Fellow members,
The year since our last AGM has been somewhat unusual. The AGM was not held until April then following the passing of tabled AGM resolutions our previous Chair decided to step down.
As a result, my year in the Chair did not start until July, when I was honoured to be elected to the vacant position by you, the members.
I would like to thank the previous Chair, for the dedication he gave to the position and for the work he and the Board undertook.
At the AGM, a number of new non-execs were elected to the Board, and subsequently more were co-opted to ensure we had the prescribed number of eight Directors. There has been a steep learning curve as the new Board took shape and got to grips with new roles, responsibilities, and challenges but I am pleased to say we are in a good place and working collaboratively to deliver on members’ wishes for your Club. It was disappointing to see the early departure of our newly elected Finance Director, Nick Wharton, for personal reasons, and I would like to take the opportunity personally thank Nick for the amount of time and effort he put into his role.
Although I have not had much time in the role it was critical, we understood where we were financially and had timely management accounts to allow us to manage the club. Additionally, I was aware members needed to enjoy better updates on all club matters so improving communications is key.
Just before Christmas we distributed the clubs first newsletter. The feedback has been very positive, and I will ensure we build on this by producing future editions quarterly. We asked you to help us understand what matters to you through a recent survey. Again, we have had a superb response. The information is now being analysed and I will ensure members are fully aware of the outcomes and plans.
By now you will have seen the report detailing the outcome undertaken through the financial review. This was a first class and necessary piece of work. Importantly it identified future risks whilst allowing us to understand what funds are available for investment in our club.
The financial results are again very encouraging for the year, with increases in revenues and overheads controlled well in an inflationary period.
The key financial drivers underpinning the profit for the year of £132,825 (2022: £119,745) were:
A full playing membership and an inflationary increase (9.9%) contributing to growing subscription revenues by a net £165,114. NB Subscriptions were frozen for 2024 following the resolutions carried at the April 2023 AGM.
Entrance Fees were higher by £58,827 over 2022. We welcomed 70 new members, an unusually large number, (2022: 30) as we maintained our full playing member capacity at 900.
Green Fee revenue (from visitors, members guests, societies, and facility fees) totalled £345,467, reducing by £28,835 over 2022 reflecting reduced visitor’s revenue.
Bar & Catering revenues and loss performance; combined revenues for the year totalling £416,169 (2022: £401,896), combined loss £(17,642) (2022: £ 19,174). It should be noted that both our Bar Profit £39,878 and our Catering Loss £(57,520) were worse than the previous year and illustrate the need for improvement.
Net maintenance and upkeep of the courses totalled £1,013,829 (2022: £938,425), an increase of £75,404 (8%). The Board have continued to invest in the course team to improve pay, pressure on staffing levels were managed as to not impact the condition of the course and deliver what members have come to expect. Excellent control of the other expenditure continued by our Course Manager Andy Wood in a period of significant inflationary pressures.
The costs of upkeep of the clubhouse increased by a significant £104,643 (37%). Our energy costs alone increased by £83,311 reflecting the actual impact of the cost-of-living crisis. There were also inflationary rises in all other areas of clubhouse expenditure.
Administration expenses totalled £485,210 (2022: £492,972), a reduction of £7,762 (1.6%). Employee costs reduced by £13,459 as we had no general manager till January 2023. Professional Fees reduced by £12,789 reflecting the reduction in advice sought. Rates costs reflect the hospitality rates relief continuing into 2023.
Capital expenditure in the year totalled £342,165.
Investment in our courses continued with £218,653 spend on the irrigation work on Lodge tees and greens, holes 4 to 12. Additionally, we purchased machinery; Turfco Topdresser £16,321, Wieddenmann aeration machine £16,205 and John Deere tractor £37,967.
In the Club house we spent £15,374 to replace kitchen and bar equipment including glasswasher, ovens, grill, and a new EPOS unit. Additionally, we replaced the decking on the balcony £9,796 and installed a patio door in the lounge £5,638.
In the Office, shelving, £1,242, was installed in the storage area next to the offices and the internet link improved with the Starlink system £2,397.
Lastly a patio area, with new furniture, was created in front of the clubhouse,100% funded by a very generous £20,000 donation from the Supporter’s Club.
As indicated in this report last year the Board have continued their commitment to improving the club’s cash position. As mentioned earlier the Finance Committee have concluded their Financial Review, as requested by the members at the April 2023 AGM, presented to the Board and the results and recommendations shared with the members. It has been accepted by the Board that the club will continue to maintain a level of cash reserves to cover identified risks and future unidentified risks.
The year-end cash position was pleasing, Net Funds (after deducting the remaining £30,003 Covid bounce back loan) finishing at £677,728 compared with £701,408 in the previous year, a reduction of £23,680. Cash generated from operations was £299,880 (2022: £301,480); however capital expenditure was higher at £342,164 (2022: £189,195). Our cash position is a result of four satisfactory years of good profit and associated cash generation, underpinned by a full playing membership.
