FINANCE REPORT

It is my pleasure to submit to members the 2020 consolidated Annual Report of the Swimming Pool & Spa Association of Australia Ltd (SPASA).

SPASA reports all entities in a consolidated manner, including the Institute of Research and Learning, SPASA Australia Benefits the Trustee Watertight trust fund and the Pool and Spa Association Limited (NZ). This provides a total true and correct report of all financial operations within SPASA Australia’s responsibility.

COVID-19 had a large impact last year, with event income reduced significantly due to the postponement of almost all scheduled events across 2020. Government support in the form of Job Keeper and the Cash Flow Boost provided $351,100 to the bottom line, ensuring SPASA could retain all staff at full-time hours. This enabled the delivery of increased advocacy and industry communication that supported members during an unprecedented time where everyone was responding to a global pandemic. In addition to the strong financial position and sustainable business model of SPASA, this support ensured we could withstand something as detrimental as COVID-19 while increasing our support to members across Australia and New Zealand. The Association’s external Auditors, William Buck Accountants and Advisors, conducted the Audit Report for the year ending 31 December 2020. Key findings from this audit can be found on the opposite page.

I’d like to take this opportunity to thank Lindsay, Melinda and the whole SPASA team for a remarkable effort during the year and congratulate them all on the achievements they’ve managed to accomplish, both financial and non-financial, for the Association, Members and Industry as a whole.

SPASA Australia continues to focus on building a strong and sustainable financial position for the long term to help underpin its ability to support and help member businesses grow into the future, and it was an honour to see the Association be in a position to do just that in my role over the last 12 months.

Adam Jaworski

Finance Audit and Compliance Committee Chair

Key points from the 2020 Financial results include:

• Operational efficiency and growth programs resulted in a full year underlying net surplus of $185,247 (total reported net profit of $536,347 including Government stimulus), supported by a Net Asset and

Equity base of $4,872,998. • Membership revenue increased by 7%, which is all the more impressive given it includes the impact of the planned reduction to our builder member fee structure during the period. This reduction follows the program initiated in 2017 to reduce the number of tiered fee structures and deliver a more consistent and fairer fee model to suit our membership. • The Investment strategy saw the 2019 acquisition of the Pool+Spa Media business transition from a trade-based product to one more focussed on the consumer. The SPLASH! Magazine provided relief to advertisers for the early part of 2020 to assist with the unknown impact of COVID-19. This negative impact in advertising revenue for SPASA was appreciated by our advertising partners who continued to support the SPLASH! brand and have embraced the Pool & Spa strategy to raise consumer awareness of the industry. • Research and Education investment took another leap forward with SPASA Training and the

Registered Training Organisation rebranding in 2020 as the Institute of Research and Learning. The

Institute of Research and Learning proudly invested $752,044 in workshops and trade qualifications during the year. • New Accounting Standards impacted the way we accounted for our South Australian premises with rental expenses now being classified as depreciation and financing expenses. The net impact on the reported results however is minimal once group consolidations are taken into account. To help meet the future requirements of the industry the SPASA offices in SA and NSW (which is also owned by the consolidated entities of the Association) have a valuation reflecting $1,607,690. • Despite the impacts of COVID-19 the Association was able to continue towards its strategic goal of increasing member support and was fortunate to be able to invest in some great people to help achieve this. SPASA welcomed new Business Development Managers Daena Bougoure-Latchford in Victoria and Michael Brennan in NSW during the year. The plan to hire a General Manager for the

Pool & Spa Association Limited (NZ) closely followed, with Jonty Mills subsequently starting at the beginning of 2021.