilton has hailed the result as a turnaround.
"The club has made it back from the brink," she said.
The club's Concise Financial Report indicated the club incurred a decline in value of more than $15 million for its waterfront property.
This has left the club with a net liability of $15.5 million on its balance sheet, which is attributed to Members' Funds - equivalent to a deficit of $737.13 for each of its 21,031 members.
Assets were shown at $22.5 million, while liabilities totalled almost $38 million, with more than $34.5 million in borrowings.
It also showed its gross revenue of $16,097,112 was down 15.6 per cent on the previous year.
Wages have been slashed from almost $6 million to just over $2.5 million, but "financial costs" have increased from $2.6 million to $3.7 million, a 40 per cent increase.
The report acknowledges "the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern".
However, Ms Hamilton said the club was able to come to an agreement with Suncorp Metway at the end of the financial year that had allowed debt repayments to be consolidated and the club to project a budgeted profit for the coming year.
According to Ms Hamilton's end of financial year report, the past year has been a "great challenge" for the club due to an increase in gaming taxes, smoking bans, higher petrol prices and increased interest rates.
"As a result, these factors have had a significant detrimental effect on the club industry as a whole," Ms Hamilton said.
"The club has now completed the majority of the necessary restructure, with considerable progress being made financially.
"In the year end June 2008, the club made a loss of $2,953,717, this year the club made a loss of $2,327,723 after deducting the impairment of property which was $15,162,580.
"This is due to the valuation of the club's land and buildings being determined at $18.6 million which resulted in this having to significantly written down (impairment of property).
"This is a one-off situation which needed to be addressed so as the club could move forward positively."
"I think it is now safe to say that the first part of the challenge has officially been met, with the assistance of Campbell Advisory and Club consultant Kevin Harvey.
"We have restructured our team and pursued a renewed focus on internal procedures and policies, a lot of people have been a part of making this all happen and ensuring that Ettalong Beach War Memorial Club has a future."
Ms Hamilton said the club would hold an official re-launch from September 7 to 13, to celebrate a new beginning for the club.