Strategic Report for 2019

President HRH Prince Michael of Kent GCVO
Vice Presidents Mr Derek Bell MBE The Hon Michael Beloff QC Sir David Calvert-Smith Sir Christopher Foster Mr Edwin Glasgow CBE QC Mr Tim Keown Mr Brian McGivern Professor Gordon Murray CBE The Duke of Richmond and Gordon Air Chief Marshall Sir John Rogers KCB CBE FRAeSMr Jeffrey Rose CBE Sir Jackie Stewart OBE Mr Derek Warwick
The Board Chairman Mr B P Cussons*
Vice Chairman Miss Christine Gaskell CBE DL*†
Mr Gordon Ballard Mrs Elizabeth Bishop† Miss Pippa Cronk* Mr Andrew Laird^ Mr L Mutkin† Mr Peter Read^† Mr Graham White^†
* Remuneration Committee † Nominations Committee ^ Audit Committee
Standing Committees
Pall Mall Committee Chairman Mr Laurence Mutkin
Miss Nicola Bell Mr Mike Cannavina Professor Andrew Nicholson Mrs Fiona McWatters Mrs Sara Mifsud Mr John Veness
Woodcote Park Committee Chairman Mr Graham White
Mr Richard Arman His Honour Judge Jeffrey Blackett Mr Nigel Brice Mr Ben Davies Ms Sally Fish Mrs Sara Olsen Mrs Elizabeth Orr Mrs Lesley Webb Dr Amer Salim
Motoring Committee Chairman Mr Peter Read
Mr Jeremy Dodd Mr Graeme Hunt Mr Paul Maley Mr David Manchester Mr Peter Ratcliff Mr Gareth Williams Mr Duncan Wiltshire
Elections Committee Chairman Mrs Elizabeth Bishop
Mr Robert Beton Mr Miles Chapman Mr Jim Horsburgh Ms Rachel Morris Mr Robert Muir Dr Francesca Nicholson Mr Martin Roberts Mr Justin Silver
The Royal Automobile Club Limited 89/91 Pall Mall, London SW1Y 5HS Telephone 020 7930 2345 Woodcote Park, Epsom, Surrey KT18 7EW Telephone 01372 276311 www.royalautomobileclub.co.uk
Strategic Report for 2019 1
Strategic Report for the year ended 31 December 2019
The directors present their Strategic Report on the
Group for the year ended 31 December 2019.
Chairman’s Message
of 2019 created a challenging backdrop for Club
operations throughout the year. However, I am
pleased to report that members retained a strong
enthusiasm for both clubhouses and continued to
enjoy the benefits of our excellent facilities and
welcoming and capable staff.
a similar result to 2018. A dip in our membership
applications in 2018 was recovered in 2019 and
by the end of the year we had sustained our
average membership at 16,784 which included
764 new members, whilst maintaining the waiting
list at a manageable level. Conscious of the need
to reflect the changing dynamic of our membership,
we implemented the outcome of a Gender
Inclusivity Study to ensure accessibility to all
events, activities and facilities within the Club,
and addressed some outdated policies, such as
the dress code in the Turkish Baths.
Despite the economic and political vagaries and a
substantial increase in costs, the club exceeded
the budgeted EBITDA for the year and closed at
£8.3m (compared to £8.4m in 2018), with
revenues of £49.4m, an increase of 1.6% from
£48.6m in 2018. On behalf of all the members
of the club, I would like to thank the senior
management team and all the staff for their
focused efforts to control costs whilst continuing
to deliver the very highest standards of service to
members and their guests.
attract and retain employees which reduced the
voluntary staff turnover by 3% in 2019, bucking
the industry trend. We reviewed salaries and
benefits to ensure they remained competitive and
revised the tipping rule which has had a positive
effect on staff morale. Our learning and development
program continues to be recognised as “best in
class”. Long service has also been recognised
with a number of awards in 2019 including
Greg Pearman, our squash professional who
will retire in 2020 after 31 years of service.
