Lahinch Golf Club last year swung back into profit to record operating profits of almost €1m after a late season upsurge in green fee income.
According to the 2021 annual report for one of the country’s most celebrated golf clubs, Lahinch last year recorded the operating surplus of €990,554 and this followed an operating loss of €303,199 during the pandemic hit 2020 – a positive swing of €1.29m
In a report presented to members at Friday evening’s Annual General Meeting in Lahinch, chairperson of Lahinch Golf Club, Martin O’Sullivan said that the operating surplus was “a very welcome turnaround from 2020”.
In 2020 due to course closures brought about by the Covid-19 pandemic and the suspension of international tourist travel, green fee income plummeted by 88pc from €1.88m to €226,025.
However, the new report shows that green fee income last year rebounded and increased almost four fold to €1.05 million.
The US golf market is a vital market for the club and US golfers usually make up a sizeable chunk of the green fee income where it costs non-member golfers €250 for a round at Lahinch’s celebrated ‘Old Course’ during high season from May to September.
The golf club successfully staged the 2019 Dubai Duty Free Irish Open and counts former Irish rugby captain, Paul O’Connell as a member.
In his report, Mr O’Sullivan said: “We benefited from a late season upsurge in green fee and shop income after borders reopened allowing us to welcome overseas visitors back to our club.”
The golf club’s shop income last year increased four fold from €45,332 to €183,169 and this contributed to revenues soaring by 92pc from €1.33m to €2.56m.
Revenues also include members’ subscriptions of €1m and a Covid-19 Government business continuity grant of €235,071.
Also through ‘prudent management’ of costs, club costs increased only marginally from €2.66m to €2.71m resulting in vastly improved financial performance.
The club received €476,601 under Covid-19 Wage Subsidy Scheme payments in 2021 and this follows wage subsidies of €292,805 in 2020.
According to the report, the club for 2022 is budgeting for green fee income to increase almost three fold from €1.05 million last year to €2.8 million while overall revenues are budgeted to increase by 73pc from €2.56m to €4.45m.
The golf club’s expenditure is budgeted to increase by more than €1.1 million to €3.85 million that includes an inflationary provision of €100,000 for this year.
The club is forecasting an operating profit of €1.4m for 2022.
At the end of last December, the club’s total funds stood at €7.54m that included accumulated profits of €6.24m.
The club’s cash funds increased from €1.45m to €2.24m at the end of last year. Mr O’Sullivan commented: “The improvement in our cash position facilitates our intention to rebuild our contingency fund to provide for future unexpected financial shocks.
In his report, Mr O’Sullivan stated that Lahinch continues to have a significant reliance on green fee income and coupled with the expected inflationary cost increases across many areas of Club activities, the club council is proposing a 7.5pc increase in annual subscriptions for 2023.
He said: “The maximum actual increase proposed for individual full members is €63 or a little over a euro per week, with much lower increases proposed for other categories.”
