C EO REP O RT
B EVA N PAUL Dear Members There were a number of noteworthy milestones achieved in 2019. Parramatta Leagues turned 60 years old. The celebrations went for 4 months with 60% off meals across our various outlets and Parramatta Leagues Club Memberships reached 49,014 up from 37,425 in 2012. Financials
“The Kicks development is achieving a 16.9% return on funds invested and in the 2019 reporting period, a total of 48,249 games of tenpin were played.”
The annual profit for 2019 of $2,269,737 was the outcome of several factors. These included increased depreciation, interest expense, property revaluation and a 1.5% reduction in gaming revenue from 2018. This outcome is consistent with industry information received. I can also report that in October 2019, the Administrator approved expenditure for a major upgrade of the Leagues Club gaming installation. Depreciation had a significant impact in 2019 and coupled with interest expense these items impacted profitability by $1,246,007. Depreciation however, is a non-cash item so Members should also examine the cashflow statement and to assess the annual performance and note that net cash from operating activities doubled from the previous year from $5,292,462 to $10,862,446. As Max noted in his report, net cash from operations has increased significantly from 2018 as a result of the Leagues Clubs new facilities coming online. To put this result in perspective, the average net cash from operations for the decade prior to construction work was $7,905,738 per annum, so the 2019 result is 37% greater than the comparable historical average. The balance sheet also remains very healthy with the company’s net assets having grown by 70% from $40,837,062 in 2013 to $69,640,532 in 2019 and total Member assets are now valued at $108,020,981. Repairs and maintenance remain at higher than historic levels as the Club continues to invest in the operations of its main asset being the Leagues Club premises. In 2018 and 2019 repairs and maintenance averaged $1,909,191, compared to a historical average of $1,286,655. This expenditure will likely continue at these levels due to the age of the building and the ongoing maintenance requirements.
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| PARRAMATTA LEAGUES CLUB LIMITED
