BWCG 2019 ANNUAL REPORT by aquigg

ANNUAL REPORT BLACKTOWN WORKERS CLUB GROUP

2019

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

ABOUT THIS REPORT The Blacktown Workers Club Group Annual Report provides a comprehensive account of the Groupâ&#x20AC;&#x2122;s performance from 1 January 2019 to 31 December 2019. The report is presented as a commitment to transparent financial reporting, good corporate governance and clear strategic planning for future sustainability. The Annual Report demonstrates initiatives undertaken throughout the year to strive towards our vision to provide a better everyday life to our members, to maintain our core values consideration, social sustainability, progressiveness and giving. Finally, this publication reflects our commitment to improving member equity, to serving our community and to enhance the working life of our employees.

CONTENTS Our Venues

Our Year in a Glance

Our Members

Mission, Vision, Core Values

President’s Report

Our Board of Directors

CEO’s Report

Our Staff

The Difference We Make

Our Sporting Bodies

Our Community

Annual Financial Report

OUR VENUES

WORKERS BLACKTOWN 55 Campbell Street, Blacktown

WORKERS SPORTS 170 Reservoir Road, Blacktown

WORKERS HUBERTUS 205 Adams Road, Luddenham

The flagship club within the Group, Workers Blacktown is an icon that has stood proudly in the Blacktown community as a major entertainment and leisure destination. The venue features restaurants (including Western Sydney’s only revolving restaurant), the famous Diamond Showroom, sporting facilities plus conference and function rooms. The tower which houses the revolving restaurant celebrated it’s 21st birthday in 2019 with the next milestone being the club reaching it’s 65th year in 2020. This year, the club will continue to undergo an extensive refurbishment that was commenced in 2019, with two floors within the venue being upgraded.

Workers Sport is a modern club that epitomises the Group’s passion for sport. Outside, you’ll find the renowned sporting complex with two rugby league fields plus two soccer fields and a cricket oval, complete with stadium seating, as well as bowling greens, tennis courts and a baseball/softball diamond. Inside, the venue celebrates all sports as the home of live sport on the big screens. With a variety of dining options, a popular outdoor area and a Travelodge just next door, Workers Sports attracts a wide range of patrons. Workers Sports is destined to become the home of a seniors living village with announcements due to come in 2020.

Joining the Group in 2014, Workers Hubertus has enjoyed a long, rich history as a German Country Club. It is now a destination for amazing outdoor activities, including two of biggest events in the calendar – Oktoberfest and the Children’s Christmas Party. The restaurant serves all the classic club favourites, and with a modern, comfortable lounge, Workers Hubertus is a perfect place to spend time with friends and family. The function space boasts stunning views of the lake and rural landscape beyond, so it is in high demand for important celebrations.

OUR VENUES

OUR YEAR IN A GLANCE

1,917,097

22,419

12,012

17,762 number of Facebook fans

56,921

number of minutes of Facebook video viewing

286,870

1,826

856

$333,391

number of patrons who entered our clubs

children at the Children’s Christmas Party

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

number of show tickets purchased

seniors at the Senior’s Christmas Party

number of meat trays won

number of sessions on our website

worth of membership points won

OUR MEMBERS 15

TIN SHED MEMBERS

509

AVERAGE AGE OF OUR MEMBERS IS

VIP MEMBERS

5,543

QUARTER CENTURY MEMBERS

MEMBERS AS OF 31 DECEMBER 2019

62%

OF MEMBERS LIVE WITHIN FIVE KILOMETRES OF THE MAIN CLUB

54%

MALE MEMBERS

46%

FEMALE MEMBERS

487

MEMBERS WITH OVER 50 YEARS CONTINUOUS MEMBERSHIP

52,426 ORDINARY

LIFE

56,434 TOTAL

OUR MEMBERS

WE THANK OUR TIN SHED MEMBERS #26

Kenneth Williams

#39

Ernest Robson

#259

John O’Connor

#325

William Cashman

#349

Victor Lamb

#1062

Keith Queen

#1093

Allan Burgmann

#1352

Noel Beggs

#1356

Keith Williams

#1483

William Morgan

#1699

Cecil Creswick

#1836

John Baron

#2182

Jack Shepherd

#2299

Geoffrey Wilson

#2555

Alexander Farrugia

“Tin Shed Members are our foundation members to whom we are forever grateful for being a part of the creation of the Blacktown Workers Club Group. Each year we honour our Tin Shed Members with the Tin Shed Lunch – our chance to say “Thank You” to those that made this all possible.”

WE CELEBRATE OUR LIFE MEMBERS #41

Robert Vincent

#1062

Keith Queen

#43

Shirley Carpenter

#2210

James Buckley

#50

Kay Kelly

#7256

Kenneth O’Loughlin

#401

Mark Cowgill

#23766

Pat Collins

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

OUR VISION We are dedicated to providing a better everyday life for our members and local community through our culture of care.

OUR MISSION To provide venues, activities and lifestyle options that enhance and benefit our community.

OUR CORE VALUES Considerate

We treat all people with respect, dignity and equality.

Socially Sustainable

We promote the wellbeing of our members while also supporting the local community.

Progressive

We are advocates for change and work towards setting new industry standards.

Giving

We give back to the local community.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

PRESIDENT’S REPORT On behalf of the Board of Directors, we are pleased to present to our members this Annual Report, detailing our financial results for the period of 2019. We experienced yet another year of change for the Blacktown Workers Club Group. Most importantly, we were proud to announce the appointment by promotion of Frank Raiti to Chief Executive Officer of the Group in May. Frank has been part of the Workers family for four and a half years, with extensive experience in the Club industry and various corporate organisations. Frank has formed an Executive Management team with many decades of experience between them; Shelley Fletcher, People & Culture; Paresh Patel, Finance & Commercial; Alison Brown, Marketing & Communications. By August 2019, we unveiled to our members a refreshed façade, a stunning new bar situated in the gaming room and a brand-new hair salon for Workers Blacktown. The Board of Directors and the Executive Management team then undertook strategic planning in September where we set a range of clear strategic objectives for 2020, including a new refurbishment plan that will ensure we rejuvenate as much of the main club as possible as well as giving some attention to both Sports and Hubertus. This will be a significant investment into the Campbell Street venue which will solidify the longevity of the Group. We look forward to making progress on these projects throughout the year, whilst we thank you in advance for the patience and support that we know our members will give through the period of disruption that major works can cause. In the 2018 Annual Report, I announced the promotion of our three Venue Managers; Kylie Canning, Workers Blacktown; Brett Lane, Workers Sports; John Filipec, Workers Hubertus. I’m proud to say that these managers have not only excelled this year, they also celebrated milestones in 2019. Kylie has been employed with Workers for 10 years, Brett for 15 years and John for an outstanding 25 years. It is a testament to the culture in Blacktown Workers Club Group, that not only have these managers been able to develop their careers with us over time, that we are able to retain such loyal, longstanding employees. Another milestone celebrated in 2019 was the 25th anniversary of the revolving restaurant, which many will remember as Hi-lights, now known as Cucina Locale. It was a time to mark the progress that the club and the community has made, with the tower that holds the restaurant once being the tallest in Blacktown, we are now seeing new high-rise buildings continually grow within the CBD. It is an exciting time to be an integral member of the Blacktown community. Similarly, we 8

are witnessing rapid change in Luddenham around our Hubertus club with the aerotropolis development. It is a reminder for the Board and management to strive to remain relevant and grow so that we can continue to give back to the communities in which we operate. At Workers Sports, we are continuing to work in the background on the proposed Seniors Living Resort, with new applications being submitted. We expect to have our next significant update on this project for our members by the end of 2020. In March 2019, we opened the Sports Complex and we were honoured at the Clubs & Community Awards with an award for our outstanding contribution to the Support for Amateur Sport. We are immensely proud of this acknowledgement. I congratulate again the team that made, and continue to make, the sporting complex such a success and important asset to grassroots local sport. Our membership has increased this past year, now exceeding 56,000 members. We are so gratified as this figure continues to grow, demonstrating that we are maintaining our relevance and importance to the membership through the entertainment and dining offerings that we provide. We acknowledge our 15 Tin Shed members who were with us at the foundation of the club (1955 - 1959), our 509 VIP members who hold over 50 years’ consecutive membership, our 5,543 Quarter Century members who hold over 25 years’ consecutive membership, and our Sporting Bodies. Early in January 2020, during the tragic bushfire crisis, Blacktown Workers Club Group donated $56,434 to the NSW Rural Fire Service. This figure represented a dollar for every member – acknowledgement that we couldn’t give back to our community the way that we do without the loyal patronage of our members. To my Board of Directors, thank you for your dedication and support during this year. We’ve made great progress together as a team and I acknowledge the efforts that you have all put into the Group as volunteers. A club is only as good as its people – members and staff coming together with a passion. I am surrounded by a Board, management, staff and membership that is dedicated to our clubs as well as our local communities. I thank you and I wish you all good health, love and friendship for 2020. Keep smiling and be kind to each other. Kay Kelly President Blacktown Workers Club Group

