General Meeting
13th November 2014
“Welcome!”
1
Formal Business
2
Formal business agenda
•
To receive the report of the directors and the
accounts for the year ended 30 April 2014
•
To re-elect Mr John Bush as director of the company
•
To elect Mr Simon Lindley as director of the company.
•
To ratify the appointments of Mr Glenn Ward and Mrs
Chris Waters, as Men’s and Ladies’ Vice Captains
respectively, for 2014-15. Both Vice-Captains will go
forward to assume Captaincies after one year.
3
1.
Club’s Annual Review - Tonight’s
Agenda
Apologies
2.
Report of President Tim Banks , and to welcome Brian Curnoe as President for 2014-16
3.
Report of Men’s Captain, Earl Harrison, and to welcome Peter Harley as Men’s Captain for
2014-15
4.
Report of Ladies Captain, Jill Philpott, and to welcome Helen Perry as Ladies Captain for
2014-2015
5.
To ratify the appointment of Ken Bonser as Chairman of Greens, co-opted under Byelaw 9.
6.
Going Beyond 2014 – a short presentation by Gary Lunt and David Smith
7.
To consider and, if thought fit, pass the following resolution:
–
That a new category of membership, Flexible Membership, be introduced, being
available to new members with effect from 1st January 2015 and to existing members
with effect from 1st May 2015, subject to limits to be imposed from time to time by
the Directors
4
Market Harborough Golf Club Development Plan
“Going Beyond 2014”
5
“Going Beyond 2014”
Contents
1. The remit of the board
2. Our understanding of our situation
3. The 6 pillars of the development plan
4. Marketing Activities
5. Q&A Session
6
“Going Beyond 2014”
The remit of the Board of Directors
There are three typical scenarios for the board to make decisions;
• Day to day business – crack on and do what is necessary within the
financial capability of the golf club
• Member notification – make members aware that the board has made a
decision which they feel merits members being aware
• Member referral – provide the members with the opportunity to review
and approve or disapprove of options and decisions that the board feel
are business critical to the successful operation of the golf club
– Current examples would be Flexible Membership & Levies
7
Our Current Situation
Finances – a year of consolidation
–
–
–
–
Costs under control, but upward pressure continues
Unexpected recovery of £39k from insurers
We project a loss of £6k in 2014-15
Our reliance upon a cyclical overdraft and members loans remains a
concern
• Moving forward, we still have limited scope to plan future
investments
• Our understanding of the impact of an Ancient Monument
listing is getting clearer;
– Significantly, this leaves some of our plans leaning against a
bureaucratic brick wall
8
Financial Summary
Actual 2012/13
Actual 2013/14
£000
Actual + Forecast
2014/15
Forecast
2015/16
£000
£000
Bar & Catering income
166.7
211.9
216.2
220.0
Less Bar & catering costs
(219.9)
(220.2)
(223.7)
(230.0)
Contribution from Bar & Catering
(53.2)
(8.3)
(7.5)
(10.0)
Membership Income
352.3
336.2
354.2
360.0
Green Fees
24.8
28.9
29.0
30.0
Sundry Income
7.5
49.8**
9.7
10.0
Total Net Income
331.4
406.6
385.4
390.0
Course costs
158.4
162.9
178.7
185.0
Other Costs
183.9
217.8
212.4
220.0
Total Costs
342.3
380.7
391.1
405.0
Net Profit/ (Loss)
(10.9)
25.9
(5.7)
9 (15.0)
Financial Outlook
• Membership:
– Drop in 7 Day
members reflects
national decline
– We will close the
differential between 5
& 7 Day membership
rates
– We must attract new
Flexible Members in
2014/15 (subject to
approval)
As at 30th
Sept 2013
Seven Day members
May 2014
Renewal
As at 31/10
383
340
345
Five Day
members
89
99
103
Juniors
55
41
44
Other playing
members (incl
honorary)
45
43
43
Total playing
572
523
535
Non-playing members
102
62
62
Total members
674
585
597
10
Ancient Monument
• Implications
– Learning experience
– Government agencies work at a very slow pace
– Big cost implications emerging
• We need to go away and completely rethink
our plans
11
Members Loans
• We currently owe members £76,000 of which
£40,000 from directors
• There is no monopoly!
