CSCC Annual Report 2013-2014

A.C.N. 008 488 855

2013-2014

Canberra Southern Cross Club Ltd Annual Report 2013 - 2014 A.C.N. 008 488 855

President’s ReportThanks to the continued support of our loyal members the Canberra Southern Cross Club group of clubs returned to a modest surplus this financial year. This turnaround is also an accolade to the great work of staff and senior management to reduce costs and improve services.

Significant achievements this year include:

• Another major community contribution of $1.3m grant funding, supporting 300 Canberra community, charitable and sporting groups.

• The continued focus on providing health and wellbeing services to the local community as we improve our sport and fitness business through the Southern Cross Health Club in Phillip, and four wholly-owned ‘Anytime Fitness’ franchises at Woden, Tuggeranong, Jamison and the new gym in Weston Creek.

• A new restaurant and approach to improving our food offering to members at Southern Cross Club Woden with the opening of Chong Co, offering contemporary Thai food. This successful restaurant has a number of venues across Canberra and we are pleased to be able to provide this outstanding dining experience to members and guests dining at Woden.

Our achievements this financial year are especially remarkable due to the challenging trading environment following the change in Federal Government, Federal Budget austerity measures, and threatened job cuts.

In addition, the regulatory environment set by the ACT Government continues to create more burdens on the industry rather than assist. The latest of these has been the restriction on ATM’s resulting in consistent drops in revenues across the industry – including our club. Sensible regulation, supported by well researched findings is supported by the club and the industry in general.

This year saw a major change in the way the club is managed with the retirement of Greg Mitchell and the appointment of Ian Mackay as Chief Executive Officer. Greg has ably managed the club for over 11 years, overseeing major changes at all venues as well as the expansion into Belconnen whilst ensuring the club has been viable through difficult times. On behalf of the Board and senior management, I would like to recognise Greg’s commitment and achievements and wish him well into the future.

As a result of Greg’s departure, the Board undertook an extensive search for a new CEO. Expressions of interest were received from over 90 applicants from across the country.

Ian Mackay has come to us from his last role as the CEO of The Championships, the signature racing event in the NSW racing calendar. He has extensive hospitality and marketing experience and impressed the Board with his insights as well as ability to engage with the staff and members. Ian’s arrival heralds a new and exciting period for the club and we are confident that he is the right person to manage the club into the future.

As I write this report, the club is in the process of partially renovating the ground floor at the Yacht Club to improve the very popular Fish and Chip shop, as well as revamping the sailors’ space. The increased space will allow us to offer a beverage service as well as provide services on wet and colder days. The new Fish and Chip shop ‘Snapper’ will open in early September 2014. Snapper will trade seven days per week offering fresh fish and chips by the lake, as well as Lonsdale Street Roasters coffee and other drinks and snacks throughout the day.

This year saw the reluctant retirement from the Board of John Ryan who left to take up a senior position in the Australian Public Service. John’s expertise and wisdom had been invaluable to the Board though the past year, and we wish him well in his new role. As a result of the vacancy created by John, we welcome Paula Jones to the Board. Paula is a long-term member and past employee who brings significant communication and marketing skills to the Board.

This brings to an end my 3 year term as President and I thank my fellow board members for their support and contribution over this period. The club and Board have been through some change over this period, and I recognise their professionalism and support. In this year of change, I must especially recognise the work and dedication of our Chief Financial Officer, and for a period Acting CEO, Carol Sawyer. I thank Carol for her loyalty and commitment, assisting myself and the Board through the change in CEO.

To close, I want to especially thank our members and the wider Canberra community for your loyalty and continued support for over 42 years now. Your commitment enables us to continue to provide great value quality services every day. Thank you.