Thanks to the generosity of members, the staff
fund payments increased substantially this
year and conveyed members’ gratitude to all
staff members.
in both clubhouses. After a detailed tender process
we signed contracts with Kier Construction Ltd to
commence the build of the new Family Facility in
the Walled Garden. This is a complex project and,
although we have experienced delays, we look
forward to opening the facility in due course and
attracting a new generation of young members to
Woodcote Park.
2019, with the Brooklands Room refurbishment
and completion of the ground floor kitchen
resulting in an increase in footfall and revenues of
6.2% and 7.1% respectively, compared to 2018
on a like-for-like basis. The Pall Mall Television Room
was refurbished and opened by Murray Walker at
a ceremony in July.
with the bulk of that funding for the Family Facility.
In preparation for opening, the woodlands behind
the clubhouse were cleared and a path was
constructed through the trees, weaving between a
collection of beautifully carved animal sculptures
and play equipment, opening up more of the
estate for more of our members. An annual review
of the accumulated Woodcote Park Development
Plan (‘WPDP’) professional costs of £1.9m
determined that £1.2m of this historic cost
represented elements of the WPDP that are
unlikely to proceed. This amount has been written
off and put through the Income Statement in the
current year. Regular refurbishment of the facilities
continued by completing the first phase of the
stable block boiler replacement plan and the final
phase of the Oaks and Derby Room refurbishments.
The golf reservoir will be completed in early Spring
2020 and fully functioning by early Summer.
The Club Shop reopened in April 2018 and has
had a successful year with sales increasing by
23% during 2019 on a like-for-like basis.
Both clubhouses were very busy with 194 events
held in 2019, of which 113 were in Pall Mall.
Whilst the undoubted highlight was welcoming
our Patron, Her Majesty The Queen, to Pall Mall
to celebrate Sir Jackie Stewart’s 50th anniversary
of his first World Championship, other memorable
moments included the Mountbatten Lectures
presented by Alan Titchmarsh MBE and Professor
Sir David Cannadine. We were delighted to receive
our President, HRH Prince Michael of Kent at
several events and HRH The Princess Royal
spoke eloquently about Sir Jackie Stewart at a
dinner in his honour during London Motor Week.
Our focus for Motoring in 2019 was to evolve
our events and activities, keeping them fresh
and entertaining for our members and guests.
This we achieved through holding 80 sold-out
motoring events with industry and sporting luminaries,
including Roger Penske, Gordon Murray,
Adrian Newey, Emerson Fittipaldi and Murray
Walker dinners. The member survey results
indicated an average score of 4.39 out of 5.0,
with the highest scores being for the Motoring
Book of the Year event and the motorcycling
Cotswold Rideout. London Motor Week
included improvements such as the Club Shop,
‘the Bentley Bar’, the Art of Motoring Exhibition
and new events such as the Autocar Readers
Evening. There were two successful tours: one to
Cornwall in March and the other to Wiltshire and
Hampshire in October. Over 40 significant cars
were featured in the Pall Mall Rotunda, including
a number to mark the 100th anniversary year of
Bentley. Our trophies continued to receive wide
publicity and enhance our reputation in the
motoring world, not least when Billy Monger was
awarded the Segrave Trophy for courage in the
face of adversity after recovering from a motor
racing accident. The launch in November of the
Historic Motoring Awards reaffirmed the Club’s
prestigious position in the world of motoring
and motorsports.
Member satisfaction survey scores for Club events
have increased from 4.1 to 4.25 out of 5 at Pall
Mall, and from 3.9 to 4.12 at Woodcote Park.
I am also pleased to report that we have sustained
the improved Club service standards with
Leading Quality Assurance scores of 91.4% at
Pall Mall (from 89.4% in 2018) and 89.8% at
Woodcote Park (compared to 91.1% in 2018)
against our target of 90%. This was reinforced
through the annual members’ survey in which
3,242 members participated, indicating consistent
high scores across most areas and noticeable
improvements in the Fountain Brasserie at
Woodcote Park.
