NET SHORTAGE 193,215 (367,168) (560,383)

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Barrie Sullivan
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1 STELLENBOSCH GOLF CLUB Financial Report Aug Jan 2013 (Interim Results) 2012/13 (6 months ending Jan 2013) INCOME Budget Actual Variance Competition fees 84,841 75,880 (8,961) Greenfees 3,569,628 3,309,236 (260,392) Subscription Fees 1,497,546 1,450,362 (47,184) Other Income 192, ,882 6,678 Pro-Shop net income 482, ,896 (84,287) Bar net income 112,417 70,359 (42,058) Catering net income 50,109 78,266 28,157 TOTAL 5,988,928 5,580,880 (408,048) Club Expenses 2,720,324 2,685,011 35,313 Course Expenses 2,356,266 2,486,123 (129,857) TOTAL CASH EXPENSES 5,076,590 5,171,134 (94,544) before Finance Charges & Depreciation Finance charges 22,000 78,204 (56,204) Depreciation 697, ,711 (1,588) TOTAL EXPENSES 5,795,713 5,948,049 (152,336) NET SHORTAGE 193,215 (367,168) (560,383)

2 Cashflow - Jan 2013 Budget Actual Variance Net Surplus/Shortage 193,215 (367,168) (560,383) Plus: Depreciation 815, , Loss/profit on sale of fixed assets - (4,190) (4,190) Movement in Current assets 241,352 (359,133) (600,485) Stock 5,203 (97,495) (102,698) Debtors (162,310) (100,259) 62,051 Creditors 398,459 (161,379) (559,838) Cash from Operating activities 1,250,005 85,212 (1,164,793) Investment activities Fixed Assets acquired (1,448,000) (1,861,564) (413,564) Proceed from sale of Fixed assets - 15,000 15,000 Cash before financing activities (197,995) (1,761,352) (1,563,357) Loans repaid Increase/decrease in cash (197,995) (1,761,352) (1,563,357) Balance at 01/08/2012 (534,735) (180,111) 354,624 Balance at 31/01/2013 (732,730) (1,941,463) (1,208,733)

3 Background Information from the Boland and Western Province Golf Unions as well as Handicaps National Africa, indicate that there is an average decrease of 8% in total rounds played in the Western Cape this year as compared to This phenomenon was also the case at our club, although comparative statistics show that Stellenbosch Golf Club remains one of the most popular golf courses visitors play in South Africa. With the start of the financial year, extraordinary inclement weather conditions had a major impact on the club's financial results. During the first 4 months (Aug - Nov), the loss in revenue in terms of green fees amounted to R This as a result of adverse weather conditions forcing the club to close for 14 days. This phenomenon is reflected in the rainfall figures for 2012 (Jun Nov), which measured mm compared to the mm for the same period in In most cases, the rental of golf carts was also not possible on the day after the course was closed due to heavy rain. Furthermore a fearsomely strong Easterly wind uprooted 57 large trees on 31 November and 1 December, causing damage of approximately R Because of these weather conditions, the construction project concerning the bunkers lasted a month longer than planned, forcing the cheaper winter rates to be lengthened into the busy summer period which was not budgeted for. The greatest negative impact can be seen in members rounds played, where there is a decrease of 7.3% over the first 6 months compared with the same period last year. The negative impact which these circumstances had on the turnover of the bar, golf cart rental and range facilities, can clearly be seen in the income statement. Due to the loss of income, certain budgeted expenses over the last 6 months will have to be reconsidered and, where necessary, postponed. Furthermore, the club spent substantial capital expenditure in upgrading the golf course over the past 18 months. In the upcoming budget, specific attention will be given to keeping capital expenditure to the minimum in order to strengthen the cash position of the club.

4 Comments (Income Statement) The net loss for the first six months ending 31 Jan 2013 is R367, 168, which is R560,383 less than budget. Golf Operating net loss was R335,657, which is R411, 082 less than budget mainly due to less green fees (R260, 392) and subscriptions (R47, 184) received as budgeted and the over expenditure of (R129, 857) due to storm damage rounds were played over the first 6 months, of which were member rounds and visitors rounds. Total green fees received was R3, , which is R260,392 less than budgeted. The decline in membership rounds has already been addressed. Club expenses were under spent by R35, 313. The main under spent items were: 1. League fees - R15, 177 (will be spent later) 2. Security - R10, 764 (savings in expenditure) 3. Telephone and fax R13, 518 (savings in expenditure) 4. Water - R17, 761 (saving in consumption) The main items overspent: 1. Professional Fees R (Impact Assessment done, not budgeted for) 2. Electricity - R42, 385 (increase in rates higher than budgeted for) Course expenses were overspent by R129, 857. The main items overspent were: 1. Course Development - R101, 321 (partial costs of storm damage) 2. Garden Services - R54, 728 (spent sooner than budgeted for) Pro-Shop net income is R397, 896, which is R84, 287 less than budgeted. The variance is due to lower than budgeted turnover due to inclement weather during the first 4 months of the

5 financial year. The various departments therefore show less than budgeted turnovers: golf carts (R79, 702), rental of equipment (R17, 500), practice range (R25, 018). Pro-Shop sales were R652, 970, which is R69, 970 better than budget with an average gross profit percentage of 42.5%. Food and Beverage net income for the year to date amounted to R148, 625. This is R13, 901 less than budget. The bar shows a net profit of R70, 359 with an average gross profit percentage of 44.6%. Catering shows a net profit of R78, 266 with an average gross profit percentage of 52.1%. A major contributing factor in the catering turnover is the better-than-expected sales of the pizza oven. Other income is R198, 882. Other income consists primarily of rental income received from the MTN tower and the house on the facility. Cash Flow On January 31, 2013, our cash resources were (R1, ) versus a budget of (R732, 730). The variance against budget is as a result of the negative variance in current assets (R600, 485) together with the negative variance in the income statement (R560, 383). The bank balance on 31 January 2013 was R1, overdrawn.

The Landings Yacht Golf & Tennis Club, Inc. For The Month Ending June 30, 2017 Fiscal Period 9

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