Lahinch Golf Club finances emerge from the rough in 2010

FINANCES at one of the country’s most exclusive golf clubs have come out of the rough — but only after hiking up members’ subscriptions by 17% and imposing a three-day week on staff.

In a report presented to members of Lahinch Golf Club last night at the club’s AGM, club captain Eugene Gilligan reported “a modest surplus” of €65,280 for 2010.

This, according to Mr Gilligan, “is a significant reversal of the trend of recent years” where the Co Clare links club reported a combined operating loss for 2009 and 2008 of €1 million due to the collapse in green fee income.

The club recorded an operating loss of €476,580 in 2009 and this followed an operating loss of €551,323 in 2008.

Mr Gilligan told members the 2010 surplus “was achieved mainly through the 17% increase in the annual subscription for 2010 coupled with the introduction of a three-day week for all staff from January to March and October to December”.

The club captain said that achieving the surplus “is the result of a cost reduction policy introduced in 2008 and continued through to this year”.

Mr Gilligan stated that “significant cost reductions were also achieved in course materials, administration, upkeep of the club house and golf activities. Staff numbers have been reduced through a number of voluntary redundancies”.

In response to the drop in green income, the club has also put on hold all major capital works, including a planned €140,000 irrigation system and refurbishment of the club house.

The club counts Munster rugby captain and Irish international, Paul O’Connell, as one of its members and in a bid to boost revenues, the club admitted 56 new members last year that generated €636,785 in revenues between entrance fees and overseas life membership.

The fee income from new members along with a members’ draw resulted in the club recording an overall surplus of €744,440 last year.

The club’s accumulated fund at the end of 2010 stood at €5.559m.

A further 5% hike in members’ subscriptions for 2011 in response to the drop in green fee income was agreed at a special meeting at the golf club last October.

Placing staff on short time during the club’s shoulder season and the voluntary redundancies reduced the club’s staff costs from €1.32m to €1m last year, though last year’s figure included unspecified redundancy payments.

The increase in subs helped the club increase its income last year to €2.3m from €2.2m in 2009 with the staff cuts and other cuts resulting in expenditure dropping from €2.69m to €2.24m.

The club’s accounts show that green fee income continued to decline last year, decreasing from €944,522 to €927,040.

Mr Gilligan said that the Icelandic volcanic ash cloud in April of last year caused a cancellation of green fee visitors.