News $320k profit for financial year ending 31 October 2018

[Duck Farmer]

I dunno about you guys but I was up every night for the past few months waiting for our financial report to be released. I am very annoyed they chose today to release it. This is very important to me.

I would have been happy to wait 2 weeks.

 

[portly]

Seems to be a bit of groupthink going on here.

My first thought was profit, ok, but not much. Wouldn't mind some multi-million dollar profit like other clubs are reporting.

Second thought was - what a sus time to report it! Ignore the Crows troll trying to make himself feel better at someone else's expense and just look at the facts. Many are starting holidays and preparing for Xmas etc etc. They just look like they are trying to hide a poor result.

I see it as doing a Crow reporting thing. Yes it is a bit sus and underwhelming but at least most can see the word profit and feel good.

Would really like some remunative results grom the China foray and soon.





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[Smithy7]

It's really a loss. We've just gone ahead and taken a leaf out of the crows book and reported the pre-depreciation figures to spin it as a profit.

Past two years we reported it post-depreciation. This year we have reported it pre. It's accounting bullshit designed to lead people who don't know better to the conclusion that all is well.

That will get the crow flogs talking ... love it ...

 

[RussellEbertHandball]

Awaiting the REH analysis

I wont know the true explanation until maybe the AGM when we get 3 page financials but probably when I pay to get full financials from ASIC 6-8 weeks after the AGM.

Last year we joined the bullshit clubs who report operating profit pre depreciation and have continued this year. There are about 7 or 8 clubs who do this. This is the breakdown

Pre depreciation profit..............$322,013
less depreciation....................$(999,013) last year $(970,583)
Net Operating Loss.................$(677,000)

Add Comprehensive items
Restructuring Costs............... $(310,321)
Revaluation Gains................ $4,166,586
Total Comprehensive Income $3,179,265

No wonder KT was confident we would report a profit in 2018, despite our poor year, because we made a profit in 2015 and 2016 where we reported comprehensive income and net operating profit as the same figure, 2017 we made a comprehensive profit but reported that separately to the pre depreciation operating profit and 2018 our statutory bottom line is a profit.

So yeah we made a profit in 2018 but its after/outside normal operations, but not from normal operations.

So what land and buildings do we have that would be worth revaluing up by $4m?? We have a few buildings but they wouldn't be worth revaluing them that much. We have some freehold land but I don't know how much we have as I though the council owned it all. Maybe that land the croquet club used to be on was transferred to the club by the council.

I suspect it has to do with the Aboriginal Centre of Excellence. In 2017 the feds gave us $4 million - actually gave us $4.4 million and we have to give the feds back $400k GST. Its stupid how government grants work with GST. We didnt show that grant as $4m income last year and the other side was a liability of government grant received in advance, but we banked the cash in a blocked account. In the notes to the accounts it said

Restricted cash includes $4,000,000 funding received from the Australian Government
towards a future project. This funding is not available for use until certain conditions
have been met, and these conditions had not been met at 31 October 2017.

So I suspect it has something to do with the Aboriginal Centre of Excellence. If its not that $4m grant, it might be that the council has transferred the land it will be built on, to Port's name and Port has valued the land at a few million dollars plus the building revaluations. The Western Bulldogs this year were transferred land to them and they showed this as a comprehensive item of $16+m. From their annual report.

In 2018, the Club signed an agreement with the State of Victoria for the transfer of land at the Whitten Oval and immediate surrounds. The transfer was completed in October 2018.......
The Club has recognised the land contribution at a fair value of $16.085 million – refer to Note 4 for details of the fair value measurement.

So Western Bulldogs showed a Profit before Redevelopment Activities $2,207,274 and Total Comprehensive Income $18,094,333.

 

[It Just Is]

Revenue actually up 2% is surprising and encouraging. Hard to read much into it without seeing a full financial statement though.

 

[Doctor Feel]

Revenue actually up 2% is surprising and encouraging. Hard to read much into it without seeing a full financial statement though.

Increased membership costs help.

 

[TeeKray]

The 2% increase in revenue is not encouraging, it's puny and irrelevant and doing nothing but keeping pace with inflation.

I actually don't care if we make a small profit or a small loss but the disingenuous reporting is not a great look. The old Denis Pagan saying comes to mind - don't piss down my back and tell me it's raining.

 

[RussellEbertHandball]

The 2% increase in revenue is not encouraging, it's puny and irrelevant and doing nothing but keeping pace with inflation.

