Chairman’s Report - 2006/07

JR Baker

Introduction

It is again my privilege to present the annual report to the Members on behalf of the Board and Management of the Club.

This will be my last report as Chairman as, in accordance with the Club’s Articles of Association, I will be stepping down at the Annual General Meeting on Tuesday 30 October having served the maximum term of 6 years. However I will remain on the Board (as a “back bencher”) for another year, having been elected for a 2 year term in 2006.

I would therefore like to take this opportunity to thank the Members for your support, courtesy and cooperation throughout my term as Chairman. I would also like to sincerely than all my fellow Directors, both past and present, for their support and commitment to working together in the best interests of the Club and the harness racing industry.

In preparing for this report I reviewed the last five annual reports and two common themes emerged very strongly. Firstly each year has been challenging for various reasons, and secondly our success has come as a result of hard work and working together as a team. This year has been no different!

Financials

I am very pleased to report an operating profit of $24,326 for the 2006/07 financial year.
In last year’s report I advised of the cost reduction program implemented as a result of the substantial reduction in TAB distribution caused by the TVN / SKY Channel dispute.

The Board had to take the very painful decision to reduce metropolitan prize money for the 2006/07 financial year, some of which was achieved by programming changes and some by the move of the Chariots of Fire from January to August (and thus into the next financial year).

With the resolution of the protracted TV dispute together with the success of our cost reduction measures (particularly in our catering operations) I am delighted that we were able to announce that prize money would be returned to previous levels from the commencement of the 2007/08 financial year.

Further details are provided in the CEO’s report and the detailed financial statements.

Strategic Plan Update

Following last year’s AGM the Board and senior management participated in a strategic planning workshop facilitated by an independent consultant.

This followed on from a comprehensive review of all aspects of the Club’s business operations. The key points of the Action Plan resulting from the workshop are as follows:

• Develop a business case for future uses of the Harold Park facilities
• Maximise asset utilization
• Develop marketing and promotional strategies to attract new patrons to Harold Park and to increase TAB turnover
• Develop a program to attract new members
• Identify and develop new income streams to replace the Menangle sand and soil mining operations and diminishing revenue from the Menangle markets
  The development of the business case for future uses of the Harold Park facilities is in progress and is expected to be completed by the end of 2007. Please let me assure Members that no decisions have been made despite widespread media conjecture to the contrary.
  

If the result of the business planning process indicates that the sale of Harold Park would be financially prudent and in the best interests of the Club then the following steps would need to be taken:

• The Board prepares a comprehensive financial justification for consideration by the Members
• The Members present at a General Meeting would need to vote in favour of the sale
• If the Members approve such a proposal then the property may need to be rezoned to realize its full potential
• Tenders would then be called

To summarise, Harold Park cannot be sold without the approval of the Members.
In the meantime work continues at a rapid rate at Menangle, with the 1400m track taking shape, the race day stables being upgraded including the addition of a roof, and the grandstand and other facilities being “gutted” in readiness for a complete refurbishment. The official opening will be on Sunday 27 April, 2008, and will feature the NSW Derby and the Menangle Park Cup.

Conclusions

Each of the last 6 years has brought with it different challenges to the Club and the harness racing industry, but I am very pleased that we have been able to weather the storms and report an operating profit in each year.

This has only been possible due to the diligence and hard work of the Board and senior management.

The Club is very fortunate indeed to have a very strong Board, free of disruptive factions and with a diverse range of skills and experience, and a highly professional and dedicated management team.

I am personally very satisfied that the organisation structure and management team we put in place 4 years ago remains intact today and has contributed so much to the success of the Club.

In particular I would like to thank Deputy Chairman Rex Horne and all my fellow Directors, as well as our untiring Chief Executive John Dumesny and his management team and all staff, both permanent and casual.

I would also like to thank our loyal Club Ambassadors. When this initiative was introduced 5 years ago there were 8 volunteers, and today 7 of the originals are still active Ambassadors – Reg English, Tanyia Harris, John Mendel, Brian Patrick, Kevin Wells, John Yard and Ron Yeo.

Finally a very big thank you also to all the Members and industry participants who have volunteered their time and hard labour to the refurbishment of the Menangle facilities. They have done an outstanding job and in the process saved the Club more than $200,000.

Photo above: The Menangle Park Volunteers observe work place safety regulations attired in vests and hard hats during the construction of the parade area which will on racedays give all patrons the closest access to horses of any track in New South Wales. The core group comprises members Peter & Chandra Sullivan, Lorraine Angel, Leon Jurd, Peter Morris Snr & Jnr, Jim Caffyn, Ron Yeo, Ian Thorn who are willingly assisted by Michael Brown and Nat Dumesny along with Directors Robert Turner, David Douglas, Peter Plummer and Rex Horne. Also in this photograph is energetic junior volunteer Noah Sullivan.