By Tayler Strong
The Forbury Park Trotting Club is in a transition period incorporating the purchase of the on-site bar, catering and funtion facilities, the president, Gerald Cayford told members at the annual meeting on Monday night when reporting a loss of $279,729 for the year ended, July 31.
The deficit after allowing $97,657 for depreciation, compared with a loss of $303,975 the previous year.
“It has been another testing year but there is a transition period of at least two years with new businesses,’’ Cayford said. “ I know next year we will see our efforts coming to fruition.”
The Forbury Park Sports Bar and Bistro was bought by the club in June this year and the Park Function and Events Centre five months earlier. That was a change of strategy by the board of management of the club which began with the purchase of the on-site catering business in May, 2015. The bom comprises Peter Gillespie (chairman), Cayford, Tony Gow and Geoff Knight. Gillespie, a former president of the club, was elected to the position in August, 2016 following the resignation of Tony Dunstan. Long time board member John Henderson resigned in November, 2015.
The function centre showed a surplus of $115,627 and catering and bar revenue showed a surplus of $60,592.
Operating expenses for the club increased $11,927 to $864,895. The main increases were $26,107 for information technology; $17,285 for administration and $17,138 for light and heat. Savings had been made in reduced salaries and wages of $41,671 and repairs and maintenance of $40,894.
“The balance sheet remains strong with the club having a strong capital base and positive cash balance although this is partially offset by the capitalisation of the cell phone towers (realising $318,000) for funds to complete the purchase of the three entities,” said Cayford.
Race meeting revenues from the 23 meetings (one a dual code at Wingatui) returned a surplus of $333,397 an increase of $49,185. The club was disappointed to be allocated four less meetings by Harness Racing New Zealand this season but one on November 30 has been restored.
The club paid out $1,232,519 in stakes last season.
A presentation by Cayford and Rodney Moore, the general manager of the club, showed the predicament of the club. Funding by HRNZ is focussed solely on racing in terms on income and expenditure. It does not take into account track maintenance and lighting and other overhead costs. This costs the Forbury Park club about $650,000, meaning the club has to find an additional $350,000 each year. The club is one of only eight out of 42 in New Zealand owning their own facilities. Others rent or lease and are not faced with the burden of repairs and maintenance.
Moore, who has only been in the position six months, has prepared a “break even” cash budget for 2016-17 and the club is on target to achieve the goal after five of the 20 allocated race meetings.
Cayford was re-elected president unopposed.
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