I actually don't care if we make a small profit or a small loss but the disingenuous reporting is not a great look. The old Denis Pagan saying comes to mind - don't piss down my back and tell me it's raining.

We lost a JMS and didn't replace them, and we probably didn't raise as much revenue for the China game in 2018 as 2017 as we probably had $500k of one off costs in 2017 compared to 2018. That's why our revenue grow of 2018 looks piss poor.

Oh and we didn't play a home final at AO in 2018 so there is probably another $250k hole.

So those 3 items alone probably had us $1.5m behind 2017 to start off with.

 

[Magus]

Yeah, I'm more worried about revenue than profit. We're a non-profit organisation, if we're making money we should be spending it on football, not hoarding it.

Not a fan of the dodgy reporting though. Yet another step we've taken this year towards becoming Crows-lite.

If we're making money we should be paying off debt or doing work on Alberton Oval.

 

[raptalia]

I guess we are still waiting for that Chinese junk full of gold to come sailing up the Port River.

 

[GremioPower]

I wont know the true explanation until maybe the AGM when we get 3 page financials but probably when I pay to get full financials from ASIC 6-8 weeks after the AGM.

Last year we joined the bullshit clubs who report operating profit pre depreciation and have continued this year. There are about 7 or 8 clubs who do this. This is the breakdown

Pre depreciation profit..............$322,013
less depreciation....................$(999,013) last year $(970,583)
Net Operating Loss.................$(677,000)

Add Comprehensive items
Restructuring Costs............... $(310,321)
Revaluation Gains................ $4,166,586
Total Comprehensive Income $3,179,265

No wonder KT was confident we would report a profit in 2018, despite our poor year, because we made a profit in 2015 and 2016 where we reported comprehensive income and net operating profit as the same figure, 2017 we made a comprehensive profit but reported that separately to the pre depreciation operating profit and 2018 our statutory bottom line is a profit.

So yeah we made a profit in 2018 but its after/outside normal operations, but not from normal operations.

So what land and buildings do we have that would be worth revaluing up by $4m?? We have a few buildings but they wouldn't be worth revaluing them that much. We have some freehold land but I don't know how much we have as I though the council owned it all. Maybe that land the croquet club used to be on was transferred to the club by the council.

I suspect it has to do with the Aboriginal Centre of Excellence. In 2017 the feds gave us $4 million - actually gave us $4.4 million and we have to give the feds back $400k GST. Its stupid how government grants work with GST. We didnt show that grant as $4m income last year and the other side was a liability of government grant received in advance, but we banked the cash in a blocked account. In the notes to the accounts it said

Restricted cash includes $4,000,000 funding received from the Australian Government
towards a future project. This funding is not available for use until certain conditions
have been met, and these conditions had not been met at 31 October 2017.

So I suspect it has something to do with the Aboriginal Centre of Excellence. If its not that $4m grant, it might be that the council has transferred the land it will be built on, to Port's name and Port has valued the land at a few million dollars plus the building revaluations. The Western Bulldogs this year were transferred land to them and they showed this as a comprehensive item of $16+m. From their annual report.

In 2018, the Club signed an agreement with the State of Victoria for the transfer of land at the Whitten Oval and immediate surrounds. The transfer was completed in October 2018.......
The Club has recognised the land contribution at a fair value of $16.085 million – refer to Note 4 for details of the fair value measurement.

So Western Bulldogs showed a Profit before Redevelopment Activities $2,207,274 and Total Comprehensive Income $18,094,333.

Deficit of almost AU$1.5 million for the past two years combined. Is that it?

For how long can we sustain this?

 

[*PAF]

Does revenue growth include money the AFL gives to all clubs to cover growth in TPP?

 

[RussellEbertHandball]

Deficit of almost AU$1.5 million for the past two years combined. Is that it?

For how long can we sustain this?

Where do you get that from? We made a small breakeven profit of $28k last year after depreciation.

 

[Forzaport]

I’d really like to know what was revalued to the tune of $4m.

 

[Magus]

I’d really like to know what was revalued to the tune of $4m.

REH' post goes into that.

 

[Doctor Feel]

I’d really like to know what was revalued to the tune of $4m.

The fist float.

 

[Doctor Feel]

If we're making money we should be paying off debt or doing work on Alberton Oval.

Lol we have worse facilities than country league clubs. Glenelg's eatery is nicer for *s sake.