PRESIDENT’S REPORT

$1,742,716

in Community Donations Including

$915,342

in Support of Local Sport and

$96,600

in Mortality Benefits

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

OUR BOARD OF DIRECTORS Blacktown Workers Club Group is governed by a group of dedicated volunteers who are elected by the members to represent their interests. Together they guide the management team to achieve strategic objectives including commitments to financial outcomes, diversification efforts and sustainability.

BACK ROW - DIRECTORS Robert Vincent

George Vella

Ange Humphries

Gary Callaghan

Life Member

FRONT ROW - DIRECTORS James Buckley JP

Terry Oâ&#x20AC;&#x2122;Loughlin JP

Kay Kelly

Jack Miller JP

Treasurer Life Member

Junior Vice President Life Member

President Life Member

Senior Vice President

OUR BOARD OF DIRECTORS

Murray Searle

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

CEO’S REPORT Dear members, It is my pleasure to present to you the 2019 Blacktown Workers Club Group Annual Report, incorporating the Annual Financial Report for the year ending 31 December 2019. I’d like to begin by thanking you, our members, for the warm reception and support you have given me personally, since stepping into the role as your Chief Executive Officer in May 2019. It is an honour and a privilege to fulfil this position and to lead our dedicated team of Managers and staff and I would like to thank our loyal and dedicated Board of Directors, led by our President Kay Kelly in entrusting me with this important role. 2019 was an exciting year for the Blacktown Workers Club Group as we embarked on a long-overdue refurbishment of our Main Club in Campbell Street, Blacktown. This refurbishment will continue in 2020 and into 2021 as we give back to you, our members, a totally modern and new feeling to Workers Blacktown. On a financial note, in what was widely reported as a difficult trading year for not only clubs, but retail and hospitality in general, the Blacktown Workers Club Group reported a growth in Revenue of $1.4M from $55M in 2018 to $56.4M in 2019; and from that I am pleased to report a Net Profit after tax of $4.6M (after contributing a substantial $1.7M to the community through sporting club grants, sponsorships and charitable donations). The true barometer however, in relation to our operating result, is reflected in our EBITDA, which is Earnings Before Interest, income Tax, Depreciation and Amortisation. Our EBITDA for the financial year was a very pleasing $13.9M.

reduced by $384K to $8.9M. Resulting in an extremely strong Net Asset position of $125M, an increase of $4.6M from 2018. Our membership base also remains as strong as ever, increasing by 2.5% to 56,434 members at financial year end. As pleasing as all of that is, at the end of the day the reason the Blacktown Workers Club Group is here is to support and give back to our local community. It was a very special and proud moment in the Blacktown Workers Club Group’s history, when in March 2019 we officially opened our state-of-the-art Sporting Fields, Grandstands and associated amenities at our Workers Sports Club. A $30M capital investment funded entirely out of the Group’s own cashflow. In recognition of this accomplishment, it was also an extremely proud moment in November 2019 to attend the 2019 Clubs & Community Awards in which we received the award for our outstanding contribution to the Support of Amateur Sport. I’d like to take this opportunity to thank our Board of Directors, managers and all our staff for their hard work and dedication they provide to our members daily. To our members, I thank you for your continued support and loyalty and look forward to seeing you in 2020. Thank you! Regards, Frank Raiti Chief Executive Officer Blacktown Workers Club Group

In relation to our Balance Sheet, our Total Assets increased $4.2M to $133.9M, whilst our Total Liabilities

EXECUTIVE MANAGEMENT TEAM SHELLEY FLETCHER

PARESH PATEL

ALISON BROWN

Executive Manager: People & Culture

Executive Manager: Finance & Commercial

Executive Manager: Marketing & Communications

CEO’S REPORT

$56,441,852 in Total Revenue

$4,977,121

in Profit before Income Tax

$13,898,356

in EDITDA (Earnings Before Interest, Income Tax, Depreciation and Amortisation).

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

OUR STAFF 57%

OF STAFF LIVE WITHIN FIVE KILOMETRES OF WORKERS BLACKTOWN

LANGUAGES (OTHER THAN ENGLISH) SPOKEN BY OUR STAFF

211

STAFF EMPLOYED

43% 28% 29%

FULL-TIME

PART-TIME

CASUAL

6,314

HOURS OF TRAINING PROVIDED. A TOTAL INVESTMENT OF

$12,150

43%

MALE STAFF

57%

FEMALE STAFF

OUR STAFF

OUR GROUP MANAGEMENT TEAM

GARRY ALLEN

KIRAN ARORA

KYLIE CANNING

Grounds Manager

Catering & Functions Manager

Venue Manager, Workers Blacktown

JOHN FILIPEC

MICHAEL KAHLA

BRETT LANE

Venue Manager, Workers Hubertus

Facilities & Maintenance Manager

Venue Manager, Workers Sports

TINA MAAMARI

ROSS SIRAGUSANO

Community Relations Manager

Gaming Manager

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

OUR STAFF SANCTUARY Our employees are also ambassadors for the Blacktown Workers Club Group and with happy staff comes happy customers. One of the ways we showed our appreciation for our ambassadors was to create a brand new, happy, bright, safe and inclusive breakout room where the staff can sit back, relax, eat, drink, play, watch, refresh, snack, talk, collaborate, communicate and ultimately “have a KitKat” and have a break. Let us take you on a little tour. As you walk through the doors you are greeted by two computers connected to a printer that can be used by our staff to check their rosters and emails, to also check any memos or communications.

A quiet area if they just want to read their book in peace or just sit in silence. If one of our team rode their bike to work in the morning and are sweating up a storm, yes, of course we have showers so they can freshen up before their shift. If their uniform was folded up in their bag as they were riding, yes, of course we have an ironing board. Private restrooms for our staff are a must, and yes, of course we have them too. Keeping our staff happy is a priority and as Richard Branson famously stated, “if you take care of your employees, they will take care of the clients.”

Walking forward and to your right you have one of three large televisions mounted and tuned to whatever channel they desire! With a barista quality coffee maker, post-mix soft drink dispenser and a beautiful kitchen with all the utensils. As you come around there is more than enough room to fit 10 staff members comfortably around the wooden dining table. Fancy a game of pool? Well there is a pub-sized pool table to play on, and if staff members aren’t playing they can lay back on one of the four bean bags whilst they wait their turn. Have you ever heard of a breakout room inside a breakout room? Well there is one of them also!

“IF YOU TAKE CARE OF YOUR EMPLOYEES, THEY WILL TAKE CARE OF THE CLIENTS.” 16

OUR STAFF SANCTUARY

ESTRELLA HORNE

40 YEARS

Do you remember dancing for the first time to Queen’s ‘Crazy Little Thing Called Love’ or to Michael Jackson’s ‘Rock with you’? Or do you remember the first time you screamed the lyrics to ‘Escape’? “If you like Pina Coladas, and getting caught in the rain!” Estrella does! Estrella started her journey here at the Blacktown Workers Club when those songs made their debut. It was October 1979 and music was a big part of why she loved working at the club from the beginning. “After a long shift I used to stay back and relax with my friends at Melodies on level one (where the buffet is now), listening to the great sounds of the piano with a delicious cocktail in my hand” says Estrella. Over 40 years has passed and Estrella has never stopped smiling, providing great customer service has always inspired her, “because if the customer is smiling, I am smiling”. With great customer service, comes Estrella’s even greater hazelnut latte – make sure to give it a go the next time you see her at Impressions Café. Estrella loves coffee but also loves working at Workers. Over the years Estrella has provided great leadership and training to many baristas. Estrella is one of the main reasons the standard of coffee at Impressions is at such a high level. “I’m not saying this because I make the coffee but the Blacktown Workers Impressions Coffee is the best in Blacktown.” Estrella is loved by all; customers, fellow staff members and the club believes she is truly an asset. Never stop smiling Estrella and thank you for your many years of service, we are forever grateful!

