SPNRC Ltd AGM. Chairman s Report

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1 Chairman s Report SPNRC Ltd AGM This going to be a very important year for us, in more ways than one AND and we look forward to celebrating our fortieth birthday! The last year was, for many reasons, memorable, and not for the best of reasons a lousy winter with the course closed on many occasions and the MOD sale announcement, to mention but two! As many of you know, my style of management is markedly different from any of my predecessors I have always endeavoured to let all involved in whatever organisation I am in charge of, know what is going on. That is why I publish the From the Chairman articles every month. This forum provides me with the opportunity to highlight some of the topics I have addressed in my monthly updates and inform you of things that are emerging. I sincerely hope that at the end you, the membership, will take confidence that the board are doing our upmost on your behalf and that the future of Southwick Park Golf Club is secure.

2 Protected Tenancy Let s start on a positive note; 1 Despite the continued uncertainty, I can confirm that SPNRC, SPGC WILL be here for years to come. The MOD announcement regarding its intention to sell the land, while expected, sent shock waves through our club. I was informed very early on that the land the golf club sat on has a PROTECTED TENANCY, which guaranteed a lease for a minimum of another fifteen years, once the current lease expired in Several people thought I was wrong I am not. It is most unusual for the MOD to grant a Protected Tenancy to a lease but we have one, and that has been confirmed by both the Defence Infrastructure Organisation and a firm of solicitors! Moreover, this joint press release from DIO and us, regarding the future of SPNRC/ SPGC has been published and sent to just about every radio station, newspaper and golf magazine we can think of. I REPEAT, WE ARE NOT CLOSING!!

3 Julie, James and I have had more meetings with MOD (DIO) since that initial one, the last in January, at which it was confirmed that there is no doubt whatsoever that we have the right to negotiate a new 15 year lease with our new owners. Yes, there will be hard negotiations over the terms (the present lease is somewhat of a dogs breakfast unlike any I have ever seen before and I have been involved in many) but regardless of who buys the land, they are legally obliged to offer terms based on current market rates and I am totally committed to obtaining the best terms possible. During the meeting with DIO, we expressed our concern at how the announcement had created a great deal of uncertainty. DIO accepted that our case was unique and were keen to assist in any way they could. As a result, there has been, as I mentioned before, a joint press release from us and DIO setting out the future of SPNRC/SPGC. The meeting also offered us an opportunity to explain to DIO that the uncertainty regarding our future had also affected our last bid for funding from the naval charities, with the RN&RM Charity citing the uncertainty as the

4 reason they were unable to accept our bid. DIO and Navy Infrastructure have agreed to assist the club in its negotiations with the charities which will pave the way for future applications for grants and assistance. The Golf Course 2 Without stealing Jim Fancey s thunder, I must congratulate him and his team on the fantastic improvements they have made to the course. To my mind, I am convinced we have a highly motivated, dedicated, proficient and efficient green staff and they deserve a huge round of applause for their efforts. Without doubt we now have one of the best courses in Southern England and golfers are coming from far and wide to see just how good it is. The new Board will have the task of providing Jim with the equipment he needs to carry on improving the course, and I have asked him to prepare a presentation to the board, in order that we can fully understand his needs. This means that space in the Green Keepers Shed will be vital therefore we are looking at providing an alternative space for the buggies currently kept

5 there. Equally, we are aware of the need to provide more space so that those with limited mobility can be given the opportunity to continue playing golf. Change in PGA Head Golf Professional 3 Rawlings, our new Professional, Mark Smith, is working hard to help all golfers to improve their game and gain even more enjoyment from playing our wonderful game. He has devised a programme for our Junior Section and I, for one, look forward to seeing how well they do this season in competitions. SPNRC Ltd Run as a Business 4 As many of you will know, I have openly said that SPNRC MUST be run on efficient business lines, and whilst we are a Not for Profit Company", that does not mean we cannot make a surplus. It is the Board of Directors duty to run the business and I look forward to working with the new board. What I must emphasise is that the Board are there to run the business. Working under the board are the various committees. These committees have

6 been set up in accordance with the articles of association, which state: The Management Committee may make provision for sub committees to organize the golf and any other amenity within SPNRC whose members may not necessarily be directors of SPNRC. The bye-laws may provide for the election at the AGM or any other general meeting of such chairmen or members and determine the terms of reference for such sub committees, but irrespective, the Management Committee shall have the power to appoint subcommittees and to determine their terms of reference. The following slide shows how the organisation is structured you, the members decide who is to be in charge of SPNRC, and those whom you select form the Board of Directors. The General Manager has the responsibility for the running of the business. The various committees have an ADVISORY function. In the case of Southwick Park Golf Club, the board allows several sub- committees to advise on various aspects of the club on the board s behalf, the most important of which is arguably the role performed by the Green s sub- committee.