Contents

President’s Report 2

Directors’ Report 4

Auditor’s Independence Declaration 9

Concise Financial Report 10

Director’s Declaration 21

Auditor’s Report 22

Graphs 24

Board of Directors 26

Corporate Information 27

Canberra Southern Cross Club LimitedA.C.N. 008 488 855

Concise annual financial report for the year ended 30 June 2014

4


Directors’ ReportThe directors of Canberra Southern Cross Club Limited submit herewith the financial report on the consolidated entity for the financial period ended 30 June 2014. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

DirectorsThe following persons were directors of Canberra Southern Cross Club Limited during the whole of the financial period and up to the date of this report, unless otherwise stated:

J.J. Lewis

S.C. Plummer

R.W. Lloyd

K. Marshall

C. Behrens

D.N. Grimmond

P.M. Jones

M.B. Laughlin

J.J. Rice

P.L. Rollings

J.A. Ryan was a director from the beginning of the financial period until his resignation on 4 December 2013

Principal activitiesThe consolidated entity’s activity in the course of the financial period was the operation of licensed club facilities.

There was no significant change in the nature of the activity of the Group during the year.

The entity’s short term objectives are:

• To provide a diverse range of services and amenities to members and their guests based on Christian standards.

• Providing for families through offering family friendly facilities.

• To provide support to the community either financially, through donation of food or by providing facilities.

The entity’s long term objectives are:

To be the premier club in the Australian Capital Territory by:

• Developing and reviewing a strategy for quality investments, services and memberships;

• Maintaining innovative, diverse responsible cost effective services to members;

• Exploring and developing opportunities for diversifying investments;

• Fostering family values and Christian standards;

• Being recognised for providing positive and constructive community support.

To achieve these objectives, the entity has adopted the following strategies:

The Club strives to attract and retain quality staff that are committed to working in the hospitality industry. The Club believes that retaining quality staff will assist with the success of the Club in both the short and long term.

The Club is committed to providing excellent customer service. This is achieved through the Club’s Customer Service Charter and training staff in technical skills and knowledge. The Club prides itself on productive working relationships of its staff.

Through the Club’s culture of Christian standards, the Club continues to meet consistent high level of community support through the annual grants program together with a comprehensive sporting grants program. In addition to these major programs the Club is committed to the wider community by providing facilities and donated food, this is evidenced by ongoing support of various community groups.

The Club has strong financial management and corporate governance systems which is managed through the Club’s business plan, key performance indicators, risk management plan and internal audit program. Monitoring of financial performance is reviewed on a monthly basis by executive management and Directors.

Concise Annual Financial Report For the year ended 30 June 2014

5


Directors’ Report (continued)DividendsIn accordance with the constitution, the Group is a company limited by guarantee to the extent of $2.00 per member, and accordingly no shares or debentures have been issued and no dividends have been recommended or paid since the start of the financial period.

Review of operationsOperations comprised the running of licensed club facilities and the provision of member services.

The Club ceased operations at the Turner location during the financial year. There are no financial commitments or liabilities in relation to the Turner location at 30 June 2014.

The Group completed the acquisition of a gym facility in Weston during the financial year which has been subsequently re-branded as an Anytime Fitness gym.

The Chief Executive Officer, Mr Greg Mitchell, resigned his position from the club effective 1 July 2014. The Board of Directors appointed Mr Ian Mackay Chief Executive Officer effective from 2 July 2014.

Significant changes in the state of affairsThere have been no significant changes in the state of affairs of the Group during the year other than that referred to in the financial statements or notes thereto.

Matters subsequent to the end of the financial yearNo matter or circumstance has arisen since 30 June 2014 that has significantly affected, or may significantly affect:

a. the consolidated entity’s operations in future financial periods, or

b. the results of those operations in future financial periods, or

c. the consolidated entity’s state of affairs in future financial periods.

Likely developments and expected results of operationsFurther information on likely developments in the operations of the consolidated entity and the expected results of operations have not been included in this concise financial report because the directors believe it would be likely to result in unreasonable prejudice to the consolidated entity.

Environmental regulationThe Club is not affected by any significant environmental regulation in respect of its operations..

