CONCISE ANNUAL REPORT 2008

Transcription

1 TIGERSBALMAIN LEAGUES CLUB CONCISE ANNUAL REPORT Victoria Road Rozelle 2039 Phone: Fax: Web: ABN

2 PRESIDENT S REPORT Our Club faced considerable challenges during Encouragingly, Football Club Centenary celebrations throughout the year saw the Club represented in a favourable light, with one of the many highlights the fantastic Birthday celebration at Tigers on 23 January, For me, the highlight of the Centenary events was the commitment and passion demonstrated by everyone involved in the celebrations, who succeeded in bringing to the fore our Club s wonderful history. The last financial year has been one of the most difficult and challenging the Club has ever dealt with, seeing a recorded loss of $3.2m. PRESIDENT S REPORT Our competent and accomplished Management Team at Balmain Leagues Club is led by CEO, Tim Camiller, who has made a major contribution during My thanks go to Tim for his tireless efforts. My thanks also go to Chief Financial Officer, Malik Arunachalam, who has also worked hard under what amount to extremely difficult circumstances. New Operations Manager, Leonie Macks, has led a team of Staff who has excelled in their efforts to offer the highest quality service to members. I am once again grateful for the assistance and support provided by our Board of s, who selflessly give their personal time in an effort towards securing a better future for our Club. A special mention of thanks to John Pearson for his insight and counsel on the many challenges that our business faces. Kevin Rooney Contributing factors were the new smoking legislation, increases in Gaming Tax and the holding and processing costs associated with our Masterplan Application. Finally, after close to four long years, Council approved a change in the planning controls for the site that will ultimately see a new club in a few years time and a shopping centre, car parking and open public space that will rejuvenate Rozelle. As President of Balmain Leagues Club, I am proud of our Club, our history and the people who make this wonderful Club what it is. I look forward to a successful year in 2009 and to the commitment of representing the Club as it moves in to the next phase of its long and rewarding history. The Board of s and Management Team continue to work diligently towards bringing this plan to fruition. The many sporting clubs associated with Balmain Leagues Club remain well-supported and continue to strive towards enhancing our Club s reputation and standing within the community. Kevin Rooney President Again this year, I take this opportunity to thank Members involved with those organisations, who tirelessly (and sometimes thanklessly) provide their time, energy and efforts for the benefit of our Members and the overall experience at the Club. In 2008 we welcomed long-standing Black & Gold Member, Ross Magner, to the position of Secretary of the Black and Gold. Ross has continued the good work of his predecessors and, on behalf of the Board, I congratulate Ross and his fellow members in raising much needed funds for the Camp Quality organisation. In 2008 we continued our extensive support of many worthwhile causes in the Balmain Leichhardt community. In addition to our ongoing assistance to the Balmain Tigers and Wests Tigers football clubs, as well as ongoing sporting and community group support, we awarded cash grants through the Community Development and Support Expenditure Scheme to the following organisations: Sydney Secondary College Pets of Older Persons Bridge for Asylum Seekers Technical Aid to the Disabled Inner West Disability Mary MacKillop Outreach - St Vincent de Paul Rozelle Neighbourhood Centre Aunties & Uncles Co-operative Special Olympics Australia Point Zero Youth Services 2 BLC 2008 Concise Annual Report 3

3 DIRECTORS DIRECTORS Kevin Rooney President Retired Former Business Manager Member of the Board since 1987 Disciplinary President, Black & Gold John Pearson Chairman, Sydney Markets Limited, Randwick Petersham Foundation (Cricket) Member of the Board since 2001 Finance PCG Corporate Governance (Chairman) Danny Stapleton Player , Priority Coatings Pty Ltd Member of the Board since 2003 Wests Tigers Board (alternate) since 2003 Football (Chairman) PCG Ben Elias Player Managing, BMax Property Group (DPG) Bachelor of Business (Marketing) Appointed to Board 1999 Resigned 2000 Re-appointed 2001 David Trodden Bachelor of Commerce (UNSW) Bachelor of Laws (UNSW) Solicitor of Supreme Court of NSW since 1984 Senior Partner DTA Lawyers Member of the Board since 1999 Chairman of the Board since 2002 Wests Tigers Board since 2001 Chairman, Wests Tigers Board 2008 Finance PCG (Chairman) Leslie Glen Consultant Surgeon Balmain District Hospital Vila Central Hospital (Republic of Vanuatu) Concord Repatriation General Hospital present Appointed to Board 1989 Resigned 1999 Re-appointed 2000 Wests Tigers Board since 2001 Football Corporate Governance Balmain Tigers Centenary (Chairman) Dawn Fraser AO MBE Olympian 1956, 1960, 1964, NRMA Motoring and Services Ltd Member of the Board since 1997 Wests Tigers Board since 1999 Mark Crowe Chief Executive Officer, Australian Marketing Institute Bachelor of Commerce (UNSW) Member of the Board since 2004 Finance (Chairman) PCG Corporate Governance Paul Sironen Player Fundraising Manager, Krispy Kreme Australia Member of the Board since 2002 Wests Tigers Board since 2002 Football Steve Lavers Player Company Advanced Diploma of Business Management (University of Ballarat) Member of the Board since 1994 Wests Tigers Board since 2007 Football Corporate Governance Kris Kumar Managing, 3i Group Pty Ltd Bachelor of Engineering (Marine) Masters in Facilities Management & Finance (Sydney University) Member of the Board since 2004 PCG MISSION & VALUES Balmain Tigers Rugby League Football Club and Balmain Leagues Club will continue to: Promote and maintain our proud history Provide the best opportunities and pathways possible for all employees Be, progressive and performance orientated Anticipate and exceed our customers expectations Remain an integral part of our local community 4 BLC 2008 Concise Annual Report 5