Groups’ achievements throughout the year,
visiting as many as I can. Winning the Premier
Squash League has reinvigorated the squash
community and enhanced our reputation in this
sporting arena. The investment in the golf courses
is now receiving favourable reviews, not only from
members but also guests. The Chess, Bridge and
Backgammon communities continue to provide a
cerebral hum of activity in the clubhouses and the
Photography Group’s attractive competition prize
resulted in more members than ever submitting
entries. The Young Members’ Committee has
expanded their events and our reputation for
holding the best Club parties in London is ‘viral’
across ‘Clubland’. All in all, the Activity Groups
conducted 759 competitions or matches and
1,189 events throughout the year.
We continue to develop communications in
support of these events and the Club’s social
media channels have been enhanced to improve
understanding of the Club, particularly amongst
potential members and staff. Email communication
has been tailored to members, and it is clear from
the annual survey that Pell-Mell and Woodcote
has been well read and warmly received. The Club
website has also been restructured and simplified
with the content being progressively improved
with clearer text and more video.
The Board reviewed the Club Strategy in
September 2019 with a particular focus on
the next five years’ development programme.
As a consequence of the volatile external
business environment, it was decided to adopt a
cautious approach. It was agreed that the focus
should remain on the successful delivery of the
Family Facility whilst taking a strategic pause on
discretionary capital expenditure, only undertaking
committed and operationally essential projects,
during which time the Club would conserve cash,
pending a review of the impact of the new
Family Facility. The Club will continue to ensure
that investment remains balanced across both
clubhouses. In considering future capital projects,
the Club is mindful of ensuring a return on investment
balanced against member benefit, in order to
ensure long-term financial sustainability.
2019 was a challenging year but I am pleased to
say that the management team and staff rose to
the challenge and delivered an excellent result,
both financially and from the member satisfaction
point of view. I would like to thank the entire team
and the Board that I have the privilege to chair.
This great Club was founded on a passion for
motoring and that passion continues, whether
supporting automobilism or delivering superlative
service in our Clubhouses. The motor car
supplies a remarkable analogy for us as a Club;
the car has changed beyond all recognition from
when we were founded in 1897 but it remains as
relevant today as it ever was. Likewise the Club
has changed dramatically since it was founded
but also remains as relevant as it ever was.
Long may it continue.
Club’s purpose
The Club’s purpose is to maintain a private members’ club offering high quality accommodation, including
dining, recreation and sporting facilities for the benefit of its members and guests and, as the oldest motoring
institution in the UK, to respect the aims of its founders, and seek to promote the best interests of motorists and
motor sport. The Club’s strategy has been devised to ensure that the Club has the right goals, plans, policies
and resources to fulfil the Club’s purpose.
Strategy
The Board regularly reviews the Club’s purpose, values and policies and confirms the long-term strategic
goals as being:
• To sustain our reputation as one of the foremost private members’ clubs in the world, with high standards
and a thriving, enthusiastic and influential membership whose composition reflects the Club’s ethos.
• To maintain and develop the Pall Mall clubhouse to the highest standards, conserving the best of its
heritage, whilst evolving imaginatively to remain in step with contemporary society.
• To transform Woodcote Park into a true “Country Club”, as a centre for sporting, leisure and family
activities, equipped with a fit-for-purpose clubhouse and a comprehensive suite of well-used and
appropriate facilities.
• To sustain clubhouse operations at a recognisably professional standard of excellence, led and
managed by highly motivated and integrated staff, underpinned by coherent and effective information
management systems.
• To sustain the Club’s purpose of promoting the best interests of motoring and motorsports by exploiting
our heritage and collaborating with partners to conduct world-class motoring activities. Furthermore to
seek to extend the Club’s influence and reinforce its reputation as the ‘Home of Motoring Excellence’
whilst remaining relevant in the current and future environment. In essence, for membership of the
Royal Automobile Club to be an aspiration for everyone who has an interest in motoring or motorsport.
The Board is committed to achieving these aims whilst retaining the confidence of the membership through
transparent and effective governance. The Club’s ten-year rolling strategy encompasses three phases and is
annually reviewed to ensure that it evolves in response to strategic events:
1. 2014-2017. The Transitional Years. In this period, the Club focused on operational matters,
restructuring to deliver “One Club, with one team, seeking to achieve one standard of excellence across
two clubhouses”. This was achieved through improving standards of service and facilities and responding
to current member needs through improved management, information, communications, efficiency and
performance. The Club established the foundations for operational improvements.
