Treasurer's Report to the 2010 AGM

The number of members using the club continues to drop and this is also reflected in the numbers renewing their membership. This is approaching critical levels and uncomfortable decisions will have to be made if the club is to remain financially viable.

Income

Despite the aforesaid, Bar income actually increased by 5.7% over the previous year but it is still 25.2% less than it was 1997 before taking into account price increases! Unfortunately Gaming machine income continues to drop and can no longer subsidise bar prices. Falling membership rolls resulted in lower Subscription income. Snooker and Pool income was higher than last year but still doesn't cover the full cost of running the Games Room.

Expenses

A decision was made last year to redecorate the club even though we knew the profits in one year wouldn’t be sufficient to cover the costs which amounted to about £7,000 which included new fascia boards at the rear of the club. Unfortunately other costs were also higher than the previous year which resulted in our worst loss of £16,015, compared with a profit in the previous year of £3,600. Wages and salaries rose by 7.3% due to staff increases and sickness cover. Entertainment costs increased due to the higher cost of bands and satellite television but we will be making savings in both areas this year. Heating and lighting costs continue to soar but I have changed the electricity supplier and will also be looking at an alternative gas supplier. We recovered the snooker tables last year resulting in higher costs. Due to the financial pressures only £2,500 was paid to the club officers which was £4500 less than their entitlement.

Balance Sheet

There was very little capital expenditure last year, only a television for the bar lounge and a new icemaker. Our financial problems saw our bank balances almost halve to £11,275 but at least we no longer have a bank loan.

Conclusion

A lot of the expenditure that caused the loss last year will not be repeated this year but a strict control will still need to be exercised over expenditure and we will have to look at other options to reduce costs. This will be discussed later in the meeting. Inflationary pressures that will increase costs in the long term is problem without a compensatory increase in income. The club has been in decline for well over ten years which is not helped by the recession and the smoking ban but if we are to survive, we will have to look all options available to us. We don't have the resources that pubs have behind them and we cannot hope to compete with them. We have to offer something different.

Clive Scott

Honorary Treasurer
23^rd March 2010