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Dear Member
Last years new membership offer attracted some 135 new members at a rate of £210 bringing in much needed income as well as introducing new blood. Year two's subscription rate for these members will be at the agreed rate of £315. In an ideal world we would hope that all 135 remain and renew at this rate. However we have to be realistic and budget for a shortfall. The true picture will not become clear till April 2007 by which time, if we fail to react now, we could well and truly find ourselves on the back foot.
As you will have read in the September newsletter and the local press the timetable for the move to Kinnon Park has yet again been put back with the Enterprise and Infrastructure Committee's recommendation for the rezoning of Craigie Hill for housing now not going before full Council till May 2007 all of which does not assist forward projections. This not only means that we will have to remain at the Hill longer than anticipated, but be in a strong financial position.
While the financial position of the Club is better we are certainly not out of the woods by any means. At this moment we anticipate a small trading profit but depreciation and VAT could once again lead to a paper loss.
We have enjoyed a significant lift in subscription income, however visitor's fees and gaming income are well down on budget. Bar sales are recovering and should finish in line with budget, mainly thanks to Trevor's efforts with our functions. Our cash flow position is much stronger than last year following the cash injection from G.S.Brown. We need to bear in mind that this is treated as a loan until such times as we enter legally binding contracts to proceed with Kinnon Park. As already mentioned this is unlikely to happen until mid 2007. Our financial position therefore remains critical.
Your board have discussed this situation in great length and have taken the unanimous decision to introduce a £315 offer for new members to run from October 2006 till March 2008. This 17 month offer will be closely monitored. If this offer is satisfactorily taken up it is the Committee's intention to cap for the second year running the existing membership fee for founder members.
I ask that you give your board and Club your full support in promoting this
offer.
A.A.Beattie
Captain
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