6


Directors’ Report (continued)

Information on directorsName Special Responsibilities Years Service Occupation

J.J. Lewis BA (Acc) Grad Diploma IT, FAICD, CPA

President 11 Company Manager

S.C. Plummer Senior Vice President 15 ManagerR.W. Lloyd MAICD Vice President 17 RetiredK. Marshall Vice President 11 Public ServantC. Behrens B.Ec/LLB Director 8 Senior Executive LawyerD.N. Grimmond OAM FREIA Director 13 Real Estate AgentP.M. Jones Director 0 (appointed 16

June 2014)Marketing Manager

M.B. Laughlin BA Director 21 Public ServantJ.J. Rice B Econ. Director 33 RetiredP.L. Rollings Director 23 RetiredJ.A. Ryan B.Ec, MEc, GAICD, PSM Director 6 (resigned 4

December 2013)Consultant Company Director

Company secretary The company secretary is Carol Sawyer. Carol Sawyer is also the Chief Financial Officer of the Canberra Southern Cross Club.

7


Meetings of Committees

Board of Directors Meetings

Financial Management

Committee

Member Services Committee

Planning and Governance Committee

Directors A B A B A B A B

J.J. Lewis 20 19 - - - - - -S.C. Plummer 20 20 5 5 - - - -R.W. Lloyd 20 16 - - - - 3 2K. Marshall 20 18 - - 3 3 - -C. Behrens 20 18 5 4 3 2 - -D.N. Grimmond 20 15 - - 3 3 3 2P.M. Jones 1 1 - - - - - -M.B. Laughlin 20 19 5 3 3 2 - -J.J. Rice 20 18 - - 3 2 3 2P.L. Rollings 20 19 5 5 - - 3 3J.A. Ryan 7 5 5 5 - - 3 3

A = Number of meetings held during the time the director held office or was a member of the committee during the year

B = Number of meetings attended

In all cases of absences, directors were absent on club business, on leave or absent due to work commitments. In all instances leave of absence was sought and approved.

During the year the decision was made that committee meetings would cease and the Directors would hold two full board meetings per month.

Meetings of directors The following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the financial period and the number of meetings attended by each director (while they were a director or committee member).

Indemnification of officers During the financial period, the Group paid a premium in respect of a contract insuring the directors of the Group (as named above), the Company secretary, and all executive officers of the Group and of any related body corporate against a liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

The consolidated entity has not otherwise, during or since the financial period, indemnified or agreed to indemnify an officer or auditor of the Group or of any related body corporate against a liability incurred as such an officer or auditor.

Proceedings on behalf of the company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of the Corporations Act 2001.


8


Auditor’s independence declarationA copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 9.

Signed in accordance with a resolution of the directors made pursuant to Section 298(2) of the Corporations Act 2001.

J.J. Lewis Director

S.C. Plummer Director

Canberra, ACT Date: 8.09.2014


9


10


These financial statements are the consolidated financial statements of the consolidated entity consisting of Canberra Southern Cross Club Limited and its subsidiaries. The financial statements are presented in the Australian currency.

Canberra Southern Cross Club Limited is a company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Canberra Southern Cross Club Limited 92-96 Corinna Street Woden ACT 2606

The financial statements were authorised for issue by the directors on 8.09.2014. The directors have the power to amend and reissue the financial statements.

Canberra Southern Cross Club LimitedA.C.N. 008 488 855

Concise financial report - 30 June 2014

11


Consolidated Statement of Comprehensive Income for the year ending 30 June 2014

Notes 2014 $

2013 $

Revenue 1 50,911,983 51,991,092

Cost of sales and services (12,022,349) (12,557,070)

Administration expenses (26,001,847) (27,171,223)Occupancy expenses (8,269,171) (8,196,011)Marketing expenses (1,148,585) (1,290,315)Show expenses (367,763) (498,227)Operating lease expenses (1,319,216) (1,208,920)Finance costs (551,878) (504,195)Other expenses (902,119) (750,113)Impairment of goodwill - (506,713)Profit/(loss) before income tax 329,055 (691,695) Income tax benefit/(expense)

63,970

(63,970)

Profit/(loss) for the year 393,025 (755,665) Other comprehensive income

-

-

Total comprehensive income/(loss) for the year 393,025 (755,665)Total comprehensive income/(loss) for the year is attributable to:Owners of Canberra Southern Cross Club Limited 393,025 (755,665)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