2. 2018-2025. The Operational Transformational Period. Operational improvements have started
to generate increased capital to underpin strategic investment. The strategic transformation has been
initiated through commencing a significant infrastructure development programme, shaped by anticipating
future membership requirements.
3. 2026-2029. The Strategic Development Period. The strategic development programme will be
completed once the infrastructure plan is delivered, sustaining the Club’s prominence as one of the
foremost private members’ clubs in the world.
Financial Review
Highlights
• Club income increased by £832k (1.6%) from £48.6m to £49.4m with all departments recording
improvements year on year;
• Income from subscriptions increased by £272k to £22.9m (2018: £22.6m);
• Excluding the closure of Brooklands, Food and Beverage grew across the two clubhouses by 4.5%
generating an additional £687k;
• Rooms income grew by £175k across both clubhouses to £5.2m primarily due to a 2.4% increase in
average room rate whilst total occupancy rose from 77.3% in 2018 to 78.1% in 2019;
• The Club achieved earnings before interest, tax, depreciation, amortisation (EBITDA) of £8.3m,
a marginal decrease of £173k on the prior year, although after absorbing a further rates increase of £342k;
• Despite the turbulent market conditions, staff costs were well controlled, rising at no more than the
annual pay award of 2.5% (2018: 3.9% with an annual pay award of 2.5%);
• Annual subscription renewal rate for 2019 remained at 95.7% (2018: 95.7%).
Strategic Report for 20196
Review of the Year
The analysis of Club income for 2019 is as follows:
2019 2018
Rooms 4,617 582 4,458 566
Simms Business Centre 293 – 291 –
Food and Beverage¹ 11,169 4,867 11,219 4,760
Golf – 1,842 – 1,782
Other Clubhouse Income 656 557 560 406
18,080 8,421 17,863 8,078
49,401 48,569
¹ Brooklands was closed for the first three months of 2019 at Pall Mall. During the same period in 2018 the restaurant generated income of £629k. Therefore, on a like-for-like basis 2018 Pall Mall Food and Beverage income totalled £10,589k for 2018.
Across both clubhouses, room occupancy improved in 2019 to 78.1% (2018: 77.3%) with a total of 37,036
rooms sold (2018: 36,662). Rooms yield increased by 3.5% at Pall Mall to £117.90 and by 5.8% at
Woodcote Park to £75.29 resulting in an overall 3.5% rise in Room income to £5.2m (2018: £5.0m).
In absolute terms, Pall Mall Food and Beverage revenues fell by £50k in 2019 to £11.2m (2018: £11.2m).
However, Brooklands was closed for refurbishment for the first three months of 2019. Therefore, comparing
the nine months from April for both years, Brooklands revenues increased by £143k or 7.1% and total
Pall Mall Food and Beverage revenues increased by £579k or 5.5% for the year.
Pall Mall Food and Beverage average spends were up by 1.9% and covers increased at the Great Gallery,
Long Bar and Cocktail Bar, up 8.5%, 4.6% and 1.9% respectively. This translated into a combined revenue
growth of £307k. Banqueting covers improved by just shy of 1,000 to 50,133. This was lower than originally
anticipated as the unsettled market conditions prevailed in the last quarter of the year and a number of
corporate bookings were cancelled. Nevertheless, banqueting generated an increase of £151k for the year
with total revenue of £4.0m (2018: £3.9m).
Key performance indicators for 2019 are as follows:
2019 2018
Average Room Rate £143.26 £121.05 £139.80 £118.62
Rooms sold 32,230 4,806 31,890 4,772
Restaurant Covers¹,² 155,998 82,566 171,454 79,462
Average food and beverage spend £37.41 £24.42 £35.20 £23.01
Banqueting Covers 50,133 31,201 49,185 34,786
Average food and beverage spend £80.15 £52.74 £78.63 £53.61
Food Margin % 61% 61% 61% 59%
Beverage Margin % 66% 65% 66% 65%
Simms Centre Users 10,243 – 10,167 –
Simms average spend £26.57 – £26.60 –
Sports Users 177,575 105,036 166,213 104,843
Golf Rounds – 56,057 – 55,130
Operating subsidy (£’000s) £3,298 £3,968 £2,929 £3,878
¹ Restaurant covers and average food and beverage spend include Stirling’s and Fountain restaurants at Woodcote Park and Great Gallery, Brooklands and Long Bar restaurants at Pall Mall.
