Richards Bay Country Club 2010 AGM 3 rd November 2010

The 2009/2010 Executive Committee members were: General ManagerMartin Rose Golf CaptainPhil Hammill Golf PresidentGerry Gibson Golf Member Alex MacDonald Tennis PresidentPhonnie Roos Tennis CaptainHanlie Walters Squash PresidentWerner Nienaber Development SectionHannes Uys TreasurerJames Barnard uMhlathuze CityJohn Harvey Home Owners AssociationDon Voysey All members who have assisted in the committees during the year Golf, Tennis and Squash Greenkeeping Nkwazi Club House Refurbishment Exco THANK YOU

THE HIGHLIGHTS OF 2009/10 The completion of phase 1 renovations to the club house by the developer at a total cost of R The holding of the Natal Ladies Interclub and Sages Nationals at the club. The growth in the number of golf rounds from to (6.2%) with an increase in greenfees income of 3.4% The 39.5% growth in income at the bar. The continued high level of presentation of the golf course. The consistant support by RBM of club facilities for training courses, seminars and functions.

THE LOW LIGHTS FOR THE YEAR The end of the Municipality subsidy which will result in higher costs to members. The refusal of the Developer and Municipality to replace the Green keeping workshop. The economic climate and its effect on the sponsorship of events at the club. The continued lack of volunteers, committee members and support at the club. Our failure to put in place adequate maintenance and repair routines for the golf cart fleet. The continued unreliability of the irrigation system.

RICHARDS BAY COUNTRY CLUB 2009/10 EXPENDITURE OVERVIEW SectionIncomeExpenditureProfit % Main Club Admin998,833 1,777, , Subscription457,000Staff727,000 Venue hire138,000Electricity/water206,000 Municipality307,000Building Maint137,000 Bank Charges109,000 Accounting fees106,000 Security88,000 Telephone/fax67,000 Halfway House248, ,933 69,58139 Gross Profit (35%)248000Staff174,000 Restaurant277, ,897 38,01916 Gross Profit (50%)277,916Staff194,000 Bar611, , ,12055 Gross Profit (50%)611,157Staff302,977 Golf OPS1,015, , ,88824 Golf cart income427,364Golf cart Op Costs164,197 Subscription229,000Golf Pro contract189,000 Golf Main1,332,128 1,390, ,626-4 Green Fees1,332,128Golf Course Maint1,390,754 Nkwazi120,383 93,890 26,49328 Tennis41,351 34,220 7,13121 Squash78,798 42,658 36,14085 Total4,724,7764,027,5654,973,7023,854, ,926-5 Labour Costs=1,397, % of Expenditure

RICHARDS BAY COUNTRY CLUB MANAGEMENT ACCOUNTS 2009/10 TRADITIONAL MODEL RBCC 2009 ACTUAL RBCC 2010 BUDGET RBCC 2010 ACTUAL Difference Actual Vs Budget Difference Actual Vs Budget %Comments INCOME Better than Budget Bar Profit (Gross)438,174516,727592, Increased activity, golf,restaurant and renovations Restaurant (Gross)4, , New revenue stream Fundraising8,99110,00074, Squash Donkey Derby Municipality409,752273,168307, Subsidy ended June 2010 Rental52,766032, Josie Kitchen rental Sponsors & Comps299,756265,855361, Ladies Interclub and Nkwazi INCOME Worse than Budget Affilation Fees70,825100,64380, Poor budgeting Commission (JOSBEN)58,89265,16819, Withdrawal of Josie as restaurant came on stream Venue Hire(Gross)231,416260,000176, Less hiring out of main hall venue as requested by members

RICHARDS BAY COUNTRY CLUB MANAGEMENT ACCOUNTS 2009/10 TRADITIONAL MODEL RBCC 2009 ACTUA L RBCC 2010 BUDGET RBCC 2010 ACTUAL Difference Actual Vs Budget Difference Actual Vs Budget %Comments EXPENSES Less than Budget Bad debt50,4182,000-17, Better focus on chasing up debts Casual wages42,94040,00029, Better control Cleaning69,92070,00056, Refurbishments and new routines Commission67,26290,00068, Club profit not made Depreciation248,175353,919253, Poor budgeting due to new golf carts Entertainment2,53315,0004, Venue Expenses76,720100,00038, Less hiring out of venue EXPENSES More than Budget Accounting/Audit99,39873,000103, Annual audit fee missed out in budget Advertising/Promotions14,2286,00025, Additional advertising during the year Bank charges69,22575,000109, Effective of increased income and credit card payments Comp. Expense & pro159,767226,127372, Mens and Ladies Interclub and Nkwazi Consumables 032, New budget requirement of resturant Fundraising expense4,6314,50027, Main Club events off set against Entertainment savings Golf Cart Expenses32,740114,705141, Petrol and maintenance costs under budgetted Hire expense34,41338,43052, Website not in original budget Irrigation87,81875,000109, Pumps continue to be problematic Management contracts316,084400,000556, Gerry exit and handover, Martin budget provision for leave Operating Equipment 12, buildings125,23780,00090, equipment15,17015,00028, Salaries/wages/OT/bonu 706,295877,6261,091, Additional staff for resturant, plus Accounting Provisions for leave, bonus and O/T

RICHARDS BAY COUNTRY CLUB 2010/11 BUDGET OVERVIEW SectionIncomeExpenditureProfit % Main Club Admin660,907 1,635, , Subsciption450,000Staff668,000 Venue hire135,000Electricity/water250,000 Building Maint99,000 Bank Charges110,000 Accounting fees110,000 Security95,000 Telephone/fax65,000 Halfway House240, ,000 69,95741 Gross Profit (35%)240000Staff168,000 Restaurant560, , ,17943 Gross Profit (50%)560,000Staff350,000 Bar660, , ,48966 Gross Profit (50%)660,000Staff280,000 Golf OPS1,172, , ,93022 Golf cart income515,000Golf cart Op Costs247,000 Subsciption254,000Golf Pro contract205,000 Golf Main1,525,520 1,400, ,7429 Green Fees1,525,000Golf Course Maint1,400,000 Nkwazi172, ,000 69,00067 Tennis48,042 33,000 15,20946 Squash51,172 24,000 26, Total5,089,6844,339,0005,113,0004,047,000-19,3500 Labour Costs=1,466,00029% of Expenditure

2008/92009/10% Single Family TOTAL Sub Section Golf Tennis94984 Squash Membership In an effort to attract more membership a 25% discount on subscriptions, along with a monthly debit order system is being offered. MEMBERSHIP

RBCC Activity 2010/11Team Leader Increase membershipEXCO Management of golf cart fleetGolf Section Create monthly eventsClub Manager Green keepers workshop (R est.) EXCO Upgrade staff accommodation {R est.} Upgrade main hall EXCO Maintain Irrigation systemGolf Section Investigate (and implement) conference facilities. EXCO FUNDS Ex Developer R Municipality R Stabilisation fund ? Additional 9 plots In Abeyance?

CONCLUSION 2009/10 was once again a difficult year Finance Renovations of the club Implementing the management changes The financial results are disappointing The club is in a relatively strong position The new revenue streams look promising. With the full support of the membership the club has the potential to become a self sustaining entity. As per tradition I leave you with not one but two quotes- Colleen C. Barret “When it comes to getting things done, we need fewer architects and more bricklayers” Moliere “The world is full of willing people, some willing to work. The rest willing to let them”

THANK YOU Questions