Honorary Treasurers Report 2017
By Nick Russell
In 2017 the RCYC enjoyed a good financial year. 2017 was a year of consolidation of contracts and finishing off lease improvements of the previous year. The Club enjoyed a prosperous year not only financially but in activities. During this year we had the prestigious Cape to Rio Race which was a great success socially and in sailing. However it added little to our bottom line.
Income statement is reflecting good operations. The Income Statement indicates an increase in turnover of about 21% up from R21,557,707 to R25,997,143. The Bar and Restaurant turnover accounted for about 32%, followed by Subscriptions at about 16%, Sailing Sponsorship about 12% and Hard Slip and Crane fees about 11%.
STATEMENT OF INCOME
As indicated membership subscriptions accounted for 16% of the turnover. Over the last year membership subscriptions revenue has grown by only about 6%. In real terms, after inflation, it has more or less remained the same. There is a drive for corporate membership which should have a positive on Subscriptions income in the future. Membership has marginally increased from 1 850 to 2012 members in 2017.
The Hard Slip and Cane Fees turnover did increase by about 52% over 2016. The Crane was out of commission for a considerable period in the 2016 while 2017 enjoyed virtually uninterrupted use.
Functions have improved by about 17% over the last year. It is starting to get traction in the market. Apart from the financial aspect, Functions can create a lot of goodwill for the club. We have been using the Regatta Centre to good effect. There is still a lot of potential in Functions and we hope to see further progress in 2018.
The operating profit from operations is up 69% from R1,078,435 to R1, 821,232 and after interest received, capital expenditure, tax and finance costs, the Surplus for the year is R1,910,260.This reflected in the Balance Sheet with the increase of Retained Income from R12,613,919 in 2016 to R14,524,179 in 2017, a difference of R1,910,260!
The Investments and Cash Assets of the Club have grown from R9,879,704 to R12,017,919 (Investments R9,740,312, vs. R9,963,000 in 2016 and Cash and Cash Equivalents R2,331,607 vs. R16, 000 in 2016).
One of the issues that we are addressing in the Balance Sheet is Trade Receivables, i.e. Debtors. Debtors have increased considerably from R1,515,648 in 2016 to R2,313,380 in 2017. The doubtful debt provision has been increased by from R256,531 to R511,470. This increase in provision has been charged to the Income Statement. Having said that we are recovering, at present, a considerable amount of Bad Debt in the order of R240 000. In the 2018 year the Debtors should be down to a more manageable level and the Doubtful Debt provision maybe decreased and added back to retained income.
The second Issue is Trade and other Payables. Part of the issue is the under provision for staff leave in the previous year which has now impacted in 2017 year, and trade creditors, which are higher in part due to increase in nominal revenues. It is still higher than it should be but it has been since addressed.
STATEMENT OF FINANCIAL POSITION
I would like to thank our Financial Manager Mrs Amanda Munitz and her assistant Belinda, our General Manager Bruce Walker. Together they form the backbone of the financial management of the club.
The Finance Committee, for their support and guidance over the year. It has been a pleasure to work with my colleagues, Vitor Medina, Luke Scott, Allan Haefele, Dave Garrard, Joep Schoof, Amanda Munitz and Bruce Walker on this committee.
The Auditors and the audit committee who have comprehensively reviewed the operations of the club, completing the annual audit and offered valuable ongoing advice to keep this club running at the optimal financial potential. Thank You to Vitor Medina, Henry Du Plessis, Carl Bosma, Ivor Sindler, Andre Jansen Van Rensburg, Carl Beekmans.
Thank you to the Commodore Vitor Medina, Vice Commodore Luke Scott, and my Colleagues on the General committee for their competence and commitment, which is of a very high standard.
Last but not least, thank you to the members of the RCYC for making the club the club it is, and for allowing me to take the financial helm over the last year.