Broadstone (Dorset) Golf Club Business Plan 2012 – 2020 Introduction

Transcription

Broadstone (Dorset) Golf Club Business Plan 2012 – 2020 Introduction
Broadstone (Dorset) Golf Club
Business Plan 2012 – 2020
Introduction
As discussed in our previous 5 year plan, released just over a year ago, we introduced the utilisation of a computer business model to simulate
the business activity of our Golf Club.
The model was first used to determine the cost effectiveness of various forms of financing the proposed irrigation system cost. From this
model we were able to determine that the use of a bank overdraft was the most cost effective method of financing this and also future
projects.
The model enabled us to predict that the cost of using an overdraft would be totally funded by the interest that we earn on our cash surpluses
which are available during the periods when we are not using our overdraft.
During the first year of operating with an overdraft we were able to contain the requirement to 6 months and were able to manage it so that
we never exceeded its limit of £250,000, in fact we never exceeded £220,000. This was even with a couple of unexpected and therefore
unbudgeted costs.
It was with the model that we were able to manage these unexpected costs and therefore make sensible management decisions without
relying on best guess estimates.
Planning
In last year’s plan we introduced our first attempt at producing a list of projects and their costs. This was a relatively basic list, with a total cost
approaching nearly £200,000. It was this list of projects which was used to initially construct the capital expenditure forecast within the model.
With that original list of projects the forecasted period of the overdraft was 5 years.
During last year we produced a more detailed list of Cap-Ex projects which was added to our website documents page for your perusal. One of
the major additions to this list was the course improvement works as presented by Frank Pont at last year’s autumn forum.
This latest Cap-Ex project or shopping list is included later in this document. The value of this latest list is £582,000 spent over the next 7 years.
During the year we attempt through emails, website documents and a members forum to keep you all informed, which we hope gives you the
members the opportunity to make any comments prior to the AGM in March.
Financial Forecast
Once the financial model was updated with the annual values from the Cap-Ex list we are able to see that with a very small change to
member’s subscriptions we were able to sustain this required level of expenditure, whilst at the same time reducing our overdraft year on
year. As can be seen from the financial forecast produced by the model we are in fact able to remove the overdraft by 2020.
In respect to the ongoing cost of the overdraft it can be seen from the attached forecast that effective cost is removed by 2019.
The same forecast also illustrates the annual worst case cash deficit and the projected overdraft requirement that would be required for that
year.
The forecasted figures are also based on a modest increase in bank interest rates over the period of the model (up to 5% by 2020).
It should also be noted that the level of visiting green fees has been kept to a modest figure, and hopefully with better weather this and
following years the values used in this model will be seen to be quite pessimistic.
The following documents also include this year’s proposed budget and cash flow forecast.
Conclusion
An awful lot of work goes into the above process which we try to make as transparent as possible. It is not an exact science and we do the best
we can based on the best evidence we have available.
The business model contains best guess estimates around future interest rates and subscription levels. They are not ‘promises’, they are
forecasts but please be assured we will always try to ensure that our subscriptions are reasonable and good value for money. We do not spend
money extravagantly, in fact we have always said we will only spend what we can afford, and hence our Business Plan is flexible and enables us
to defer, bring forward or deliver on time our proposals.
I hope you will all agree that over the last two years we have seen more work delivered, significantly raising the standards of our course and
clubhouse as well as the ancillary services offered. We have also seen positive changes in the social fabric of the club and general atmosphere.
David Holmes and David Morgan have worked extremely hard to produce the best forecast possible up until 2020 which shows us to be in a
very strong position to pay off our overdraft and continue to invest in the club and its infrastructure. This allows us to keep subscriptions at
realistic levels as long as we continue to have a disciplined approach and keep as close as possible to the business plan.
Finally, please feel free to discuss any issues you may have with information given in this document with the General Manager who will clarify
any issues raised or bring them to the attention of the Committee.