4 NOTICE OF ANNUAL GENERAL MEETING YEAR ENDED 31 OCTOBER 2008 BALMAIN LEAGUES CLUB LIMITED ABN NOTICE IS HEREBY GIVEN THAT THE ANNUAL GENERAL MEETING OF THE MEMBERS WILL BE HELD AT THE CLUB PREMISES, 138 VICTORIA ROAD, ROZELLE, ON TUESDAY, 31 MARCH 2009 AT 7.00 PM BUSINESS TO BE CONDUCTED AND THE ORDER THEREOF IS: 1. Confirmation of the Minutes of the previous Annual General Meeting of Members. 2. To receive and consider the Annual Report of the Board of s. 3. To receive and consider the financial report of the Company for the year ended 31 October, 2008 and the report of the auditors thereon. 4. Ordinary Resolutions. 5. General Business - to transact any business which may be lawfully brought forward. 6. To receive the results of the ballot for positions on the Board of s, and declare the successful nominees elected. The meeting will be open to Members only and each Member will be required to produce their 2008 or 2009 Membership card to gain admission. BALLOT FOR DIRECTORS Pursuant to Rules 49(a) and (b) of the Constitution, the Board of s, is elected every second year. As an election was not held in 2008, there will be an election in Nominations for the offices of two (2) s (as per the Constitution) are invited and must be delivered to the Secretary no later than 5.00pm on Tuesday 17 March, Voting is to be conducted at the Club. Members are reminded of their obligation to participate in the election of officers. Even though this is not a compulsory rule, it is to your benefit to ensure that responsible people are elected to direct the Club for the next two years. HOURS OF POLLING (if required) Thursday 26 March, 2009: 12.00pm 8.00pm Friday 27 March, 2009: 12.00pm 8.00pm Saturday 28 March, 2009: 12.00pm 8.00pm Sunday 29 March, 2009: 12.00pm 8.00pm Monday 30 March, 2009: 12.00pm 6.00pm (voting closes at 6:00pm) Members must produce a 2008 or 2009 Membership card to obtain a ballot paper. Employees of Balmain Leagues Club Limited are not entitled to vote at these elections and proxy voting is not permitted under the Registered Clubs Act. RESOLUTIONS FIRST ORDINARY RESOLUTION That pursuant to the Registered Clubs Act: (a) The Members hereby approve and agree to expenditure by the Club in a sum not exceeding $30,000 until the next Annual General Meeting of the Club for the following expenditure and benefits for s; (i) The reasonable cost of a meal and beverage for each immediately before, during and immediately after a Board or Committee meeting on the day of that meeting; (ii) Reasonable expenses incurred by s in travelling to and from s meetings, or other duly constituted committee meetings as approved by the Board from time to time on production of invoices, receipts or other proper documentary evidence of such expenditure; (iii) The provision of designated car parking space for each ; (iv) Reasonable expenses incurred by s in relation to such other duties, including entertainment or special guests of the Club and other promotional activities performed by s, which activities and the expenses thereof are approved by the Board before payment is made on the production of invoices, receipts or other proper documentary evidence of such expenditure; (v) The issue of suitable inscribed blazer and uniform for each ; (b) The Members acknowledge that the benefits in paragraph (a) above are not available to Members generally but only to those who are s of the Club. SECOND ORDINARY RESOLUTION That pursuant to the Registered Clubs Act: (a) The Members hereby approve and agree to expenditure by the Club in a sum not exceeding $40,000 for the professional development and education of s until the next Annual General Meeting and being: (i) The reasonable cost of s attending the ClubsNSW Association and Leagues Clubs Association of NSW Annual General Meetings and Conferences; (ii) The reasonable cost of s attending seminars, lectures, educational tours, trade displays and other similar events as may be determined by the Board from time to time; (iii) The reasonable cost of s attending other registered Clubs for the purpose of viewing and assessing their facilities and methods of operation, provided such attendances are approved by the Board as being necessary for the betterment of the Club; (b) The Members acknowledge that the benefits in paragraph (a) above are not available to Members generally but only to those who are s of the Club. NOTES TO MEMBERS These notes are to be read in conjunction with the proposed Ordinary Resolutions: 1) The First Ordinary Resolution is to have the Members in the General Meeting approve an amount no greater than $30,000 for expenditure by the Club in relation to duties performed by the Club s s; 2) The Second Ordinary Resolution is to have the Members in the General Meeting approve an amount no greater than $40,000 for the expenditure by the Club for s to attend seminars, lectures, trade displays and other similar events, including the ClubsNSW and Leagues Club Association of NSW Annual General Meetings plus conferences and to visit other Clubs to enable the Club s governing body to be kept abreast of current trends and developments, which may have significant bearing on the nature and way in which the Club conducts its business; 3) Each of the Ordinary Resolutions must be passed as a whole and cannot be amended from motions from the floor of the meeting or divided into two or more separate Ordinary Resolutions; 4) To be passed each Ordinary Resolution must receive votes in its favour from not less than a simple majority of those Members, who being entitled to do so, vote in person at the meeting. By direction of the Board Tim Camiller Chief Executive Officer Date: 3rd February 2009 By direction of the Board Tim Camiller Chief Executive Officer Date: 3rd February BLC 2008 Concise Annual Report 7

