It is with great pleasure that I present to you the 48th Annual Report and Financial Statements on behalf of my fellow Directors of the Orange Ex-Services’ Club LTD for the year ended 31 December 2019.
The 2019 Annual Report is available to view.
The Annual Report provided an update on a range of aspects of our Club. Let's catch you up with some snippets from the 2019 Annual Report...
The financial highlights for 2019
"As we progressed through 2019 it was becoming evident that the marketplace was receptive to the changes being made. As a result, revenues increased, we increased our community contributions and a blueprint for expansion was established. Some of the financial highlights of the 2019 year are as follows." - CEO Daniel Perkiss
OESC SUB CLUBS
Our Sub Clubs celebrated the annual Sports Awards ceremony on Sunday the 10th November 2019 and congratulations to the winners of sporting awards for 2019. These awards recognise the sporting achievements and talents of various Club Members throughout the year. Congratulations go to the deserving recipients for 2019.
n early to mid-February we were workshopping plans for this “virus” that was bubbling away in China but had not yet reached our shores in any alarming capacity. How rapidly things deteriorated in the following six weeks was spectacularly hard for our staff, members, guests, suppliers and contractors.
In early March we were seeing material impacts hitting the Club's business with the decimation of millions of dollars, in current and future contracts from the conferencing and accommodation business units. It was becoming evident a forced closure was on the cards and we actively workshopped this scenario. On the 22nd March we were given notice that our doors were to close for an indefinite period starting midday the following day.
For the two weeks following the shutdown mandate I witnessed absolute professionalism and compassion from the Club's Management team as they worked to decommission and place the Club into a state of hiatus. This was a mammoth task as we recessed all equipment, contracts and supplies in an orderly fashion. During this period of uncertainty, the team also had the most distressing task of standing down some 200+ employees as there was no longer any meaningful work for these employees.
Again, I was impressed as the team worked through this process with compassion and maturity. At the time of writing this report the Club is operating on skeleton staff awaiting indication that restrictions on distancing will be lifted and operations can return to normal.
The closure has had a material impact on the Club’'s financial position. Our current analysis points to weekly cash losses of some $40,000 during the mandatory shutdown along with closing and reopening expenditures in the vicinity of $500,000 for each instance. With operating cashflows budgeted above $7m for 2020 (now evaporated) it is easy to see the acute damage this shutdown is having for each month we remain closed.
On the bright side the exceptional performance of the Club in 2019 has positioned us well for the current challenges. We have plenty of liquid cash on our balance sheet and a very small debt facility to service. Whilst we will have some battle scars from COVID-19 we look forward to some operational certainty, where we can get back to business and again provide meaningful employment and exceptional experiences for our customers across our multiple business units.
There will be Clubs in NSW that don't survive this period, the 20,000 + members of Orange Ex-Services’ Club can be comforted by the fact your Club is in great shape to get through this and come out the other side ready to grow with you in the decades to come.
For more details check out the full 2019 Annual Report.