Ah, paternity leave... I obtained a full copy of the RFC annual report, rather than just the concise one issued to members (anyone can get a full copy from the club - ideal for insomniacs).
In any case, we all know the headline profit figure, but I did note:
* we now bank with Westpac, not ANZ. The $4m ANZ overdraft was restructured to a $500K Westpac overdraft (undrawn as at 31/10) and a $5,200,000 loan facility (drawn to $4.9m at the same date). Better rates flow as a result - 6.46% p.a when the accounts were done but presumably now about 0.5% higher) This severs a long relationship with ANZ going back to before the SOS campaign (it was ANZ that was going to pull the pin if we didn't raise the SOS cash)
* a condition of the new facilities was that the AFL provide a formal guarantee of the Waverley payments (that run until 2008) and also the annual club dividend (which presumably was expressed so that it can be directed straight to Westpac in the event of a default). The club still gets these payments paid to it directly as long as things are going OK, but this guarantee would I'd say not be in place with the financiers of the richer clubs and so while we are not CBF recipients, we are still heavily dependent on AFL payments and arguably do benefit from that financial (albeit not funded) assistance in the form of the guarantees
* we repaid a fair bit of debt during the year, but also spent about $300K towards upgrading the Wantirna gaming place (never been there) so from my perspective the debts owed to our Bank actually increased by $1m from the 2005 balance date as many other expenses (admin, salaries etc). Hmmmm. Interest expenses went up to $478K, from $400K in 2005.
* $1.5m in the bank up from $1m last year - presumably we'd rather not access the overdraft and its higher interest rates if possible so we'll try to trade through the off-season on the basis of this cash balance
* marketing and promotional expenses at $2.75m up about 5%. No probs with marketing the club, and spending a fair bit to do it, but given total revenue of just under $26m (up from $23.5m) the ratio seems too high. Must continue to increase revenue - I think Pies are more than $40m this year and set to hit $50m in the next year or 3
Sexy stuff huh?
I'd love the club to publish its budgets so its performances could be measured appropriately, not just when compared with past results. Cost cutting has probably gone as far as reasonably possible, so increasing revenue must be the focus.
Debt position remains a concern. We should set the start of 2009 as a debt free target - another $2m to come in from the Waverley proceeds and higher dividends during that period makes this viable. A couple of flags wouldn't hurt either. Bloody Casey, if we were even just breaking even a few years ago we'd have $5m in the bank come next year.
Good afternoon...
In any case, we all know the headline profit figure, but I did note:
* we now bank with Westpac, not ANZ. The $4m ANZ overdraft was restructured to a $500K Westpac overdraft (undrawn as at 31/10) and a $5,200,000 loan facility (drawn to $4.9m at the same date). Better rates flow as a result - 6.46% p.a when the accounts were done but presumably now about 0.5% higher) This severs a long relationship with ANZ going back to before the SOS campaign (it was ANZ that was going to pull the pin if we didn't raise the SOS cash)
* a condition of the new facilities was that the AFL provide a formal guarantee of the Waverley payments (that run until 2008) and also the annual club dividend (which presumably was expressed so that it can be directed straight to Westpac in the event of a default). The club still gets these payments paid to it directly as long as things are going OK, but this guarantee would I'd say not be in place with the financiers of the richer clubs and so while we are not CBF recipients, we are still heavily dependent on AFL payments and arguably do benefit from that financial (albeit not funded) assistance in the form of the guarantees
* we repaid a fair bit of debt during the year, but also spent about $300K towards upgrading the Wantirna gaming place (never been there) so from my perspective the debts owed to our Bank actually increased by $1m from the 2005 balance date as many other expenses (admin, salaries etc). Hmmmm. Interest expenses went up to $478K, from $400K in 2005.
* $1.5m in the bank up from $1m last year - presumably we'd rather not access the overdraft and its higher interest rates if possible so we'll try to trade through the off-season on the basis of this cash balance
* marketing and promotional expenses at $2.75m up about 5%. No probs with marketing the club, and spending a fair bit to do it, but given total revenue of just under $26m (up from $23.5m) the ratio seems too high. Must continue to increase revenue - I think Pies are more than $40m this year and set to hit $50m in the next year or 3
Sexy stuff huh?
I'd love the club to publish its budgets so its performances could be measured appropriately, not just when compared with past results. Cost cutting has probably gone as far as reasonably possible, so increasing revenue must be the focus.
Debt position remains a concern. We should set the start of 2009 as a debt free target - another $2m to come in from the Waverley proceeds and higher dividends during that period makes this viable. A couple of flags wouldn't hurt either. Bloody Casey, if we were even just breaking even a few years ago we'd have $5m in the bank come next year.
Good afternoon...
