12 NSW Masonic Club October 2017 ANNUAL REPORT 2017 Your directors present their report on the New South Wales Masonic Club, a Company, (the “Club”) for the financial year ended 30 June 2017. The names and qualifications of the directors in office at any time during, or since the end of, the year are: Stephen George Bates, B. Bus, CA. Elected to the Board in 1996. Occupation: Director, Watson Erskine & Co Pty Ltd, Chartered Accountants. President since 23 November 2015. Graham William Byrne, BA, MAICD, Justice of the Peace Elected to the Board on 26 November 2007. Occupation: Managing Director, Graham Byrne & Associates Pty Ltd, Management Consultants. Special Responsibilities: Convenor, Finance Committee. Robert Eaglesham, Dip. AII Elected to the Board on 23 November 2015. Occupation: Company Director. Special Responsibilities: Member, Finance Committee. Allan Ezzy, AM, APM, Justice of the Peace Elected to the Board on 28 November 2011. Occupation: Police Officer. Retired. Special Responsibilities: Convenor, House Supply and Staff Committee. Alice (Kate) Foot, B. Ed (Adults) Elected to the Board on 23 November 2015. Occupation: Company Director. Special Responsibilities: Member, House Supply and Staff Committee. John Joseph Moore, AM, RFD, ED, HDA, CMC Elected to the Board on 2 July 2008. Elected Vice President on 23 November 2015. Occupation: Public Relations Consultant & Authorised Marriage Celebrant. Special Responsibilities: Vice President; Member, House Supply and Staff Committee. Peter Read, B. Bus, CPA, Justice of the Peace Elected to the Board on 23 November 2015. Occupation: Strategic Operations & Commercial Manager, Link-up International Pty Ltd. Special Responsibilities: Treasurer; Member, Finance Committee. Stephen Caldwell Wearne, FCA Elected to the Board on 2 March 2005. Occupation: Director, Boroughs Australia Pty Ltd, Chartered Accountants. Special Responsibilities: Member, Finance Committee. Peter Zeilic, B. Sc., B. Arch, M. Proj Mgmt, Justice of the Peace Elected to the Board on 23 November 2009. Occupation: Managing Director, Peter Zeilic Pty Ltd, trading as Dimension 5 Design Architecture & Project Management. Special Responsibilities: Member, House Supply and Staff Committee. Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Meetings of Directors During the financial year, the Board of Directors met on 12 occasions and the House, Supply and Staff Committee and the Finance Committee each met on 12 occasions. The number of meetings attended by each director during the year out of the total number possible were: Board Committees SG Bates 12/12 18/24 GW Byrne 11/12 11/12 RJ Eaglesham 12/12 11/12 A Ezzy 10/12 12/12 K Foot 12/12 11/12 JJ Moore 9/12 11/12 P Read 9/12 8/12 SC Wearne 9/12 12/12 P Zeilic 10/12 9/12 Company Secretary Mr Stephen George Bates, director, also held the position of Company Secretary throughout the year. Club’s Objectives The Club’s short term objectives are to: • Provide its Members with bars, restaurant/ bistro, meeting rooms, function rooms, gaming facilities and a high quality of service; • Provide Members and guests with high quality accommodation facilities; • Provide Members and guests with service of the highest practical level; • Provide Members and guests with a high standard of food and beverage offering; and • Provide appropriate training for staff. The Club’s long term objectives are to: • Continually upgrade the quality of the hotel in order to maximise its commercial returns for the overall betterment of the Club and the facilities it provides to its Members; and • Continually upgrade the quality of service offered by staff. To achieve these objectives the Club has adopted the following strategies: • Development of an integrated capital improvements program funded from retained and current earnings; • Development of a refurbishment and maintenance program designed to uphold the heritage status of the building and enhance the quality of the facilities available to Members; and • Maintenance of best practice technology to maximise returns from accommodation and ancillary revenue streams for the benefit of the Club. Principal Activities The principal activities of the Club during the year were to provide Members with amenities and facilities usually associated with a Licensed Social Club and to operate a boutique hotel at not less than a four-star standard. No significant change in the nature of these activities occurred during the year. These activities have assisted in achieving the short and long term objectives of the Club by being consistent in all respects with those objectives. The Club measures its performance against its short and long term objectives by: • Conducting surveys of Members; • Monitoring financial performance against projected cash flows and forecasts on a regular basis; • Monitoring progress against its refurbishment program milestones; • Encouraging and responding to feedback on its website; • Encouraging and responding to comments made by hotel guests; and • Encouraging and responding to comments made by Members. Operating Results The profit for the year amounted to $514,784 (2016: $272,471) after allowing for income tax expense. Review of Operations Demand within the Sydney market for hotel rooms is extremely high resulting in significant growth in room revenue for the year. Hospitality continued to perform well and contributed in a small way to the Club’s financial success. The contribution achieved from all of the Club’s operational areas was $429,000 higher than the previous year. Investment and other revenue was $58,000 higher than the previous year, whilst costs were $190,000 higher than the previous year. The Club’s operating result before tax improved by $297,000 compared to the previous year. After Balance Date Events Transport for NSW’s construction of the Sydney Metro station to the immediate south of the Club’s building began shortly after the end of the financial year beginning with the demolition of the building adjoining the Club’s southern wall. To this date there has been a minimal effect on the Club’s operations resulting from the Metro construction works. However, the future effect of such construction works on the Club’s operations cannot be determined at this stage. No other matters or circumstances have arisen since the end of the financial year which significantly affected or may affect the operations of the Club, the result of those operations, or the state of affairs of the Club in future financial years. Future Developments The need to maintain the 4 star rating and keep pace with competitors will necessitate ongoing DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2017 NEW SOUTH WALES MASONIC CLUB ABN 79 000 003 289