Commodore’s Half-year Report June 2010

At the AGM in March I stated our intention to bring the Club into long-term financial viability and set out some pointers as to how this would be achieved:

 

  • Finding a partner to share the premises with us
  • Seek to increase membership, especially to attract younger members
  • Increase the traffic through the Club’s facilities – restaurant & bar, meeting rooms and cabins.
  • Control costs
 
I set out below the progress we are making in achieving these objectives:
 
  • We are putting before the members a proposal to share our premises with the City Livery Company (details of which have been made available to all members). This will make a significant contribution towards our “occupancy” costs and it also has the potential for providing increased room hire and catering revenues.
  • We are pursuing discussions with the Universities Royal Naval Unit (URNU) regarding a closer tie-in between our two organisations by providing some form of affiliate membership to URNU members.
  • We are also pursuing discussions with the Lloyd’s Yacht Club to forge closer links with their members in some form of affiliate membership arrangement.
  • We are planning to more intensively market the cabins for weekend use thereby increasing the weekend occupancy rate in line with the week-day rate.
  • The Board has agreed a strategic positioning outline for the Club to ensure that all future actions are directed towards achieving our stated objectives.
  • Business plans have been produced by each of the Flag Officers for their particular function. These are now linked to marketing plans to ensure that the objectives are given the right degree of focus and promotion.
  • The Club’s website, which received a major facelift earlier this year has now undergone its second phase upgrade which will enable members to transact business online – rally bookings, events bookings, regalia sales, room bookings etc. will soon be possible online thereby reducing the administrative burden in the Club office.
  • Bulk mailing to members (such as the recent Special Meeting notification) can now be made online. The recent SGM notification saved the Club approximately £1,000. We will seek to publish our annual report by this means in future.
 
Although many of these actions are unlikely to have immediate effect I am pleased to say that our financial position is looking somewhat better than it did a year ago.
 
Our investment portfolio is currently (31st May, 2010) valued at £307,275 vs £291,625at 31st October, 2010
 
 Our accounting surplus, before tax and excluding any capital gains or losses, for the 6 months to 30th April 2010 was £5,208, (this was after having spread membership fee income across the year rather than taking it as it falls as in previous years)
 
We are currently forecasting a net deficit, after tax, for the year of £17,000, (this includes the levy but excludes any revenue from the premises sharing deal with the CLC) this compares with a deficit of £41,134 for 2008/9 and a deficit of £66,265 for 2007/8
 
Cash at the end of May was £50,000after having paid back the short-term loan taken out to bridge our funding until the membership levy was collected. The second tranche of the levy will be collected in June.
 
Although total membership fell by 90 members in the year to April 2010, this decline was significantly less than in previous periods despite the resignation of a number of members due to the increase in membership fees and the levy. Membership at the end of April 2010 stood at 1067.
 
We are by no means out of the woods yet and there remains much work to do but I am happy that your board is heading in the right direction and actions are being taken, within the context of agreed business plans, which I believe will restore the Club to long-term financial stability within the next two years or so.
 
Finally, I would like to repeat my plea for more volunteers. There will always be areas where we can use willing volunteers and if you think you can help please let me know here or tell any other committee member . We would be particularly interested in hearing from members with facilities management skills and marketing skills.
 
David Roache
Commodore
 
15 June 2010

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