Our club in 2023, like businesses and golf clubs across the UK, did experience upward pressure on our overheads. Inflationary increases were experienced in our course materials, petrol costs, food for our catering, energy, and general overhead costs. The club also continued to maintain employees pay and fulfil our legal commitment to pay the National Living Wage.
The Board remains committed to delivering at least a Break-Even Profit position or small Profit for 2023/4, losses are not seen as a sustainable position for the club. The Board will continue to measure financial performance against budget, carefully monitoring the key drivers and focused on planning and budgeting not just for the immediate but the longer term. The total budget available for capital projects for 2023/24 and 2024/25 is a combined £400,000; you the members will be consulted as to the actual projects that are approved and go forward.
Our financial results continue to reflect the continuing excellent job of “Team Enville,” paid staff and volunteers alike. A big thank you to all of you who have contributed ensuring the immediate and future success of the club. Our paid staff teams continued to be admirably led by our General Manager and Course Manager.
Whilst 2023 was another successful year reflected in a set of sound financial results; the Board will continue to plan out as far as possible to mitigate risks and help secure the long-term success of the club.
Review of the Year
There have been many golfing success stories at the Club this year which just shows the competitive nature of our members and the depth of talent this great Club produces. Of particular note are two of our younger members, James Claridge and Ben Bolton, both of whom are flying the flag for Enville in the England National Team, alongside significant individual victories, including the Berkhamsted Trophy and West of Ireland Open for James, and the Faldo Series Junior Tour Grand Final, played in the UAE, for Ben.
Closer to home and Enville members picked up a number of trophies in Staffordshire championships. Junior member, Ronnie Groves, won both the Boys Open and the Boys Under-16 Championships, Oliver Perks triumphed in the Men’s Championship (Nett), whilst Mike Deeley took a haul of three trophies with individual victories in the Senior Matchplay and Seniors Championship (Gross), and then the Seniors 4BBB Medal (Gross) playing with another Enville member, Colin Wooley.
For the rest of us mere golfing mortals, there has been some incredible golf played in Club competitions, various section matches, B-Teams, Scratch Teams, West Midlands League, and Elite Leagues. The pinnacle for any club golfer must be winning your Club Championship and it was a delight for me to see our 2023 men’s and ladies’ Club Champions collect their trophies at the year-end Prize Presentation Evening: huge congratulations to Richard Hartill and Helen Peters.
There were a couple of great honours bestowed upon two of our lady members this year. Charlotte Peters was selected to be the next Vice Captain for the 2nd Team of the Staffordshire Ladies County Golf Association for 2024-26, and Sue Simmons was rewarded for her incredible contribution to ladies’ golf, being selected to be the next President of the Staffordshire Vets Ladies Golf Association. I wish both ladies all the best for their respective tenures.
As alluded to earlier, it is imperative that we remember the importance of our staff team for delivering a facility that is the envy of the Midlands, and beyond. Our Course Manager, Andy Wood, and his team, continue to work tirelessly to provide us with two fantastic courses, and a great practice facility, year-round. Our Pro Shop Team, Richard, Simon, and Scott, continue to provide an exceptional shop and great service to our members in all areas of ‘golf’ and I look forward to seeing this relationship strengthen over the coming year, for the benefit of the Club and our members. Our General Manager, Colin White, has had a busy and challenging first year but he and the Clubhouse and Office teams have worked hard to keep the Club running effectively and ensure members have a pleasant experience off the course. I am happy to welcome Matt Foster to the position of Head Chef. We are all aware of the many difficulties within the food industry and the issues we have had to work through in the kitchen, over the last 12-18 months, has had a negative effect on both the financial performance and member experience in this area. With Matt now on-board working with Steve and Janine, I am confident of soon being able to deliver an off-course experience to match the on-course one.
We launched a member survey towards the end of December which seeks to gain a deep insight into how members are feeling and wish to see more of at Enville. The Board are analysing this data, which will be fed back to members, and will be used to enable us to develop and present suitable strategies to the membership, to deliver what the majority wish.
The Enville Golf Club Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Highgate Common, Enville, Stourbridge, West Midlands, DY7 5BN.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Income and expenses are included in the financial statements as they become receivable or due.
Expenses include VAT where applicable as the company can only reclaim a small portion.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Corporation tax arises on the club's investment income. Due to its mutual trading status, the club is not liable to corporation tax on its trading activities.
The average monthly number of persons (including directors) employed by the company during the year was:
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
Included in the above is a commitment for rent in relation to the Enville Estate, which, totals £1,870,000 (2022 - £1,980,000). The balance of the remaining commitments relates to course machinery - £151,931 (2022 - £295,255).
Amounts contracted for but not provided in the financial statements:
The only director whose subscription was waived in the year was the Finance Director, 50% waived.