Welcome to the sports & fitness pavilion SPECIAL MEETING 26 th April 2016

THE CLUB CHAIRMAN PATRICIA CHRISTMAS

Introducing those on the platform Council Members: Barry Jackson (Deputy Chairman), Roy Brown, Gill Markham and Patricia Christmas (Club Chairman) Stan Ainsley – S&FP Working Group Graham Owen – Club Secretary Council Members offering apologies: Ken Chambers (Chairman of FAC), Monty Taylor, Elisabeth Wood

AGENDA Introduction - Club Chairman, Patricia Christmas Membership Situation - Barry Jackson, Club Deputy Chairman and Chairman of the Membership Committee Business Plan Highlights - Stan Ainsley, Member of the Working Group Question Session - chaired by the Club Chairman Vote and Declaration of Results

Opening remarks Conduct of the meeting & subsequent question session Process for keeping Members informed: open forums, financial briefings, business plan and Q&A document on website, opportunities to comment Tonight’s presentations are based on the business plan & Q&A document, with figures updated where appropriate

Scrutiny of business plan Business Plan examined by: Group of Club Members with financial and leisure industry expertise – both supporters and opponents of the project Our Club accountants – Grant Thornton

THE DEPUTY CHAIRMAN and chairman of the membership committee BARRY JACKSON

CLUB MEMBERSHIP

VARIATION IN MEMBERSHIP NUMBERS YEAR ON YEAR MEMBERSHIP NUMBERS 2010 TO DATE

Current MEMBERSHIP – some facts January 2016 – lowest membership since January % of us are over Members at end of December 2837 Members today January–April 2016: 166 resignations

Recruitment of members January–March 2016 – twice as many new Members as in same period in each of last 3 years, achieved by more face- to-face methods, such as: o Home and Garden Festival o Traditional Boat Festival o Henley Literary Festival and Henley Festival o Open Days o Work with local press and estate agents BUT still 35 fewer members than at this stage last year

What should we be doing? Business losing customers? Then look at product / service you are offering Ask yourself how can it be made more attractive The future of the club is in our hands

Stan ainsley member of the working group

Business plan highlights Planned Facilities Costs and Subscriptions Financing and Cash Flow Risks Membership Summary

Planned Facilities Approximately 1,100 m 2, single storey, to the west of the visitors’ car park 20m pool; 20-station gym; exercise studio; two treatment rooms Changing facilities Juice bar/café

OTHER WORK PLANNED Tennis courts 1 & 2 to be relocated to original shale courts site Car park and drainage work The design has changed but we are optimistic that the Planning Permission granted in 2014 still applies.

PROJECT costs Construction £2.75M Tennis courts, car park, drainage/ground works£0.60M VAT not recoverable£0.60M TOTAL COSTS £3.95M

Operating costs Operating costs in the first full year £0.378M (this figure represents approximately 10% of the Club’s current annual costs)

Proposed subscriptions New Members Subscriptions increase by £100 pa in 2017 to an estimated £934 (£78/month) Existing Members Subscriptions increase in £25 steps each year for 4 years These rises will be in addition to any other annual increases approved by Council

Financing the project Estimated cash on hand at Dec 2016 £1.25M Members’ 10-year debenture scheme£0.50M Bank loans (10 or 20 years)£2.20M TOTAL FINANCING£3.95M

Lease extensions Average annual income of £300,000 from lease extensions £169,000 received in 2015 Over £300,000 received so far in 2016 Further 36 leases can be extended Balance Sheet value of £2.09M

Cash flow Available funds always allow operating cash available of £250,000 Cash balance at 2020 is greater than bank loan

Major risks & mitigation actions Membership: failure to grow the membership to 3,250 by 2020 Resolution worded to mandate Council to proceed only if the membership drive is successful. Council/Management committed to achieving Business Plan 2017 numbers by end of 2016 (ie 100 extra Members).

Major risks & mitigation actions contd Capital cost risk – projected costs exceed budget Resolution permits Council to sign contracts only within the approved amount, which allows for 10% above £3.95m. Contract will be ‘design & build’ to limit risk of ‘cost creep’ during construction. Any changes will be controlled by the Club.

Minor risks & mitigation actions Operating costs exceed the budgeted costs 10% overspend in costs would be £37,900 Small amount in context of Club’s budget ‘Cut-your-cloth’ options would be explored

Minor Risks and Mitigation Actions Interest rates rise above Base Rate of 0.5% Bank of England projections indicate potentially 1.25% by 2020 Interest rate rising by 1% in 2018 would cost £25,000 Early repayment of loans is an option from 2018 onwards

Benefits of the S&FP to Members Existing Members Excellent changing facilities for all sporting activities Improved facilities for Pilates, Yoga etc – and included in your subscriptions Opportunity for us all to take up new activities No need for another Health Club membership!!

Benefits of the S&FP to Members It will attract new Members Large target population within 20 minutes’ drive of the Club Constant message from Membership events, Focus Groups, Reception Desk contacts, Members’ anecdotal messages: The Club needs a facility – and the pool is vital

Impact of the s&f pavilion

Summary This is an investment for the future It will improve the facilities for existing Members It will attract new Members We can finance the project We will manage the risks Council believes this is the way forward for our club

Now: An opportunity to ask your questions chaired by PAtricia christmas Please wait for the microphone Say your name and membership number Keep your question as short as possible

Members who have not already voted are now invited to hand in their ballot papers. Please note that only official ballot papers can be accepted. Sports & fitness pavilion THE VOTE

Thank you all for attending