A NEAR-record profit of $2,942,000 has allowed the Commercial Club to completely wipe out its debt.
The unexpected extra cash bonus is $500,000 more than chief executive Bruce Duck planned a year ago when the long-term future of the NSW clubs industry seemed uncertain.
“I budgeted for a net profit of $2.4 million but am happy to report a net profit of $2,942,000 compared with $2,708,000 in 2010 and $3,082,000 in 2009,’’ Mr Duck says in the annual report released yesterday.
The profit was achieved after paying $9 million in poker machine duty.
The club’s operating income was a record $35,954,883, of which $26,752,597 came from the poker machines.
Board president Barry Edmunds is elated about the profit.
“When you consider the economic climate is still very challenging a financial surplus of $2,942,000 is nothing short of outstanding,” Mr Edmunds said yesterday.
Directors intentionally curbed capital works due to fears about the Gillard government’s plan to introduce “mandatory pre-commitment” on machines.
“We cannot let this happen and the club industry is working extremely hard to make sure it doesn’t,’’ Mr Edmunds says in a report to the 26,275 members.
“The repercussions would be devastating.
“We did, however, spend over $220,000 improving our car park at the Commercial Golf Resort.’’
Bank debt of $3 million in the middle of last year has all been repaid.
“2012 is going to be a tough challenge,” Mr Duck says his report to members.
“I hope and pray commonsense will prevail on proposed poker machine laws) and we are allowed to continue to enjoy our club as we have in the past.”
Editorial — page 40