News

Rich River strikes the mother lode with a $2.2 million profit

By Riverine Herald

RICH River Golf Club has just aced its annual financial performance, recording its best result in more than a decade.

Its $2.2 million profit for the year ended 31 December 2018 is a stunning lift on the $462,000 it recorded in 2017.

Club chief executive Shane Gloury said except for 2014, which saw almost the same result the latest figures have no comparison for years.

Although he did concede both 2014 and 2018 have been inflated by one-off asset sales.

However, after inheriting a business under siege, Mr Gloury and his team have clearly turned the financial corner and have the pioneering club back on track.

The figures, all the details and a breakdown of what did and did not work for the club was being circulated to members this week.

“It has been an excellent year of progress for Rich River Golf Club,” Mr Gloury said.

“The clubhouse renovations completed in late 2017 have been a resounding success and helped stimulate total operating revenues to grow $1.9 million in 2018,” he said.

That was underpinned by enormous growth in every division – but particularly in food and beverage.

“Food and beverages went up a very pleasing 24 per cent,” Mr Gloury said.

“On top of that gaming revenues were up 11.6 per cent, accommodation 6 per cent and green fee revenues up 6.7 per cent,” he said.

“The club has also been highly successful in attracting new golf members with those numbers increasing 10 per cent on the previous year.”

Mr Gloury said the 2018 profit was inflated by asset sales, including the leasehold and surplus gaming entitlements at the Moama Sports Club and sales of Fairways lots.

“The decision to consolidate our business operations and fully focus on RRGC has helped us reduce our loan balances by $3 million and restore the financial health of the club,” he added.

“We are now in a solid financial position where we can upgrade our golf course irrigation system and deliver on the golf course master plan in the years ahead.”

A master plan club president Peter Boek said would see the club in the years ahead as the clear number one stay-and-play golfing destination along the Murray and its east course elevated into the top 100 public access golf courses in Australia.

“This year we will open three new golf holes on the west course and progress further through the master plan development,” Mr Boek said.

“We will construct a quality state-of-the-art mini golf facility on site, which will be a fantastic entertainment attraction, and we will also build new golf cart storage sheds for use by members,” he said.

“Rich River also owns more than 100ha of vacant land adjoining the Golf Club site.

“We are currently in discussions with potential business partners for the development of our surplus land holdings. While it is critical we retain ownership of this land it is just as important we start receiving a long-term income stream from this asset for the benefit of the club and its members.

“Overall it’s an exciting time for Rich River Golf Club.”