Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Annual Report reveals one of strongest racing clubs

Annual Report reveals one of NZ’s “strongest asset-based racing clubs”

Members of the Auckland Trotting Club formally received and signed off their 2017 Annual Report at the organisation’s Annual General Meeting this week.

Chief Executive of Alexandra Park, Dominique Dowding, says considerable progress has been made on the club’s number one strategic priority to reinvigorate harness racing.

This was helped by the fact that all 246 apartments in the club’s mixed-use development had sold unconditionally - raising nearly $295 million, with the ‘urban village’ on Green Lane West now well under construction.

“The ongoing development of Green Lane West will ensure the club can keep revitalising both its venues and products going forward. For example, by 2018/19 the club will be receiving additional revenue via the likes of its new retail leases,” says Ms Dowding.

Auckland Trotting Club president Bruce Carter says the past year was one of continued improvement for the club’s financial position, with a substantial uplift in the valuation of its total assets. This follows recent rezoning approval and subdivision consent for the rest of Alexandra Park’s Green Lane West frontage.
“The club has increased its net asset base to $164m in 2017 and is one of the strongest asset-based racing clubs in New Zealand, something its members can be proud of,” he says.

Overall the club reported a net surplus of over $6.5m for the 2016/17 financial year. It also reported an operating profit after depreciation and amortisation of $69,000 – which was $519,000 better than the $450,000 loss budgeted for the same period.

Mr Carter reported on the growth in stakes, with the club’s goal to increase them further over the next five-years.

This year with the help of the NZ Racing Board, the club increased the minimum stake per race at Alexandra Park to $12,000 - the highest for a harness racing club in New Zealand. He says further increases to stakes will be made possible with the completion of the development.

He thanked members for their ongoing support and reassured them the board and staff are fully committed to ensuring the Auckland Trotting Club’s core ideals are upheld.

Ms Dowding reflected on the changing racing scene in recent decades, and how in 2013 the club’s board and management embarked on an ambitious and aggressive strategy with the vision to ensure future sustainability and control its own destiny. Since then, enormous work has gone into reshaping and extracting the highest and best use of the club’s land holdings.

“Four years ago, when the strategy was deployed, we had a declining racing industry, funding had plateaued, over $16m in deferred maintenance, an asset that was in dire need of revitalisation, and an organisation that had flat-lined through a lack of reinvestment.

“Today there are positive signs for our industry via the growth in funding, stakes and an extremely bright future for the business of the Auckland Trotting Club. An increase in industry funding has not only enabled an increase in our stakes, but the number of race meetings has also increased from 37 to 41 for the 2017/18 season.”

The Annual Report showed that demand for Alexandra Park’s functions facilities and its meetings business continues.

In 2016/17 the food and beverage division earned around $6.2m in revenue, with the function centre contributing around $4.6m of that. The functions team managed over 867 events, achieving occupancy levels consistent with the previous year. Race night dining grew strongly with revenue per race night up 16% on the previous year. While the sponsorship team was successful in attracting $790,000 of revenue - an increase of 6.5%.

The club’s commissions from its onsite TAB increased following a staggering operating result. In the past year the TAB at Alexandra Park lifted its turnover from $15.7m to $22m - an annual turnover that puts it $10m higher than its closest TAB competitor and cements it as New Zealand’s largest.

The club’s property division contributed $2.6m in revenue this year up from $2.3m in 2016. This was driven by an increase in income from the club’s existing rental properties and by strong parking revenues including from visiting campervans during the Lions Tour.

Overall operational savings were also reported, and a commitment was made that costs will continue to be challenged throughout the organisation.

Ms Dowding says 62% of the club’s total revenue is now generated by other departments outside of racing which continues to grow. Nonetheless at 38%, racing income growth remains important.

Field sizes have increased from 9.3 to 9.7, while the amalgamation in recent years to create the Franklin Park Training Centre continues to deliver, with the numbers of horse training at Pukekohe lifting on average from 120 to 240.

Looking forward to the coming year, the club will ensure the development is completed, as well as roll out its new strategic plan for the next five years – again in the name of sustaining harness racing into the future.

In racing, the club aims to continue to raise the numbers of owners, young trainers and drivers helped by a continued lift in stakes, as well as work to attract and grow new audiences. On other aspects of its business the club will continue to improve customer service, focus on driving overall sales and additional revenue streams, as well as review its current assets and venues.

With the opening of its urban village from next year, including new restaurants and cafes, the club is determined to “bring back Alexandra Park as an attractive destination”.

At the Annual General Meeting, Auckland Trotting Club members voted on the election of board members and the return of Bruce Carter as president. Members also voted in a new constitution, and were advised that a decision around whether to roll out a further stage of the club’s urban village development would be made later this year or early next year after a review of market conditions.
www.alexandrapark.co.nz
ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>