Ainslie club defends $1.9m loss
The Ainslie Football & Social Club.
AINSLIE Football & Social Club recorded an operating loss of almost $2 million last financial year, but president Malcolm Scholes has declared the group holds no concerns about its future.
The Ainslie Group will hold its general meeting on Sunday to explain net operating losses of $1,929,123. This compares with a previous loss of $520,312.
Reports also show the company's current liabilities exceeded its assets by $4,898,935 in the year to September 30, 2012.
The independent auditor's report, prepared by RSM Bird Cameron Partners, states the results ''indicate the existence of material uncertainty which may cast significant doubt about the company's ability to continue as a going concern''.
Mr Scholes said a $5.3m renovation at Gungahlin Lakes Golf Club placed pressure on the Ainslie Group, the prolonged project during winter costing the club members.
Asked if management was concerned about the continuing viability of the Ainslie Group, Mr Scholes said: ''No, not from a board's perspective or management's perspective. We've had a challenging year in bouncing back from the renovations at Gungahlin.
''But we're a viable and ongoing entity as any other club … we didn't foresee the disruption to Gungahlin continuing as long as it did. But certainly our CEO put a strategy in place to rectify that and we're pretty pleased with where we've clawed back to in the latter part of the year. From a board and management perspective, we're pretty happy we've turned business around.''
The Ainslie Group did record a total loss of $14,779,187, but almost $13m was attributed to a revaluation of assets.
''Any other club in the ACT if they went through a revaluation now, they would also get a write-down in their asset value based on activities today versus what they were prior to the smoking bans of 2006,'' Mr Scholes said. ''If in three years if business has trended up and market conditions grow we'll do another revaluation, and the likelihood is that the asset values would increase.''