ALBURY’S Commercial Club has defied the toughest economic conditions in three decades to record a $1.75 million profit for the 2007-2008 financial year.
The profit, made on total income of $30.282 million, was down $585,000 on last year, but $150,000 more than the projected profit for 2007-08.
It has budgeted for a $2 million profit this financial year.
Club chief executive officer Bruce Duck said the profit had been achieved despite numerous impediments, including the new freeway which had led to a drop of about 1000 customers a week since it opened in March 2007.
Mr Duck said income for the year was down $1.6 million, of which $1.3 million came from reduced poker machine revenue.
“To achieve a profit of this magnitude in a period that has experienced continued increases in gaming tax, bans on smoking in clubs, severe drought and the highway bypass, coupled with continual negative publicity by local government, State Government and Federal Government on the responsible serving of alcohol, responsible gaming and binge-drinking has been a remarkable result,” Mr Duck said.
“In our 2007 annual report we projected a profit of $1.6 million and to exceed our budget by $150,000, I believe, was outstanding.
“The year ended June 30 was the toughest trading year and most challenging year I have experienced in the 36 years I have been here.”
Club chairman Barry Edmunds also hailed the result as “outstanding” and said the club was in a sound financial position with minimal debt.
Mr Edmunds said that over the next 12 months the club would clear its debts, which were minimal.
But the club had put on hold plans to spend millions of dollars on a new auditorium-convention centre, 150-room motel and new multi-deck car park.
“The auditorium and other projects are on hold for at least 12 months because we would like to see we have a fair proportion of the cost before we do anything,” he said.
“We will be concentrating on clearing any debt we have, which is minimal, and making sure we are debt-free before we consider anything major.”
Mr Duck said the decline in economic performance could be traced back to the NSW Government’s decision four years ago to increase poker machine taxes.
He said because poker machine revenue had dropped from $22.55 million in 2006-2007 to $21.22 million in 2007-2008 the club had paid less in poker machine taxes.
“But we still paid $6.972 million,” Mr Duck said.
“Our profit would have been more than $4 million if the Government had not increased taxes.”
- Editorial — page 52
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