CEO’S REPORT

On behalf of the Board of Directors, I’m pleased to present the 2021 Annual Report incorporating the Annual Financial Report for the year ending December 31st, 2021, which details the financial result of a Net Loss After Tax of $774,925.

The financial result for the year included 15 weeks of being shutdown as a result of the Covid-19 global pandemic, with an EBITDA (Earnings Before Interest, Income Tax, Depreciation and Amortisation) of $6.9M; down from $13.8M. The Group reported revenue of $37.1M; down from $45.6M in 2020 as well as a Net Loss After Tax was $774,925; down from a Net Profit After Tax of $4.8M in 2020. The renovations and improvements to the 55 Campbell Street site contributed to an improvement in current assets of over $12M.

2021 was certainly a year of highs and lows for the Blacktown Workers Club Group. A two-week lockdown that again saw our Staff under a stay-at-home order for what we believed was a short period of time, turned into an extended lockdown that superseded the one experienced by the industry in the year prior.

My thanks and congratulations go to all our Staff and Managers who pulled together during this time to keep the Clubs secure, ensured our Staff stayed engaged, kept in contact with Members, created virtual experiences and supported NSW Health’s vaccination efforts.

With the support of the Board of Directors, led by President Kay Kelly, I’m proud to say we remained on track to deliver to Members the long-waited major redevelopment of the flagship venue at 55 Campbell Street. This was despite the challenges of the pandemic, including the unprecedented shutdown of the construction industry.

My thanks go to our building partners, Paynter Dixon, their sub-contractors as well as our other industry partners, for their efforts during this time. The shutdown of the Club did allow for much of the construction work to be completed while avoiding disruptions to Membership, however some works continued through to the final months of 2021, and we thank our Members and Guests for their patience.

We are proud to say that Workers Blacktown now has a Grand Foyer and Entrance, as well as a Level One food and beverage precinct that is fitting of a top NSW Club. If you haven’t already visited, I encourage you to take the time to experience Eucalyptus Dining or Mango Tango Thai for a delicious meal or have a beverage in The Shed or Redwood late night bar.

Other improvements were also made to upgrade the comfort on the Ground Level with more work to continue throughout 2022 to create a better Workers Club for all Members and Guests.

Workers Sports received a long-waited refurbishment of the bathrooms, to bring them up to the standard of the rest of the Club. We also welcomed BlackBear BBQ to the Outdoor Courtyard, which has proved popular with families.

The Board of Directors have continued to meet (even virtually throughout the lockdown period) to ensure that planning work continued behind the scenes on the two major projects. This includes the Seniors Living Development at the Workers Sports club site as well as the development opportunities available to us through the location of Workers Hubertus relative to the Western Sydney Aerotropolis which is on track to be operational by December 2026. Both projects are essential to the Group in securing generational income diversification.

Community is always an integral part of the fabric of the Blacktown Workers Club Group with an overall community contribution over $830,000, which included ClubGRANTS donations to our local community partners as well as support of local and grassroots sports through the H.E. Laybutt Sporting Complex. The Board of Directors also continued its commitment to being the change with Domestic and Family Violence within our communities by committing to $500,000 over five years to organisations on the front line. Two major fundraisers were also part of the community efforts this year. The BYSA Outdoor Cinema in April and the CEO & Co Sleep Out in June, both raised much needed funds to support this important local charity through a period of no other funding to stay open and support Blacktown Youth. We thank all those involved in supporting us with these fundraisers.

Thank you to you, our Members. It was a difficult year for many in the communities in which our Clubs operate but we are continually encouraged by your trust and loyalty in us as your Community Clubs. Your choice to spend your time and money with us, even during tough lockdowns and when the Club industry is held to stricter requirements than other industries make what we do so very worthwhile.

Thank you to the Board, our Management team, and our Staff. Again, their hard work and commitment to the Group have enabled us to move through another difficult year. I’m proud to be able to say that during the past two years of the pandemic, we have not had to create any staff redundancies and have continued to provide secure work for many staff members who are celebrating significant milestones with us.

I would also like to acknowledge the service of Jim Buckley and Bob Vincent, two long-serving Directors who we farewelled from the Board this year, while we welcomed Paul Hayes and Brett Fielding who have both become valued Board members.

I offer my condolences to those members who have lost loved ones in the past year.

We look forward to a brighter 2022 for all.

Please take care of yourselves and of each other.

Morgan Stewart Group Chief Executive Officer Blacktown Workers Club Group