12


Consolidated Balance Sheet As at 30 June 2014

Notes 2014 $

2013 $

ASSETSCurrent assetsCash and cash equivalents 6,524,101 3,790,530Trade receivables 725,947 546,571Inventories 368,025 409,659Short-term bank deposits - 178,942Prepayments 272,031 267,407Total current assets 7,890,104 5,193,109 Non-current assetsProperty, plant and equipment 46,070,776 48,570,354Other receivables 73,931 -Advances 32,020 33,800Intangible assets 409,450 88,550Total non-current assets 46,586,177 48,692,704 Total assets

54,476,281

53,885,813

LIABILITIESCurrent liabilitiesTrade and other payables 3,139,101 4,014,658Borrowings 1,194,139 1,185,861Employee benefits 1,320,642 1,210,330Unearned revenue 831,077 866,582Total current liabilities 6,484,959 7,277,431 Non-current liabilitiesBorrowings 5,694,132 4,791,870Employee benefits 49,966 40,748Total non-current liabilities 5,744,098 4,832,618 Total liabilities

12,229,057

12,110,049

Net assets

42,247,224

41,775,764

EQUITYRetained earnings 42,247,224 41,775,764 Total equity

42,247,224

41,775,764

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

13


Consolidated Statement of Changes in Equity For the year ending 30 June 2014

NotesRetained earnings

$

Non-controlling interests

$

Total equity

$Balance at 25 June 2012 42,921,798 119,631 43,041,429Profit/(loss) for the year (755,665) - (755,665)Elimination of non-controlling interest - (119,631) (119,631)Acquisition of outstanding subsidiary shares (390,369) - (390,369)Balance at 24 June 2013 41,775,764 - 41,775,764

Balance at 25 June 2013 41,775,764 - 41,775,764Profit/(loss) for the year 393,025 - 393,025Other movement 78,435 - 78,435Balance at 30 June 2014 42,247,224 - 42,247,224

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

14


Consolidated Statement of Cash Flows For the year ending 30 June 2014

2014 $

2013 $

Cash flows from operating activitiesReceipts from customers 54,719,853 56,553,955Payments to suppliers and employees (48,289,312) (49,566,278)Interest and other costs of finance paid (551,878) (504,195)Income taxes paid 59,991 14,687Net cash inflow from operating activities 5,938,654 6,498,169 Cash flows from investing activitiesInterest received 75,569 70,901Payment for investment in subsidiary - (510,000)Payments for business acquisition (320,900) -Payments for purchase of property, plant and equipment (4,077,227) (7,309,533)Proceeds from sale of property, plant and equipment 51,683 -Net cash (outflow) from investing activities (4,270,875) (7,748,632) Cash flows from financing activitiesRepayment of borrowings (1,059,197) (945,867)Proceeds from borrowings 2,124,989 1,016,000Finance lease payments - (649,139)Net cash inflow (outflow) from financing activities 1,065,792 (579,006) Net increase (decrease) in cash and cash equivalents

2,733,571

(1,829,469)

Cash and cash equivalents at the beginning of the financial year 3,790,530 5,619,999Cash and cash equivalents at end of year 6,524,101 3,790,530

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

15


Notes to the Consolidated Financial Statements 30 June 20141 Revenue

2014 $

2013 $

Revenue consisted of the following items:

Gaming revenueWoden gaming 11,684,905 12,499,483Yacht gaming 149,796 151,576Tuggeranong gaming 8,042,990 8,010,894Jamison gaming 3,644,179 3,846,745Turner gaming 121,841 343,786Kaleen gaming - 279,920

Total gaming revenue 23,643,711 25,132,404 Other revenue

Revenue from sale of goods and services 18,342,971 18,437,046Membership income 5,919,630 5,243,632Rental revenue 984,635 742,664Interest revenue 75,569 70,901Members entertainment income 262,293 279,639Other 1,683,174 2,084,806

Total other revenue 27,268,272 26,858,688 Total revenue

50,911,983

51,991,092

16


Notes to the Consolidated Financial Statements (continued)2 Expenses

2014 $

2013 $

Profit before income tax includes the following specific expenses:

DepreciationBuildings 2,154,214 2,080,508Plant and equipment 4,370,908 4,380,126

Total depreciation 6,525,122 6,460,634

Employee benefits expensesDefined contribution superannuation expense 1,304,817 1,256,793Other employee benefits 14,742,801 14,681,538

