Treasurerís Report to the 2015 AGM
2014 was a good trading year spoilt by the VAT refund to the Inland Revenue which turned our net profit of £7,663 into a loss of £9,941. A buoyant early part of the year gave us sufficient money to repay the VAT without borrowing money from the bank which was a good thing since nobody was willing to lend us money anyway. The reduction in our bank balances was therefore not as drastic as we first feared.
Bar income increased last year by 4.7% compared with 2013 and our gross profit percentage improved by 2.6%. As a result our gross profit on the bar increased by 10.1%. Gaming machine income increased by 13.4%, entirely from the Fruit Machine as the Lottery Machine income actually dropped by 8.9%. Membership dropped by a modest 1.6%, but Snooker and Pool did well, partly as a result of an increase in the cost of the snooker light toward the latter part of the year. The trading profit therefore increased by 11.1%.
Expenditure increased by 2.7%. The biggest change was Gaming Machines as the fruit machine is now emptied by Kossway who take 50% of the receipts which appears as expenditure. This replaces a fixed rental and our committeemen emptying the machine. The Lottery machine will also be emptied by Kossway in 2015 but it will make no difference to its profitability since they already take 50% of the net takings. There was a small increase in Wages and employers costs due to the increased use of casual bar staff. There was no major expenditure on the building and therefore costs are similar to 2013. Repairs to Furniture & Fittings are well down on the previous year. Everything else is similar to 2013.
Most of the capital expenditure last year was spent in the Games Room with new blinds and snooker lights. We also bought an additional Wi-Fi router to improve reception in the bar and lounge and we replaced the electronic raffle machine. The loss on disposal of assets was the old electronic raffle machine. Not surprisingly our bank balances dropped significantly last year with the balances on deposit almost wiped out. There has been some improvement in our cash position in 2015.
If we are able to continue our improved trading position in 2015 and the signs so far are good, we should be in a far healthier cash position by the end of the year. Luckily the club is in good condition and doesnít require any major expenditure but we need adequate cash reverses to meet that expenditure when it happens.
I would like to repeat the Presidentís comments in his report that we need more members taking an active role in the management of the club. The committee is well below strength and the existing committemen and officers are not getting any younger!