Dear Members,
I would like to give you, our members, a financial overview of where our Club stands at the end of February 2025.
We have come through a testing period with the completion of our Clubhouse last year. We are now starting to reap the benefits of our new facility, resulting in an increased interest in joining our Club, as well as the increased popularity that golf is currently enjoying, which has resulted in increased rounds being played by the public. It is gratifying to get feedback, especially from outsiders, as to how much they have enjoyed our new facility as well as our course.
The new Clubhouse itself brings changes to the way the Club operates and I can assure you that the Board has the interest and wellbeing of members as a top priority, together with ensuring that our course is kept in the best possible condition.
Key Financials
Our budget was set very conservatively this year as we needed to find out how the newClubhouse would trade. Increase in public rounds of golf, social members and public attendance at the Clubhouse is very encouraging.
- Bar revenue is $68k ahead of budget YTD Feb.
- Course Income is $33k ahead of budget YTD Feb.
- Total Income of $3.7m is $303.9k ahead of Budget YTD Feb.
- Net Profit of $490.4k is $287.4k ahead of Budget YTD Feb.
- Our Cash Balance is also ahead of Budget YTD Feb.
NAB Bank Loan Facility Review as at 17 February 2025
At the completion of the construction phase of our loan, we had to renegotiate some of the terms of the loan. These discussions were productive, resulting in the following outcomes:
- Annual Service Fee reduced from $55,400 per annum to $150 per month or $1,800 per annum.
- Proposed 1.8% Customer Margin renegotiated to 1.45%.
- Ability to deposit and withdraw excess funds into our loan account in order to reduce our interest bill.
- NAB’s technical experts will review our setup and optimise our banking facilities and arrangements at no cost to MVGC.
Membership
Our membership numbers post renewals were very strong, and with further intakes, the Club is in a great position, as shown below:
- Our 7-Day and equivalent membership categories reached full capacity and were officially closed at the end of January 2025.
- A waitlist system has now been implemented.
- Our 2024-2025 Membership Subscriptions and entrance fees are $168.2k ahead of budget YTD Feb.
Areas of Risk/Unknowns
- We are in negotiation with Crown Lands regarding our Crown Land Rental. As we no longer qualify for a rent rebate, we will have to incur extra rent of approximately $46k for the 2025 financial year.
- Weather events causing closure of the course and/or damage to the course and facilities.
- Renegotiation of Waterview Café operating arrangement, which is currently underway.
- Finalisation of defects and warranties relating to the Mammoth construction contract. We have engaged an independent project manager to assist us in this process.
- Requirement for capital expenditure and course maintenance above budget, due to unforeseen events.
Conclusion
In conclusion, I am pleased to inform our members that our Club is currently in a strong financial position. However, we cannot become complacent, particularly as winter approaches.
Prudent financial planning is also required so that we can comply with the requirements of our NAB Loan Facility, namely, meet our interest and loan repayment deadlines, without having to necessarily sacrifice the needs of our members and our golf course.
Phiroze Devitre
Finance Director