Total employee benefits expenses 16,047,618 15,938,331

3 Key management personnel disclosures(a) Directors

The following persons were directors of Canberra Southern Cross Club Limited during the financial year:

(i) President

J.J. Lewis BA (Acc) Grad Diploma IT, FAICD, CPA

(ii) Senior Vice President

S.C.Plummer

(iii) Vice President

R.W.Lloyd, MAICD

K. Marshall

(iv) Directors

C. Behrens, B.Ec/LLB

D.N. Grimmond, OAM FREIA

P.M. Jones (appointed 16.06.2014)

M.B. Laughlin, B Arts

J. Rice, B. Econ.

P.L. Rollings

J.A. Ryan, (resigned 04.12.2013)

The specified executives of the company and the consolidated entity during the year were:

G. Mitchell (Chief Executive Officer)

C. Sawyer (Chief Financial Officer & Company Secretary)

W. Willcott (Finance Manager)

17


Notes to the Consolidated Financial Statements (continued)

(b) Key management personnel compensation

The aggregate compensation of the key management personnel of the consolidated entity and the company, is set out below:

2014 $

2013 $

Employee benefits 908,471 725,416908,471 725,416

(c) Employee’ remuneration

Section 54 of the Gaming Machine Act 2004 requires employee remuneration above the prescribed amount of $100,000 to be reported in the financial report. During the year there were 9 employees, 8 of whom received total remuneration between $100,000 and $200,000, and 1 who received greater than $200,000 (2013: 10 employees with remuneration greater than $100,000).

(d) Directors remuneration

Included within key management remuneration in note 3(b) above is remuneration paid or payable, or otherwise made available, in respect of the financial period, to all directors of the Group, directly or indirectly, by the Group or by any related party. This represents payments for out of pocket expenses as approved at the 2013 Annual General meeting in accordance with item 12.6 of the Club’s constitution.

2014 $

2013 $

Directors remuneration 118,721 121,455

4 Additional company informationEvery member undertakes to contribute to the assets of the Group in the event of and for the purposes of the winding up of the Group, an amount not exceeding $2. There were 83,349 members at 30 June 2014 (2013: 83,874 members).

2014 $

2013 $

Membership classesOrdinary 79,003 79,381Religious 381 392Country 3,261 3,397Contributing Life Members 659 659Honorary Life Members 48 45

83,349 83,874

18


Notes to the Consolidated Financial Statements (continued) 5 Remuneration under contractual agreements and consultanciesSection 54 of the Gaming Machine Act 2004 requires that certain remuneration under contractual agreements and consultancies be disclosed.

Contractors or consultants who received or were due to receive $49,999 or more under contractual arrangements:

ACTEWAGL Retail

ACTEWGAS

Ainsworth Game Technology

Alsco Pty Ltd

Anittel Communications Pty Ltd

Aristocrat Leisure Industries

Best In Grass

Canberra North Bowling Club

CCS Facilities Maintenance

Chubb Security Services

Eastlake Football Club

EBet Gaming Systems

Elite Group (Act) Pty Ltd

Epicurean Contract Caterers

G.E. Shaw & Associates Pty Ltd

I.G.T. (Australia) Pty Ltd

J J Richards & Sons Pty Ltd

Konica Minolta Business

Leader Security Pty Ltd

Leading Edge Amusements

OPC (Canberra) Pty Ltd

Premier Venue Entertainment Pl

PricewaterhouseCoopers

Reel Gaming Solutions

Rose Cleaning Service

RSM Bird Cameron

Sky Channel Pty Ltd

Thyssenkrupp Elevator

19


Notes to the Consolidated Financial Statements (continued)6 Director benefitsSection 54(d) of the Gaming Machine Act 2004 requires that any benefits that have been taken by a person during the financial period be reported in the annual report.

