Q3 2021 - Financial report

Q3 2021 - Financial report

Q3-2021 FINANCIAL PERFORMANCE

I S SUED DECEMBER 2 0 2 1

F I NANC I A L REPORT | Q3 - 2 0 2 1

SUMMARY RESULTS

Q3 2021 VS. Q3 2020

8.3 per cent decrease in Revenues

6.6 per cent increase in Expenses

Net Surplus (before & after Depreciation) down over 100 per cent

53.4 per cent increase in Depreciation

23.5 per cent increase in Cash Balance

DUBA I OF F SHORE SA I L I NG C LUB

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F I NANC I A L REPORT | Q3 - 2 0 2 1

REVENUE HIGHLIGHTS

For the third quarter of 2021, total revenues decreased by circa 8.3 per cent year on year due to the return to the Club’s usual summer operating and financial environment and this can be attributed to ease of international travel restrictions. As you might recall, following the pandemic’s disruptions to the operating and financial environment in the second quarter of 2020, the Club had witnessed an unusual summer period in the third quarter of 2020 due to travel restrictions and an early shift to healthier and safer activities and environment and this was reflected in the Club’s financial position in that period. During this period, F&B, which contributed 53.2 per cent of total revenue, was flat year on year, while there was a relatively small increase of around 5.9 per cent in footfall in this period when compared to the same period in 2020, during which the Club was full of members, summer members, and guests.

Revenue generated by the Club and Sailing School activities, which together represented 38.2 per cent of total revenue, was up by 1.1 per cent and down by 47.6 per cent year on year respectively. The decrease in Sailing School activities is due to the usual off-season for sailing course activities however if the whole year is considered, the Sailing School’s contribution is reaching circa 18.0 per cent, reflecting the Club’s ongoing efforts to promote the sport of sailing in the UAE. There is a continuing uptick in demand for both dinghy lessons, hire, and cruising courses. During the same period, the revenue generated from Marina activities showed a 18.2 per cent decrease year on year, while the Club continues expanding and improving its marina services. Overall, the Club posted a net deficit (Before & After Depreciation) down over 100.0 per cent during the period compared to the same period last year. During the period, the depreciation increased by 53.4 per cent year on year on the back of the increased sailing fleet capacity.

DUBA I OF F SHORE SA I L I NG C LUB

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F I NANC I A L REPORT | Q3 - 2 0 2 1

EXPENSE HIGHLIGHTS

The Club aimed to maintain a disciplined policy on cash and cost management, while selective investment was provisioned for improving the club and sailing infrastructure and facilities.

The expenses increased by 6.6 per cent in comparison to the same period last year.

The major expenditures during the period included SB20 purchase, dredging work, upgrade to changing rooms, and other renovation & construction across the Club including marina and kitchen particularly.

DUBA I OF F SHORE SA I L I NG C LUB

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F I NANC I A L REPORT | Q3 - 2 0 2 1

CASH-IN-THE-BANK POSITION

The Club’s cash balances increased by 34.3 per cent compared to the same period in 2020, mainly on account of discretionary deferral of capital expenditure, improved cash generated from operations, and working capital performance. Our current total cash balances, as of June 2021, covered our liabilities by 1.75x. The total cash balances provide comfort to the Club to maintain and develop the club and sailing facilities and infrastructure and continue contributing to the UAE as the leading example of a sports and social club – in line with the DOSC Governance and Strategy 2030.

DUBA I OF F SHORE SA I L I NG C LUB

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F I NANC I A L REPORT | Q3 - 2 0 2 1

TREASURY ACTIVITIES

The Club’s treasury priorities remain as continued focus on cash and cost management, primarily on the account of discretionary deferral of capital expenditure, improved cash generation from operations and working capital performance to ensure the Club has the necessary flexibility to maintain and develop the club and sailing infrastructure and facilities going forward and continue contributing to the community as the leading example of a sports and social club – in line with the DOSC Governance and Strategy 2030.

DUBA I OF F SHORE SA I L I NG C LUB

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