Dear Members,

I hope you are all enjoying your winter golf! The course is certainly looking good considering the weather we have been experiencing.

By way of a short update on the Manly Golf Club financial position, I am pleased to report the following results as at 30 June 2025:


The main reasons for forecast profit being less than budget is due to lower than budgeted subscription revenues (arising from higher than anticipated downward category changes at 1/10/24 and the subsequent timing of new members joining). There were also increased course costs due to personnel changes and corrective changes required to our agronomic programme. 

The improved course presentation, together with other strategies, has, however, led to an increase in visitor fees and corporate golf which has gone some way to recovering the net profit position.

Offers for new members for the 2025/2026 year will be made earlier than in prior years, with the intent of minimising any subscription shortfall in future years. We also expect course costs to stabilise given the much improved course condition going into the new financial years.

We have remained within the membership cap levels set by the Board but have welcomed a number of new members with entrance fees received year to date of $950k. We retain a healthy waitlist for future membership admissions and the introduced application fee we anticipate will raise the acceptance of offer levels. 

Notwithstanding the positive net profit result noted above, we think the better way of looking at the operating result of the club is the trading result including depreciation but excluding items such as entrance fee income and other accounting adjustments. If we can get this to a positive position (in other words, we are earning more than we are spending in our day to day operations) then that should provide a solid foundation for our club moving forward. The trajectory is positive here with a comparison of the position at 30 June 2025 relative to a year ago shown in the table below:

Given the investment made in returning the course to a more suitable condition, we have been focussed on our capital expenditure this year and have limited capital expenditure to the following main areas:

  • The bridge between the 7th and 8th was repaired at a cost of $92,000. Clearly the old bridge could not remain in its previous condition and patching it piecemeal would have led to higher costs in the long run so a decision was made to undertake a complete surface replacement. The new material is quiet, durable and long-lasting;
  • Unfortunately we continue to struggle with a leaking roof in the clubhouse and are embarking on a process to replace the roof in the southeastern corner. The cost of this work is approximately $150,000 but there is really no alternative given the water ingress to the clubhouse during rainy days. This price has been validated via multiple suppliers;
  • The area beside the 14th tee will also be revamped in the next few months with new curbing, concreting and the drainage fixed.

Other than those major items, capital expenditure has been limited to replacement of essential assets that were at the end of their useful life.

Another key aspect of the year has been balance sheet management given the stated intent to reduce the debt burden over a period of time. As you know, we are all doing some heavy lifting here which is bearing fruit. Due to a combination of the entrance fees received, loan reduction levy and other cash flow initiatives, at 30 June 2025, we have reduced the debt by $1.7m compared to the same period last year.  This is a testament to the process begun in 2024 and we thank-you all for your support here.

Our 2025/26 membership year is now almost upon us and our administration team will shortly be circulating category transfer requests as well as preparing new members for intake from 1 October. The Board have adopted an increase in Entrance Fees, a 4.5% increase in annual subscriptions and retained pre-existing rates for levy and competition fees. A full schedule of the approved fees for 2025/26 is contained in the attachment.

As always, if anyone has any questions, please do not hesitate to reach out to me or the team at MGC.

Best wishes,

Attachments:

MGC Finance reports 9 months to June 2025

Fees & Charges Schedule 2025-2026