THE elite Loch Lomond Golf Club saw a healthy improvement in its finances as it attracted new members and paid down its bank debt.
Last year saw the remaining £5m bank debt to Lloyds come down to £3.64m, as the club narrowed its pre-tax loss from £2.3m to £1.45m, according to the accounts for 2013 just lodged at Companies House. It follows a £2.5m debt reduction the previous year, and the club now has two years in which to repay the balance.
There was a cash operating profit before interest, tax, depreciation and amortisation of £325,455, a turnround of more than £650,000 from the loss in 2012.
The club, patronised by celebrities such as Sir Sean Connery and big-spending professionals, still owes £32 million to Loch Lomond Members Golf Club Ltd, the holding company registered in the Cayman Islands and said to be owned by its own members.
The parent entity acquired the club, rescuing the jobs of 100 full-time and 200 seasonal staff, after the original company ran up £132m of debt mainly to Bank of Scotland, having racked up a £45m loss in a single year. At that time the membership fee was £5,000 a year with a joining fee of £70,000.
The directors, who are chaired by veteran industrialist Sir Nigel Rudd, write in the report: "The group needs to continue to attract new members whose investment will be used to fund the balance of the operating cash flow and service bank debt.
"The membership base grew successfully in 2013 and is expected to grow further in 2014 through both member referrals and from introductions made by key business partners to prospective international members."
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