ANDRA RECORDS ANOTHER LOSS

ANDRA Records Another Loss

The Australian National Drag Racing Association has recorded yet another significant loss, its sixth such result in a turbulent seven years.

Last night, ANDRA notified its members ahead of its upcoming Annual General Meeting of a $191,519 loss for the 2016/17 Financial Year, increasing its total losses to a shocking $1,416,372 since 2011.

Its total equity at the end of June rested at just $897,000, well down from the $2.3m it had on the books in June 2011.

Income from memberships, license fees, and permits for the financial year dropped by over $205,000, while cashflow from operations fell from over $2m to just $1.26m.

Its available cash rose slightly from $653,000 to $776,000, but that was boosted after collecting an outstanding payment of $334,000 from Sydney Dragway.

In his report to members, acting ANDRA chairperson Nathan Pierano said the result was “disheartening.”

“Whilst a loss this year was forecasted [sic], it is disheartening to report that the loss of $191,000 was more than first budgeted,” he said.

Pierano’s comment that a loss was forecast is in stark contrast to comments made to Auto Action last December by former ANDRA media manager Tim Baker when questioned on the organisation’s ongoing losses.

“During the middle of the year the Board approved a one-year strategic plan and a break even budget for this current financial year. We are currently tracking ahead of budget,” Baker wrote on December 5 last year.

If a break-even budget was approved and it was running ahead of it in December, it is surprising ANDRA now claims it had budgeted for a loss – with a result far worse than expected.

Pierano did talk up an increase in members in Victoria, South Australia, and Western Australia in his report, but confirmed there was an overall loss 950 from its total of approximately 3,500 members.

This past financial year’s results can almost solely be attributed to the introduction of the International Hot Rod Association (IHRA) into the Australian market.

That was a possibility members of ANDRA’s board were warned about in early 2015, but it failed to take notice, going as far as publicly denying any knowledge of the country’s major tracks talking to the IHRA.

ANDRA’s subsequent decision not to issue permits for 400 Thunder events opened the door to the IHRA later that year.

The majority of its losses have come after ANDRA switched from an association to company structure in June 2011.

In more recent times, ANDRA’s daily operations have undergone further change, with the CEO’s position made redundant, and some services outsourced to reduce expenses.

It has also dropped its Group 1 championship series to concentrate on running its Summit Sportsman Series, with 400 Thunder now running rounds of its professional series at ANDRA-sanctioned tracks.

There are 50 pro teams entered for 400 Thunder’s ACDelco East Coast Thunder at Sydney Dragway this weekend, including nine Top Fuel dragsters and 16 Pro Slammers.

The ANDRA AGM will be held at the Mawson Lakes Hotel & Function Centre, Mawson Lakes, near Adelaide, on November 17.

ANDRA’s Financial Performance – 2011 to 2016

2010/11 -$31,683
2011/12 -$517,078
2012/13  $61,572
2013/14 -$256,738
2014/15 -$70,046
2015/16 -$410,880
2016/17 -$191,519

Total losses
-$1,416,372

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