Will Tura be viable as a stand alone entity today?
Prior to amalgamation Tura did not own the land the club house, car park and tennis courts are built on. Tura was paying more than $100,000 rent annually for access to these facilities. At that time Tura could not borrow money because it had no land to offer as security. Tura could not really aspire to build accommodation because it did not own the land Tura was averaging a reasonable trading cash profit, before rent, in the years leading up to amalgamation but this was being severely eroded by paying rent on its facilities or interest on its loans. Tura is still making a reasonable trading cash profit today. The cash profit last year and the anticipated cash profit in the current year, exceeds Tura’s average annual capital expenditure of recent years. The finance committee has conservatively estimated a further $40,000 in net savings to Tura’s bottom line from de-amalgamation, making it arguably more viable than it is today. Tura will own assets with a written down value in excess of
