ANNUAL GENERAL MEETING 16 April 2014. The Club is committed to providing sustainable golfing, commercial and other facilities that will meet stakeholders’

RUIMSIG COUNTRY CLUB

ANNUAL GENERAL MEETING16 April 2014

Mission statement

The Club is committed to providing sustainable golfing, commercial and other facilities that

will meet stakeholders’ demands

Chairman's report in respect of the 2013 financial year

We broke our record set in 2012 for the number of golf rounds

Our lease was renewed for a further 10 years

Completed 95% of the improvements to the golf course

Funded the golf course improvements through normal trade income

Changed outsourcing partners which has resulted in improved quality outputs and significantly increased revenue

Key Highlights

RCC was allocated the SA Mid Amateur Championship

RCC Mid-amateur motivation.pdf Sept 2013.pdf

Created a new 5 year Strategic Plan and finalised an Operation Plan which outlines how we will achieve the strategic objectives

Key highlights cont..

•Free WiFi introduced for members

Digital

•Festive Friday

•Reintroduction of Sunday Lunches

Catering

•Additional Membership Structures

Membership

Other highlights

Membership

2011 2012 2013 20140

200

400

600

800

1,000

1,200

SocialOtherWeekdayWDOStudentsJuniorsFull ladyFull male

-27

-15

-14

Corporate membershipsAssociated Automotive Distributors

B2ITDeswik Mining

Consultants

ItecEast

Guvon Hotels

Meintjes Plant Hire

Sautech

Klinkenberg Attorney

Mercedes Benz

Lexus Security

Vega Instruments

Konica Minolta

Labournet

PDTSA Shimadzu

R613,154

Rounds of golf - monthly

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

1,000

2,000

3,000

4,000

5,000

6,000

200920102011201220132014

Rounds of golf - montly


1,000

2,000

3,000

4,000

5,000

6,000

200920102011201220132014

Rounds of golf - total


10,000

20,000

30,000

40,000

50,000

60,000

200920102011201220132014

2014 – 283 rounds more than YTD Feb ’13

2013 – 51,009

2012 – 50,519

2011 – 40,169

2010 – 41,525

2009 – 43,784

25% increase and maintained

2012 20130

10,000

20,000

30,000

40,000

50,000

60,000

LEAGUEMEMBVISTG/PARTYP/CARDSWDOPMG

Rounds of golf - Categories

+125

-1,622

-1,899

+2,967

+535

Rounds of golf - Rands per round


95

105

115

125

135

145

155

165

201120122013

Rounds of golf - Rands per round


95

105

115

125

135

145

155

165

2011201220132014

F&B Outsourced - DECORCC income % of Deco

sales

January ’12 49 532 11.6%

February ’12 52 376 12.1%

March ’12 52 895 11.7%

April ’12 46 482 12.9%

May ’12 64 064 11.0%

June ’12 51 785 13.3%

July ’12 72 335 13.5%

August ’12 57 153 12.6%

September ’12 64 594 11.4%

October ’12 68 194 10.2%

November ’12 81 047 11.5%

December ’12 65 771 11.2%

TOTAL 726 228 11.8%

F&B outsourced(income plus cost recovery)

Jan-

13

Feb-

13

Mar

-13

Apr-1

3

May

-13

Jun-

13

Jul-1

3

Aug-

13

Sep-

13

Oct-1

3

Nov-1

3

Dec-1

30

50,000

100,000

150,000

200,000

GuvonDeco

6,5 months

R378k 5,5 months

R891k

Structural Changes Greenkeeper

Security

Marketing

In sourcing of Golf operations

Finance Committee

RCC employees


25

30

35

40

45

50

55

60

201120122013

Organogram

Key Projects

Golf Course Clubhouse Driving Range Additional income Streams Membership Growth Environmental plan RCC product Brand/Logo 5 Star Golf Experience Security Strategic Plan

