Evans Dixons‘ high-end golf costs detailed in damning annual report
The business run by former Essendon chairman, David Evans, forked out in excess of $200,000 on membership fees at a private golf course as its disgruntled mum-and-dad investors lost tens of millions of dollars.
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The company run by former Essendon chairman David Evans spent more than $200,000 on membership costs at his private golf course.
The golf fees were detailed in yesterday’s annual report for wealth manager Evans Dixon, which showed the company’s underlying earnings had fallen 26 per cent.
The Herald Sun last week revealed that mum-and-dad investors and a who’s who of Australia’s business and sporting elite had lost tens of millions of dollars in investments with the firm, amid threats of a class action.
The annual report shows Evans Dixon’s earnings dropped to $37.1 million last financial year, down from $50.1 million the previous year.
The share price dropped by 75 per cent, closing at 66 cents yesterday, down from the $2.50 offer price when it floated on the stock market in May last year.
Despite the numbers, the company spent $210,066 with Mr Evans’ Cathedral Lodge Golf Club, a Greg Norman-designed course on his family property at Thornton, north-east of Melbourne.
The company said it spent the money on “corporate membership fees, associated transport fees and other related costs’’ for entertaining clients, employees and suppliers.
The Herald Sun can reveal further close links between the Cathedral Lodge and Evans Dixon, which the former Bombers chairman formed with business partner Alan Dixon.
The course, which costs $50,000 to join and $12,000 in yearly fees, is owned by a company called Cathedral Management Pty Ltd, which has its registered office at the Mayfair Building at 171 Collins St in central Melbourne.
Evans Dixon is based at 171 Collins St.
Cathedral Management has two company directors – Mr Evans, and Parrish Davis.
Ms Davis is the group chief operating officer of Evans Dixon.
Cathedral Management has one shareholder – a company called Utupua Pty Ltd.
Utupua is also registered at 171 Collins St. David Evans and his wife Sonya are the directors. Mrs Evans is also the secretary of Utupua.
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An Evans and Dixon spokeswoman said the arrangement with Cathedral Lodge had been discontinued, as part of the operational review launched by new CEO Peter Anderson.
“As a result of the operational review initiated in July and currently being undertaken by management, and in light of FY2019 financial performance, 15 corporate programs including the corporate membership at Cathedral Lodge have already been advised that their arrangements will be discontinued in FY2020,” she said.
Both Mr Evans and Mr Dixon — who has now taken indefinite personal leave from the company’s US real estate arm — agreed to forgo bonuses of more than $1 million each.