Reply To: 2023 accounts

Members Forum Society Matters 2023 accounts Reply To: 2023 accounts

John Cutler

    Thank you, Chairman, for such an unexpectedly rapid response.

    The issue of timing of the AGM could easily be overcome by changing the company constitution accordingly. I accept that Board members may be otherwise engaged in helping out at a major exhibition. However, it does seem to me that over the years the AGM is slowly turning into an exhibition in its own right anyway. This year it is even open to the public (I do not like that personally).

    I am not sure why Board expenses are mentioned. My query is about AGM expenses and whether they could be avoided or absorbed by combination with an exhibition.

    There is no suggestion that the accounts do not show a true and fair view of the EMGS affairs. The accounts show a gross profit on Trade sales not net. The investment in moulds did not come out of the gross profit in the legal accounts. That cost has rightly been capitalised and depreciated over 5 years. That depreciation is not taken off the Stores gross profit in the accounts. There are other costs I have detailed that should really be apportioned against the Stores net profit. Hopefully Harry Ryland will oblige with some estimates, probably after the AGM. I feel sorry for him if he has to try to explain this to a Chairman who clearly does not understand (he is not alone). By the way, I want to emphasise that no blame should be attached to the Stores officer, past or present (or for that matter to the Treasurer or Chairman); I am not in the business of blame. The data for knowing the extent of the Stores real profit is lacking from the format of the legal accounts. This is an issue for any business owner or manager in the outside world; the legal accounts are usually not a good way of telling what is really going on. By the way, I am not concerned if Harry’s promised figures show a loss; I do not see much difference between subsidising the Stores or an exhibition so long as the subsidy is small.

    As for the huge cash balance, it seems we just follow the herd of other model railway clubs and slowly build it up. At the current rate of surplus and assuming subs stay the same (they seem to be gently declining) we will have £100k cash in 5 years time, equivalent to 30 months subs. A business that cannot invest surplus funds in growth would return surplus cash as dividends or a repayment of capital to shareholders. A charity would give money away. Some action is needed. My preference is to invest in products to make life easier for EM modellers. Or do we just Carry On as before, chaps? Remember it is OUR money tied up in that cash mountain!