The Group has provided the following benefits during the financial period:

Position Description & purpose Monetary value Who offered the benefit

Directors partner (9) Hospitality provided to spouse/guest while in attendance with Director at official functions, seminar or internal club events

$6,007 Canberra Southern Cross Club

Directors partners (9) Official function for club sponsored charity group while in attendance with Director

$650 Cerebral Palsy Alliance

Directors partners (2) Official function for club sponsored charity group while in attendance with Director

$270 Cerebral Palsy Alliance

Directors partner (1) Official function for club sponsored sporting group while in attendance with Director

$100 Wests Rugby Union club

Directors partner (1) Official function for club sponsored charity group

$75 Communities @ Work

Directors partners (7) ClubsACT Awards while in attendance with Director

$1,015 Canberra Southern Cross Club

Senior Management (5) Hospitality provided to partner/guest while in attendance with Management at official functions, Club planning seminar or internal club events while in attendance with management

$619 Canberra Southern Cross Club

Management (1) State of Origin game $100 Coca Cola AmatilSenior Management (1) Brumbies game $125 ActewAGLSenior Management (2) Brumbies game $250 Lion NathanSenior Management (1) Brumbies game $125 RSM Bird CameronSenior Management (1) Entertainment to “A night with Hoges” $100 Club Plus SuperannuationSenior Management (1) Brumbies game $125 ActewAGLSenior Management (2) ClubsACT Charity golf day $200 AristocratSenior Management (4) Canberra Raiders game $400 IGTSenior Management (3) Ronald McDonald House gala ball $300 Chemworks

20


Notes to the Consolidated Financial Statements (continued)7 Summary of significant accounting policiesThe concise financial report is an extract from the full financial report for the year ended 30 June 2014. The concise financial report has been prepared in accordance with Accounting Standard AASB 1039: Concise Financial Reports and the Corporations Act 2001.

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 Canberra Southern Cross Club Limited and its subsidiaries. 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 Canberra Southern Cross Club and its subsidiares 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 presentation currency used in this concise financial report is Australian dollars.

21


Directors’ Declaration30 June 2014In the directors’ opinion:

(a) the financial statements and notes set out on pages 10 to 20 are in accordance with the Corporations Act 2001, including:

(i) complying with Accounting Standards - Reduced Disclosure Requirements, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and

(ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2014 and of its performance for the year ended on that date, and

(b) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable, and

(c) the financial report is in accordance with the disclosure requirements of the Gaming Machine Act 2004 (ACT).

This declaration is made in accordance with a resolution of the directors.

J.J. Lewis Director

S.C. Plummer Director

Canberra, ACT

Date: 8.09.2014

22


23


24


Canberra Southern Cross Club Ltd Trading ResultsConsolidated Revenue From Ordinary Activities 2013/14

Gaming Revenue - $23.6 MillionBeverage Revenue - $6.4 MillionFood Revenue - $13.2 MillionMembership Income - $6.0 MillionMembers Entertainment Income - $0.4 MillionOther Revenue- $1.5 Million

46%

3%1%

12%

26%

12%

Consolidated Expenses From Ordinary Activities 2013/14

Depreciation and amortisation - $6.5 MillionUtilities (Electricity, Fuel, Telephone and Rates) - $2.4 MillionSalaries & On Costs - $18.0 MillionGaming Promotions - $2.3 MillionCost of Goods - $12.0 MillionOther Expenses- $9.4 Million

13%

5%

36%

4%

24%

18%

Club Gaming Trading 2013/14

Gaming Machine Levy - $5.2 MillionWages and On Costs - $3.0 MillionGaming Promotions - $2.2 MillionDepreciation - $2.7 MillionOther Expenses - $1.9 MillionOperating Surplus- $8.6 Million

22%

13%

10%

11%

8%

36%

Club Liquor Trading 2013/14

Cost of Sales - $2.3 MillionDepreciation Expense - $0.1 MillionWages and On Costs - $2.1 MillionOther Expenses - $0.4 MillionOperating Surplus - $1.4 Million

32%

2%

36%

23%

7%

Club Food Trading 2013/14

Cost of Goods - $4.3 MillionWages and On Costs - $6.8 MillionDepreciation - $0.2 MillionOther Expenses - $1.0 MillionOperating Surplus - $0.9 Million