BLACKTOWN WORKERS ANNUAL CLUB GROUP REPORT ANNUAL 2019REPORT 2019

HAROLD BECKER A man with a bouquet of flowers in his hands, a man who is there for us, our family, our friends and for our community. Harold Becker, a man who cares. Not many people know what our Welfare Officer does and we would like to get his name out there, we would like to give Harold Becker recognition for what he does amongst our community. Harold Becker became our Welfare Officer back in September 2011, however he has been a loyal member since May 1971. For those who have no family nor friends, for those who really just need a helping hand, Harold is there. On behalf of the club, he visits hospitals and nursing homes to help and assist in whatever is needed, he gives an ear to listen, a shoulder to cry on and a reassuring hand. Harold attends funerals on behalf of the club with flowers in his hands, showing his and our support towards the family and friends of the deceased. For many years Harold volunteered for Meals on Wheels and is still helping and supporting the great cause. He is also a helper, speaker and leader in our community’s Stroke Club. If anything is needed or if anyone is in need, once again, Harold is there to help. Harold has been a member of the Blacktown Workers Club since his father held a position on the Board. He has given back to the club and the Blacktown community so much more than can be expected of any one person alone. These selfless acts he carries out each day with utmost professionalism and care deserve to be recognised. Thank you Harold! We appreciate all you do for our members.

OUR LOYAL TEAM During times of change, it is important to look to those that have seen it all before – and are here to lead us through the transition period. We can only imagine the changes that these long-serving employees have experienced during their time with the Workers family. Each one has worked their way up, from floor staff to now being an integral part of the operational management team. They also celebrated a milestone in 2019. We paused them in their busy day to ask them for some cherished memories from their decades of experience at Workers. These familiar faces will need no introduction.

BRETT LANE

JOHN FILIPEC

Workers Sports Venue Manager 15 years of service, commenced 2004

Workers Hubertus Venue Manager 25 years of service, commenced 1994

What roles did you have?

I started with concierge and customer service attendant roles. I received a promotion to Customer Service Supervisor, followed by Customer Service Manager. I was then given the opportunity to be Venue Manager of Workers Hubertus when we acquired the venue, and over a year ago, was able to come to Workers Sports as Venue Manager.

I started as a waiter in Hi-lights Revolving Restaurant, then went onto become Maitre’d. I did various roles within the club including GPU, barman, cashier, poker machine attendant, doorman, carpark attendant, bar supervisor and duty manager before achieving Venue Manager of Hubertus.

What inspires you?

My fondest memory of my days at Workers is when I got to see INXS play live in the Diamond Showroom. There was a charity event on and somehow the club had managed to bring in INXS to play a few songs on the night.

My team inspire me every day with the hard work that they put in on a daily basis for our customers. I also turn to my mentors who inspire me to think differently about situations to see how I can improve and move forward. They all drive me to do better and be better.

What are you most thankful for? I’m thankful to have been given the opportunity that I have been given in my career at Workers. I’m thankful for the position I am in, which has enabled me to give back to the community, both through the work the club does, but also in my own personal efforts. I’m also thankful to lead such a diverse and awesome team.

What is your fondest memory?

What inspires you? Our members and guests inspire me to keep going, to keep thinking of things that can make our club better for them. When you see patrons happy and smiling when they’ve had a great experience at the club and I have been a part of that, that inspires me.

OUR LOYAL TEAM

2019 MILESTONES Bernadette Gleyo

TRACI RIDDELL Workers Blacktown Customer Service Manager 25 years of service, commenced 1994 What roles did you have? I started on housekeeping then graduated to the bar. I was then asked to cover a reception relief shift which included KENO and TAB. Then I was asked if Iâ&#x20AC;&#x2122;d like to train as a Supervisor which I did. Then to part-time Manager, then full-time Manager. I have a mixed bag of experience which I am glad to have.

What have you enjoyed the most? I have enjoyed working here from day one until now. I have loved all the different roles I have experienced whilst working at Workers. The comradery of people I work with always makes me smile.

What do our members expect?

Y E ARS OF SERVICE

Jeffrey Knight

Members do expect change but a good change that is going to benefit them as well as their families. As we have changing demographics in our area, we need to change with them to ensure that they will be part of our future growth and success.

BLACKTOWN WORKERS ANNUAL CLUB GROUP REPORT ANNUAL 2019REPORT 2019

Kylie Canning

Leanne Murphy Margaret Hiraka Olivia Wisniewski Shayne-Marie Goolmeeze Stephen Connor Brett Lane

Melissa Marevich Stasia Cleland Wai Hung Sho Julie Reidy

Maureen Van Hoogenvest Patricia Hardy Peter Atkins Sol Woodley

John Filipec Michelle Seguna Traci Riddell

Helen Ho

Estrella Horne

THE DIFFERENCE WE MAKE In 2019, the Blacktown Workers Club Group won the ClubsNSW Clubs & Community award for Support of Amateur Sport. This is the story of a $30 million complex dedicated to local sport. What a time it has been, 60,000 truck movements to move 64 Olympic swimming pools worth of soil to make room for our new look H.E. Laybutt Sporting Complex at Blacktown Workers Sports Club. In May 2017 work began on the massive $30 million dollar development with almost 37,000m2 of luscious green grass laid to sit in front of the two 350-seat capacity grandstands with multiple change rooms, canteens, corporate rooms, two carparks, plaza areas and a 2.7m high by 3m wide elevated board walk which traverses through the riparian zone (land alongside the creek) which links the fields together. All this came together with the help of the Workers Club sporting and sub clubs to create something unique and special for the community. The four playing fields which include two football (soccer) fields, two state grade rugby league fields, and a cricket pitch has over 20 kilometres of pressurised irrigation piping underneath them which will then irrigate 100% of the residual stormwater and irrigation water runoff which is captured in a 1,000,000-litre tank. All four playing surfaces were designed to retain and recycle as much water collected on site as is economically and physically practical. This will make the fields self-sufficient and ecologically sustainable and friendly. Fast forward to November 2018 where there was a big sense of achievement across the board. Construction was completed, all that was left was the mammoth task of landscaping the surrounds of Australia’s largest privately-owned sporting fields. Fast forward again to February 2019 where the trees are blossoming, the grass is freshly cut, the lines for the new fields are being marked out and that sense of ultimate completion was only around the corner. The official opening was held on the 2nd March 2019 which marked a new level in quality sporting complexes for local people to enjoy with 54 acres (21.8 hectares) to facilitate not only football, rugby league and cricket but also lawn bowls, tennis, netball and baseball.

