Page 11 - KGFC - Mid Season Update - July 2020

FINANCIAL UPDATE

SUMMARY FROM COVID 19 RESPONSE PLAN

At the beginning of 2020, the fruits of our efforts over the past 18 months were starting to shine through. Pre-
bookings were approximately €250,000 ahead of 2019 figures and membership was in line with budgeted
expectations. Phase 1 of the Five Year Vision themed Stabilisation & Foundation were completed on the Golf
Courses and in the Clubhouse and all within the allocated budgets. There was a great air of positivity at the
Golf Club and we were gearing up for a fantastic season ahead.

Unfortunately, we have been firmly stopped in our tracks by the Covid-19 pandemic. A summary of its
significant impact has been outlined below.

• Overall income will be down over €1,092,000 on our budgeted projections.

• Green Fee income (inclusive of range) is estimated to be reduced by circa €885,000 this year. This is a
reduction of circa 75% on our budgeted projections for this financial year.
PLEASE TURN OVER

• Membership income is thankfully strong but will be circa €64,000 less than the budgeted figure for this
financial year.
P.T.O • Due to the large reduction in the Green Fee Income, supplementary income from Buggies, Trolleys, Sales

in the Golf Shop, Bar & Restaurant and The Chapel will also be significantly affected.

• Income in the Golf Shop will reduce by approximately €387,000 on projected budget. Synergy Golf will
continue to pay their agreed rent and take the impact of Covid-19 on income.

• Income from the Bar & Restaurant has been severely impacted, circa €313,000 down on Truffle Honey’s

projected income. We hope to earn some income here for the remaining months of July, August and
September and we would kindly ask Members to support our new partners Truffle Honey Golf Limited.

• As you can see from the financials below, costs are being very tightly managed, and will continue to be.
By the end of the financial year we hope to have reduced costs by circa €626,000.

• The Covid-19 Wage Subsidy scheme which we availed of for all our staff, together with a reduction in
nearly all areas of expenditure, has helped us make this large saving in our costs. A breakdown of
savings has been outlined.

MANAGEMENT COUNCIL UPDATE | JULY 2020 11