Lahinch Golf Club swung back into profit last year to record an operating profit of just under €1 million after a late season upsurge in green-fee income.
According to the 2021 annual report for the club, Lahinch last year recorded an operating surplus of €990,554, having posted a loss of €303,199 during the pandemic-hit 2020. That represents a positive swing of €1.29 million.
In a report presented to members at yesterday’s agm in Lahinch, Martin O’Sullivan, chairperson of Lahinch Golf Club, said the operating surplus was “a very welcome turnaround from 2020”.
In 2020, course closures brought about by the Covid-19 pandemic and the suspension of international tourist travel resulted in green fee income plummeting by 88 per cent from €1.88 million to €226,025.
However, green-fee income rebounded last year, rising to €1.05 million.
The US golf market is a vital market for the club and American golfers usually make up a sizeable chunk of the green fee income. It costs non-member golfers €250 for a round at Lahinch’s celebrated Old Course during high season from May to September.
The club successfully staged the 2019 Dubai Duty Free Irish Open and counts former Irish rugby captain Paul O’Connell as a member.
‘Late season upsurge’
In his report, Mr O’Sullivan said: “We benefited from a late season upsurge in green fees and shop income after borders reopened allowing us to welcome overseas visitors back to our club.”
The club’s shop income increased from €45,332 to €183,169 and this contributed to revenues almost doubling to €2.6 million.
Revenues also include members’ subscriptions of €1 million and a Covid-19 business continuity grant from the State of €235,071. Club costs increased only marginally from €2.66 million to €2.71 million.
The club received €476,601 in Covid-19 wage subsidies in 2021, having received €292,805 in 2020.
According to the report, the club is budgeting for green-fee income to increase to €2.8 million this year, while overall revenues are budgeted to rise by 73 per cent to €4.5 million.
Expenditure
The club’s expenditure is expected to increase by more than €1.1 million to €3.85 million. The club is forecasting an operating profit of €1.4 million for 2022.
At the end of last December, its total funds stood at €7.5 million, including accumulated profits of €6.24 million.
The club’s cash funds increased from €1.45 million to €2.24 million at the year end. “The improvement in our cash position facilitates our intention to rebuild our contingency fund to provide for future unexpected financial shocks,” Mr O’Sullivan said.
A rise of 7.5 per cent in annual subscriptions has been proposed by 2023, to counter expected inflationary cost increases. “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,” he said.
