2019 Financial Results

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2019 Financial Results Empty 2019 Financial Results

Post by Lee Harradine on Sat Feb 01, 2020 11:22 am

I'm having a look at the financials published by the club and will add my analysis over a few posts, hopefully to assist readers.

Obviously I have an interest, seeing that the previous Board and I, almost all West Adelaide tragics, but qualified people, were dumped (except for one member).  Therefore I'll do my best to analyse the results dispassionately.

First, the new Board weren't appointed until 3 and a half months in.

Secondly, the decision to change the kitchen operation was a resolution of the previous Board.  However, it must be remembered that the current Venue Director was the biggest proponent of the change, along with the previous CEO and the SANFL.  I did not vote for it and my opposition was not well received by the Club power-brokers or the SANFL and was probably one reason I was terminated (you know what I mean  Very Happy  ).

OK, to finish this post, two things stand out.



One, it's our worst result since 2015.


Two, without knowing what changes have been made to the composition of the figures between items, I find that either the bar result is unbelievably bad and the function room result is remarkably good (again, impossible to say without further information), or:

The kitchen has been a disaster and is included in the bar result.



I will ask the Finance Director about the make-up of the relevant figures, but I'm sure his Report will spell it out.

Plenty more of interest for later, but work to do on the book now and that's bringing back my enthusiasm   cheers

Season 1997 to be written up, plus some funny stories.


Last edited by Lee Harradine on Sat Feb 01, 2020 2:55 pm; edited 2 times in total
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Post by Oldfella on Sat Feb 01, 2020 12:10 pm

Lee, you know I have very limited knowledge of finances and as such your review is appreciated.

Based on previous dealing with you as my Accountant of choice at Harradine,Norris & Green I look forward to reading your comment which will be addressed in a manner that those with a lower knowledge of Finance like me can understand.

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Post by Lee Harradine on Sat Feb 01, 2020 12:37 pm

I should say, as I have said all along, that IMO the club is in reasonable financial nick and should be debt free in a few years.

For a number of reasons that haven't changed from last year, we should be heading for a healthy profit next year.
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Post by Lee Harradine on Sat Feb 01, 2020 2:39 pm

Oldfella wrote:Lee, you know I have very limited knowledge of finances and as such your review is appreciated.

Based on previous dealing with you as my Accountant of choice at Harradine,Norris & Green I look forward to reading your comment which will be addressed in a manner that those with a lower knowledge of Finance like me can understand.

Thank you for the commercial, oldfella Very Happy

Anyone needing tax or accounting advice or work, feel free to contact me Laughing

The Mods might take this ad down Crying or Very sad
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Post by Lee Harradine on Mon Feb 03, 2020 9:58 am

Just noting some more points as I wander through the results.

The much reduced profit is helped by dividends from the Wolfpack increasing by nearly $40K.  This was already in place at the start of the year.

'Rent' paid by the club to the Wolfpack on the $2 million loan is now accounted for in the Football Club, not Footballers' Club.  This makes no difference to the overall result and is a more correct accounting treatment.  We had already been 'cleaning up' the treatment of items between the clubs over the last few years.

Bar proceeds and gaming proceeds have reduced, but marginally.

"Bad Debts' should be added back when assessing the results.  I think Murray said there was $38K to be written off, but it turned out to be about $28K.  No amounts were written off last year, but very large amounts (up to $50K) were written off in prior years to 'clean up' the accounts.  The current Finance Director may not have been aware of this.

Bear in mind the 'profit' of $118K include $375K from the SANFL, but also $195K non-cash depreciation.

The upshot of all this?

Profit this year                $118K.                     Last year             $200K

Profit after adjusting for SANFL, depreciation & bad debts  (ie: cash trading result)

This year                       - $33K                           Last year     +$17K

These figures are my best estimate only, but the broad thrust is correct. I suspect the kitchen has been a problem, but you can't tell from the results.

I am sure we will get more detail from the Finance Director when the Annual Report surfaces, so the above is absolutely subject to the official analysis, which I will look forward to.
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Post by Oldfella on Mon Feb 03, 2020 11:09 am

I agree that more financial detail is required and (IMO) is now overdue.

The release of the OVERDUE report of the activities of the Club for the previous financial period is critical too this so that comments by the Finance Director is available to the enhance the understanding of the overall financial performance assessment by Members as it is critical for Members can be given a fair opportunity to review all Financial information a fair period prior to the AGM (not later than the last day of January) so can they ask valid question at said AGM.

Perhaps the Club has taken a view that the requirement/need for "a report of the activities of the Club for the previous financial period of the Club" is met by the spread sheets overview of numbers and whilst I do not personally agree with this viewpoint any determination by the Board on this matter is binding but would be very disappointing were this approach to be true.

Whilst I can understand that a change of management 3 months into a Financial year can have some impact on the overall picture due to some changes in how things occur. When it is considered that the new Board was put in place to substantially increase the profit, not hold the line or go backwards? (-$50K based on the provided figures) then some concern must be felt by Members.


Last edited by Oldfella on Mon Feb 03, 2020 11:23 am; edited 2 times in total (Reason for editing : spelling again sigh)

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