The grand opening was a free event for everyone to attend, it consisted of live music, food trucks, kids’ entertainment, rides and the first games to be held on the new fields. The very first games were played by the future of our sporting clubs, our under 6’s junior rugby league and football teams. Played shortly after was our very own men and women from the Australian Army, R.A.A.F. and Navy battling against each other in two games of rugby league. These games were in support and to raise much needed funds for not only White Ribbon Australia but for local organisations such as WASH House and Blacktown Womens & Girls that support those affected by family and domestic violence. The second of March not only set a new standard of grounds to an entirely new level, but it brought a brandnew era to the Blacktown Workers Club Group, it’s members, guests and to the city of Blacktown. “This year we stepped up our efforts past anything ever done before to create an amazing opportunity for our community members to grow, enjoy life and contribute to the community in which they live”, says Kay Kelly, Blacktown Workers Club Group President. There were many boxes that the Group wanted to tick and many boxes were ticked even before Kay Kelly cut the ribbon to the new sporting complex. Ask the question to anyone, when you see a sporting field what do you see? The normal response you would get back would be “somewhere to play sport” or “a place for the kids to run around”. When this question was asked to the Blacktown Workers Club Group, their answers started with Creating, Building, Growing, Caring and Improving. Creating a safe environment for our kids, the kids of Western Sydney to play with their friends competitively and socially. Creating space not only for the kids but for all ages ranging from their youngest of four years of age to the all age men and women still playing in their eighties. Building a pathway for all players and teams to excel their skills and develop a strong mentality for their lives. Building a culture like no other bringing players and teams from all over the state, country and overseas to showcase their abilities on the world-class fields. THE DIFFERENCE WE MAKE

“This year we stepped up our efforts past anything ever done before to create an amazing opportunity for our community members to grow, enjoy life and contribute to the community in which they live”, says Kay Kelly

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

Growing a family with now over 100 teams and over two thousand individuals volunteering, playing and working under the Workers banner in football, rugby league, cricket, lawn bowls, tennis, netball and baseball. The future is now in Workers Sports Clubâ&#x20AC;&#x2122;s backyard. Caring for the wellbeing, giving the 55,000+ members of the Blacktown Workers Club Group and the 340,000 strong community a sense of belonging in providing fields for the ever-growing Blacktown family. Improving the lives of the young and old, giving more opportunity to the community reducing obesity, health problems and giving the community space to grow and enjoy life. $899,807.00 was how much the Blacktown Workers Club Group gave to their sporting and sub clubs in 2018. No other business in Australia provides the level of commitment to sporting and sub clubs. This is not the final figure as the Club has provided two brand new canteen outlets for the football and rugby league clubs to generate revenue by selling food and beverage from their own outlets. The fields and facilities come at a cost to maintain and operate, including the time it takes to mow, mark lines, cleaning and to serve our sporting and sub clubs. The Blacktown Workers Club Group see this as an integral part of who the Workers brand is and their role in the local community to provide these for our community to enjoy. The Blacktown Workers Club Group believe that this is only the beginning of the endless opportunities that the fields and facilities will create, but also providing support to not only amateur sport but support to the quickly expanding community. This is the difference we make.

THE DIFFERENCE WE MAKE

OUR SPORTING BODIES Blacktown Workers Club Group owns and operates one of Australia’s largest privately owned sporting complexes at Workers Sports, along with more sporting facilities at Workers Blacktown and Workers Hubertus. Our sporting facilities include: •

Rugby League fields with stadium seating

•

Soccer / cricket fields with stadium seating

•

Lawn bowling greens

•

Pistol shooting range

•

Table tennis

•

Netball courts

•

Baseball fields

• Snooker • Darts •

Indoor bowls

•

Tennis courts

•

Rifle range

•

Model boats lake

•

Fitness centre

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

OUR COMMUNITY Blacktown Workers Club Group have supported the following charitable organisations during 2019 with the following donations for their generous projects: Learning Links Cash Housie, Therapy in Schools Blacktown North Public School & Helping Kids with Learning Difficulties

$90,387

Clontarf Foundation

$30,000

Engaging Indigenous Students in Education & Employment Homicide Victims Support Group Inc

$26,960

Trauma Centre at Grace’s Place Traffic Offenders Program (TOP) Inc

$20,000 $16,214

Cardiac Assessment Program - Treadmills for Blacktown & Mt Druitt Hospitals AFFORD

$15,175

iPads for People with Disabilities & Modified Drama and Art Therapy for People with Disabilities PCYC Mt Druitt

$11,000

Nations of Origin Cancer Council

$10,560

Relay for Life 2019 & Biggest Morning Tea Team Rubicon

$10,000

Litres for the Land Kor-Hajer Youth Development Org

$10,000 $10,000

Paediatrics/Neonatal Blacktown City Lantern Club

$10,000

Royal Institute for Deaf and Blind Children Easy Go Connect Inc

$9,263

Easy Go Connect Pickmeup Delta Society

$9,000

Delta Therapy Dogs – Red Bandana Club Warakirri College

Grace’s Place will be a world-first residential trauma recovery centre for children affected by homicide. Grace’s Place will be there to provide support in a safe place where children, teenagers and their families grieving the death of someone they love through homicide, can share their experiences, receive counselling, be involved in therapeutic programs and learn life skills on how to survive the trauma without their loved one. Grace’s Place is named in honour of Grace Lynch, the mother of Anita Cobby and was one of the founding members of the HVSG. Grace was a gentle, caring woman who shared her life and loss with so many, becoming a mother to so many.

Easy Go Connect Pickmeup Easy-Go Connect (formerly known as Blacktown Community Transport) started with a mission “to provide the aged and disabled of the Blacktown Local Government Area, who do not have access to a private vehicle and who cannot use buses and trains, with a transport service within their financial means”. For over 35 years, they have been delivering on this mission as the service grew to the current day, with over 3,500 residents registered as clients. EGC is able to support over 30 groups and organisations with transport including Aboriginal elders’ groups, multicultural seniors’ groups, disability services and retirement villages. AFFORD - $15,175

School Lunch Box Program Blacktown City Lions Inc.

Trauma Centre at Grace’s Place

EASY GO CONNECT INC - $9,263

Traffic Offenders Program Blacktown Hospital Cardiac Rehab

HOMICIDE VICTIMS SUPPORT GROUP INC - $25,100

iPads for People with Disabilities & Modified Drama and Art Therapy for People with Disabilities Afford is trusted by thousands of people to provide disability support that inspires and enriches lives every day. iPads for People with Disabilities gives people living with disabilities the opportunity to engage with the internet to allow them to improve their quality of life and increase their own social and economic participation. Modified Drama and Art Therapy for People with Disabilities gives people living with disabilities access to programs that include drawing, painting, sculpting, role playing, public speaking and theatre games to improve physical, mental and emotional wellbeing.

$8,000

Food for Thought Cancer Patients Foundation

$8,000

Look Good Feel Better

OUR COMMUNITY

TEAM RUBICON - $10,000 Litres for the Land The concept is simple. Through club fundraising activities and public donations, millions of litres of water will be purchased and transported to the bush and provided for free to farms and families that need it the most. Sourcing of water will be dependent upon the location. In many areas, water will be purchased from the council through local water carters. However, in areas where there are tight water restrictions the water will be sourced from outside of the local government area and trucked in. Team Rubicon Australia will be responsible for the planning, logistics and delivery of this project. Team Rubicon is made up of Australian Defence Force Veterans who specialise in disaster relief. CANCER PATIENTS FOUNDATION - $8,000 Look Good Feel Better Look Good Feel Better is a free national community service program run by the Cancer Patients Foundation, dedicated to teaching cancer patients how to manage the appearance-related side-effects caused by cancer treatment. Women, men and teens participate in practical workshop demonstrations covering skin care, make-up and head wear, leaving them empowered and ready to face their cancer diagnosis with confidence. Their workshops cover skincare techniques to address common side-effects like dryness and sun sensitivity; makeup tips to help correct and conceal redness, sallowness, pigmentation and dark circles as well as techniques for drawing on eyebrows; and advice on headwear including scarf styling and wig selection.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

BLACKTOWN WORKERâ&#x20AC;&#x2122;S CLUB LIMITED ABN 21 000 858 006

ANNUAL FINANCIAL REPORT 31 DECEMBER 2019

DIRECTORS REPORT The Directors present their report together with the financial statements of Blacktown Workers Club Limited (the company) for the year ended 31 December 2019.

DIRECTORS The Directors of the company in office at any time during or since the end of the financial year are: James Buckley Gary Callaghan Pat Collins (resigned on 29 March 2019) Ange Humphries Kay Kelly Jack Miller Terry O’Loughlin George Vella Robert Vincent Murray Searle (appointed 7 April 2019)

DIRECTOR INFORMATION Kay Kelly - President Life Member. Club member since 1976. Club Director since 1995. Current President of Blacktown Workers Club Group. Board Representative on Site Committee for Sporting Precinct and Project Committee for Independent Living Units Development. Member of all sub-Committees. Club delegate for Federation of Workers Clubs Holiday units. Director/Founder of successful Club Promotion Company since 1986.