5 CEO S REPORT With our Football Club Centenary now behind us our attention has never been more focused on combating the numerous challenges confronting our Club and securing the long-term future of our operation at Rozelle. Firstly, on the Centenary it was wonderful to see so many Members enjoying the celebrations of our glorious Football Club throughout One of the great highlights was the Birthday celebration at Balmain Leagues Club on 23 January, 2008 where over 400 Members enjoyed a magnificent afternoon and evening of Tigers spirit and entertainment. I m sure for many people it was a great chance to catch up and reminisce with lots of friendly and familiar faces. Thank you to all those Members who helped make the many occasions so much more memorable. Tim Camiller The implementation of the Board s strategy to redevelop the Leagues Club site has encountered many challenges. Over the last few years we have reported to you the decision-making difficulties encountered with Leichhardt Council and the severe impact it has had on the Leagues Club business. By way of example, most of our financial resources have been applied to securing sites adjoining the Club to enable the consolidation of the site for development purposes and to the processing costs of the Masterplan application. This has obviously restricted our capacity to invest in other ways, such as expansive areas to meet the challenges of the new non-smoking legislation and the diversity of our business in the interest of long-term prosperity. A significant reduction in our income, particularly from gaming, resulted in 2008, which continues to place pressure on our cashflow. Pleasingly, in June 2008, Leichhardt Council approved a new Masterplan for the Club site that allows for a mixed-use development on the site consisting of residential units, a supermarket, specialty retail shops, commercial offices and a new club over a floor space ratio of 3.9:1 (from 1.5:1). This approval was endorsed by the NSW Government in August, 2008 and is now the planning law for the site. Tim Camiller Chief Executive Officer CEO S REPORT Our financial result for the year ended 31 October, 2008 was very poor. We recorded an operating loss of $3.2m (2007: $880,826) after a football grant of $1,177,000. Whilst we successfully rationalised costs across a number of areas, the significant drop in gaming income continues to impact dramatically on our business. TIGERS has a great Management Team and many dedicated and hard working Staff. We will continue to bring a fresh and innovative style to marketing our Club, including some great new entertainment in During these difficult and challenging economic times clubs like ours come to the fore providing quality and an affordable approach to food, beverage and entertainment. Once again, I express my thanks for the strong support and guidance provided to me and all our Management Team by Leagues Club President Kevin Rooney, John Pearson and the other members of the Board led by David Trodden and Leslie Glen. Thank you to all the hard working Tigers Staff who also found great joy in working throughout the year. Best wishes for Much of our focus in recent times has been on securing a development partner. This too has proven difficult given the severe impact that global economic conditions have had on the development market. A successful outcome in this area is vital to our future and we continue to work very hard to secure an appropriate development partner. Despite these significant pressures we remain confident of delivering a long-term solution that includes a modern, new licensed club. In the meantime we will continue to offer great value, great service, a wonderful experience for all our Members and the vast support of the local and wider Tigers community. 8 BLC 2008 Concise Annual Report 9

