Golf club faces ‘worst case’ sce­nario money prob­lems

Fi­nances: Back­fire of ex­pan­sion plan lands fa­cil­ity in eco­nomic hard­ship

The Press and Journal (Aberdeen and Aberdeenshire) - - NEWS - BY KIRSTEN ROBERT­SON

An Aberdeen­shire golf club is fac­ing a “worst case” sce­nario of £1.3 mil­lion worth of debt by the end of this year after ex­pan­sion plans back­fired.

New­machar Golf Club is fight­ing for its fu­ture among fi­nan­cial hard­ships – with the scale of prob­lems “much big­ger and more di­verse” than orig­i­nally thought.

Club mem­bers were ini­tially told of the fa­cil­ity’s cash woes at a spe­cial gen­eral meet­ing last month.

It emerged there had been sig­nif­i­cant trad­ing

“We now have a clear pic­ture and can work on a way for­ward”

losses, and that bosses had spent £620,000 up­grad­ing the club’s driv­ing range – which was £220,000 more than ex­pected.

The pro­jected “worst case” for the club’s ac­counts by the end of the year has now been re­vealed to be £1.3m of debts, with bosses work­ing to re­as­sure mem­bers they are try­ing to al­le­vi­ate the prob­lem and stay open.

Com­mit­tee chair­man Gor­don An­gus said: “After tak­ing time to as­sess things since be­ing ap­pointed chair­man at the start of Oc­to­ber, it has be­come clear the is­sues we are fac­ing are much big­ger and more di­verse than was ini­tially thought.

“How­ever, the good thing is that we now have a clear pic­ture and can work on a way for­ward.”

New­machar Golf Club fea­tures two cour­ses, the Hawk­shill which opened in 1990, and the Swailend which was built seven years later.

It has hosted a num­ber of high-end golf tour­na­ments, in­clud­ing the EuroPro Tour event and the New­machar Chal­lenge.

Mr An­gus added that ev­ery­one was work­ing to get the club “back into a cash-pos­i­tive po­si­tion”.

He said: “I would like to thank our mem­bers of staff for their sup­port dur­ing this pe­riod of un­cer­tainty.

“Hav­ing formed a fi­nance sub-com­mit­tee and be­ing an ac­coun­tant to trade my­self, I am hope­ful that, through a com­bi­na­tion of in­creases in our rev­enue, pri­mar­ily in the cor­po­rate area, and ap­pro­pri­ate cost base ini­tia­tives, we can get the club back on an even keel.

“We are still in dis­cus­sions with the bank, and have al­ready had some pos­i­tive con­ver­sa­tions with them, as well as sup­pli­ers, who have been sup­port­ive of our sit­u­a­tion.

“What we need to do now is get the club back to a cash-pos­i­tive po­si­tion, and to­gether we are work­ing to­wards achiev­ing that.”

Pho­to­graph by Kenny El­rick

OFF COURSE: £620,000 was spent up­grad­ing the club’s driv­ing range – £220,000 more than ex­pected.

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