Business Imperatives and Challenges Cash Flow

Solvency

SARS

Utilities

LeaseEnsure that these aspects are completely

resolved in 2013

Business Imperatives and Challenges

Cash Flow

Solvency

SARS

Utilities

Lease

•Ensure the utility account is resolved

City of JHB•Maintain

and improve on the successes of 2012 & 2013

•Achieve the metrics outlined in the Operational Plan

Operations

•Continue to enhance the members experience

•Membership Growth

•Improvement of the value proposition

Membership

Going Forward in 2014

Ops Plan

•Essential to revamp

•Laborious and Time Consuming Task

Club Constitution

•Formalise Environmental Plan

Going Green

•Final year of my term as Chairman

•Structured change of the EC members

Succession Plan

Going Forward in 2014

Strategic PlanShort Term Goals (1st Year)

Adopt the CEO Concept immediately and begin the process

of implementing a Professionally Driven Operational Plan and Structure by March 31, 2013.

Convert and align IPA’S to strategy for execution

Evaluate current business model and reshape it so structure and operational plan can be aligned.

Balance target rounds and pricing for 2013

Grow membership from 974 to 1250 by January 2015

Strategic PlanStretch Goals 2017

Develop a sustainable business model that will produce cash reserves of R8 million in 10 years time 2022

A balanced value offering including a top quality golf course (Top 40 in rankings) and recreational facilities.

Maintain an optimal number of rounds of golf per annum 48-50,000 per annum

Optimise returns through a professionally driven management structure with succession planning as a key component.

Thanks Club Management

Outsourced Partners

Sports Committees

Product Committee

Finance Committee

Executive Committee

You the members

Audited Financial Statements 2013

Completeness of sales in bowls club

Revaluation of Assets

Removal of completeness of cash sales in the golf club qualification

AFS Qualification

Qualifications should fall away in 2015

Raised by the auditors due to the loss and insolvent position

Operating profit of R818,760

Insolvent position due to COJ Account

Emphasis of Matter

Extreme level of comfort about the clubs future as a going concern

Historical Arrears of R3m

Following 3 years of attempted engagement we took the matter to Court

They offered a settlement of half which we declined

Confident there are little to no arrears

Utility Account City of JHB

A positive settlement will immediately move us into a solvent position

Completely outsourced this 2 years ago

Did not include in 2012 financials

Still trade under our entity so included in 2013 AFS

Will resolve with them on 2014

Bowls and Tennis

Query issued by SARS to all Clubs in 2013

Have submitted a response explaining our position and rejecting any tax liability

We expect an assessment

Deemed it prudent to raise a provision.

Tax

Financial results2013 2012

Total revenue 13,251,233 12,966,357

Total expenditure -13,262,493 -12,480,952

Operating profit/loss -11,260 485,405

Net finance charges -57,160 -94,949

Taxation -15,532 0

(Loss)/profit for the year -83,952 390,456


Total revenue 13,251,233 12,966,357




Taxation -15,532 0


Adding back dormant creditors -195,828 0

Reconciling and balancing control accounts 1,098,540 0

Operational profit per MMAs 818,760 390,456

ADDING BACK DORMANT CREDITORS

- Amounts due to creditors since 2010- No claims from any creditors or statements being produced- Possibility this was previously expensed twice, once raising creditor and once when payment made and not offset against creditor

RECONCILING AND BALANCING CONTROL ACCOUNTS

- Control accounts set up to balance cash receipts/payments to billing/invoices (historically not reconciled)- Rolling errors affecting 2013 and multiple previous years

- Accounts affected * Amounts received in advance (R370,859) (some 2013 subs apportioned to 2012) * Amounts paid in advance (R350,395) (Affiliation and handicap fees debit to this acc and not cleared) * Prepaid and voucher control accounts (R377,286) (Including member cards loaded and amounts not reconciled)