Jack Miller JP – Senior Vice President Club Member since 1976. Current Senior Vice President of Blacktown Workers Club Limited. Club Director 20102012, 2015 (appointed 29-Mar-2015) – present. Passionate about sporting bodies and Club business. 30 years’ management experience. Delegate to Sister City Committee at Blacktown City Council. Club-Grants Delegate. Member of Blacktown City Lions Club. Blacktown resident since 1975. Now retired.

Terry O’Loughlin JP – Junior Vice President Life Member. Club Member since 1969. Club Director since 1994. Current Junior Vice President of Blacktown Workers Club Limited. Member of all sub-committees. Delegate to and member of the Executive of Federation of Workers Clubs Holiday units. House and Field Committee Chairman. Life Member of the BWC Golf Club. Now retired.

James Buckley JP - Treasurer Life Member. Club Member since 1966. Club Director 1988, 1991-1994, 2007-present. Current Treasurer of Blacktown Workers Club Limited. Member of the House and Field Committee. State Councillor Clubs NSW North Western Region. Previous Director of family Transport Company. Now retired.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

DIRECTORS REPORT DIRECTOR INFORMATION (CONTINUED) Gary Callaghan Club Member since 1999. Club Director since 2012. Actively involved in the strong growth of the Clubs Junior Rugby League, having held senior positions on the committee. Employed at Orora since 1987, assisting in HR and workplace development. Trustee for Media Superannuation. Audit, Risk and Compliance Committee Member. Semiretired.

Pat Collins Club Member since 1984. Club Director since 2007. Blacktown resident for over 40 years. Now retired.

Ange Humphries Director since April 2017. Current Clubs NSW Digital Advisory Committee member. Director at AFFORD - Australian Foundation for Disability. Is currently conducting research to write a book about the history of sports teams in Blacktown. Blacktown Workers Club Building Committee member. Member of the Australian Institute of Company Directors.

George Vella Member of Blacktown Workers Club for over 34 years. Lived & worked in the Blacktown District since 1959. Managing Director of Breakaway Travel since 1977. Served in Committees ranging from Social Sporting Clubs & Businessman Associations. Sponsor of Sporting Clubs & Local Charities.

Robert Vincent Club Member since 1964. Club Director since 2007. Born in Blacktown and has lived in Blacktown all his life. Involved in community projects. Member of Blacktown Rotary Club & Life member of Apex Club. Presently operates a family hairdressing business in Blacktown since 1967.

Murray Searle Club Member since 2014. Club Director since April 2019. Audit, Risk and Compliance Committee Member. Blacktown resident 53 years.

DIRECTORS REPORT

DIRECTORS REPORT DIRECTORS MEETINGS The number of committee meetings the companyâ&#x20AC;&#x2122;s Board of Directors (the Board) held during the year ended 31 December 2019 and the number of committee meetings attended by each director were:

BOARD MEETINGS

NUMBER HELD

NUMBER ATTENDED

KAY KELLY

JACK MILLER

TERRY O'LOUGHLIN

JAMES BUCKLEY

GARY CALLAGHAN

PAT COLLINS (resigned 29/3/19)

GEORGE VELLA

ANGELA HUMPHRIES

BOB VINCENT (ROBERT)

MURRAY SEARLE (appointed 7/4/19)

NUMBER HELD

NUMBER ATTENDED

KAY KELLY

JACK MILLER

TERRY O'LOUGHLIN

JAMES BUCKLEY

GARY CALLAGHAN

PAT COLLINS (resigned 29/3/19)

GEORGE VELLA

ANGELA HUMPHRIES

BOB VINCENT (ROBERT)

MURRAY SEARLE (appointed 7/4/19)

Director

OTHER MEETINGS** Director

** Other meetings include committee meetings to which not all directors are eligible to attend.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

DIRECTORS REPORT MEMBERSHIP The company is a company limited by guarantee and is without share capital. The number of members as at 31 December 2019 and the comparison with last year is as follows:

Ordinary

2019

2018

56,434

55,058

56,442

55,066

Life

MEMBERSâ&#x20AC;&#x2122; LIMITED LIABILITY In accordance with the Constitution of the company, every member of the company undertakes to contribute an amount limited to $2 per member in the event of the winding up of the company during the time that he or she is a member or within one year thereafter. The total liability in the event of winding up is $112,884 (2018: $110,132).

OPERATING RESULT The table below shows a reconciliation of Blacktown Workers Club Limited earnings before interest, income tax, depreciation, amortisation and impairment losses. This is referred to as EBITDA.

Net profit after income tax expense attributable to members

2019 $

2018 $

4,610,105

4,947,732

8,921,235

8,470,072

367,016

556,718

13,898,356

13,974,522

Add back: Depreciation and amortisation expense Income tax expense

EBITDA

DIRECTORS REPORT

DIRECTORS REPORT OBJECTIVES The objectives for which the company is established are to provide for members and for members’ guests a social and sporting Club with all the usual facilities of a Club, to look after the members in every possible way by providing service, comfort, entertainment, good food and a wide range of facilities to cater for every age group, and to give the community a significant proportion of the Club’s profits in support of various charities and community organisations.

Short Term • • • • •

Maintain membership numbers and increase attendance at all premises Improve the experience of members using the Club facilities Improve profitability and efficiency of Club operations Increase cash reserves of the Club Maintain level of community support funding

Long term • • • •

Diversify income streams Maintain financial stability of the Club Ensure facilities continue to cater for members’ needs Increase efficiency of energy consumption

STRATEGY FOR ACHIEVING THE OBJECTIVES • • • •

Research on members’ preferences for facilities and services Review promotional activity conducted in the Club Evaluate operational procedures and staff training Investigate alternatives for producing income from non-traditional sources

PRINCIPAL ACTIVITIES The principal activities of the company during the course of the financial year consisted of the conduct and promotion of licensed social and sporting Clubs, and the provision of sporting and recreation facilities to members of the company.

HOW THESE ACTIVITIES ASSIST IN ACHIEVING THE OBJECTIVES The principal activities of the company contributed to achieving the objectives by providing a stable base of operations. This ensured the financial position of the company remained stable and generated funds to meet the demands of the company and maintain high levels of service to members and guests.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

DIRECTORS REPORT PERFORMANCE MEASUREMENT AND KEY PERFORMANCE INDICATORS The financial performance of the Club is measured against the budget set and benchmark data from the Club industry. Some of the criteria reported on are: • • • • •

Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDA) Per Capita Spend Gross Profit Margins Expense Ratios and Analysis Cash Flow

Non-financial performance is assessed by a variety of measures including: • • • • •

Mystery shoppers Members’ feedback Staff turnover Comparison with industry wide initiatives Market research

STRATEGY FOR ACHIEVING THE OBJECTIVES A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 33. Signed in accordance with a resolution of the Directors. Dated at Blacktown this 18 day of February 2020.

Kay Kelly President

DIRECTORS REPORT

Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au

Level 11, 1 Margaret St Sydney NSW 2000 Australia

DECLARATION OF INDEPENDENCE BY PAUL CHEESEMAN TO THE DIRECTORS OF BLACKTOWN WORKERS CLUB LIMITED As lead auditor of Blacktown Workers Club Limited for the year ended 31 December 2019, I declare that, to the best of my knowledge and belief, there have been no contraventions of: • The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and • Any applicable code of professional conduct in relation to the audit.

Paul Cheeseman Partner BDO East Coast Partnership Sydney, 18 February 2020

BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au

Level 11, 1 Margaret St Sydney NSW 2000 Australia

INDEPENDENT AUDITOR’S REPORT To the members of Blacktown Workers Club Limited

REPORT ON THE AUDIT OF THE FINANCIAL REPORT Opinion We have audited the financial report of Blacktown Workers Club Limited (the Company), which comprises the statement of financial position as at 31 December 2019, the statement of profit or loss and other comprehensive income, the statement of changes in members’ funds and the statement of cash flows for the year then ended, and notes to the financial report, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion the accompanying financial report of Blacktown Workers Club Limited, is in accordance with the Corporations Act 2001, including: i. Giving a true and fair view of the Company’s financial position as at 31 December 2019 and of its financial performance for the year ended on that date; and ii. Complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.

Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information The Directors are responsible for the other information. The other information obtained at the date of this auditor’s report is information included in the Directors’ report, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

INDEPENDENT AUDITOR’S REPORT

Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au

Level 11, 1 Margaret St Sydney NSW 2000 Australia

If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at: http://www.auasb.gov.au/auditors_files/ar1.pdf. This description forms part of our auditor’s report. BDO East Coast Partnership

Paul Cheeseman Partner 18 February 2020

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

DIRECTORS DECLARATION The Directors of Blacktown Workers Club Limited declare that: a. In the Directors’ opinion the financial statements and notes set out on pages 12 to 33, are in accordance with the Corporations Act 2001, including: i. Giving a true and fair view of the company’s financial position as at 31 December 2019 and of its performance, for the financial year ended on that date; and ii. Complying with Australian Accounting Standards – Reduced Disclosure Requirements and Corporations Regulations 2001. b. There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors. Dated at Blacktown this 18 day of February 2020.

Kay Kelly President

DIRECTORS DECLARATION

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the Year Ended 31 December 2019 Note

2019 $

2018 $

9,013,800

8,391,283

46,529,095

45,680,302

898,957

968,673

Revenue Sale of goods Rendering of services Other revenue Total revenue

56,441,852

55,040,258

Other income

136,030

(3,301,189)

(3,300,162)

(13,517,458)

(13,354,995)

(8,921,235)

(8,470,072)

Grants paid

(1,778,908)

(1,642,923)

Marketing and promotional expenses

(4,446,736)

(4,128,166)

Poker machine licences and taxes

(11,635,334)

(11,344,023)

Property expenses

(4,170,594)

(4,035,479)

Contractor expenses

(548,867)

(556,560)

Other expenses

(3,144,410)

(2,839,458)

(51,464,731)

(49,671,838)

4,977,121

5,504,450

(367,016)

(556,718)

4,610,105

4,947,732

4,610,105

4,947,732

Expenses Raw materials and consumables used Employee benefits expense Depreciation expense

Profit before income tax Income tax expense

Net profit after income tax expense attributable to members Other comprehensive income Total comprehensive income for the year attributable to members

3(a)

The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 41 to 58.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

STATEMENT OF FINANCIAL POSITION As at 31 December 2019 ASSETS

Note

2019 $

2018 $

16,934,496

10,836,531

Trade and other receivables

229,786

291,007

Inventories

346,179

334,959

Prepayments

518,201

669,393

Deposits paid

94,084

62,501

Financial asset – Clubs 4 Fun

100,000

50,000

74,390

18,297,136

12,244,391

114,142,961

116,403,764

3(c)

144,219

141,365

1,321,056

889,596

Total Non-Current Assets

115,608,236

117,434,725

Total Assets

133,905,372

129,679,116

3,426,955

3,799,228

3(b)

37,317

Employee benefits

2,475,356

2,448,366

Other provisions

120,000

Income received in advance

210,274

223,434

Total Current Liabilities

6,232,585

6,628,345

Current Assets Cash and cash equivalents

Current tax assets

3(b)

Total Current Assets Non-Current Assets Property, plant and equipment Deferred tax assets Intangible assets

LIABILITIES Current Liabilities Trade and other payables Current tax liabilities

Non-Current Liabilities Employee benefits

119,578

132,099

Provisions

1,850,444

1,849,057

718,178

695,133

Total Non-Current Liabilities

2,688,200

2,676,289

Total Liabilities

8,920,785

9,304,634

124,984,587

120,374,482

Retained profits

124,984,587

120,374,482

Total Members’ Funds

124,984,587

120,374,482

Income received in advance

Net Assets Members’ Funds

The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 41 to 58. 38

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN MEMBERSâ&#x20AC;&#x2122; FUNDS For the Year Ended 31 December 2019 Retained Earnings $

Equity Reserve $

Total Equity $

112,834,997

2,591,753

115,426,750

4,947,732

Total comprehensive income for the year

4,947,732

Transfer between reserves

2,591,753

(2,591,753)

120,374,482

4,610,105

124,984,587

Balance at 1 January 2018 Net profit for the year

Other comprehensive income for the year, net of tax

Balance at 31 December 2018 Net profit for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year

Balance at 31 December 2019

The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 41 to 58. BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

STATEMENT OF CASH FLOWS For the Year Ended 31 December 2019 Note

2019 $

2018 $

Cash Flows From Operating Activities Receipts from customers

61,261,742

59,706,586

(48,446,539)

(47,188,308)

Interest received

122,286

185,806

Rent received

776,671

782,867

Income taxes paid

(474,303)

(789,417)

Net cash inflow from operating activities

13,239,857

12,697,534

(6,660,432)

(19,554,066)

173,844

Payment for financial assets

(50,000)

Acquisition of Intangible assets

(431,460)

Net cash outflow from investing activities

(7,141,892)

(19,430,222)

Net increase/(decrease) in cash and cash equivalent

6,097,965

(6,732,688)

Cash and cash equivalent at the beginning of the financial year

10,836,531

17,569,219

Cash and cash equivalent at the end of the financial year

16,934,496

10,836,531

Payments to suppliers and employees

Cash Flows From Investing Activities Payment for property, plant and equipment Proceeds from sale of property, plant and equipment

The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 41 to 58. 40

STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2019

ABOUT THIS REPORT Blacktown Workers Club Limited is a company limited by guarantee, incorporated and domiciled in Australia and is a non-for-profit entity for the purposes of preparing the financial statements. The financial statements are for Blacktown Workers Club Limited as a standalone legal entity. The financial statements were approved for issue by the Directors on 18 February 2020 The financial statements are general purposes financial statements which: • Have been prepared in accordance with the requirements of the Corporations Act 2001 and Australia Accounting Standards – Reduced Disclosure Requirements of the Australia Accounting Standards Board; • Have been prepared under the historical cost convention; • Are presented in Australian dollars; • Where necessary comparative information has been restated to conform with changes in presentation in the current year; and • Have been prepared on a going concern basis.

New or amended Accounting Standards and Interpretations adopted The Company has adopted all new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The following Accounting Standards and Interpretations are most relevant to the Company: AASB 15 Revenue from Contracts with Customers The Company has adopted AASB 15 from 1 January 2019. The standard provides a single comprehensive model for revenue recognition. The core principle of the standard is that an entity shall recognise revenue to depict the transfer of promised goods or services to customers, i.e. performance obligations, at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services AASB 16 Leases The Company has adopted AASB 16 from 1 January 2019. The standard replaces AASB 117 ‘Leases’ and for lessees eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-line operating lease expense recognition is replaced with a depreciation charge for the rightof-use assets (included in operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the operating expense is now replaced by interest expense and depreciation in profit or loss. For classification within the statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments are separately disclosed in financing activities. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. Impact of adoption AASB 15 and AASB 16 were adopted using the modified retrospective approach and as such comparatives have not been restated. There was no impact from the adoption of AASB 15 Revenue from contracts with customers and AASB 16 Leases on opening retained profits as at 1 January 2019.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

ABOUT THIS REPORT The notes include information which is required to understand the financial statements and is material and relevant to the operations, financial position and performance of the company. Information is considered material and relevant if, for example: • • The amount in question is significant because of its size or nature; • • It is important for understanding the results of the company; • • It helps to explain the impact of significant changes in the company’s business – for example, acquisitions and impairment write downs; and • • It relates to an aspect of the Company’s operations that is important to its future performance Significant and other accounting policies that summarise the measurement basis used and are relevant to an understanding of the financial statements are provided throughout the notes to the financial statements.

