Treasurer’s Report to the 2006 AGM

Bar graphIncome

2005 was a disappointing year with virtually all income lines lower than 2004. Bar income was 6.4% lower but this was partially mitigated by a higher gross profit 50.45% against 49.82%. As I warned last year Gaming machine is unreliable and it proved to be so this year by falling by 20.8% and is the main reason for the fall in the trading profit. Falling membership numbers and an increasing number of life members has caused the Subscription income to drop by 8.8%. Even Games income has dropped by 32.9%.

Expenses

Salary increases were given to both permanent and casual staff last year so staff costs have increased by 4.4%. There was also an increase in the honorariums paid to the Secretary and Treasurer, the first for almost 10 years. Insurance premiums fell due an improved claims history. The cost of gas and electricity is going through the roof and will continue to increase over the coming years. However we kept the cost of building maintenance well below that of 2004, most of the work done in the club was of a capital nature. Despite increasing charges from entertainers we have kept the costs below 2004, however it will be difficult to maintain the standard and frequency of entertainment in the future. Sundry expenses included the cost of a committee dinner, the first for over 5 years. Depreciation has increased due to the value of capital expenditure in the year and it was necessary to write off the assets that they replaced. Overall, though expenditure has only increased by 0.6%.

Balance Sheet

Capital expenditure in the year, included new seating, tables, television projector and radiators in the lounge, new cellar cooling and ceiling fans in the bar. Debtors has reduced due to a lower prepayment for insurance because we changed insurers for 2006 with a significant cost saving. Cash and bank balances have dropped due to a poor trading year and the aforesaid capital expenditure. The loan with the Cooperative Bank has dropped below 10,000 and will drop much faster now as the capital element of the repayments increases.

Conclusion

All told an extremely difficult year and 2006 doesn’t look very promising so far. However we have invested a lot of money in the club over the last 2 years and the benefit should last for some years to come. We will have to be very vigilant at keeping costs under control and maintaining the profitability of the club. We could have difficult times ahead but we have ridden out lulls in the trade before and I am sure that we will again.

Clive Scott

Honorary Treasurer
7th April 2006