With the parent company of the Bangalow Bowling Club, Norths Collective, posting a $2,585,559 loss last financial year, The Echo sought comment around the company’s commitment to major upgrades as promised, and to reassure the Bangalow community that their club is not in danger of becoming insolvent or being sold off.
In January 2022, the bowling club stopped trading briefly and went into voluntary administration owing creditors around $80,000.
By 2023, the Bangalow community was divided on whether Norths should amalgamate with the club after then-president, Rowan Keast, warned of the bowlo’s shaky financial position.
Material uncertainty
Apart from the $2.5m loss last financial year, North’s ‘current liabilities exceeded its current assets by $13,526,964’, according to its recent annual report.
This in part prompted North’s independent auditor to conclude in their report (page 39) that, ‘these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern’.
Additionally, a recent newsletter from the club says they aren’t, ‘currently in a position financially to commence a multi-million-dollar major upgrade’.
Norths CEO, Luke Simmons told The Echo, ‘Norths Collective held its 70th AGM last Thursday, where several matters were addressed and the Norths Collective’s future reassured, including any necessary support from banking partners’.
‘The year-end December 2024 financials were tabled and while the result was an improvement on 2023, it is not reflective of the performance required to aggressively invest in all properties on a group-wide basis immediately’.
Mr Simmons said, ‘Post-Covid impacts, rising costs in all expense areas with inflationary pressure have been a challenge added by the poor performance of diversification with several non-gaming ventures’.
‘The 2025 budget will see a return to strong profitability, and the year-to-date May 2025 figures have the group trading well ahead of its forecast. 2024 saw the group retire its involvement with two leased operations at Cheltenham and Artarmon in Sydney.
Reverse equity
‘This also saw the joint venture of its brewery be established as a reverse equity consideration.
‘We are thankful Mr Greg Nash attended the AGM in Sydney and put several questions to the meeting with respect to ongoing commitments and plans for major renovations as outlined in the MOU.
‘The club has been upfront in its communication that no plans have been developed materially beyond the earlier concept drawings to be ready for further member or community engagement.
‘Norths Collective has, however, remained committed to its support for all sporting organisations and all other aspects of the MOU to date.
Taken on club debt
‘At the time of the amalgamation, Norths Collective took on over $450,000 of ANZ bank debt and an ATO debt of $220,000 the club held before investing over $250,000 in other capital items since that date.
‘Norths Collective respects the Bangalow community and its love of its local club, and will continue to work with the advisory committee and membership on ensuring the sustainability and success of the bowlo.
‘With the replacement of the windows with new bifold doors near complete, the next step in maintenance works will see eaves and gutters repaired and replaced and painting to continue in tandem’, Mr Simmons added.
Comment was sought from the Bangalow Bowling Club, but Mr Simmons told The Echo as CEO, he is the only one authorised to speak on behalf of the club.
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