• Invite up to 10 members to take advantage &
repay directors’ loans up to a cap of £50,000
• Multiples of £5,000
• 3.5% Interest rate
• Minimum 2 year term
• Repayment at Club’s discretion when cash
position allows – these are unsecured loans
12
Our Current Situation
Our Course
• Our Course is our single biggest asset
• We have made significant improvements to the condition of the course
• However , Scheduling as an Ancient Monument adds to unproductive
costs and causes delays
Our Members & Membership
• Membership renewals have been brought into line with the financial
year
• The membership drop (net 35 across all categories) represents an
approximate revenue shortfall of £24.2k
• The Flexible Membership Scheme aims to attract new playing members.
50 new players would yield c£19k in a full year
• We plan to hold an Open Day in Spring 2015 to showcase our club’s
facilities and the friendliness of members
13
Our Current Situation
Our Clubhouse
• Members don’t see investment on the clubhouse as a high priority
• Inevitably, funds will need to be diverted to repair or renew equipment,
electrics, plumbing, etc.
Our Bar & Catering
• First and foremost, the Clubhouse is a service to members and the team
continues to deliver high quality meals and great value
• We are promoting the Clubhouse as a place for groups and families to
come to
14
Our Current Situation
Our Visitors
• When we get visitors, we get great feedback
• We have to generate greater numbers
Our Golf-Shop
• Our previous business model was and is untenable for a club of our size
and nature – paying a Pro is unrealistic
• We have not promoted Andrew’s services satisfactorily – there is much
misunderstanding about what he can do for members
15
“Going Beyond 2014”
The 6 Pillars of the Development Plan
1. Course
–
Won’t change without cash
injection
2. Clubhouse
–
Won’t change without cash
injection
3. Bar & Catering
–
Improving contribution
through better usage
4. Membership
–
Proposed Flexible
Membership Scheme
5. Visitors
–
Promote the Club actively
6. Golf -Shop
–
Better promotion to
encourage more member
support
7. Underpinning it all – the enjoyable golfing experience
16
Flexible Membership Scheme
• Designed to attract new members who can’t
justify a full subscription - time & cost
• £375pa for 15 rounds of golf
• Access to CONGU handicap
• 15% Bar Card £50 top up mandatory
• Encouraged to participate in social activities
• Option to purchase up to 2 annual top-ups
• Non-voting
• Discretionary switching for existing members –
within limits
17
Marketing Activities to Support the
Development Plan
What are we doing right now?
To attract and retain Members
To attract visitors; to reward repeat visits; to convert to full membership
To attract use of the non-golfing facilities
18
In summary…
•
•
•
•
•
•
•
We have good professional practices in place – planned expenditure is under
control within the income we currently generate
We now understand members’ appetite for investment
We retain the vision to “Go Beyond 2014”
– And the 6 pillars will become 7
– We want to ensure we provide an enjoyable golf experience
There will be key changes next year– Pat Hampson and Arthur Price-Jones step
down in 2015
We do not have the funds or access to external funds required to make
substantial improvements, because borrowed money always needs repayment
In the meantime we will continue to manage with the resources we have
We now need to vote for the Flexible Membership Scheme
19
Flexible Membership Scheme
• Designed to attract new members who can’t
justify a full subscription - time & cost
• £375pa for 15 rounds of golf
• Access to CONGU handicap
• 15% Bar Card £50 top up mandatory
• Encouraged to participate in social activities
• Option to purchase up to 2 annual top-ups
• Non-voting
• Discretionary switching for existing members –
within limits
20
Any Questions?
21
Approximate extent of the Ancient Monument hatched yellow
Red hatchings show the farmer’s field at the centre of ‘Little Oxendon’
22