30 April 2018
The Club’s Financial Year End will be on us shortly, and this entails important processes of review, budgeting and planning in all sporting codes, within the Executive Committee portfolios and by our Management team and staff. The Indian and Australian cricket teams visited South Africa during the season, and I doubt many people will forget the Australian Test at Newlands. A visit by 2 of the Big 3 nations in one year does lead to welcome financial performance. However, this is tempered by the fact that Pakistan and Sri Lanka visits us in the January to March 2019 period, and they do not provide the same financial inflow. The cancellation of the Global T20 was also disappointing, as we had penciled this in to the budget, and had held a number of talks with the Cape Town Knight Riders management team. Despite the disappointment of the Global T20, we have had a successful year in most other aspects of the Club’s finances. In particular, we have made significant inroads into cost curtailment on some of the big-ticket items in our expense column, noticeably rates, electricity and water. The water de-ironisation project is on the brink of going live, meaning we will be significantly reducing our reliance on municipal potable water. The municipal feed will only be used for the basins, kitchens, and water fountains. The showers and toilets will be using borehole water, with the iron removed. A strong focus on electricity usage has reduced this cost as well, and we are actively investigating solar options, with our significant roof area providing opportunities. The Notice of the AGM, scheduled for Thursday, 23 August 2018 and the Annual Report for 2017/2018 will be distributed by the end of July 2018, detailing the Clubs’ financial position and current business strategies.
We had satisfying performances from both Bar Trading and Sports Section contributions. The Bar Trade at the Sports Centre was especially robust. Sports Sections have performed well, with most sections exceeding budget. Central Service Income is slightly down on budget, resulting in overall trading income slightly below budget. However, this was offset by tight Central Services expenditure, specifically with savings made in water, rates and electricity. Cash flow management continues to be tightly controlled. We will continue this into the new financial year. WPCC is a complex Club, with myriad income and expenditure items. The budget process is a complex process, with a diversified revenue and expenditure profile. Membership fees are an important component of the budget, accounting for some 32% of our revenue. With the above in mind, your Committee hereby gives notice of the annual subscription increase to be effective 1st June 2018. The by-category detail of the new subscription rates are detailed hereinafter. The increase is necessary to help meet the Club’s budgeted income requirements for the coming year, and on average represents a 9% increase on the previous year’s subscriptions. This is slightly up from last year’s increase of 7%. At the most expensive category, this equates to an additional R25 a month. However, we expect subdued cricket income as opposed to this year, and more importantly, we have some major expense items that we need to place focus on. Principal amongst this is security, where we are looking to completely overhaul our current security arrangement. This will roughly double our security bill and take it to over R1 million a year. However, we feel it is responsible of us to tighten security as much as possible. In addition, we will be actively pursuing other projects that will be of benefit to our members, and improving the service and offerings to members. We understand this increase is greater than CPI but is an important component to provide the base to improve the service and offerings to members. We still remain significantly cheaper than other Clubs in our surrounds.
Members are reminded that subscriptions fall due on the 1st June 2018. A statement of account will reach you by this date. A penalty of 10% will apply to late payment of annual fees. All sports playing members who no longer wish to participate in a particular section please notify the Club, in writing, as soon as possible but no later than 31st May 2018. Active sports categories will be invoiced as at 1 June 2018.
The Club’s preferred method of contact is by email. Regular communication is distributed by email, posted on all Club notice boards and is available on the Club website. Please keep the Club Office informed of any changes to your personal details.
We hope that you have had an enjoyable year at the Club and we thank you for your continued support.