Total revenue 13,251,233 12,966,357




Taxation -15,532 0


Rendering of services 9,385,417 10,400,556

Golf cart rental 1,343,852 1,043,354

F&B by members 1,106,885 619,603

Non-related golf income 346,718 292,425

Insurance claims 179,768 268,820

Sale of goods 722,551 0

Other 166,042 341,599Sale of goods relate to Bowls and Tennis

Related expenditure R729,215


Total revenue 13,251,233 12,966,357




Taxation -15,532 0


Employee cost 3,884,171 3,612,415

Admin and mngt fees 1,145,336 994,620

Municipal charges 1,053,226 991,516

Machine and equip rental 913,711 1,154,537

Golf course maintenance 628,841 1,174,760

Bowls and Tennis Clubs exp 729,215 0

Excluding bowls and tennis exp(offset against income)INCREASE IN EXPENDITURE 0,4%

Financial position2013 2012

PPE – fixed assets 3,263,115 3,859,252

Inventories 24,106 0

Trade and other receivables 718,649 423,396

Cash and cash equivalents 425,394 645,504

TOTAL ASSETS 4,431,264 4,928,152

Equity -2,281,050 -1,557,080

Other financial liabilities

Non-current 794,947 1,098,902

Current 321,852 467,635

Current tax payable 15,532 0

Trade and other payables 5,579,983 4,918,695

TOTAL EQUITY & LIABILITIES 4,431,264 4,928,152

Reduction in PPER640k revaluation reduction in equity

Bowls bar


PPE – fixed assets 3,263,115 3,859,252




TOTAL ASSETS 4,431,264 4,928,152

Equity -2,281,050 -1,557,080


Non-current 794,947 1,098,902

Current 321,852 467,635




Trade and other receivables

181,045

21,51045,525

415,963Other debtorsPayment in advanceGolf daysCorporate members

Bowling club R24kGuvon R151kNedbank R30kPMG R179kTennis club R7k

Debtors by end of January 2014 was R189,226.


PPE – fixed assets 3,263,115 3,859,252




TOTAL ASSETS 4,431,264 4,928,152

Equity -2,281,050 -1,557,080


Non-current 794,947 1,098,902

Current 321,852 467,635




Financial liabilities

1,116,7

99

3,114,826

416,042

898,596

1,135,5

19

Special m/shipCoJClub funds/control accountsSubs received in advanceOther payables

Financial liabilities

1,116,7

99

3,114,826

416,042

898,596

1,135,5

19

Special m/shipCoJClub funds/control accountsSubs received in advanceOther payables

2014 subs

received in

2013

* Captain/Trophy fund R111k * Ladies golf R75k* Vouchers held by members/visitors R42k* Prepaid cards R70k * Affiliation fees R59k* Guvon function funds paid into RCC R35k* Handicap fees R24k

* PAYE/Prov fund R92k* Trade payables bowls and tennis clubs R102k* VAT R268k* Trade payables golf R673k

Trade creditors end January 2014 R238,716 None due in excess of 60 days

Financial results YTD Feb 2014

Actual Budget

REVENUE 2,239,813 2,250,443

Golf turnover 1,110,263 1,176,017

Subscriptions 735,757 730,712

Other income 393,793 343,714

EXPENDITURE -2,261,231 -2,227,802

SURPLUS/(LOSS) YTD 2014 -21,418 22,641

BEYOND 2013 - results

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

Actual resultBudgeted resultActual 2013 (before ye adj)

Trailing budget by R44k

Budget Metrics for 2014

•R13,5m

Revenue

•R13m

Expenditure

•R539k

Profit

In Summary

Operating profit maintained and improved

Financial Controls Improved and AFS Qualification lowered

Lease, SARS, Creditor Arrears fully resolved

Utilities – Close to full resolution which will return us to a solvent and accumulated surplus position

Strategic and Operational Plan in place against which performance can be objectively monitored and measured

We are in a very good space

Thank You

Executive Committee Responsibilities

PurposeThe Executive Committee is responsible for the management of all affairs of the Club.Broad Functions:

•Finance•Personnel•Administration•Marketing•Capital and Resources•Outsourced Arrangements•Strategic planning & Risk management•Membership growth and retention•Management of Assets•Club Constitution•Governance including oversight of the functioning of all sub-committees

Documents

ANNUAL GENERAL MEETING 16 April 2014. The Club is committed to providing sustainable golfing, commercial and other facilities that will meet stakeholders’