6 DIRECTORS REPORT YEAR ENDED 31 OCTOBER 2008 Your directors present their report on the company for the financial year ended 31 October s The names of the s in office at any time during or since the end of the year are: Kevin Rooney (President) John Pearson David Trodden Dr Leslie Glen Paul Sironen Danny Stapleton Dawn Fraser Steve Lavers Company Secretary The following person held the position of Company Secretary at the end of the financial year: Tim Camiller was appointed Company Secretary in April 2006 and is also the Chief Executive Officer of Balmain Leagues Club Limited. Operating Results The loss of the company for the financial year after providing for income tax amounted to $3,243,510. Membership The Club s membership as at 31 October 2008 numbered 14,252 (2007: 14,548). Review of Operations Members are directed to the discussion and analysis of the financial statements for detailed information. Significant Changes in State of Affairs The company s application with Leichhardt Council for a Master Plan for the redevelopment of the Licensed Club site in Rozelle was approved in The floor space ratio applicable to the club s lands as a result of this amendment changed from 1.5:1 to 3.9:1, which includes the provision of club space. Principal Activity The principal activity of the company during the financial year was that of a licensed club. No significant change in the nature of this activity occurred during the financial year. After Balance Date Events No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in future financial years. Future Developments The club has continued negotiations with several prospective developers for the redevelopment of the club s property in Rozelle. The Board is confident a suitable partner will be secured and the progression to a development application will commence shortly thereafter. Environmental Issues The Company s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory. Dividends Paid or Recommended No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made in accordance with the company s constitution which prohibits such payments. Information on s Refer Pages 4 to 5 for information on directors. Ben Elias Mark Crowe Kris Kumar s have been in office since the start of the financial year to the date of this report unless otherwise stated. Meeting Attendances Proceedings on Behalf of Company No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings. The company was not a party to any such proceedings during the year. Auditor s Independence Declaration A copy of the auditor s independence declaration as required under Section 307C of the Corporations Act 2001 is attached. Signed in accordance with a resolution of the Board of s: D. Trodden, Dated this 3rd day of February 2009 Ordinary Board Meetings Special Board Meetings Kevin Rooney 12/12 3/3 Finance Committee John Pearson 8/12 2/3 6/11 David Trodden 12/12 3/3 11/11 Dr Leslie Glen 9/12 2/3 Paul Sironen 11/12 2/3 Steve Lavers 11/12 2/3 Danny Stapleton 10/12 3/3 Ben Elias 9/12 3/3 Dawn Fraser 7/12 1/3 Mark Crowe 12/12 3/3 11/11 Kris Kumar 11/12 3/3 Options No options over unissued shares or interests in the company were granted during or since the end of the financial year and there were no options outstanding at the end of the financial year. Indemnifying Officers or Auditor During or since the end of the financial year, the company has given indemnity or entered into an agreement to indemnify, or paid or agreed to pay insurance premiums as follows: s indemnity insurance premiums have been paid during the year for directors and officers. The insurance is in respect of legal liability for damages and legal costs arising from claims made by reason of any wrongful acts other than dishonesty, while acting as directors and officers of the company. The amount of the premium was $16, BLC 2008 Concise Annual Report 11

7 AUDITOR S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF BALMAIN LEAGUES CLUB LIMITED I declare that, to the best of my knowledge and belief, during the year ended 31 October 2008 there have been: - no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and - no contraventions of any applicable code of professional conduct in relation to the audit. PRIESTLEY & MORRIS Chartered Accountants P A Cordwell Partner Dated: 3rd February 2009 Level 7, 3 Horwood Place Parramatta NSW 2150 Liability limited by a scheme approved under Standards Legislation INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF BALMAIN LEAGUES CLUB LIMITED Report on the concise financial report The accompanying concise financial report of Balmain Leagues Club Limited comprises the balance sheet as at 31 October 2008, the income statement, statement of recognised income and expenditure and cash flow statement for the year then ended and related notes, derived from the audited financial report of Balmain Leagues Club Limited for the year ended 31 October 2008, and the discussion and analysis. The concise financial report does not contain all the disclosures required by the Australian Accounting Standards. s responsibility for the concise financial report The directors are responsible for the preparation and presentation of the concise financial report in accordance with Accounting Standard AASB 1039: Concise Financial Reports (including the Australian Accounting Interpretations), statutory and other requirements. This responsibility includes establishing and maintaining internal control relevant to the preparation of the concise financial report; selecting and applying the appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF BALMAIN LEAGUES CLUB LIMITED continued Auditor s responsibility Our responsibility is to express an opinion on the concise financial report based on our audit procedures. We have conducted an independent audit, in accordance with Australian Auditing Standards, of the financial report of Balmain Leagues Club Limited for the year ended 31 October Our audit report on the financial report for the year was signed on 3rd February 2009 and was not subject to any modification. The Australian Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report for the year is free from material misstatement. Our procedures in respect of the concise financial report included testing that the information in the concise financial report is derived from, and is consistent with, the financial report for the year, and examination on a test basis, of evidence supporting the amounts, discussion and analysis, and other disclosures which were not directly derived from the financial report for the year. These procedures have been undertaken to form an opinion whether, in all material respects, the concise financial report complies with Accounting Standard AASB 1039: Concise Financial Reports and whether the discussion and analysis complies with the requirements laid down in AASB 1039: Concise Financial Reports. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act We confirm that the independence declaration required by the Corporations Act 2001, was provided to the directors of Balmain Leagues Club Limited on 3rd February Auditor s opinion In our opinion, the concise financial report including the discussion and analysis of Balmain Leagues Club Limited for the year ended 31 October 2008 complies with Accounting Standard AASB 1039: Concise Financial Reports. Emphasis of Matter - Going Concern Basis of Accounting Without qualification to the opinion expressed above, attention is drawn to Note 1(a) to the financial statements, which evidences the economic dependence of the company on the continued support of its financiers, in determining the appropriateness of the going concern basis of accounting to this financial report. PRIESTLEY & MORRIS Chartered Accountants P A Cordwell Partner Dated: 3rd February 2009 Level 7, 3 Horwood Place Parramatta NSW 2150 Liability limited by scheme approved under Standards Legislation 12 BLC 2008 Concise Annual Report 13