² Brooklands was closed for the first three months of 2019 at Pall Mall. During the same period in 2018 the restaurant delivered 24,748 covers. Therefore, on a like-for-like basis 2018 covers totalled 146,706.
Restaurant covers at Woodcote Park increased by 3.9% with Stirling’s and the Fountain reporting over 3,000
additional covers during 2019 and generating combined revenue growth of £188k. The 19th Hole continued
to gain momentum with revenues growing by 23% in 2019 to £773k supported by a 32% rise in covers.
Overall income from Restaurants and other outlets rose by £346k (11%) in 2019 to £3.5m (2018: £3.1m).
Only 14 wedding bookings (2018: 28) were secured at Woodcote Park for 2019 and this resulted in a
12.1% fall in covers. Banqueting and Events reported a reduction of £239k income to £1.4m (2018: £1.6m).
2020 began with a more positive outlook and 25 wedding bookings. However, as a direct result of the
pandemic, a number of Spring and Summer bookings have been moved to the Autumn and five have been
deferred until 2021. Overall, total Woodcote Park Food and Beverage revenues increased by £107k to
£4.9m (2018: £4.8m).
Across both clubhouses, Sports reported a marginal improvement in revenue of £19k or 1.0% to £1.9m
(2018: £1.9m). At Woodcote Park this was mostly due to a rise of 19.7% in Junior Activity participation and
a 6.7% rise in Treatments average spend whilst at Pall Mall the improvement was due to 4.8% growth in
personal training at the Gym.
Total Golf rounds increased by 1.7% to 56,057 (2018: 55,130) with the largest gains from guest rounds.
Combined with a 1.6% increase in average spend, total Golf revenues increased by £60k or 3.3% to £1.8m
(2018: £1.8m).
Following the completion of refurbishment of the Club Shop in April 2018, 2019 was the first full year of operation
at Woodcote Park and income for the year was £415k (2018: £328k) representing an increase of £86k.
Human Resource controls were strengthened through the establishment of a management steering group,
principally to oversee all people matters. Furthermore, the new ‘Harbour ATS’ (Applicant Tracking System)
was introduced to enhance and improve efficiency of the recruitment and onboarding process. Consequently,
staff costs were well controlled, rising at no more than annual pay award of 2.5% (2018: 3.9% with an annual
pay award of 2.5%). There was also a positive effect on staff turnover, which fell by 3% year on year.
Overall, the Club achieved a surplus before interest, tax, depreciation and amortisation (EBITDA) of £8.3m.
This represents a marginal fall of £0.1m on the prior year (2018: £8.4m) and is explained by the annual
increase to the rates obligations of £342k. Accordingly, the Club fared extremely well in what was undeniably
a challenging year. At 31 December 2019 the Club had a net asset position of £93.5m (2018: £90.8m),
the year on year movement represents the surplus for the current financial year.
