Skip to main content

Hire Purchase - Alnmouth Golf Club Limited

Company Profile

Based at Foxton Hall in Northumberland, Alnmouth Golf Club is a long established members golf club with in excess of 700 members across all membership categories serving the local community and beyond.

Established in 1869, it is the 4th oldest golf club in England, with the existing course laid out next to the Northumberland coastline in 1930. The Club is comprised of a large former mansion house, Foxton Hall, a 14 room Dormy House for up to 26 golfers to stay, dining area & bar, locker rooms and a Pro-shop. There are also 3 rented flats.

Business Challenge

Retaining existing members and recruiting new ones is a priority for the golf club in the current challenging economic climate. This therefore also requires them to seek to increase possible revenue by offering their facilities to fee paying guests and visitors.

Alnmouth Golf Club was also mindful of the condition of its existing heat and hot water supply which was at the end of its useful life and potentially problematic and costly should a breakdown occur.

The club committee engaged with local companies to explore the possibility of replacing the existing heat and hot water system with a new wood pellet fed biomass boiler. Feasibility studies were undertaken and a tender process ensued to deliver a correctly designed and best value for money system.

Solution

Neil Harrison of Re:heat, a local consultancy and installer of biomass systems, invited Close Brothers Asset Finance to review the project and offer funding terms to the golf club.

After working closely with the club secretary and committee, a suitable structure was found to meet the needs of the project. This included a facility to allow the golf club to advance funds to each of the sub-contractors on the project to ensure that quality of work and payment terms were managed.

Club Secretary Peter Simpson said: “Close Brothers provided us with a prompt loan approval, supporting documentation, were on site with the contractors and gave an informed insight to our business and the investment we were undertaking. All of this gave the committee and membership reassurance about the project’s viability. It was a refreshing approach to our investment needs.”

Outcomes

Alnmouth Golf Club now benefits from reduced energy costs, significant income from the 20 year Government RHI scheme, a lower carbon footprint and a constant supply of hot water and heat for the benefit of its members and visitors.