8 DIRECTORS DECLARATION The directors of Balmain Leagues Club Limited declare that the concise financial report of Balmain Leagues Club Limited for the financial year ended 31 October 2008, comprising the balance sheet as at 31 October 2008, the income statement, statement of recognised income and expenditure and cash flow statement for the year then ended and related notes, derived from the audited financial report of Balmain Leagues Club Limited for the year ended 31 October 2008, and the discussion and analysis: a. complies with Accounting Standard AASB 1039: Concise Financial Reports; and b. is an extract from the full financial report for the year ended 31 October 2008 and has been derived from and is consistent with the full financial report of Balmain Leagues Club Limited. This declaration is made in accordance with a resolution of the Board of s. Signed: David Trodden Dated this 3rd day of February 2009 Members Please Note: Members are requested to advise the Chief Executive Officer in writing seven (7) days prior to the date of the Annual General Meeting of any query relating to the Financial Statements on which further information may be required. Such information, if obtainable, will be extracted from the financial records and be available at the Annual General Meeting. Members who wish to request a copy of the full financial report, please call DISCUSSION & ANALYSIS ON BALMAIN LEAGUES CLUB LIMITED S CONCISE FINANCIAL REPORT Information on Balmain Leagues Club Limited Concise Financial Report The concise financial report is an extract from the full financial report for the year ended 31 October The financial statements and disclosures in the concise financial report have been derived from the 2008 Financial Report of Balmain Leagues Club Limited. A copy of the full financial report and the auditor s report will be sent to any member, free of charge, upon request. The discussion and analysis is provided to assist members in understanding the concise financial report. The discussion and analysis is based on Balmain Leagues Club Limited s financial statements and the information contained in the concise financial report has been derived from the full 2008 Financial Report of Balmain Leagues Club Limited. Income Statement Revenue from ordinary activities decreased by 23%.Poker machine revenue decreased by 25%.The fall in poker machine revenue can be attributed to the introduction of the Non Smoking Legislation in July There was a 9.7% decrease in total expenses (excluding significant expenses) for the period. Depreciation and Amortisation expenses increased by 2%. Advertising, Promotions, Entertainment and Membership Expenses increased by 9.7%, necessitated to reduce the negative impact of the Non Smoking legislation. Salaries and Superannuation reduced by 11.9% and Poker Machine Duty decreased by 28.5% as a result of the decrease in poker machine turnover. Loss after Income Tax Expense was $3,243,510 compared to a loss of $880,826 in 2007, largely due to the reduction in the Poker Machine Revenue. Balance Sheet Total Assets have increased $1,519,778 mainly as a result of the capitalisation of costs relating to the Balmain Leagues Club Redevelopment Project. The increase in non-current financial liabilities reflects the debt funding to invest in the above and the funding of the trading loss. Statement of Recognised Income and Expenditure The total change in equity was a decrease of $3,243,510 in Retained earnings. The decrease represents the net loss for the year. Cash Flow Statement Receipts from customers decreased by 20.5%.The net cash used in operating activities increased by $1,626,093. This results mainly from the reduction in receipts from customers. Cash flows used in investing activities of $474,689 resulted mainly from investment in the Balmain Leagues Club Redevelopment project. The net cash provided by financing activities increased by $2,120,860 which resulted from an increase in proceeds from borrowings. Net cash at the end of the year decreased by $75, BLC 2008 Concise Annual Report 15