Five Year Trend Analysis 2019 2018 2017 2016 2015
£m £m £m £m £m
Income and Expenditure Account
Trading income 26.5 26.0 25.3 24.6 24.3
Total income 49.4 48.6 46.5 45.4 44.3
Expenditure (41.1) (40.1) (39.1) (36.8) (35.9)
Depreciation and amortisation (4.6) (4.6) (4.6) (4.1) (3.9)
Other amounts written off¹ (1.2) - – – –
Net operating surplus 2.5 3.9 2.8 4.5 4.5
Net interest income 0.1 – (0.1) 0.1 –
Finance expense: pension scheme² – – – (3.1) –
Net surplus for the year 2.6 3.9 2.7 1.5 4.5
Balance Sheet
Cash and deposits³ 14.0 13.9 32.9 30.6 27.3
Other net current liabilities³ (2.3) (2.5) (25.5) (22.6) (22.8)
Long term creditors (1.6) (1.8) (2.5) (4.7) (2.7)
Net assets 93.5 90.8 87.0 83.6 81.7
Cash Flow
Net operating surplus (above) 2.5 3.9 2.8 4.5 4.5
Exclude non-cash items and tax paid 5.9 4.7 4.6 4.1 3.9
Change in net current assets (0.1) (21.4) 1.6 (0.5) (0.9)
Operating cash flow (after tax) 8.3 (12.8) 9.0 8.1 7.5
Net interest received 0.1 – – 0.1 –
Net capital expenditure (8.1) (3.9) (6.4) (4.5) (3.0)
Repayment of lease and loan notes
and pension settlement² (0.2) (2.3) (0.3) (0.4) (0.3)
Increase/(Decrease)in cash and cash equivalents 0.1 (19.0) 2.3 3.3 4.2
¹ Professional fees incurred relating to the Woodcote Park Development Plan (WPDP) totalled £1.9m at 31 December 2016 and have been held on the balance sheet as ‘assets under construction’ from this date. At 31 December 2019 these costs were reviewed and £1.2m has been written off representing elements of the WPDP where there are no plans to utilise the work carried out in the near future.
² The Board resolved to close the Defined Benefit Scheme which was initiated in July 2014. Premiums to L&G amounted to a total of £5.3m. A further amount of £3.1m was provided at 31 December 2016 based on an actuarial estimate for age equalisation. £2m of this was paid to L&G in January 2018 with the balance remaining in provisions at 31 December 2019.
³ Renewal has typically taken place at 31 December. This was the case for 2018 renewal where member subscriptions were collected on 31 December 2017. Such income is therefore deferred to the year to which it relates, creating a large deferred income credit balance. For 2019 renewal, the collection of subscriptions was moved to 2 January 2019 (rather than 31 December 2018) thus no deferred income balance was generated in 2018. There is no overall impact on net assets since cash balances are accordingly reduced by a corresponding amount, as noted above.
Principal Risks
A full list of significant risks and related mitigation processes in the form of a risk register covering issues
relating to governance, personnel, financial, data protection and operational attributes is regularly reviewed
by the Audit Committee. The more significant risks include internal control failure, catastrophic loss of a
clubhouse or IT services, poor Board governance and reputational damage that might arise from various causes.
Following the Government’s instruction that all cafés, pubs, restaurants, gyms and leisure centres must
close from 20 March 2020 all clubhouse and estate facilities were shut until further notice to ensure the
safety of both staff and members. In response to this unprecedented scenario the Club is taking all available
measures to minimise the financial impact on the business. This includes furloughing staff, where possible,
to take advantage of the Government’s Coronavirus Job Retention Scheme, deferring VAT payments,
cutting any other non-essential expenditure, and continuing to investigate the Club’s eligibility to forgo
payment of Rates during the 2020-21 fiscal year.
It is the Club’s intention that through these cost saving initiatives we can retain our valued staff and ensure
minimal disruption when the club re-opens later in the year. The directors have a reasonable expectation
that the Club has adequate resources to continue in operational existence for at least 12 months from the
date these financial statements are approved and for the foreseeable future. The Club therefore continues to
adopt the going concern basis in preparing its financial statements.
Beyond direct financial loss, a consequence of a number of the identified risks would be an adverse impact
on the Club’s appeal to members and hence a reduction in membership numbers through higher fall-out at
renewal and insufficient new joiners to replace them. 95.7% of members have currently renewed for 2020.
Demand for membership and usage of the clubhouses is dependent upon continuing high standards of
services and facilities, fuelled by member perception of combined good value. Maintaining such standards,
through the skills of the Club’s staff, continued member participation through working groups for refurbishment
programmes and development of facilities and regular member briefings by the Chairman and Club Secretary
mitigates such risks.
One of the key goals of the current Board is greater transparency. Accordingly, recent Chairman’s briefings
have focussed on short, medium and longer-term investment strategies including detailed proposals for the
Club’s ten-year Development Plan and funding strategies.