Unfortunately the port club suffers alot because it's in a s**t location. Alberton in general does, actually.

 

[RussellEbertHandball]

Does revenue growth include money the AFL gives to all clubs to cover growth in TPP?

Yes but the big jump of 20% was in 2017. The jump in 2018 was 1.3% so $149k was the increase in salary cap and afl distribution.

 

[Doctor Feel]

Sponsorship alone won't be solving this. Our stadium deals and other revenue streams are garbage.

 

[Magus]

Sponsorship alone won't be solving this. Our stadium deals and other revenue streams are garbage.

Even if we had a joint major putting in one mil, we'd only be breaking even. The AO deal is still awful. No wonder KT puts all his eggs in the making finals basket.

 

[RussellEbertHandball]

Sponsorship alone won't be solving this. Our stadium deals and other revenue streams are garbage.

Another $700k to $1mil from a 2nd JMS sees us break even, but yeah we need better - stadium deal + other revenue streams to be thriving.

It's why I have come to the conclusion that the GM Commercial and GM Commercial China - on the ground in China, has become the most important off field positions. Gotta find guys with extensive networks in Sydney and Melbourne, and in China, where the HQ of large corporations are, he/she can get inside the front door and get in the lift and go straight up to the marketing department heads and CEO's.

Koch and the rest of our board and KT have shown over 6 years they cant really open these doors. They might be useful at closing the deal but they aren't much chop in getting us these big sponsorship deals.

 

[GremioPower]

Where do you get that from? We made a small breakeven profit of $28k last year after depreciation.

Memory. Quite a bitch that girl... Good to know I am wrong!

 

[Forzaport]

So with $60k members and an average of 38k attendances, which I would call the "good times" we fail to regularly clear at least $1m profit, instead we barely break-even or post a loss.

When we cycle to a downturn in membership and attendances, we'll post bigger losses and we won't have any buffer to see us through as we're already in millions of dollars of debt.

If nothing changes, we're ****ed. We need revenue streams that aren't gouged by the SMA/SANFL trough.

 

[Doctor Feel]

So with $60k members and an average of 38k attendances, which I would call the "good times" we fail to regularly clear at least $1m profit, instead we barely break-even or post a loss.

When we cycle to a downturn in membership and attendances, we'll post bigger losses and we won't have any buffer to see us through as we're already in millions of dollars of debt.

If nothing changes, we're ******. We need revenue streams that aren't gouged by the SMA/SANFL trough.

Imagine a Victorian club with 38k attendances week in week out at Etihad. They'll be turning big profits even with a fully invested football program.

We never seem to break free. * it's tiring being a Port supporter. Nothing is ever quite working anywhere close to optimally. It's always compromises, buts and caveats.

Our assets are shameful, we produce little revenue outside of membership and stadium deal. If our membership dips and our crowds drop off, we are back to 2012 and borrowing back all the debt we've paid off.

We're going nowhere fast and sponsors know it. All it takes is one look at our financials year in year out and they walk away.

 

[RussellEbertHandball]

So with $60k members and an average of 38k attendances, which I would call the "good times" we fail to regularly clear at least $1m profit, instead we barely break-even or post a loss.

When we cycle to a downturn in membership and attendances, we'll post bigger losses and we won't have any buffer to see us through as we're already in millions of dollars of debt.

If nothing changes, we're ******. We need revenue streams that aren't gouged by the SMA/SANFL trough.

We are a classic cyclical club just like about 9 or 10 others of the other 15 older clubs.

History repeats its self. See 2001-04 years or even 2001-07 years followed by the next 5 or 6 years.

Its why we need 3 or 4 years of continuous top 4 results where at least AO lets us bank something ($300k per 50k crowd final) compared to Footy Park and we need China to take off. That's why Lockhart Road has cracked the shits at the club. The club is dawdling and its on field performance is making things even worse to get that big fish out of China over an above the opportunity Mr Gui has given us.

There has to be a mass clean out at the end of 2020 if we dont make a GF at least. Koch and 5 or 6 of his board members can go, can't get rid of all of them at once. Hinkley can go bugger paying him out, as there should have been a 2+1 contract put in place when we rushed to sign him for 3 years when he still had 2018 to go. Davies can go, lets go get Josh Mahoney who is doing very good things at Melbourne. KT can go, Cripps and Parker can go, several of our older players will be gone by then.

Trouble with mass clean out is that if you dont have the right people taking over, you slump to the bottom very quickly.