Critical Accounting Judgements, Estimates and Assumptions In the process of applying the company’s accounting policies, management has made a number of judgements and applied estimates of future events. Judgements and estimates that are material to the financial statements include: Estimation of useful lives of assets

Note 4

Intangible Assets

Note 5

Long service leave liability

Note 8

Mortality Fund Provision

Note 9

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

1. REVENUE 2019 $

2018 $

Bar sales

4,931,967

4,816,004

Catering sales

4,081,833

3,575,279

9,013,800

8,391,283

44,817,955

43,910,278

Members’ subscriptions

283,839

355,956

Entertainment, promotions and sundry income

585,048

526,448

TAB and Keno sales

354,353

406,220

Commission received

487,900

481,400

46,529,095

45,680,302

Interest received

122,286

185,806

Rent received

776,671

782,867

Total other revenue

898,957

968,673

56,441,852

55,040,258

136,030

56,441,852

55,176,288

Sale of Goods Revenue

Rendering of Services Revenue Poker machines – net clearances

Other Revenues

Total Revenue

Other Income Net gain on disposal of non-current assets

Total Revenue and Other Income

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

1. REVENUE (CONTINUED) Revenue Recognition Revenues are recognised at fair value of the consideration received or receivable net of the amount of goods and services tax (GST) payable to the taxation authority. Transfer of goods or services of the same nature and value without any cash consideration are not recognised as revenues. Sale of Goods Revenue from the sale of goods comprises of revenue earned from the provision of food, beverage and other goods and is recognised (net of rebates, returns, discounts and other allowances) at a point in time when the performance obligation is satisfied that is on delivery of goods to the customer. . Rendering of Services Revenue from rendering services comprises revenue from gaming facilities together with other services to members and other patrons of the club and is recognised at a point in time when the services are provided Interest Revenue Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets is the rate inherent in the instrument. Rent Revenue Rent revenue is recognised on a straight-line basis over the lease term. Lease incentives granted are recognised as part of the rental revenue. Contingent rentals are recognised as income in the period when earned. Other Income Other revenue is recognised when it is received or when the right to receive payment is established.

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

2. EXPENSES 2019 $

2018 $

3,301,189

3,300,162

Buildings and improvements

4,234,183

3,697,922

Plant and equipment

2,299,915

2,497,249

Poker machines

2,387,137

2,274,901

Total depreciation and amortisation

8,921,235

8,470,072

21,356

(136,030)

1,011,798

1,036,690

Profit before income tax including the following specific expenses:

Cost of sales Cost of sales

Depreciation

Loss/(Profit) from sale of the property Defined contribution superannuation expense

Significant judgements i. Estimation of Useful Lives of Assets The company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

3. INCOME TAX a. Income Tax Expense The Income Tax Assessment Act, 1997 (amended) provides that under the concept of mutuality Clubs are only liable for income tax on income derived from non-members and from outside entities.

2019 $

2018 $

Current income tax applicable at rate of 30%

369,870

557,493

(Increase)/decrease in deferred tax

(2,854)

(775)

Income tax attributable to operating profit

367,016

556,718

37,317

269,241

(474,303)

(789,417)

(7,274)

369,870

557,493

(74,390)

37,317

Employee benefits

144,219

141,365

Net deferred tax assets

144,219

141,365

140,590

2,854

775

144,219

141,365

The amount set aside for income tax in the Statement of Profit or Loss and Other Comprehensive Income has been calculated as follows:

(b) Current Tax (Assets)/Liabilities Movements during the year: Balance at beginning of year Income tax paid Prior year adjustment Current yearâ&#x20AC;&#x2122;s income tax expense on profit

(c) Deferred Tax Assets The balance comprises temporary differences attributable to: Amounts recognised in profit or loss

Movements: Opening balance at 1 January Debited/(credited) to the Statement of Profit or Loss and Other Comprehensive Income Closing balance at 31 December

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

3. INCOME TAX (CONTINUED) Recognition and Measurement The income tax expense or benefit for the period is the tax payable on that periodâ&#x20AC;&#x2122;s taxable income based on the applicable income tax rate, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and the adjustment recognised for prior periods, where applicable. The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entityâ&#x20AC;&#x2122;s which intend to settle the claim simultaneously.

Mutuality Principle The company calculates its income in accordance with the mutuality principle which excludes from income, any amounts of subscriptions and contributions from members, and payments received from members for particular services provided by the Club or association, e.g. poker machines, bar and dining room service in the case of social Clubs. The Commissioner of Taxation accepts this method of calculating income as appropriate for recognised Clubs and associations. Amendments to the Income Tax Assessment Act 1997 ensure social Clubs continue not to be taxed on receipts from contributions and payments received from members.

4. PROPERTY, PLANT AND EQUIPMENT 2019 $

2018 $

8,648,957

At cost

140,045,100

110,659,084

Accumulated depreciation

(52,151,257)

(47,917,074)

87,893,843

62,742,010

96,542,800

71,390,967

39,977,541

38,950,386

(33,481,132)

(31,232,300)

6,496,409

7,718,086

Freehold land At cost Buildings

Total Land and Buildings

Plant and equipment At cost Accumulated depreciation

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

4. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 2019 $

2018 $

At cost

20,549,063

19,456,998

Accumulated depreciation

(14,776,107)

(13,947,277)

5,772,956

5,509,721

At cost

5,333,796

31,784,990

Total property, plant and equipment net book value

114,142,961

116,403,764

Poker machines

Capital works in progress

Valuation An independent valuation by Andrew Nock Pty Limited of the companyâ&#x20AC;&#x2122;s properties being the land and buildings was carried out in December 2017 with an effective date of December 2017 on the basis of open market value for existing use resulted in a valuation of $156,166,000 (including additions of $29,476,000 since last valuation 2017). As the properties are recorded at cost, the valuation has not been brought to account. The directors do not believe that there has been a material movement in the fair value since the valuation.

2019 $

2018 $

62,742,010

66,350,166

7,000

76,024

Transfer from WIP

29,379,016

13,742

Depreciation expense

(4,234,183)

(3,697,922)

Carrying amount at end of year

87,893,843

62,742,010

Reconciliations

Movements in Carrying Amounts Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year are set out below:

Buildings Carrying amount at beginning of year Additions

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

4. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 2019 $

2018 $

Carrying amount at beginning of year

7,718,086

9,384,163

Additions

1,003,736

836,332

144,514

17,277

(2,299,915)

(2,497,249)

(87,289)

(5,160)

6,496,409

7,718,086

Carrying amount at beginning of year

5,509,721

6,187,254

Additions

2,694,888

1,630,022

Depreciation expense

(2,387,137)

(2,274,901)

(44,516)

(32,654)

5,772,956

5,509,721

Carrying amount at beginning of year

31,784,990

14,787,044

Additions

3,072,336

17,011,688

(29,523,530)

(13,742)

5,333,796

31,784,990

Reconciliations (continued)

Plant and Equipment

Transfer from work in progress Adjustment Depreciation expense Disposals Carrying amount at end of year

Poker Machines

Disposals Carrying amount at end of year

Capital Works in Progress

Transfers to buildings and Plant and equipment Carrying amount at end of year

The land holdings of Blacktown Workers Club Limited are classified as either core or non-core properties, as listed below:

Core Properties • Workers Blacktown Club premises, air-bridge and airspace at 55 Campbell Street, Blacktown • Multi-storey car park at Colo Lane, Blacktown • Workers Sports Club premises and car park and sporting facilities at 170 Reservoir Road, Blacktown excluding part of the land comprised in certificate of title 201/880404 held as non-core property per page 25 • Hubertus Club premises at Adams Road, Luddenham

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

4. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Non-core Properties • • • • •

Sporting Fields at Walters Road, Blacktown Ground level car park at 40 & 44 Campbell Street, Blacktown 34 Campbell Street, Blacktown 52 Campbell Street, Blacktown Part of the land comprised in certificate of title 201/880404 known as 170 Reservoir Road Blacktown NSW

Recognition and Measurement All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit or loss during the financial period in which they are incurred. Useful lives are estimated as follows: Buildings

40 years

Plant and Equipment

5-15 years

Poker Machines

4-5 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each Statement of Financial Position date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the profit or loss. Capital works in progress are the cost incurred to date for capital projects that are underway at reporting date. Capital works in progress are not depreciated until they are ready for use and allocated to the appropriate asset category.

Impairment of Assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

5. INTANGIBLE ASSETS 2019 $

2018 $

678,460

247,000

678,460

247,000

Licence to occupy holiday units

642,596

Total intangibles

1,321,056

889,596

Carrying amount at the beginning of the year

247,000

Additions

431,460

Carrying amount at the end of the year

678,460

247,000

Poker machine entitlements At cost Accumulated impairment losses

Poker Machine entitlement reconciliation

Licences The amount represents the costs incurred in acquiring licences at certain holiday units in Sussex Inlet, Fingal Bay and Uranga.

