Introduction.
On behalf of the Board of Directors I would like to update members on a number of items that will be of interest to everyone. We would have preferred to have held a Members Meeting so as to give everyone the opportunity to express their views. However, as we are all sadly aware, we are unable to meet under the Covid 19 protection protocols. I am as surprised (and bitterly disappointed) as everyone that we find ourselves in this position almost a year after the world first heard about this terrible virus. Optimistically we will begin to see some relaxation of the restrictions when the vaccination programme takes effect and we can get back to our wonderful sport. Ironically, had we not been banned from playing golf we would have had few opportunities to do so in January because of the excessive rainfall we have had. As I write this report the course is probably the wettest it has been for a long time and those of you that have walked round of late will know that it is significantly waterlogged in parts. Current Trading Position.
As everyone will be aware the Covid restrictions have meant that effectively we are completely closed for business. All of the programmed functions and competitions have been cancelled and our main work focus has been aimed at undertaking seasonal maintenance on the course in order to ensure that it is ready for reopening at the earliest opportunity. I suppose everyone has been keeping an eye on the situation and hoping – like us – that the restrictions will be eased as soon as possible. There have been two debates in Parliament involving golf and the general view is that there is a will to lift the restrictions as soon as possible but the Government is loathe to do that quickly bearing in mind the way that the current wave has impacted. With a review scheduled for the week beginning 22nd February we are fingers crossed that we will get the go ahead to open the course albeit with some restrictions being maintained.
With the above in mind we have been busy either further reducing our costs or putting in place strategic improvements that will enhance our ability to generate additional income when we resume. As previously mentioned we have been undertaking programmed seasonal course maintenance but with a reduced workforce. In order to reduce our fixed costs 2/3 of the greens staff have been furloughed throughout January. This will continue until the weather improves or the workload becomes too much for the remaining staff. We have been fortunate in that the furlough scheme allows us to be very flexible with staff but an end date has currently been placed on the scheme. All other fixed costs have been scrutinised and wherever possible reduced. It is a harsh reality however, that the Club has unavoidable fixed costs that require servicing each month and that is what the membership subscriptions cover. Reasons to be Positive.
Thankfully not everything is doom and gloom!
We have been working hard to try to set in place measures that should put us in a good ‘bounce back’ position.
• We have some really good golfing events coming to Hornsea this year.
We have the ERUGC Team Championships. The ERUGC Members Meeting and the Yorkshire Inter District Union Team Championships. This not only enhances our reputation but brings additional revenue into the club.
• A number of the Clubhouse events such as weddings, christenings and parties etc. that were cancelled in 2020 have been rescheduled and we are optimistic that we can increase our share of new business. The loss of our Clubhouse income is a situation we could have well done without, but with hard work and good marketing we can really make a difference when hospitality reopens.
I also know that our two new Captains (Jan and Tom Elder) are really keen to start organising social events to really bring some life back into the clubhouse.
• With the above in mind we have undertaken a redecoration of the Clubhouse. With a change in colour scheme and a new LED dimmable lighting system I am sure that members will see a much improved Lounge and Dining area. The staircase and the Rolston bar have also been improved with new paper and colours. We are hoping to continue with improvements to the Clubhouse over the coming months. These facilities are available to hire without charge and it was felt that the new decorations will make our venue even more attractive. For further details on holding an event at the Clubhouse please contact Emma Hanson.
• Work to improve the course has continued and there are several other projects being evaluated. Each of these projects is being prepared with a full business case and financial planning in place.
• The new teaching studio is fully functional and when the current restrictions are eased Richard Pace is itching to start coaching members and visitors to the club. Areas of Disappointment.
The area which has caused a great deal of disappointment to the Board of Directors has been the complete lack of financial assistance for the business. Whilst other golf clubs have been allocated significant grants towards their loss of business we, for one reason or another, have received absolutely nothing to date. We were hopeful of receiving grants from both the Government and England Golf but unfortunately, whilst we presented a strong case, we were unsuccessful with all of them.
This was particularly disappointing when we know that some of the clubs awarded grants are clubs that are financially much better off than us. The rateable value ceiling that was applied to the Government grant was the main stumbling block and as I have reported before by being £2500 above that value we missed out on £25000 of funding. The only area where we have really benefitted is with the Business Rates holiday which is due to end at the end of this financial year. Financial Threats.
The Finance Committee has spent some time examining the financial threats that face the Club in the short/medium term. This has revealed several that will need further planning and monitoring, one of which is the age and condition of our Course Mechanical Fleet.
The last new machinery that was bought was in 2012 using money from the sale of the agricultural land adjacent to the 16th hole. It has to be said that this proved to be a very good step to take at the time but moving on 9 years, we now find that the fleet is becoming increasingly expensive to maintain and more susceptible to breakdowns. In particular the Fairway machine needs constant attention. The Articulator (rough mower) is nearly 20 years old, and the Aerator and the Kubota tractor are now 13 years old. Bearing in mind that most of this machinery is in constant use you can imagine the anxious moments they cause. There is a need therefore to determine how we can replace those machines that are causing us the most difficulties. Current Financial Position
At the onset of the Pandemic the Board decided that our top priority was to protect the Club from any threats and ensure that we at least break even and continue to operate. Consequently we have been very careful with our financial planning and our expenditure – that said nobody could have anticipated the significant losses that the closure of the Social side has inflicted. It is pleasing to report therefore that with the measures we have taken our financial position has potentially improved. I say potentially because I think any accountant will agree that there are some risks associated with forecasting 3 months ahead. But having examined this year’s accounts through to the end of December 2020 we are confident that by the end of the Financial Year (March 31st) we will achieve the breakeven position, and notwithstanding any unforeseeable major expenses, we are on course to return a modest profit. I can also advise members that this has been achieved without using any of Brian Vere’s Legacy on day to day running costs. As stated in previous updates Brian’s bequest has been set aside and is only being used for projects that will benefit the Membership. Any such projects are subjected to business case planning and are carefully scrutinised by the Board of Directors. 2021 Membership Year Subscriptions.
The Board is conscious of the fact that all members have had their opportunities to play affected by the Covid restrictions, and the adverse weather we have experienced this year, and may feel that they have not had full value from their membership.
However, the situation we find ourselves in is unprecedented - and totally beyond the control of anyone at the Club. Having regard to the above, and after giving very careful consideration to the situation, the Board has decided that we should place a freeze on membership subscriptions for 2021.
Also, having carefully considered our position and our overall aim of making Hornsea a premier golf course, the Board would like to suggest that if our projections are realised and we do finish the current financial year with a profit we should reinvest that money in replacing some of our obsolete/defective machinery. Conclusion.
As was stated at the beginning of this update, it would have been so much better if we could have held a Members Meeting to discuss the above issues. But that does not mean that we are avoiding contact and I would reassure everyone that any member of the Board of Directors is more than willing to discuss all of the above issues with you. I would also like to say that the Board does not claim to have a monopoly on ideas and if any member has any sensible recommendations to put forward please do not hesitate to do so. Can I also stress that if any member is in need of help during these trying times we are more than happy to do so wherever possible. It only takes a phone call or an email to any member of the Board and we will be happy to give assistance. With best wishes and please stay safe, Keith Marshall.
On behalf of the Board of Directors. | 
