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Minutes of the Annual General MeetingSunday 25 November 2007 Held in the Royal Sovereign Suite The meeting commenced at 1037hrs, with 68 voting members out of a total of 88 members present. The Commodore, Brian Goodger, presided as Chairman. 1 Chairman’s WelcomeThe Commodore welcomed members and thanked Chris Jeffries for standing in for Guy Steven, the Club’s Secretary. 2 Apologies for AbsenceApologies had been received in advance of the meeting from John and Maureen Males, Charles & Jan Erb, Gordon & Tina Scott, Rob Morris, George Evans, Peter Gooch, Alan & Carolyn Sherwin and Sheena Russell. 3 Approval for Minutes of AGM 26 November 2006The Chairman recommended to the meeting that the minutes of the 2006 AGM be approved and taken as read. This was proposed by Peter Olden and seconded by Elaine Robinson and the motion was carried by a large majority. 4 Matters ArisingPeter Vaughan commented on the increase in subscription and asked if there was a loss of membership due to the increase. Brian Goodger replied that it would be covered by the financial report. 5 Report of the Commodore and DirectorsThe Commodore’s Report was read by Chris Jeffries. The Commodore said that this year had been an adventure and had not been easy. The year began with fragile finances and therefore they were divided into a series of smaller financial objectives each having a responsible Director. Some objectives have not been achieved; in particular the hiring of the Royal Sovereign Suite and the margins at the bar. A change of provider for the catering also became necessary. The outcome was that by mid year the financial plan was so far off target that further attention to the fundamentals was required. The Board decided that staffing levels needed to be altered; a programme to reduce staff to a minimum began. As an outcome Darren Harris, the Club’s General Manager and John Taylor, Bookkeeper, were to be retained. Darren was deemed vital in order to maintain the professionalism of operations and to oversee the function suite. A rota of members who had volunteered was put in place to work behind the bar, carry out cleaning, maintenance, etc. This resulted in the much needed cost savings and an increased feeling of involvement by members in their club. When professional facilities; such as paid staff, were provided there was a tendency to criticise, voluntary members helping has resulted in less criticism, respect and a sense of involvement by members and the spirit of the club is beginning to rebuild. On the water it had been a good year, although inhibited in part by weather. Various trips had all been successful and were enjoyed by all. Our Race fleet enjoyed a successful year with the various regattas and races. Brian concluded that in completion of his term as Commodore he wished to thank the people who had helped and supported his efforts. He thanked all members and the Board and especially those members who volunteered for their support and dedication. 6 Treasurer’s ReportCopies of the Accounts for the period to 30 September 2007 were available to the members that attended the meeting. Peter Olden began his report by stating that the Club has had another difficult year and strong corrective action was required to halt a rapidly deteriorating situation in the early part of the summer. 6.1 ProfitabilityPeter stated that overall the profit of the club has fallen by £46K to a loss of £40K. The income had increased by 8%. However the increase has been in the low margin areas – Galley and Social, while high margin areas including Subscriptions (down 15%) and the Bar (down 4%) were weaker. This has been the principal driving factor for the poor bottom line. The Cost of Sales increased by 9%. Overall, there was a £9k increase. Interest increased by £13k or 42% due to full year of Mortgage and Debenture interest. The administration expenses increased by £43K or by 57%; mainly due to administration salaries. There were four significant steps taken in June of this year to arrest a seriously deteriorating situation. Peter briefly outlined each and the expected impact on a full year assuming they can be sustained.
6.2 Advance SubscriptionsThere has been £19k approximately of advance subscriptions received, which has ensured the Club has avoided resorting to a bank overdraft earlier this year. It is important to note that this figure is not in last year’s profits, but it is in the cash flow. The combined total of the Galley, Royal Sovereign Suite and Social activities (excluding the auction) only came to £6k; which was contributed solely from the function suite. This has to improve as the Board had originally budgeted to make over £33k profit on these three areas. 6.3 Balance Sheet & Cash FlowThe Balance Sheet has reduced as a result of the poor performance in the current year. The Cash balance at year end was £34k; which includes £7k from an auction held in September. It has been agreed that this will be placed in a special deposit account which is going to be established as a reserve against the redemption of Debentures. 6.4 The Financial FutureThe financial future of the Club is still a challenge. However with the measures introduced in June and the excellent response to the Volunteer Scheme, the Treasurer’s calculations indicate that if this can be kept up, the Club can break even in the next financial year. Peter could not emphasize enough how important the Volunteer Scheme is to this. However the Club needs to do more than this in order to avoid being in default to the Debentures holders in two and a half years time. A surplus of £35k per annum is needed to do this. Peter explained that to achieve this, the Club needs to improve the number of subscriptions; a drop of over £10k in the current year was a big disappointment. Improvements in the areas of Social, Galley and the Function Suite are required. Further cost cutting needs to continue. Specific targets and actions should be set for all other one off revenue generating activities eg; auctions, etc. 6.5 Other PointsWe now have broad agreement on the Bar. Unless you have a pre approved account by the board, bar tabs need to be paid before leaving the premises. A Note of Thanks to Greg Penfold from Humphrey & Co for their continued hard work and attention in auditing the financial statements. Peter also thanked those members made donations during the year and requested members to urge any one who can, to do what they can again in the year ahead. He thanked everyone who has given their time and skills to help the Club throughout the year. He reiterated that this is of fundamental importance and assured members that without the excellent response to the Volunteer Scheme the Club would face a grave future. 6.6 General questionsThrough discussions there was some concern raised by members over what is being done to rectify the problem areas. Peter Olden said that since July when volunteers took over there has been 55-60% gross margin on the bar and that it should carry on throughout the year. Salaries have been accounted for in the cost of sales and this will reduce as previously stated. Stock takes are done monthly and they are consistent. There is a tie to HT White for supplies, however, prices have been compared and they are favourable. The Function Suite and Galley should improve as action has been taken to increase the income in these areas. The Directors see monthly accounts and strong corrective action is taken accordingly. There is an improvement in the margins and the accounts are “cash positive” at present and this should continue. However, subscriptions are fundamental. Function Suite bookings are being received but this takes time and the Board are trying to maximize Social from all angles. The day use of the function suite is growing with various clubs, seminars and wedding receptions. Finally Peter suggested that everyone remember where the Club has come from and where we are today and stop moaning and enjoy it. 6.7 Motions6.7.1 Adoption of Accounts Motion That the Financial Accounts for Sovereign Harbour
Yacht Club Limited for the year to 30 September 2007 be adopted as a true and
fair view of the Sovereign Harbour Yacht Club Ltd finances. 6.7.2 Appointment of Auditors Motion That Humphrey & Co having offered themselves for
election and are hereby appointed Auditors for Sovereign Harbour Yacht Club
Limited for the period November 2007 until November 2008.” 7 Election of Officers and DirectorsElection of Commodore Election of Vice Commodore Election of Rear Commodore (Sail) Election of Rear Commodore (Power) Election of Treasurer Election of Secretary Election of Directors The meeting was formally closed at 1205 hrs. Previous Years Minutes |
