Royal Malta Golf Club Budget EGM 29 th
Royal Malta Golf Club Budget EGM – 29 th November 2018
Agenda l Present a budget to members for the forthcoming financial year l Present Fee Structure l Course Development plan 2019 -2023 (voting) l Capex plans 2019 -2023 (voting) l Present for approval by members any planned increase in RMGC borrowings, loans or facilities other than as set out in Rule 6. 2 below l Consider any resolution that concerns the budget submitted in line with Rule 5. 6
RMGC Business Plan l 520 full members (528) l 5, 200 visitor rounds (3, 500) l 32, 500 round capacity (33, 800) l Members first policy
RMGC Membership numbers l Full & Associate l Young Adult l Junior Academy l Country l Honorary 528 13 10 71 7 14 l Total members 643
2018 General Update Membership (Associate and full) numbers have risen to 528 Green fees rounds up 2% on budget Rounds played YTD – 29, 705 Trading LAE - € 170, 000 = 80% over budget* *including payment in full for new 5 th green **from third party activities
Key numbers - trading 2017 2018 budget 2018 LAE* Income 908, 306 904, 338 986, 941 Expenditure 825, 046 808, 914 816, 932 Surplus 83, 260 95, 424 170, 009 * based on September 18 man accounts + remaining budget forecasts
2018 Cash position Cash in hand ERF fund Course Dev fund € 67, 889 € 44, 190 € 264, 843 Total € 376, 922 Balance CCS € 255, 000
RMGC - Triple Bottom Line
2019 Budget – headlines people l Further investments towards our goal for professional management at the RMGC l Continued working practices improvement l Equal opportunity employment - RCC l Our people – delivering VFM
2019 Budget – headlines planet l Further investment in energy efficient machinery for the course l Development and implementation of a single use plastics policy for the RMGC ¡First phase – on course drinking stations l Significant tree planting program l Water management review – with the emphasis on power/water savings l PV project
2019 Budget – headlines profit l Trading surplus of 144 K forecast – sufficient only to meet ‘cash outflows’ (CCS and ERF) and limited capex l No bank debt and a decent ERF l CSS balance down to around 175 K (655 K) – 75% of the way home l Essential capex – funded from surpluses and depreciation
2019 Budget – headlines profit cont. l Club resuming rental and reception activities - net benefit € 100, 000 per annum l Pro shop, range and teaching contracts intact (and improved) l Essential capex – funded from surpluses and depreciation l Course machinery replacements built on FAR story
Key numbers - 2019 2017 2018 budget 2018 LAE 2019 Budget Income 908, 306 904, 338 986, 941 1, 093, 536 Expenditure 825, 046 808, 914 816, 932 949, 114 Surplus 83, 260 95, 424 170, 009* 144, 422 *including 70 K windfall business
Course HR DOG Head Green Keeper Irrigation engineer Deputy Head Mechanic Groundsman Groundsman
Fee Structure 2019 l Members Guest rate unchanged l Members pre-paid offer set at € 32 X 3 max l Compulsory bar credit held at € 100 l All locker and buggy shed prices remain frozen at least until 2020 l 3. 5% increase in all subscriptions categories
Course development plan 2019 -2023 l 2019 ¡Course quality step change ¡Establish new course lengths/ratings/tees ¡Fencing driving range (Sport. Malta funded) ¡Ancillary course upgrades l 2020 -2023 ¡Remaining USGA Spec Greens
USGA greens l 2018 ¡Test green – the 5 th ¡Cost circa € 38 K ¡What have we learned ? l 2020 -2023 ¡Remaining USGA Spec Greens
Capex plans - Course 2019 l Course ¡New hybrid fairway mower ¡New small rough cutter ¡New greens mini-tractor ¡New verti-drain
Capex plans – Clubhouse and IT 2019 l Clubhouse ¡Acoustics works Torrens Suite ¡Acquisition/upgrade of rental equipment ¡New reception area ¡New buggy shed
Outflows for 2019 Repayment of CCS Exceptional reserve fund € 80, 000 € 10, 000 Golf Course Clubhouse ICT € 110, 000 € 68, 500 € 3, 000 Total € 271, 500 (248, 300 in 2018) From trading surplus From surplus & depreciation
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