9 INCOME STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2008 Note $ $ Poker machine revenue 9,090,617 12,135,227 Revenue from sale of food & beverages 3,343,950 3,750,637 Other revenue 789,050 1,255,401 TOTAL REVENUE (before significant revenue) 2 13,223,617 17,141,265 Administrative and running costs 2,188,396 2,369,220 Advertising, promotions, entertainment and membership expenses 1,325,851 1,208,881 Finance costs 1,195, ,481 Cost of food and beverages sold 1,274,866 1,418,465 Depreciation and amortisation expenses 850, ,346 Employee benefits expenses 5,536,841 6,284,379 Poker machine duty and licenses 2,133,131 2,985,412 Other expenses 419, ,829 TOTAL EXPENSES (before significant expenses) 14,925,045 16,533,013 Profit/(loss) before significant items (1,701,428) 608,252 Significant Items Significant Expenses: Grant to Balmain Tigers Rugby League Football Club Limited 1,177,000 1,082,000 Community support expenditure 380, ,796 1,557,834 1,480,796 Loss after significant items but before income tax expense (3,259,262) (872,544) Income tax expense (15,752) 8,282 Net loss after income tax expense (3,243,510) (880,826) BALANCE SHEET AS AT 31 OCTOBER $ $ CURRENT ASSETS Cash and cash equivalents 756, ,059 Trade and other receivables 159, ,831 Inventories 102,171 98,240 Other current assests 204, ,079 TOTAL CURRENT ASSETS 1,222,535 1,216,209 NON-CURRENT ASSETS Trade and other receivables 271, ,786 Property, plant and equipment 29,675,581 28,231,840 Deferred tax assets 32,011 33,534 TOTAL NON-CURRENT ASSETS 29,978,612 28,465,160 TOTAL ASSETS 31,201,147 29,681,369 CURRENT LIABILITIES Trade and other payables 1,818,813 1,658,448 Financial liabilities 799, ,903 Short-term provisions 568, ,412 Other current liabilities 199, ,156 TOTAL CURRENT LIABILITIES 3,386,393 2,948,919 NON-CURRENT LIABILITIES Trade and other payables 400, ,758 Financial liabilities 22,643,040 18,444,116 Deferred tax liabilities 22,116 39,391 Long-term provisions 86,000 66,000 Other non-current liabilities 133, ,077 TOTAL NON-CURRENT LIABILITIES 23,285,156 18,959,342 TOTAL LIABILITIES 26,671,549 21,908,261 NET ASSETS 4,529,598 7,773,108 EQUITY Retained earnings 4,529,598 7,773,108 TOTAL EQUITY 4,529,598 7,773, The accompanying notes form part of this concise financial report. The accompanying notes form part of this concise financial report. 17

10 STATEMENT OF RECOGNISED INCOME AND EXPENDITURE FOR THE YEAR ENDED 31 OCTOBER Retained Earnings Total $ $ Balance at 1 November ,773,108 7,773,108 Loss attributable to members (3,243,510) (3,243,510) Balance at 31 October ,529,598 4,529, Balance at 1 November ,653,934 8,653,934 Loss attributable to members (880,826) (880,826) Balance at 31 October ,773,108 7,773,108 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 OCTOBER $ $ CASH FLOW FROM OPERATING ACTIVITIES Receipts from customers 13,073,845 16,441,440 Payments to suppliers and employees (13,120,584) (15,000,374) Grant to Balmain Tigers Rugby League Football Club Ltd (960,511) (1,189,000) Interest received 8,280 14,809 Finance costs (1,195,729) (835,481) Net cash used in operating activities (2,194,699) (568,606) CASH FLOW FROM INVESTING ACTIVITIES Proceeds from sale of plant and equipment 60,998 90,597 Proceeds from sale of poker machine entitlements 41,250 - Proceeds from sale of investment - 400,000 Purchase of property, plant and equipment (576,937) (1,008,695) Net cash used in investing activities (474,689) (518,098) CASH FLOW FROM FINANCING ACTIVITIES Proceeds from borrowings 3,120,990 1,003,199 Repayment of borrowings (526,735) (529,804) Net cash provided by financing activities 2,594, ,395 Net decrease in cash held (75,133) (613,309) Cash at beginning of financial year 661,482 1,274,791 Cash at end of financial year 586, , The accompanying notes form part of this concise financial report. The accompanying notes form part of this concise financial report. 19

