12 NSW Masonic Club October 2018 ANNUAL REPORT 2018 Your directors present their report on the New South Wales Masonic Club (the “Club”) for the financial year ended 30 June 2018. 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 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, House Supply and Staff 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 Elected to the Board on 2 July 2008. Elected Vice President on 23 November 2015. Occupation: Public Relations Consultant. 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: Vice President - Finance, 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 13 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 13/13 22/24 GW Byrne 12/13 12/12 RJ Eaglesham 13/13 12/13 A Ezzy 12/13 12/12 K Foot 12/13 11/12 JJ Moore 10/13 12/12 P Read 11/13 10/12 SC Wearne 12/13 11/12 P Zeilic 9/13 11/12 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 and directors. 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 own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the directors to assess the financial sustainability of the company and whether the Club’s short-term and long-term objectives are being achieved. Key performance benchmarks used include: • Average monthly room rate for accommodation; • Average monthly room rate for accommodation net of commissions; • Monthly occupancy rate for accommodation; • Monthly EBITDA against budget; • Monthly departmental operating results against budget; • Function enquiries capture rate; • Feedback from members, guests and social media; • Survey of members and guests; • Capital expenditure program against set milestones; and • Monitoring of regular training programs for employees. Operating Results The profit for the year amounted to $537,140 (2017: $514,784) after allowing for income tax expense. Review of Operations Demand within the Sydney market for hotel rooms remained high resulting in a steady growth in room revenue for the year. Hospitality continued to perform well with food and beverage revenue increasing by $33,000 for the year. The contribution achieved from all of the Club’s operational areas was $24,000 higher than the previous year. Investment and other revenue was $412,000 higher than the previous year, whilst costs were $368,000 higher than the previous year. The Club’s operating result before tax improved by $68,000 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 start of the financial year beginning with the demolition of the building adjoining the Club’s southern wall. The project has now moved on to the tunnelling phase. 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. DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 NEW SOUTH WALES MASONIC CLUB ABN 79 000 003 289