Recognition and Measurement Poker Machine Entitlements Poker machine entitlements are considered to be intangible assets with an indefinite life as there is no set term for holding the entitlements. As a result the entitlements are not subject to amortisation. Instead, poker machine entitlements are tested for impairment annually and are carried at cost less accumulated impairment losses. Poker machine entitlements are not considered to have an active market, hence the fair value is calculated using the value in use method based on managementâ&#x20AC;&#x2122;s 5 year forecasts.

Licences to Occupy Holiday Units Licences held by the company are considered to be intangible assets with an indefinite life as there is no set term to the contractual agreement. As a result the licences are not subject to amortisation. Instead the licences are tested for impairment annually and are carried at cost less accumulated impairment losses.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

6. TRADE AND OTHER PAYABLES 2019 $

2018 $

Trade creditors

1,430,781

1,821,389

Goods and Services Tax (GST) payable

339,016

313,348

Other creditors and accruals

1,657,158

1,664,491

3,426,955

3,799,228

Recognition and Measurement These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

7. FINANCIAL LIABILITIES Financing Arrangements The company has access to the following lines of credit: Total facilities available and unused: Line of credit

10,000,000

Security over the financial liabilities consists of: â&#x20AC;¢ Registered mortgage by Blacktown Workers Club over land and Club premises situated at 55 Campbell Street, Blacktown NSW

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

8. EMPLOYEE BENEFITS Current Non-current

2019 $

2018 $

2,475,356

2,448,366

119,578

132,099

2,594,934

2,580,465

The present value of employee benefits not expected to be settled within 12 months of reporting date have been calculated using the following weighted averages: Assumed rate of increase in wage and salary rates Discount rate

1.8%

3.81%

Significant judgements Long Service Leave Provision The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect to all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

Recognition and Measurement Wages and Salaries, Annual Leave and Sick Leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave are recognised in other payables with respect to employeesâ&#x20AC;&#x2122; services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

Long Service Leave The provision for employee benefits relating to long service leave represents the present value of the estimated future cash outflows to be made resulting from employeesâ&#x20AC;&#x2122; services provided to reporting date. The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the market yields on national government bonds at reporting date which most closely match the terms of maturity with the expected timing of cash flows. The unwinding of the discount is treated as long service leave expense.

Superannuation Plan The company contributes to several defined contribution superannuation plans. Contributions are recognised as an expense as they are made. The company has no legal or constructive obligation to fund any deficit.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

9. PROVISIONS 2019 $

2018 $

120,000

Mortality Fund

1,850,444

1,849,057

Carrying amount at the beginning of the year

1,969,057

1,968,498

Contributions to the fund

100,440

97,859

Payments from the fund

(99,053)

(97,300)

Carrying amount at the end of the year

1,970,444

1,969,057

Current Mortality Fund

Non-Current

Recognition and Measurement The valuation of the Mortality Fund liability was performed by Professional Financial Solutions Pty Ltd as at 31 December 2015. The Fundâ&#x20AC;&#x2122;s liability is calculated for the death benefit of an average of 15 years discounted at 2%. The Fund is a closed fund. Per the charter, a valuation is required every 5 years.

Significant judgements i. Mortality Fund Provision A mortality fund provision is recognised based on the estimated future cash outflows to members of the mortality fund. The provision is based on the maximum amount payable on the death of a member. The maximum amount payable is determined by the companyâ&#x20AC;&#x2122;s constitution.

10. COMMITMENTS 2019 $

2018 $

2,335,125

3,516,580

Capital Expenditure Commitments

Buildings Contracted but not provided for and payable: Within one year

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

11. KEY MANAGEMENT PERSONNEL DETAILS a. Directors The following persons were non-executive Directors of the company during the financial year: James Buckley Gary Callaghan Pat Collins (resigned on 29 March 2019) Ange Humphries Kay Kelly Jack Miller Terry Oâ&#x20AC;&#x2122;Loughlin George Vella Robert Vincent Murray Searle (appointed 7 April 2019)

b. Other Key Management Personnel The following persons also had authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly during the 2019 financial year:

Name

Position

Frank Raiti

Chief Executive Officer / Company Secretary (appointed on 22 May 2019)

Dale Hunt

Chief Executive Officer / Company Secretary (resigned 19 April 2019)

Shelley Fletcher

Executive Manager: People & Culture

Paresh Patel

Executive Manager: Finance & Commercial (Appointed on 19 August 2019)

Alison Brown

Executive Manager: Marketing & Communications (Appointed 28 August 2019)

Anneke Lemmerman

Group Strategic Manager (resigned 21 June 2019)

c. Key Management Personnel Compensation Benefits and payments made to the Directors and Other Key Management Personnel

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

2019 $

2018 $

1,326,112

1,057,424

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

12. RELATED PARTIES Key Management Personnel Disclosures relating to key management personnel are set out in Note 11.

Directorsâ&#x20AC;&#x2122; Transactions with the Company A Director of the company, K Kelly, has an interest in a promotions company, which offers services to the company under normal commercial terms and conditions. The value of the transactions during the year with Directors and their Director related entities were as follows:

Director

Director Related Entity Transaction

K Kelly

Tovemint Pty Limited

Promotions expense

2019 $

2018 $

122,514

128,526

During the year 1 relatives of S Fletcher, Executive Manager People & Culture of the Club, were employed by Blacktown Workers Club Limited and received wages within normal employee terms and conditions. From time to time Directors of the company may purchase goods from the company or participate in other Club activities. These purchases and participations are on the same terms and conditions as those entered into by any other member of the Club. Apart from the details disclosed in this note, no Director has entered into a material contract with the company since the end of the previous financial year and there were no material contracts involving Directorsâ&#x20AC;&#x2122; interests subsisting at year end.

13. COMPANY DETAILS The Club is incorporated and domiciled in Australia as a company limited by guarantee. In accordance with the Constitution of the company, every member of the company undertakes to contribute an amount limited to $2 per member in the event of the winding up of the company during the time that he is a member or within one year thereafter. At 31 December 2019 there were 56,442 members. The registered office of the company is 55 Campbell Street, Blacktown NSW 2148.

14. EVENTS SUBSEQUENT TO REPORTING DATE There are no matters or circumstances that have arisen since the end of the financial year that have significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in future financial years.

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

15. SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES a. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

b. Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as a current asset or liability in the Statement of Financial Position. Cash flows are included in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the Australian Taxation Office.

c. Trade and Other Receivables Trade debtors and other receivables represent the principal amounts due at reporting date plus accrued interest and less, where applicable, any unearned income and provisions for doubtful accounts, including expected credit losses, as per AASB 9.

d. Inventories Inventories are measured at the lower of cost and net realisable value. Costs are assigned on the basis of weighted average costs.

e. Fair Value Estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of financial instruments traded in active markets such as trading and available-for-sale securities is based on quoted market prices at the Statement of Financial Position date. The quoted market price used for financial assets held by the company is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.

f. Customer Loyalty Program The company operates a loyalty program where customers accumulated points for dollars spent. The award points are recognised as a separately identifiable component of the initial sale transaction, by allocating the fair value of the consideration received between the award points and the other components of the sale that the award points are recognised at their fair value. Revenue from the award points is recognised when the points are redeemed. The amount of revenue is based on the number of points redeemed relative to the total number expected to be redeemed.

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the Year Ended 31 December 2019

15. SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) g. Financial assets The company made an investment in Clubs 4 Fun, being shares in a company held for the sole purpose of producing an intangible asset. The asset is not yet completed and further investment will be required. A useful life has not yet been assigned as the asset is still under development. The investment has been classified as an intangible asset as future cashflows are expected to be generated directly as a result of this asset. There is expected to be an active market for this investment and therefore the asset will be valued at fair value.

NOTES TO THE FINANCIAL STATEMENTS

BLACKTOWN WORKERS CLUB GROUP ANNUAL REPORT 2019

WORKERS BLACKTOWN

55 Campbell Street, Blacktown

WORKERS SPORTS

170 Reservoir Road, Blacktown

workersclub.com.au 60

WORKERS HUBERTUS

205 Adams Road, Luddenham