7.30pm MONDAY 23rd JUNE 2014 

 

The event was well attended by a large cross section of the club membership.

 

There was a comprehensive presentation detailing the strategy agreed by Council for turning around the finances of the club.

 

Key Points in the Presentation

 

Decline in club membership

 

There has been a fall in club membership of approximately 250 members since 2007. Of these 250 approximately 200 are Class 1A members. This decline has caused a considerable drop in club income.

 

The Financial Status of the Club

 

Members were informed that in the previous financial year the club had traded with an operating deficit of approx. £34000. The overall deficit (which also takes into account bank charges and depreciation) was well in excess of £100,000 which simply cannot be sustained.

 

The current cash flow position in June was that the club was still trading within our overdraft facility of £50,000 but the honorary treasurer’s projection at that time was that it was likely that, unless savings were made, we would require £200,000 to get through to January 2015 (when membership subscriptions come in).

 

Emergency Turnaround Plan

 

Members were informed that Council planned to make savings of £143,000 per annum by implementing measures which were designed to return the club to a positive trading position with an overall operating surplus each year.

 

£60,000 from staff savings

£14,000 by reducing expenditure in administration and house

£69,000 by reducing bar discount from 20% to 10% and reducing Age Related Discounts by 50%

 

These changes would be subject to review when the club’s financial position improves.

 

Members were also informed that negotiations with the caterer were ongoing regarding an increased contribution to the club.

 

It was stressed that this turnaround plan would only succeed if we continued to have support from the bank and from our members. Officers representing Council would be meeting with the bank to ask them to help us to deal with the cash flow situation. It was likely that other measures would have to be taken to deal with a probable cash shortfall. Members would be kept informed.

 

 

Jim McDonnell

Vice-Captain