Stakeholders
The Board, both individually and together, consider that they have acted in the way they consider, in good
faith, would be most likely to promote the success of the Club for the benefit of its members as a whole
(having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Companies Act 2006) in the
decisions taken during the year. In particular:
• To ensure the Board takes account of the likely consequences of decisions in the long term, the Board
has a ten-year strategy (see page 4, ‘Strategy’). Each year the Board in conjunction with the Club
Management Committee (‘CMC’) holds a Strategic Review and reviews progress against targets
and looks forward in the medium term. This is strengthened through clear reporting and sharing of
management information and KPIs with the Board and regular contact between members of the Board
and the CMC.
• Our employees are fundamental to the delivery of our plan. The Club has a range of initiatives and
activities aimed at enhancing the engagement of our employees. Following an assessment by Investors
in People (‘IIP’), the Club was awarded the organisations silver standard, which it awards to only around
one in twenty of the employers it reviews. This achievement is testament to the Club’s commitment to its
employees and striving for excellence as an employer. The Club is aiming to achieve Gold accreditation
in our 2020 re-assessment which takes place in November.
• Our suppliers are also crucial to the delivery of our plan and as one of the foremost private members’
clubs in the world, it is essential that we maintain our reputation for high standards of business conduct.
The Club’s terms and conditions are provided to its suppliers when commencing any supply of goods or
services and clearly set out expectations for the business relationship. The Club’s Modern Slavery and
Human Trafficking Statement also sets out the steps taken to prevent modern slavery in our business and
supply chains and new suppliers must undergo GDPR checks as part of the approval process to ensure
appropriate stewardship of personal and confidential data.
• The Club aims to be a responsible member of the community and minimise its impact on the
environment. The Club is committed to compliance with the spirit as well as the letter of all applicable
environmental legislation, approved codes of practice and any other requirements not codified by law to
which we subscribe. The Club regularly reviews the sustainability plan and endeavours to reduce negative
environmental impacts and develop positive impacts wherever reasonably practicable. During 2019,
the Club completed Energy Savings Opportunity Scheme (‘ESOS’) phase two, and demonstrated a
5% reduction in consumption between 2018 and 2019, largely as a consequence of an upgrade to the
boiler system at Woodcote Park and the switch to induction cooking at Pall Mall as part of the recent
kitchen refurbishments.
• The Club has four standing committees to support the main Board of Directors. These are the Pall Mall
Committee, the Woodcote Park Committee, the Elections Committee and the Motoring Committee.
In addition, there are a number of subcommittees, each having a chairman responsible to the relevant
House Committee. Each committee is comprised of members, has its own terms of reference and meets
on a regular basis together with the CMC. This helps to ensure the opinions and views of our members,
as well as management, are incorporated into the Clubs’ strategic planning.
• As a Board, our intention is to behave responsibly toward our members and treat them fairly and equally,
so that they all benefit from the successful delivery of our plan. The Board has overall responsibility for
determining the Club’s purpose, values and strategy and for ensuring high standards of governance.
The primary aim of the Board is to promote the long-term sustainable success of the Club, generating
value for members and contributing to wider society. Stakeholders include employees, members and
suppliers of the business.
Capital Expenditure
It is the Club’s policy to fund operational refurbishments and cyclical capital projects from annual cash flow.
Total expenditure for 2019 was £8.1m, of which £3.0m related to major refurbishment and IT projects, £1.1m
to cyclical operational requirements and £4.0m to the construction of the new Family Facility during 2019.
A breakdown of the larger projects is provided below:
Pall Mall clubhouse £’000
Brooklands refurbishment 463
Reservoir 236
Greenkeeping equipment 98
Other smaller projects and VAT 297
724
This Strategic Report was approved on behalf of the Board.
Ben Cussons
15 April 2020
89/91 Pall Mall, London SW1Y 5HS 020 7930 2345 Woodcote Park, Epsom, Surrey KT18 7EW 01372 276311
Front cover image: This year the Club celebrates the 120th anniversary of its inaugural 1000 Mile Trial – created to

Documents

Strategic Report for 2019