Treasurerís Report to the 2017 AGM
After excellent trading year in 2015, it was almost inevitable that 2016 would be an anti climax and true enough the profit as dropped from £24,291 to £13,069. Still a good result but not as good as 2015. Although the profit from the bar was down, the principal reason for the drop is an increase in costs.
Bar income was down 1.6% and the gross profit margin down 1.28% and as a result the Gross profit from the bar was down by about £5,000. However most other income lines were up; Gaming machine income was up 6.4%, Subscriptions were up 16.7%, Miscellaneous income was up 18.1%. The latter due to the commission from cashing money over the bar. Snooker income was up, but pool income was down last year. Overall the gross profit increased by 0.5%.
Expenditure increased by 6.5% which is less than the 2015 increase of 12.2%. Wages and salaries were up about £6000, the principal increase being Casual bar staff though permanent bar salaries was also up due to a salary increase. Gaming machine costs are a percentage of the income so if the income goes up so does the cost. The increase in Entertainment costs is entirely due to rising costs of satellite television. Sundry expenses has gone up for a number of reasons, including the cost of a committee dinner and Christmas decorations. I took the opportunity to write off more fixed assets that we no longer own i.e. cash registers, pool table, bottle fridges, projector, dance floor and icemaker.
We have a healthy surplus on our current assets caused by a further increase in our cash and bank balances. Capital expenditure included new carpets on the ground floor, new cash tills, dance floor, snooker meters and icemaker. Stocks and creditors are at similar levels to the previous year. We are in a healthy position financially and have resources to cover almost all eventualities.
Our finances are now on a sound financial base but we still need to be vigilant with rising prices and uncertainties caused by the Brexit negotiations.