Treasurer’s Report to the 2009 AGM

The licensed trade has endured one of its most difficult trading years for a long time with pubs and clubs closing every week. This has been caused by a combination of the smoking ban, unfair competition from supermarkets who sell beer below cost, swingeing increases in excise duty and more recently the recession.

Income

Bar sales dropped for the 5^th consecutive year, this time by 3.2%. However gaming machine income increased by 44%, entirely due to the popularity of the “cash in the box” machine. Snooker and pool income was also well down on the previous year while subscription income stayed virtually the same. As a result our trading profit at £155,418 was 4.3% higher than 2007.

Expenses

We have managed to keep Wages and salaries down by reducing casual bar staff to a minimum. The Secretary and the Treasurer did not take the full amount of the honorariums that they were entitled to for the second consecutive year. Repairs to the building and fittings & equipment was kept to essential work only. Entertainment was also cut but we have not ditched Sky TV or the Racing channel like many other pubs and clubs. Gaming machine expenditure includes Kossway’s share of the profits from the “Cash in the box” machine. Incidentally we have added a quiz machine which will never be a big money earner but gives the members a variety of machines to play. These decisions have reduced costs by 2.3%.

Balance Sheet

The only capital expenditure in the year was the smoker’s shelter which was very ably built by Paul Scoble and is a vast improvement on the marquee that we had used previously. Cash and bank balances have increased and the loan with the Cooperative Bank was paid off in the year. Therefore our balance sheet is now much healthier.

Conclusion

With this mind and with no loan repayments for the foreseeable future, we have decided to redecorate the club which was starting to look a little shabby. This will include new energy efficient lighting which will reduce our electricity bill and separate timers for the heating on the ground and first floor which should reduce our gas bills.

We mustn’t under estimate the challenges ahead, with a world recession and increased competition, times are going to be hard but the committee will take whatever decisions necessary to keep the club financially viable.