4th May 2020
Message from the Chairperson, Treasurer & CEO
Dear Members,
Over the past couple of weeks, the Board and Management Team have been busy dealing with the many implications of the shutdown of our Golf Club due to COVID -19. This includes actions to ensure that the Club can exit from these unprecedented times in the best possible shape. These include:
- Working with our suppliers to reduce our financial exposure during this time, including reducing operating costs to a minimum.
- Understanding and projecting our Club’s cash flow position under a non-operating scenario and formulating appropriate strategies with our Bank.
- Advocating to Government & Golf Australia to be able to utilize the golf course for the purpose of social play, exercise and better mental health outcomes.
- Deferral of capital projects such as the bitumen path from 14th green to 15th . Construction of the short game facility in Spring, is subject to ongoing review.
- Facilitating Job Keeper payments for 73 of our eligible staff who have been formally “stood down” and using this opportunity to carry out maintenance, cleaning and other important activities around the venue and golf course. This will also include continuation of our 10/10 customer service staff training program prior to recommencement of venue operations.
In respect to the financial position of the Club, a total shut down of operations has a two-part financial impact. The first is the circa $1.4mill of annual cash profit that the Club typically generates. That is circa $120,000 per month. The second part is the cost of shutdown of operations and that is approx. $40,000 a month made up of fixed costs that the Club must still incur. As such, the financial impact to the Club is approx. $160,000 per month for each month of shutdown.
To properly address these above cash flow challenges, the ANZ Bank has been supportive and we await approval of a new loan facility of $550,000 at a commercially competitive interest rate. Cash flow projections that underpin this request have been prepared on a conservative basis of the shutdown lasting 6 months.
Regarding the reopening of the Club, the Chief Medical Officer has indicated restrictions will not be eased before 11 May 2020. We are therefore planning for a return to golf on 12 May 2020. Representatives of the Board / Management and the two golf committees met 1 May 2020 to determine all the terms and conditions that will apply upon recommencement of Golf for Club Members only. These details will be published on the Golf Members website & via email this Wed 6 May 2020.
If we are to recommence golf please remember that social distancing rules are still important. Consistent with this, we recommend that Members download the coronavirus app. This will assist in tracing if there is a case in the local community. Get tested even if you have mild symptoms and self-isolate until you have your test results.
Stay safe and see you back at the Club soon.
Kaye, Chris and Michael
