1 Organisational review Monthly Fee Comparisons 250 Why? 200 - - PDF document

SLIDE 1

1

Welcome to the Annual General Meeting

7.00 pm Tuesday 29th September 2020

By Zoom Call Trevor Grose - Chairman Kippie Lodge Sports & Country Club

Agenda



Attendance and apologies.



Receipt of the Management Committee Report for 2019.



Receipt and adoption, if approved, of the Accounts for the year ended 31st December 2019.



Appoint a firm of Independent Accountants and authorise their remuneration being fixed by the Management Committee.



Elect Members of the Management Committee.



Any Other Competent Business and Questions to the Management Committee.



Covid 19 and Kippie Response

Management Committee

 Trevor Grose, Chairman  Rick Sansom, Treasurer  David Anderson, Vice Chairman  Susan Smith, Secretary  Sarah Chew  Julie Grant  Louise Craig  Derek Gemmell (Resigned March 2020)  Brian Martin (Co-opted April 2019)  Drew Russell (Co-opted May 2020)  Robin Caldwell, Club Director (ex officio)

2019 DELIVERY



2019 has been a good year, business performance has been turned around



Achieved completion of planned facility modifications (Gym, H&B and new studios – good feedback from members/staff)



Engagement sessions conducted with senior staff



Organisational review conducted and new structure put in place – staff changes as a result



Conducted ideas forum to obtain staff input on options to improve the business



Committee reps linked with each department



Membership growth achieved through focused marketing and member referrals



Class delivery just outside 98% performance target

Members in Transit

117 10 9 7 7 9 10 11 8 14 9 5 23 48 15 23 20 20 20 20 42 36 27 3 20 40 60 80 100 120 140 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Memberships Cancelling & Joining during 2019

Cancelled Joined

Cancelled Joined 2019 216 267

Membership History

500 700 900 1100 1300 1500

1 2 3 4 5 6

SLIDE 2

2

Monthly Fee Comparisons

Family 4 Couple Single DL Plat 224 174 102 DL + 194 144 87 Village 180 150 75 Unit Banchory 80 40 KL 2020 138.75 138.75 80.5 50 100 150 200 250 Kippie Members earn loyalty points and receive discounts on membership card payments of 3%. Early Bird Promotions available. Couples receive £50 loyalty points. Book containing offers valued at

• approx. £400 given to each Club Membership.

Organisational review

 Why?  Large financial loss in 2018  Sports complex delivery inconsistent, not effectively managed  F&B losses considerable, quality of service varied  Marketing and events not driven by need to build membership

and increase revenue

 Outcome  New management structure, focussed on delivery  New managers for Sports & Wellbeing, F&B and Estates  2 staff redundancies, one resignation  Business will run efficiently, within budget, membership

growth, staff engaged, members see delivery of plan

 More work to be done in 2020, greater efficiencies to be

achieved in Sports & Wellbeing, F&B and Estates

Organisational Review - New Structure

Marketing focus – forward plan

 Four focus areas:  Retain membership  Grow membership  Raise profile  Increase revenue  Creates path for increased investment

Financial Report

Rick Sansom – Treasurer

• 2019 Performance and Accounts
• 2020 Original Plans
• 2020 Covid Financial Impacts & Responses

2019 Financial Performance



Much improved financial result -£21k vs -£200k,



Would have been positive if exclude restructuring one off costs of £40k



Membership income, F&B, H&B and Sports Centre all improved



Costs kept under control, staff contributed through no pay rise



Phase 1 of redevelopment funded from reserves



Raised £90k from sale of term memberships



Paid off last installment of previous bank loan March 2019

7 8 9 10 11 12

SLIDE 3

3

P&L and Business Results

2016 2017 2018

2019

Membership Fees 1,928 1,757 1,637

1,766

Sports net inc 28 50 30

47

F&B net inc

• 94
• 51
• 67
• 25

TOTAL INCOME 1,862 1,756 1,600

1,789

TOTAL COSTS 1,891 1,752 1,804

1,810

P/L

• 29

4

• 204
• 21

add back Depreciation 55 51 52

15

less Gain on Sale of Asset less net Capex Spend less Amortisation of Term Memberships

