Your Club delivered a strong half-year operating profit of ~$777,000 (up ~$400,000 on budget)
The financial outcome was driven by above budget revenue (primarily green fees and golf shop sales), strong expense management and Government grants.
Adverse weather in late 2024 had a minor impact on the half-year result. However, Cyclone Alfred and recent rain events have been more severe and will flow through to our full year results. At this time, we estimate a financial impact of ~$140,000. Insurance claims remain pending.
Course activity remained strong, with ~46,000 rounds of golf over the first half of the year. Memberships are also close to fully subscribed, with the Club putting in place a waiting list for the 7-day membership category and applying provisional/restricted status to other member categories.
A summary of the FY25 half year financial results, with comparison to budget and the past two financial years (full year), is shown below:
Keperra Country Golf Club – Key Financial Metrics – FY23 – FY25 (H1) ($’s)
|
FY25 H1 (Actual) |
FY25 H1 (Budget) |
FY24
(Actual) |
FY23
(Actual) |
| Trading Revenue |
3,134,746 |
2,978,447 |
5,912,802 |
5,511,955 |
| Other Income (1) |
249,904 |
126,000 |
378,000 |
454,378 |
| Expenditure |
2,385,839 |
2,500,396 |
5,057,158 |
4,828,352 |
| Profit After Depreciation |
776,619 |
373,301 |
1,233,643 |
1,137,981 |
Notes (1) Other revenues include interest income, donations, government grants and insurance proceeds.
The Board has committed to a number of major capital investment projects which will greatly improve the on and off-course experience.
Final designs for the new 8th and 7th green have been approved, with construction to commence on 2nd June. The new greens are being raised to minimise future flood inundation and, along with the improvement in the underlying soil condition, will bring a more consistent and improved playing surface as well as improved resilience to minor flood events. These greens will cost in the order of $225,000.
On behalf of the Board, I also wish to share that Quadric Constructions has been approved as the preferred contractor to deliver the redevelopment of the lower clubhouse, subject to contracts being finalised (click to view all designs: Plan 1 / Plan 2 / Fly through). At a cost of $3.5 million including fitout, this is the single largest investment in the Club’s history. The Board was unanimous in its decision to deliver the full redevelopment, reflecting the well overdue renewal of these facilities and the expected benefits it will deliver to members and guests of the Club.
This decision is the culmination of significant planning by management and the Board, with Quadric selected after a highly competitive tender process. It is anticipated that construction will commence in June / July 2025. Delivery of the project will be overseen by our independent Project Manager and Superintendent, Ripple Group.
Construction of new cart paths to the 14th was also commenced and remains a work in progress status due to the extended poor weather. Work to be completed includes path work, drainage, irrigation and turfing.
All of these projects will be delivered from cash reserves (which are currently $5.2 million (after excluding our reserves set out in the Club’s Financial Sustainability Plan).
The Club has a substantial forward program of capital investment over the long term with improvements in course infrastructure to support our resilience to adverse weather, improvements to tee blocks and greens and considerations of additional practice facilities and water storage. These plans build on the record investment in recent years (e.g. 21st dam, maintenance shed, tee blocks, short course facilities, cart paths and new and additional course maintenance machinery).
These programs are extensive and will deliver a superior golfing experience.
You will soon be asked to consider proposed amendments to the Club’s Constitution.
A range of amendments to modernise the Club’s constitution are being proposed (click here to view the President’s Half Yearly Report). One of the key proposed amendments seeks to vary the cap on annual increases in subscriptions to CPI plus 3%. Currently, annual increases are capped at CPI.
This amendment is needed to provide the Club with greater flexibility to manage its revenue base into the future and to support ongoing investment in our facilities (both maintenance of our existing facilities and investment in new facilities).
A range of alternatives were considered, with the decision on CPI plus 3% informed by long-range modelling of the Club’s finances. The Board has, and will continue to, consider other revenue levers to minimise the reliance on member subscriptions to grow club revenues.
The Board has been unanimous in its support for the proposed amendment. Whilst fully appreciating the very real impact of the current cost of living challenges being felt by the Club’s member base, the Board remains committed to ensuring that the Club has the flexibility to adjust subscriptions, which deliver about 33% of annual revenue, to support ongoing investment in the Club’s facilities.
The Board recognises the significance of a constitutional change, and an extensive consultation period, which will include information sessions, is planned. The Board is committed to ensuring members are well informed and clearly understand the importance of the proposed amendments.
I would encourage you to participate, listen to the facts and ask any questions you may have. Importantly, the board will also take this opportunity to further listen to and evaluate feedback to ensure the proposed amendments align with members’ future visions for the club.
As always, please reach out with any questions via admin@keperragolf.com.au.
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