33%

51%

2%

7%

7%

Club Members Entertainment Trading 2013/14

Entertainment Expenses - $0.4 MillionMembers Promotion Expenses - $0.3 MillionOther Expenses- $0.5 MillionWages and On Costs - $1.2 MillionOperating De�cit - ($1.4 Million)

-37%

10%

8%

13%

32%

Sport and Recreation Trading 2013/14

9%

6%

Wages and On Costs - $0.3 MillionDepreciation - $0.1 MillionOther Expenses - $0.5 MillionOperating Surplus - $0.1 Million

32%

53%

Distribution of Poker Machine Dollar 2013/14

Return to Player

Direct Expenses including taxes and community expenses

Club Hold

3%

92%

5%

2. Consolidated Expenses from Ordinary Activities 2013/14Consolidated Revenue From Ordinary Activities 2013/14


46%

3%1%

12%

26%

12%



13%

5%

36%

4%

24%

18%



22%

13%

10%

11%

8%

36%



32%

2%

36%

23%

7%



33%

51%

2%

7%

7%



-37%

10%

8%

13%

32%


9%

6%


32%

53%


Return to Player


Club Hold

3%

92%

5%

4. Food Trading 2013/14

1. Consolidated Revenue from Ordinary Activities 2013/14

Consolidated Revenue From Ordinary Activities 2013/14


46%

3%1%

12%

26%

12%



13%

5%

36%

4%

24%

18%



22%

13%

10%

11%

8%

36%



32%

2%

36%

23%

7%



33%

51%

2%

7%

7%



-37%

10%

8%

13%

32%


9%

6%


32%

53%


Return to Player


Club Hold

3%

92%

5%3. Liquor Trading 2013/14



46%

3%1%

12%

26%

12%



13%

5%

36%

4%

24%

18%



22%

13%

10%

11%

8%

36%



32%

2%

36%

23%

7%



33%

51%

2%

7%

7%



-37%

10%

8%

13%

32%


9%

6%


32%

53%


Return to Player


Club Hold

3%

92%

5%

Note: The graphs 3 and 4 are attributable to the parent company Canberra Southern Cross Club Limited and not the consolidated entity.

25


Note: The graphs 5 to 8 are attributable to the parent company Canberra Southern Cross Club Limited and not the consolidated entity.



46%

3%1%

12%

26%

12%



13%

5%

36%

4%

24%

18%



22%

13%

10%

11%

8%

36%



32%

2%

36%

23%

7%



33%

51%

2%

7%

7%



-37%

10%

8%

13%

32%


9%

6%


32%

53%


Return to Player


Club Hold

3%

92%

5%



46%

3%1%

12%

26%

12%



13%

5%

36%

4%

24%

18%



22%

13%

10%

11%

8%

36%



32%

2%

36%

23%

7%



33%

51%

2%

7%

7%



-37%

10%

8%

13%

32%


9%

6%


32%

53%


Return to Player


Club Hold

3%

92%

5%



46%

3%1%

12%

26%

12%



13%

5%

36%

4%

24%

18%



22%

13%

10%

11%

8%

36%



32%

2%

36%

23%

7%



33%

51%

2%

7%

7%



-37%

10%

8%

13%

32%


9%

6%


32%

53%


Return to Player


Club Hold

3%

92%

5%

5. Gaming Trading 2013/14

7. Sport & Recreation Trading 2013/14

8. Distribution of Poker Machine Dollar 2013/14

6. Members Entertainment Trading 2013/14



46%

3%1%

12%

26%

12%



13%

5%

36%

4%

24%

18%



22%

13%

10%

11%

8%

36%



32%

2%

36%

23%

7%



33%

51%

2%

7%

7%



-37%

10%

8%

13%

32%


9%

6%


32%

53%


Return to Player


Club Hold

3%

92%

5%

26


John LewisPresident

Simon PlummerSenior Vice President

Bob LloydVice President

Kim MarshallVice President

Paul RollingsDirector

John RyanDirector

(resigned 04.12.2013)

Paula JonesDirector

(appointed 16.06.2014)

Christopher BehrensDirector

Mary LaughlinDirector

David GrimmondDirector

Jack RiceDirector

Board of Directors

27


Notice to Members Annual General MeetingMembers are advised that the 43rd Annual General Meeting (AGM) will be held in Corinna Room 2 at the Southern Cross Club Woden on Wednesday, 8 October 2014, at 8.00pm.