7 To clear up some questions which have been posed regarding this particular role, the greens sub- committee, headed by a nominated Chair of Greens works with the Head GreenKeeper to set out the maintenance plan for the Golf Course. The maintenance plan, coupled with the expected cost of the planned work is presented to the Board of Directors by the general manager. At this point, the Board of Directors sets the maintenance budget. It is the responsibility of the Head Green Keeper, with the assistance of the Green s Committee, to keep to the allocated budget while performing all the planned maintenance. Any required increase to the funding which has been agreed must be sent to the Board of Directors for consideration. Over the past year the Sales & Marketing Committee has worked hard on promoting our course, and although some special offers helped increase the numbers, they were not always popular. The board have therefore listened to the feedback from you and have since removed the Special Offers. The best advertising that any business can have is by WORD OF MOUTH and that has happened big time for us.

8 After the announcement of the sale of Southwick Park by MOD, we lost a few more members but I am delighted to tell you that, from having lost some 34 members by September, we have, to date, gained 20. Another point that I would like to bring to your notice is that we have, in the light of the adverse publicity brought on by the MOD, begun the process of negotiating a further abatement of the rent we pay all I can tell you right now is that discussions are ongoing watch this space! During my research into this topic, I found that other clubs, of similar size (geographically) are paying two thirds of what we currently pay. Our Naval & Armed Forces Alliance 6 On a positive note, contrary to what you may have heard, SPNRC WILL continue to support the Navy, and the other Armed Forces, both serving and ex, with discounted membership and green fees. I am VERY conscious of the history of SPNRC and the contributions made to it, over the years, by both the Royal Naval and Royal Marine Charities. It is hoped that, in the light of recent developments, we may be able to seek their assistance again.

9 Julie is working hard on all those involved and you will be told of any developments as soon as we know anything. Our Finances Whilst on the topic of finances, I am very happy to report, as alluded to in a previous slide, that our claim for a refund of VAT has been successful To date we have received 47,000 and it has been confirmed that a further 119,700 is imminent there are fees & costs involved amounting to approximately 27,256, with the corporation tax charges to be confirmed at a later stage by our accountant. We will have to wait a while until we will know, for sure, what the final net figure is! This means that, for the first time in ages, we will have a contingency fund! Some of the money will go to providing Jim with the extra equipment he so desperately needs, the rest being put on deposit and ring fenced. It will be up to the new Board of Directors as to how our finances are managed in the future.

10 Figures are taken from audited accounts 1st October th September 2016 Total Turnover decreased by 5% on last year, dropping by 26,700 Membership Sales grew by 1% on last year, increased by 3,000 Green Fee Income was down by 15.4%, dropping by 20,000 Society Income was also down by 9.3%, dropping by 1,346 Clubhouse Hire grew by 9.3%, increase by 300 There was an Operating Loss in 2015/16 of ( 18,716), Operating Profit 16,677 in 2014/15 (As you can see, largely due to a decline in visitor & society fees, and the Board s decision to invest more in course maintenance, more hours for the green keeping team and the repair of the south facia of Clubhouse) Your board will continue to ensure SPNRC is run in the most cost efficient way possible. Fees & Annual Subscriptions 7 In order to decide what or if any increases are necessary in the annual fees, we have held very

11 detailed discussions as a Board and James has carried out a competitor analysis spreadsheet on over 25 local clubs to ascertain comparison fees, which shows that we are still offering great value for money!. We have also completed a projected Budget spreadsheet for sales & expenditure for 2017/18. It is vital therefore that we try to balance our outgoings against our income and we do not forecast to make an operating loss. The Board have therefore decided that for most categories the increase is 25, however with only a 10 increase for the Intermediate category years and no increases for Flexible or Junior Categories. A full listing will be on the display tomorrow which will show fees including the EGU & Insurance costs, this being done in order to avoid any confusion. Whilst any increase is never popular, this increase is equivalent to less than 50p a week a small price to pay for our vastly improved course I suggest. Our Survival & Future There are still many challenges ahead but, as I promised when becoming Chairman, I am TOTALLY

12 committed to ensuring that this organisation will not only SURVIVE, but also THRIVE & GROW. Thank you your patience, encouragement & understanding!

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