• 13
• 12
• 7

Add Tfr to maintenance reserve

• 15
• 20

BUSINESS RESULT 58 23

• 159
• 6

Balance Sheet

2016 2017 2018 2019 FIXED ASSETS 1,108 1,056 1,005 990 CURRENT ASSETS Stock, Debtors and Prepayments 145 157 170 160 Cash at bank and in hand 1,151 937 712 613 1,296 1,094 882 773 CURRENT LIABILITIES Trade Creditors & Accruals 303 240 156 194 Payroll Liabilities 19

• Subscription in advance

570 474 546 506 Loans Payable within one year 50 51 13 Deferred Income 102 100 106 93 VAT 64 28 35 35 1,108 893 856 828 CREDITORS – Loans Due after one year 67 15 PROVISION FOR LIABS & CHARGES Future Development Fund 160 180 180 18 Deferred Life and Term Members 19 7 ACCUMULATED SURPLUS 1,050 1,055 851 830

Bridge from 2018 Actual to 2019 Budget and Actual

• Compares what

was shown at 2019 AGM (top) with the actual

• utcome for

2019(lower)

Renewals

2016 Done 2017 Done 2018 Done 2019 Done 2020 Ch 2 & 3 Wet Areas Gym & Pool lighting Sauna Refurb Kitchen Equipment Balmoral Décor & Lights Braemar Redecoration Pool Wet Vac Upgrading paths and paving Green House Doors Pool clean, re- grout, sand change & water renewal Kitchen Flooring Road remedials, dyke & field gates, upgrade of paths & paving Crathes Bar Tables Sports Complex Flooring TRX Training system Hair & Beauty decor & new flooring Pool Access steps Pool dosing equipment Greens rollers Golf ball dispenser Driving range improvements Pedestrian access at main entrance Play Park replacement equipment Complex – Replacement front door Kitchen Equipment Signage Hair & Beauty – CECI equipment Pool - Accessible changing room improved ventilation Pilates and Dunnottar rooms Patio upgrade £166k £89k £31k £33k £45k

16

2019 & 2020 Developments

17 Phases Description Amount 2019 Developments funded from reserves Phase 1A Braemar Suite: Conversion to 2 Studios and Dunnottar Meeting Room £62k Phase 1B H&B: Reconfiguration & Refurbishment of Treatment Rooms £48k Phase 1C Extension to Existing Gym £44k Total £154k 2020 Developments capital funded Phase 2A Tennis Courts: Resurface Courts 1&2 £28k Phase 2B Tennis Courts: Install Double Skinned Dome over Courts 1&2 £172k Total £200k

2020 original plans pre covid



Projecting surplus £27k for 2020 on realistic assumptions



Membership growth at 10 per month



Capital Spend of up to £348k plus VAT projected



Sourced from, term memberships (£90k), AWPR final payment (£95k), Loan/overdraft (up to £250k)

13 14 15 16 17 18

SLIDE 4

4

2020 Capital & Renewals



Tabulation of budget and actual capital and renewals

all excluding vat 2020 budget status anticipated spend in 2020 capital double skinned dome 200 built , ordered January 172 resurfacing courts 1&2 30 built , ordered January 28 MUGA conversion court 3 60 deferred in March consider when funds available computers 16 installed January 16 membership/booking system 32 deferred March, about to restart 16 accessible changing room equipment 10 installed 8 348 240 renewals accessible changing room construct 30 built , ordered January 20 golf range upgrade 10 deferred improved ventilation Pilates and Dunnottar rooms identified as part of covid requirements 15 patio upgrade increased catering area re covid 10 40 45

2020 Covid Financial Response



Furloughed all but 7 staff, furloughed staff paid at 80%, working staff also volunteered for same 80%, we took this up for 3 months



Froze any developments/work not started ie MUGA, driving range upgrade, new booking software



Cut costs to minimum, April Opex £65k vs £230 k in budget



Applied for all governmental support available to Kippie



Monitored cash position over 2020 under various membership drop off rates, forecast that we would stay cash positive through summer but risk of need cash in 4Q



After membership drop off at end March losses have been 1-1.5% per month quite typical but of course very limited new members



Cut fees to 50% for Direct Debit (DD) payers for 3 months, further months at 50%, 75% and 85% added later. Level set by desire to maintain cash and be close to P&L breakeven but keep maximum number of members.