AGENDA

1. Apologies2. Minutes of the 42nd Annual General Meeting of 9

October 2013.3. Presentation of Annual Report4. Presentation of Finance Reports and

Balance Sheets5. Auditor’s Report6. Special Resolution to amend and modify clause 12.1

(a) of the Club’s Constitution.Under the Club’s current Constitution, the number of directors on the Board is 10. The intention of the proposed resolution is to reduce the number of directors on the Board to 9. The Board has found that this is the optimum size of the Board. The reduction in number of directors on the Board is to be effective on 1 June 2015.

Accordingly:

Pursuant to section 136(2) of the Corporations Act, it is resolved by way of special resolution that clause 12.1 (a) of the Club’s constitution be amended to read “9 in number; and”. This amendment to the Club’s constitution will take effect on and from 1 June 2015.

7. Ordinary ResolutionsFirst Ordinary Resolution

Pursuant to section 202A of the Corporations Act it is resolved that the Director’s honoraria for out of pocket expenses be set in accordance with Article 12.6 of the Constitution.

Second Resolution

It is a requirement of section 53 of the Gaming Machine Act 2004, that members approve expenditure incurred by the Club or third parties for staff, directors and partners to attend official functions, the directors’ annual seminar, sporting and other events on behalf of the Club as approved by the Board, as the expenditure may not relate to all members.

Accordingly;

It is resolved that the expenditure incurred by the Club or third parties for staff, directors and partners (if appropriate) to attend official functions, the directors’ annual seminar, sporting and other events on behalf

Corporate Informationof the Club as approved by the Board is approved up to a maximum of $25,000.00 for the period 9th October 2014 to 8th October 2015. This expenditure relates to all 4 Clubs associated with the Canberra Southern Cross Club Limited.

8. Such other business brought forward in conformity with the Constitution:

9. Election of Directors10. Election of Honorary Life Members11. Appointment and remuneration of Auditors12. General Business

Appointment of Proxy

As a Member you have the right to cast one vote at the Annual General Meeting, you have a right to appoint a proxy (whether or not a Member) to attend and vote on your behalf on resolutions other than the election of Directors. Proxy forms can be obtained by telephoning 6283 7210.

John Lewis

President Canberra Southern Cross Club

NO BALLOT REQUIREDIn terms of the Club’s Constitution, three Directors are required to retire each year, but will be eligible for re-election.

This year, on a rotation basis the Directors to retire are Paul Rollings, Robert Lloyd and John Lewis. All were eligible for re-election and these three Directors were re-nominated. John Ryan retired on 4th December 2013.

Therefore, nominations were called for on 23rd June 2014 from members for election of four (4) Directors.

Nominations closed on 30th June 2014 at which time the Club had received only one other nomination to the three Directors who were re-nominated. That nomination was from Ms Paula Jones.

Therefore there will be no need for an election this year.

Prior to the Annual General Meeting the Directors will meet and appoint the Board Executive, consisting of President and Senior Vice President for the forthcoming year which will be announced at the Annual General meeting on 8th October 2014.

The Directors who did not have to stand for election this year are Simon Plummer, Kim Marshall, Mary Laughlin, Jack Rice, Chris Behrens and David Grimmond.

Carol Sawyer

Company Secretary

Woden 6283 720092-96 Corinna Street Phillip ACT 2606

Southern Cross Health Club6283 7340 Irving Street Phillip ACT 2606

Southern Cross Sports Stadium Woden 6293 2275 Irving Street Phillip ACT 2606

Jamison 6251 2255 Cnr Catchpole & Bowman Streets Macquarie ACT 2614

Yacht Club & Cruises 6273 1784 ‘Lotus Bay’ Mariner Place Yarralumla ACT 2600

Tuggeranong 6293 7200 Cnr Holwell & Pitman Streets Tuggeranong ACT 2900

Southern Cross Sports StadiumTuggeranong 6293 2275 Cnr Colishaw & Athllon Drive Tuggeranong ACT 2900

Documents

CSCC Annual Report 2013-2014