Page 6 - KGFC - Covid 19 Emergency Response

FINANCIAL UPDATE

COVID 19 | FUTURE CONCERNS

As we continue to navigate through this Global Pandemic, we observe with caution, the returning to lockdown
of many cities across Europe and the rest of the World. It would be imprudent to rule out the potential for a
similar occurrence here at home.

As a result, Management Council, together with the Trustees have serious concerns for 2021 as huge
uncertainty surrounding the impact of Covid-19 for the next year and beyond still remains.

The concern for everyone in the tourism industry is whether people will start to travel from abroad again next
year, in particular the American and European visitors.

In the domestic market, the Corporate Sector has also been badly affected. Covid-19 restrictions in place,
both at work and on a daily basis have led to numerous high profile events being cancelled. This is likely to

continue throughout 2021.

As we examine these factors, we do so with the knowledge that they will massively affect our Income in the
future.

• In order to navigate the Golf Club through this difficult period, sadly some more difficult decisions will
have to be taken for the next financial year which commences on 1st October 2020.

• Our key concern is cash flow for the winter months. Our monthly wage bill, utilities costs and outlays

are very significant, particularly when we have little or no revenue streams coming in during the winter
period.

• There will be a further reduction in our cash reserves, through the winter months of 2020 and early

2021.

• We are currently obliged to keep €250,000 in our Cash Reserves, as agreed at the AGM November 2019
and as was set out by the report from Deloitte.

COVID 19 | EMERGENCY RESPONSE PLAN | JULY 2020 6