Chris Dennis (Chairman)
On behalf of the Committee
Broadstone Golf Club Financial Forecast 2013 - 2020
2013
2014
2015
2016
2017
2018
2019
Total Income
828,802
868,334
906,372
934,110
Total Expenditure
787,359
801,343
835,620
Retained Surplus
41,443
66,991
Annual Capital Expenditure
51,000
Depreciation
955,456
976,498
999,313
1,012,922
860,912
875,563
882,218
914,610
934,503
70,752
73,198
79,893
94,280
84,704
78,418
60,000
83,000
75,000
88,000
84,000
70,000
71,000
64,876
56,184
65,172
69,288
66,492
61,140
64,008
61,380
-215,379
-184,676
-164,790
-130,965
-106,712
-69,702
-25,973
1,312
225,000
200,000
175,000
150,000
125,000
75,000
50,000
0
Annual Interest
-2,272
-1,516
-480
357
1,914
3,405
5,546
6,501
Accumulative Interest
-3,839
-5,355
-5,836
-5,479
-3,565
-160
5,386
11,887
1,230
1,291
1,343
1,383
1,411
1,439
1,468
1,483
6%
5%
4%
3%
2%
2%
2%
1%
102,000
104,000
106,000
109,000
112,000
115,000
118,000
120,000
Minimum Cash
Overdraft Facility
Full playing Subscription
Annual Subscription
Increase
Visiting Green Fees
2020
Proposed Capital Expenditure 2013 - 2020
Future Cap ex for Clubhouse
Golfers hallway refurb
Furniture for 19th hole
Furniture for lounge area
Redesign front entrance including relocating office space
folding doors for dining area
carpet for upstairs lounge areas
Guttering and sofit replacement for Clubhouse
19th balcony floor and wall replacement
19th balcony extension
upgrade fire & burglar alarm system
new heating boilers
Car park resurfacing
continuation of tar path works to range etc
Pro shop carpet, lighting and decoration
lighting upgrade in upstairs areas
New Championship boards
Caddy shed conversion
Snooker room refurb
Flat renovation works
Kitchen refurb
Redesign TV corner
Disability Access
Practice Ground
Drainage of site
construction of covered range including base and services
construction of short game area including green spec chipping area
removal a resite of existing steel shed
Rebuild practice putting green
Golf Course Improvements
Phase 1 course improvements
Phase 2 course improvements
Phase 3 course improvements
Phase 4 course improvements
Phase 4 course improvements
Green Keeper Sheds and Compound
Wash down pad
Re roof and new sides for large shed
Refurb staff building
Extend sand & soil storage area
Improve hard standing around sheds
Year
2
2
2
6
5
5
6
8
8
6
3
7
3
6
2
2
4
5
6
5
9
9
Cost
4,000
5,000
20,000
45,000
10,000
20,000
6,000
16,000
45,000
8,000
6,000
40,000
7,000
10,000
6,000
5,000
10,000
5,000
15,000
20,000
30,000
25,000
2013
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2014
4000
5000
20000
0
0
0
0
0
0
0
0
0
0
0
6000
5000
0
0
0
0
0
0
2015
0
0
0
0
0
0
0
0
0
0
6000
0
7000
0
0
0
0
0
0
0
0
0
2016
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10000
0
0
0
0
0
2017
0
0
0
0
10000
20000
0
0
0
0
0
0
0
0
0
0
0
5000
0
20000
0
0
2018
0
0
0
45000
0
0
6000
0
0
8000
0
0
0
10000
0
0
0
0
15000
0
0
0
2019
0
0
0
0
0
0
0
0
0
0
0
40000
0
0
0
0
0
0
0
0
0
0
2020
3
3
4
4
5
15000
35000
30000
15000
8,000
0
0
0
0
0
0
0
0
0
0
15000
35000
0
0
0
0
0
30000
15000
0
0
0
0
0
8000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
2
3
4
5
36,000
20,000
20,000
20,000
25,000
36000
0
0
0
0
0
20000
0
0
0
0
0
20000
0
0
0
0
0
20000
0
0
0
0
0
25000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
7
9
8
9
15,000
30,000
10,000
10,000
15,000
15000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30000
0
0
0
0
0
0
10000
0
582,000
51,000
60,000
83,000
75,000
88,000
84,000
70,000
71,000
0
0
0
0
0
0
0
16000
45000
0
0
0
0
0
0
0
0
0
0
0
0
0
Proposed Budget 2012 - 2013
Income
Total Subscriptions
Entrance Fees
Green Fees Without A Member
Green Fees With A Member
Bar & Catering Contract
Bank Interest
Competition Surplus/Deficit
Coffee Machine Balance
Total Misc. Income
Buggy & Range net Income
Total
615000
18300
102000
32000
17500
304
0
1596
25000
17000
828700
House & Bar
Wages & NI (Cleaners)
Repairs & Renewals
LHP & Water
Rates
Laundry/Cleaning
Miscellaneous
Sky TV & Licences
Gardening & Handyman
Leased Equipment
Depreciation
Total
21500
15000
34000
51903
13000
5000
6200
12000
2400
27288
188291
Expenditure
Course
Wages
Machinery Maintenance
Fuel
Site Costs
Course Sustainables
Course Materials
Course Maintenance
Drainage, Tree clearance,
Other
Health & Safety
Training & Consultants
Development Costs
Paths
Leased Machinery
Depreciation
Total
Summary
Total Income
Total Expenditure
Gross Retained Earnings
197600
24000
14000
8000
55000
8000
2000
5000
2000
6000
20000
4000
42996
33888
422484
828700
787298
41401
Admin
Wages, NI & Pension
Professional's Retainer
Admin Telephone
Insurance
Printing, Stationery & Postage
Staff Meals
Audit, Accountancy & Legal
Computer Services &
Maintenance
Subs, Levies & Stock take
Captains Allowance
Bank Charges & PDQ's
Miscellaneous
Periodicals
Marketing & Advertising
Course Marshal
Leased Equipment
Depreciation
Total
95400
27960
2004
9780
8000
3240
5800
5475
605
720
4500
2922
809
3480
0
3228
2600
176523
Cash Flow 2012 - 2013
500000
400000
300000
200000
Total Cash
100000
Total Income
Total
Expenditure
0
Nov.
-100000
-200000
-300000
Dec.
Jan.
Feb.
Mar.
April
May
June
July
Aug.
Sept.
Oct.