10 January 2012

Finance update

Members would no doubt be aware that the Club raised funds from the membership in 2010/2011 by way of a capital raising.
This enabled the Club to borrow significantly less that was originally forecast in the early planning of the lodge redevelopment.
The Club has entered into a loan agreement with Bendigo Bank for the provision of up to $300,000 to assist with the completion of the project.
The Loan is secured by the asset at Falls Creek and there is no recourse to members or guarantees by the Committee.
It is anticipated that the funds will be drawn down gradually during early 2012.
Bendigo Bank was chosen as their package was the most Club friendly of the three proposals we received.
We were delighted to have secured funding for the project as this allowed the Committee to authorise that works commence on site.

During 2011, the Club incurred significant costs related to the preparatory stage of the Lodge redevelopment. These costs will be expensed in the accounts for 2011 which will result in the Club reporting a Loss for the year.
However, the Committee has decided to capitalise the new works into the balance sheet and thus the majority of the capital funds committed to the project will result in an increase in the net worth of the Club.
Our cash flow projections for the next seven years, see us substantially paying down the loan from the Bank.
As Treasurer, I am hopeful of good seasons ahead that will increase patronage, and therefore shorten the life of the loan.

May I remind Members that subscriptions are due in the New Year. Remember that $50.00 accommodation vouchers are available to Full Members who pay by 15th January 2012.

David Stogdale

1 comment:

John Harding said...

Goodonya Stoggers!