11 NOTES TO THE CONCISE FINANCIAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2008 NOTE 1: BASIS OF PREPARATION OF THE CONCISE FINANCIAL REPORT The concise financial report is an extract for the full financial report for the year ended 31 October The concise financial report has been prepared in accordance with Accounting Standard 1039: Concise Financial Reports, and the Corporations Act The financial statements, specific disclosures and other information included in the concise financial report are derived from and are consistent with the full financial report of Balmain Leagues Club Limited. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of Balmain Leagues Club Limited as the full financial report. A copy of the full financial report and auditor s report will be sent to any member, free of charge, upon request. The financial report of Balmain Leagues Club Limited comply with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety. The presentation currency used in this concise financial report is Australian dollars. (a) Going Concern Notwithstanding the company s diminution in the book value of net assets, the financial report has been prepared on the going concern basis. This position has been adopted on the basis that the Board has confidence the club will receive continuing support from its financiers to secure a relationship with a development partner. (b) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. NOTE 2: REVENUE NOTES TO THE CONCISE FINANCIAL REPORT FOR THE YEAR ENDED 31 OCTOBER $ $ Sales revenue Poker machine takings 9,090,617 12,135,227 Bar sales 1,143,985 1,370,351 Catering sales 2,199,965 2,380,287 Merchandise sales 96,737 53,434 Commission received 89,443 85,781 Interest received - other persons 8,280 14,809 Rent received 248, ,008 Membership subscriptions 112, ,197 Sundry revenue 163, ,539 13,153,080 16,699,633 Other Revenue Gain on disposal of plant and equipment 29,287 41,632 Gain on disposal of poker machine entitlements 41,250 - Gain on disposal of share in Narellan Properties - 400,000 70, ,632 Total Revenue 13,223,617 17,141,265 NOTE 3: SEGMENT REPORTING The club operates in one geographical area being New South Wales, Australia. The principal activity of the club is that of a licensed club

12 DISCLAIMER TO THE MEMBERS OF BALMAIN LEAGUES CLUB LIMITED The additional financial data presented on the following pages is in accordance with the books and records of the company which have been subjected to the auditing procedures applied in our statutory audit of the company for the year ended 31 October It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do not express an opinion on such financial data and we give no warranty of accuracy or reliability in respect of the data provided. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person (other than Balmain Leagues Club Limited) in respect of such data, including any errors or omissions therein however caused. PRIESTLEY & MORRIS Chartered Accountants P A Cordwell Partner Dated: 3rd February 2009 Level 7, 3 Horwood Place Parramatta NSW 2150 Liability limited by a scheme approved under Standards Legislation UNAUDITED SUPPLEMENTARY INFORMATION DETAILED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 OCTOBER $ $ Income Poker machines 9,090,617 12,135,227 Bar trading surplus 654, ,553 Catering surplus 1,415,961 1,562,574 Interest received 8,280 14,809 Merchandising surplus 94,903 23,480 Membership 112, ,197 Rent 248, ,008 Gain on disposal of plant and equipment 29,287 41,632 Gain on disposal of poker machine entitlements 41,250 - Gain on disposal of share in Narellan Properties - 400,000 Commissions 89,443 85,781 Sundry income 163, ,293 Total income 11,948,751 15,722,554 UNAUDITED SUPPLEMENTARY INFORMATION DETAILED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 OCTOBER $ $ Expenses Advertising & promotion 249,285 71,766 AGM & annual report 10,495 25,706 Auditor s remuneration 33,000 30,000 Bad and doubtful debts 33,170 38,951 Bank charges 59,329 68,360 Bar requisites & kitchenware 52,161 81,255 Bingo & raffles 122, ,113 Cleaning costs 193, ,535 Computer expenses 174, ,854 Consultancy fees 31,570 82,376 Community support expenditure 380, ,796 Depreciation & amortisation 850, ,346 s expenses 24,501 31,309 Energy costs 207, ,934 Entertainment costs 247, ,088 General expenses (Club Trading) 404, ,590 Grants - Balmain Tigers Rugby League Football Club Ltd 1,177,000 1,082,000 Insurance 255, ,213 Interest & lease expenses 1,195, ,481 Legal fees 22,364 4,045 Licenses & taxes 2,133,131 2,985,412 Membership expenses 226, ,877 Motor vehicle expenses - 3,798 Payroll tax 262, ,933 Printing, postage & stationery 118, ,941 Promotion costs 482, ,037 Rates 117, ,215 Repairs & maintenance 538, ,062 Salaries, superannuation and staff costs 5,274,309 5,989,445 Security 54,390 36,038 Subscriptions 33,856 26,253 Superdome capitalised expenses written off 15, ,239 Telephone 81,225 77,908 Training 114, ,240 Uniforms 30,320 23,982 Total expenses 15,208,013 16,595,098 Loss before related income tax expense (3,259,262) (872,544) 22 This statement should be read in conjunction with the attached disclaimer. This statement should be read in conjunction with the attached disclaimer. 23

