Danny Robinson reports on strategies and plans for the club.
Trading Results
The Chairman has in his report referred to two major issues which are currently having a negative impact on this Club and our industry generally.
1. Poker Machine Taxation
The first is the latest and final increase in poker machine taxation which became effective on 1 September 2007.
This increase will add an additional $13,000 per week to our expenses.
The Board of Management is currently reviewing any under performing assets of the Club which could generate new income streams and, at the same time, reduce the reliance on gaming machine revenue.
2. Indoor Smoking Ban
A total ban on smoking in all enclosed areas of the Club commenced at the beginning of July and has had a major impact on gaming revenue.
The Club has constructed terraced areas which provide a pleasant outdoor environment and also an area where members may smoke.
The Club has committed significant capital expenditure on the gaming machine installation which now provides an improved service to patrons, particularly those who wish to have frequent breaks in play.
These measures were taken to place the Club in the best possible position to alleviate the impact of reduced gaming revenue. At this stage the impact has been more severe than expected, however, Management believes that the trend needs to be monitored over a longer period.
Car Park/New Restaurant
The Club's Development Application was lodged with Kogarah Council in March 2007. All additional information and reports requested by Council have been provided and approval has been obtained at the October meeting of Council. Final plans for the development of a new restaurant area and additional car parking will be provided in the next edition of the Journal.
Financial Position
The Club continues to trade profitably but at levels well below the comparative results of the previous year. In looking to the future, Management will continue to formulate a plan which will focus on the viability of our business whilst continuing to provide financial support for the propagation of Rugby League and the many community associations that depend upon support from the Club industry.
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