ATC REPORTS $3.78m PROFIT & NEW INVESTMENTS IN SYDNEY RACING
"Steady as she goes" must be the theme for
The Australian Turf Club Ltd (ATC) who sent out a Media Release Wednesday, 12 November 2014, that our club’s Board and executive team, will embark on an exciting new phase of growth and investment for the benefit of both our Members and the racing industry,
after reporting a terrific operating profit and through good corporate governance, the Board have further significantly reduced our club’s legacy of debt by $18 million in the past financial year.
Our Club’s 2014 Annual Report shows the
ATC Board and its executive team are well on the front foot in winning the battle for its Members.
* Total crowds across Sydney’s four metropolitan racecourses
increased by 89,000 - almost 20 per cent on the previous year, from
411,000 to 490,000.
* Our ATC membership has grown to
15,144.
* The ATC recorded an
underlying operating profit of $3.784 million in the 2014 financial year –bringing the Club into the black for
the first time since the merger of Sydney’s two metropolitan race clubs.
* The 2014 Annual Report compares extremely favourably with the previous year’s operating loss and shows the
ATC has paid off $18 million in legacy debt from its announced sale program of under-performing assets over the past 12 months. This amount represents
over 40 per cent of the Club’s legacy debt inherited by the merged club (significantly this came from the AJC side of the marriage), was wiped off the balance sheets in the past 12 months.
* The Board have identified further legacy debt reductions of
38 per cent is planned for the 2015 financial year from contracted asset sales.
* The positive financial result means the ATC continues to be on the track of future growth and can
focus on the further investment it has earmarked at each of its racecourses. This will continue to deliver further benefits to our Club’s Members, customers and industry participants in Sydney racing.
* The return to full use of Royal Randwick in the 12 months after the official opening of the Queen Elizabeth II Grandstand and surrounding redevelopment of the racecourse precinct is growing our Club’s revenue, on race days and for other events.
* The ATC also plans to
invest a further $400,000 in prizemoney increases over the next 12 months, for several upgraded races including the
Schweppes Sydney Cup at The Championships.
DARREN PEARCE CEO
Australian Turf Club Chief Executive Officer Darren Pearce said the Club’s Board of Directors and executive team had delivered on a promise made to ATC Members to return to surplus.
“This result is very pleasing, and is a turnaround in underlying profit of $8.65 million, but it’s only the start,’’ Mr Pearce said.
“It also shows that the tough decisions we took and the Club’s strategic focus over the past four years since merger are now returning dividends.
“Since merger we have gone through the construction phase of Royal Randwick, followed by financial consolidation, and we are now in a good position to enter a growth and investment phase as the business returns to growing profitability, and legacy debt is being repaid.
“We will soon begin work on the Rosehill Gardens refurbishment and we are also looking at developing land that we own around the fringes at Canterbury Park, whilst continuing to maintain full racing operations.
“Light rail is also going to bring enormous benefits to Royal Randwick and we will continue to deliver on the masterplan around that, and also at Rosehill Gardens, including the possibility of a licensed Club and further development as part of the Camellia Precinct.’’
Dynamic Summary:
The ATC Board of Directors, working closely with its executive have ensured that membership in our great club has reached a pinnacle never achieved before, which is a wonderful position for all of us.
From an industry participant’s viewpoint, we have not seen it better.
Michael Crismale - Chairman
Under the leadership of its Chairman Michael Crismale, in just 9 short months since he was elected to Chairman by his fellow Directors, Michael’s insistence of transparency, integrity and astute business judgement, has led the way for good corporate governance and as a result, our club has continued to strengthen.
As members, we now have world class facilities at Randwick and Rosehill, and the best wet weather course in Australia with Canterbury.
It’s a pleasure to meet our clients at these venues as together we enjoy the fun, glamour and excitement associated with our sport.
The FACTS speak for themselves – The ATC is in a wonderful position and the members are reaping the rewards.
Congratulations to all the team at the ATC for a job done very well.