STOURBRIDGE OLD EDWARDIAN CLUB

ED-Words  
Newsletter
February 2021

Feedback from many members has revealed they wish to enjoy what the Club has to offer for many years to come. The proposals outlined below have been carefully considered by the General Committee and we believe they provide a firm footing for establishing change, increasing footfall and improving the Club’s potential.

The Club has the ethos of a private members social club but is a live business, that must trade successfully as a licensed premise, functions facility, snooker hall and car parking business to survive. Membership subscriptions are no longer sufficient to sustain the Club premises given they provide less than 25% of the income we require to meet our operating expenses. 

The Club has survived from a financial perspective, despite falling membership, by diversifying the business into other services and being fortunate to receive one-off funds such as bequests, appeals etc which have amounted to £53,729over the last 25 years. These funds have been wisely invested in improvements to the infrastructure as profits from trading did not provide adequate funds to invest in improvements. At the AGM in December 2020, it was announced that we had £59,592 cash at bank and in hand which is available to underwrite revenue costs in the short term and fund capital investment.

 Covid has had a dramatic effect on the Club’s ability to trade like all licensed premises and clubs. We have received grant income from Government, and this has assisted in underwriting costs during last financial year and the current one. Losses of over £3,500 are forecast for the current year as reported at the AGM, due to enforced closure of the premises and the consequential loss of trade which will be fortunately mitigated to some extent by further Government grants. However, we cannot rely on grants and drawing on reserves to sustain the Club in the long term. We must take advantage of our location and facilities and be ready to trade when we can re-open to fill the gaps left by businesses that unfortunately will not survive the effects of the pandemic. 

The General Committee have been reviewing in considerable detail the options for trading in the future and have developed a business plan that demonstrates the Club can survive to ensure the continued enjoyment by members and users and preserve its well-earned reputation as a unique place in Stourbridge society. However, to deliver the plan and maximise the income potential from the premises, “sweating the asset”, we need to change our service offer to reflect current trading performance and embrace business opportunities that can hopefully deliver survival for the Club. The funding for these improvements which are estimated to cost £20,000 will be met using existing maintenance budgets and use of reserves. We will still retain sufficient reserves to remain prudent, however, it is also considered prudent to invest some of our reserves now to give the Club the best chance of survival in the medium to long term.

The proposal for change and actions taken to date.

Following the Prime Minister’s recent announcement, we hope to re-open the Club with restrictions in late May. The vaccination programme currently underway will be the key determinant of when we can fully re-open and return to normal operating conditions and it is not anticipated that we can start to plan for that eventuality until late June/early July. Remaining optimistic about the long-term future of the Club the General Committee are seizing the opportunity to undertake the following alterations to improve our customer offer: 

1.     4 windows have been replaced in the Club with opening windows funded from last year’s budget to afford much improved and long overdue ventilation to deliver a safer environment for members.

2.     CCTV has been installed on the exterior of the premises to provide a greater level of security to users of the facility in particular car park users who have been able to use the car park throughout lockdown.

3.     Recognising our financial dependence on the function trade and events it is considered essential that we create a larger space in the main lounge and snooker hall area to enable larger functions to be hosted in a safe and comfortable style.

Despite the success of our snooker teams in the league, general usage of the snooker tables remains low with an estimated usage of only 6 hours per week per table. It has therefore been decided to remove 2 tables and re-position the remaining 3 tables to create a multi-purpose area that can be used as an extension to the lounge area, a function room, dining area, spectator area for snooker matches and an area where we can host speaker meetings or other special events. This will optimise use of a large space that can generate more income for the Club in the longer term. We only require 2 tables to host matches and therefore 3 tables should be sufficient for general use and league matches. A new wide screen TV will also be provided to enhance the club facilities.

4.     A detailed study is also being undertaken into the effectiveness of the existing heating and ventilation system as it will be essential in marketing our facilities to be able to offer safe and efficient heating and ventilation in a post Covid environment.

5.     The existing Memorial and Cooper Rooms will be retained and again usage maximised by attracting custom from third party organisations.

6.     A Development Committee has also been established under the leadership of the President to identify and attract new business opportunities to maximise use of the Club.

In conclusion, the proposed changes to our customer offer are considered by the General Committee to offer the best chance of remaining viable without the need to raise subscriptions to much higher levels which of course would be counter-productive in retaining existing members or attracting new ones. The estimated cost of the changes is considered the minimum investment required to provide safe and high-quality provision for all members, guests, third-party hirers and staff in a post Covid world. Your continued support for the Club is much appreciated and we look forward to welcoming back members and guests very shortly.

Sadly, and due to the COVID-19 pandemic we have no imminent scheduled events. However the Social Committee has drawn up a considerable list of "possibles" for when the lockdown ends. 

Our events programme will re-emerge when we are allowed to re-open and will be made visible on our Events Calendar.