13 IMPORTANT INFORMATION FOR MEMBERS REQUIRED PURSUANT TO THE REGISTERED CLUBS ACT Balmain Leagues Club Limited Serial Number: October 2008 REGISTERED CLUBS AMENDMENT ACT 2003 DISCLOSURES The following information is required to be disclosed pursuant to the Registered Clubs Amendment Act 2003: for the year ended 31 October 2008 and is important information for Club members. The original declarations, disclosures and returns made pursuant to Sections 41C, 41D, 41E and 41F, and referred to below, are held with the Secretary of the Club. Such declarations, disclosures and returns are available for inspection by members on written application to the Secretary. (a) (i) Disclosure of interest in contracts (section 41C) No of the Company declared to have a material personal interest in a contract that relates to the affairs of the Company. (ii) and employee interest in hotels (section 41D) No or any of the top 5 (by remuneration) Club employees holds any financial interest in a hotel. (iii) Gifts from affiliated bodies (section 41E) No or top executive received a gift of $500 or more from an affiliated body during the financial year. (iv) Gifts from organisations with a contract with the Club (section 41F) During the year, the following employees received gifts to the total value of greater than $500 from an organisation that is a party to a contract of service with the Company: Nil (b) Employee remuneration No. No. The top 5 employees of the Company whose income from the Company or any related party is greater than $100,000 falls within the following bands: $100,001 - $110, $110,001 - $120, $170,001 - $180, (c) and employee overseas travel No s or employees of the club travelled overseas on behalf of the club. (d) Employee loans There were no loans made to employees exceeding $1,000 during the year. (e) Details of Approved Contracts During the year, the Company did not enter into a contract with any of the s or top executives, in which the or top executive has an interest. IMPORTANT INFORMATION FOR MEMBERS REQUIRED PURSUANT TO THE REGISTERED CLUBS ACT (f) Related Parties In the reporting period the Club employed the following persons who were a close relative to a or Top Executive of the Club: Name of Close Relative Related to Remuneration Paid to Close Relative Michelle Nielsen Rod Nielsen $32,666 Suzanna Martanti Eddy Kusnaedi $27,603 (g) Payments to Consultants, exceeding $30,000 During the reporting period there were 21 instances where the Club engaged consultants. The total costs paid by the Club to consultants in the reporting period was $590,600, which included the following instances when consultants were paid more than $30,000: (h) Payments to Consultants other Colin Biggers & Paisley Legal Services $98,791 dko Architecture Pty Ltd Architecture Services $97,006 Winston Langley Pty Ltd Development Management $89,318 Sinclair Knight Merz Traffic Consultant $73,105 Leichhardt Council Traffic Consultant $60,000 Parker & Partners PR Consultants $49,792 Ray White Projects Pty Ltd Development Management $37,500 Lindsay Taylor Lawyers Legal Services $31,483 (i) Legal settlements There were no settlements made during the reporting period with a member of the Board or any employee of the Company as a result of a legal dispute. (j) Legal fees During the year, no legal fees were incurred by the Company on behalf of a member of the Board or an employee. (k) Net revenue from poker machine takings The Club recorded a gaming machine profit for the 12 month period ended 31 August 2008 of $10,169,077 (2007: $13,780,711). (l) Community development and support The Company contributed an aggregate amount of $389,569 (2007: $425,836) to community development and support as required under Part 4 of the Gaming Machine Tax Act 2001 for the12 month period ended 31 August BLC 2008 Concise Annual Report 25

14 TIGERS SUPPORTING THE COMMUNITY TIGERS have a proud history of over 100 years and are as committed as we were in 1908 to ensuring the growth and support of our community. TIGERS are proud to be working with the community groups and during 2008 have donated *$389,570. This latest funding means TIGERS has given over $3.5 million* to charities and community support in the last eight years alone. The major beneficiaries for the 2008 Community Development and Support Expenditure Scheme (CDSE) Category 1 grants are: Aunties and Uncles Co-operative Betsafe Bridge for Asylum Seekers Heartmoves Inner West Business Centre Inner West Disability Mary Mackillop Outreach Pets of Old Persons Point Zero Youth Services Rozelle Neighbourhood Centre SIDS and Kids NSW Special Olympics Australia St Johns Ambulance St Vincents Sydney Secondary College Technical Aid to the disabled Congratulations to these organisations who have received funding for TIGERS wish you the best of luck with your projects. * Funding refers to Category 1 and Category 2 CDSE Funding but excludes football grants.

15 TIGERSBALMAIN LEAGUES CLUB CONCISE ANNUAL REPORT Victoria Road Rozelle 2039 Phone: Fax: Web: ABN