Requested that those who could afford maintained 100% DD



Took out £50k Bounce Back Loan Sept 2020  Approval of 2019 Accounts  Appointment of Independent Accountants  Johnston Carmichael to be reappointed

Financial Report Accounts Committee Elections

10.3 Office bearers will serve a minimum of 3 years and within that period the requirement for re-election under rule 11 can be waived at the sole and unfettered discretion of the Management Committee. 11.3 At every Annual General Meeting of the Club, one third of the Members of the Management Committee for the time being or the number nearest to one third shall retire from

• ffice.

The Members of the Management Committee to retire in every year shall be those who have been longest in

• ffice, since their last election, but as between persons who

became Members of the Management Committee on the same day, those to retire shall, unless they otherwise agree between themselves, be determined by lot. A retiring Member of the Management Committee shall be eligible for re-election.

Committee Elections

 Retired in March 2020  Derek Gemmell  Retiring and seeking re-election  Louise Craig  Retiring and not seeking re-election  Sarah Chew  Co-opted members seeking election  Brian Martin  Drew Russell  Nominations received – one  Gillian Van Tebberon

Any Other Business

24

Questions submitted in advance of AGM

19 20 21 22 23 24

SLIDE 5

5

2021 Repayment options



There are approx. 540 members who have either paid annually or contributed 100% DD payments when other member payed reduced

• fees. Normal DD payers benefitted by a total of 2.4 months discount



Collectively they/we are due ~£140k in compensation. This £140k has helped to keep us cash positive and is correctly shown on balance sheet as a liability.



Three options offered to members



Two extra months at start of 2021 with an amount equal to 0.5 month fees added to their loyalty card



An amount equal to 2.5 months fees added to their loyalty card



2.4 months deducted from their annual or monthly fees in 2021

Amount of support from govt and cost reduction

AWPR

 Long Process started in 2007  After protracted negotiations the Club and Transport

Scotland reached agreement on a full and final settlement of £560,000.

 This figure covers the compensation for the CPO of

the field, the reconstruction of the car park and storage areas, the re-alignment of the 7th hole and

• ther ancillary costs.

 Final instalment of £95,000 received in August 2020  This will result in a one-off extraordinary income

item to the 2020 P&L of circa £42,000.

2021 Subscriptions levels



Current assumptions



Average of 1000 members in 2021



Known govt help on rates (3 months relief) and staff retention support



Renewals limited to £50k



Current extra covid costs for cleaning PPE etc



No wage rises other than statuary



With above assumptions a 3% increase in fees would enable a balanced budget for 2021



This would be basis for discussion on 2021 fees



Decision will be made by the committee during October except that under the constitution any rise of 5% or above has to be put to an EGM

Covid 19 and Kippie Response

 2020 Covid pandemic results in closure of Kippie

Lodge and all sports and leisure facilities across UK

 Priorities for committee:



Communicate to all members on a frequent basis the response to the Covid pandemic and Scottish Government changing restrictions



Create rapid response plan to stabilise membership and business finance



Reduce monthly DD fees to retain membership



Furlough all non-essential staff and obtain government payments



Reduce where possible all monthly outgoings



Prepare Covid risk assessments and review staffing requirements for phased re-opening



Open golf and tennis plus Lodge for takeaway food and drink



Progress tennis dome, new playing surface and associated workscope, but delay as long as contractors will allow



Phased opening of facilities at Kippie under strict Government rules, staff training, stringent cleaning, new online booking and safety check in system

Covid 19 and Kippie Challenges



Cost reduction, increase efficiency of operation – workstream process review with staff and committee



Retain and grow membership back to pre-Covid levels and beyond – major marketing campaign & Membership engagement



Ensure Kippie is a safe environment for both Members and Staff -

• perate under Government rules/restrictions with our risk

assessed and implemented process



Provide Kippie sports onsite and online – the majority of facilities are now bookable online with clear check in/out



Re-create the Kippie Life and provide Members with the best experience in sports, leisure and dining in a single facility



Significant cost associated with Covid response

25 26 27 28 29 30

SLIDE 6

6

2020 AGM

 Thank you for attending

31

31