Treasurer’s Report to the 2011 AGM
Don't get to excited about the profit of £23,654, it includes a 2 one-off VAT refunds of £28,833 and therefore there is an underlying loss of £5,179 but this is still a vast improvement on the 2010 loss of £16,015.
Income
It has been another difficult trading with income being 4.6% down on 2009. Gaming machine includes the one-off VAT refunds which was received in April, together with interest of £2,298, the latter is not in these accounts. Discounting this, Gaming machine actually fell by 19.5%, almost totally on the Lottery machine.Subscription income fell again this year due to fewer members renewing their subscriptions. Snooker and Pool includes a further VAT refund of £2,120. The difference here, though is that there will be ongoing savings in future years but not to the extent of the refund. The pool table on the ground floor has been popular. The increase in Miscellaneous income is due to entirely the hard work of Andy Collins with the weekly meat raffle.
Expenses
Wages and salaries has dropped due to savings in Casual bar staff wages, partially accounted by
committeemen working behind the bar in the early evening for nothing. Changes in the opening hours implemented in March meant that we were able to re-jig the hours of the 2 permanent bar staff and therefore keep casual wages low without the need to use committeemen. Honorariums are up but still only half the amount it should be. We made savings in Rates and insurance because we renegotiated the refuse collection contract. Building maintenance costs are well down because 2009 included the redecorating of the ground floor of the club. A drop in the income from the Lottery machine meant
that the cost of the tickets paid to Kossway was also well down and this is included in Gaming machine costs. Overall expenditure has reduced by £20,030 (11.3%).
Balance Sheet
Virtually no capital expenditure this year. The VAT refund due from the Inland Revenue is the reason for the big increase in the debtors. Although our bank balances fell again this year by £1,719, it is far less than the drop in 2009.
Conclusion
We will continue to suffer difficult trading conditions with big increases in tax on alcohol and higher costs due to global inflation. However we have taken steps to reduce waste and costs to the minimum and the trading results so far this year are encouraging. However the Gaming machine income is unlikely to improve in the short term. With the VAT refunds from the Inland Revenue, we will have some “rainy day” money to cover emergencies. However it does not dilute the need to trade at a profit. The Inland Revenue are still seeking to overturn the decisions in the High Court in the Court of Appeal and if they win, they will demand repayment of the refunds, together with interest.
Clive Scott
Honorary Treasurer