Annual Report and Accounts 2018 St Andrews Links Trust: Scottish Charity No. SC006161 Contents 1 Contents 2 Chairmen’s Statement 3 - 7 Chief Executive’s Report 8 - 11 Trustees’ Report 12 -13 Independent Auditor’s Report 14 - 29 Accounts for the year ended 31 December 2018 14 Consolidated Statement of Financial Activities 15 Balance Sheets 16 Cash Flow Statements 17 - 29 Notes to the Accounts 30 - 33 Reference and Administrative Information 34 - 36 Unaudited Statistical Analysis 1 | St Andrews Links Trust: Scottish Charity No. SC006161 Chairmen’s Statement for the year ended 31 December 2018 Gordon D Mackenzie OBE Steven G Race Chairman of Trustees Chairman of Links Management Committee Golf in all its forms is an integral part of life in St Andrews. It has also been pleasing to see other investments in The Links Trust plays a signifi cant role in that way of life irrigation technology leading to a reduction in water and as we look back on a successful year, we are very consumption as well as landscaping improvements to conscious that high standards do not come without the courses and the start of several infrastructure projects considerable effort. At the heart of this is a wonderful that will enhance the customer journey at the Home of team of colleagues, each working throughout our 800 Golf. All of this work is focussed on pursuing the vision acres of living landscape to provide a fi rst-class experience of continually developing St Andrews Links as the most within the four pillars of Play; Learn; Shop and Relax. renowned public golf complex in the world, where we deliver unique and memorable experiences and do so in Organisational success has been matched by increased an environmentally and economically sustainable way. interest in coming to enjoy St Andrews as well as participating in this unique multi-generational sport. The The Senior Leadership Team has once again helped to statistics speak for themselves, with more than 224,000 spearhead these efforts translating strategic intent into rounds of golf played across the six 18-hole courses and delivery and done so, this year, at a time of signifi cant many more rounds enjoyed by the young, older golfers and change in two key appointments. In August and then in families on the very accessible Balgove Course. All of these December, we marked the departure of Euan MacGregor golf courses have, once again, been presented in fantastic and Gordon Moir, Directors of Finance and Greenkeeping condition throughout the year. Our varied offering here respectively, stepping down after more than 50 years at the Home of Golf is a particular strength and we will combined service. We would like to thank them for their continue to develop our facilities in a way that maintains dedicated contribution to the Links. They both played the principles of openness and public access in order to signifi cant roles in helping to develop the Links Trust encourage new entrants to the sport as well as sustaining a throughout a pivotal time in its history, contributing variety of challenges for more experienced golfers. to outstanding standards of fi nancial prudence in the stewardship of the Trust and excellent standards of Investing in quality underpins such ambitions and we agronomy and turf-care on the Links courses. Their continue to place emphasis on programmes such as responsibilities now pass to Lyall Dochard and Sandy Reid, the St Andrews Links Junior Golf Academy, which helps who bring with them a host of experience, enthusiasm introduce and further the golf development of children and new ideas to help ensure the Trust and St Andrews attending schools in the town. We are pleased to see that remain at the forefront of golf. this programme has maintained its popularity, attracting 275 children aged between 5 and 18 to participate in On behalf of the Board of Trustees and Links Management tuition and competition in a fun learning environment. Committee, we would like to commend everyone Our ambition to widen the reach of golf in St Andrews associated with St Andrews Links Trust for their ongoing was enhanced in June 2018 with the installation of a work. The continued success of the Home of Golf would Trackman Range at the Golf Academy. This state-of-the-art not be possible without their expertise and unswerving radar technology continues the commitment of the Links commitment to excellence. Trust to innovation and provides a different kind of golfi ng experience, through data analysis and interactive games. Gordon D Mackenzie OBE Steven G Race In the months following installation there has been a Chairman of Trustees Chairman of Links signifi cant increase in visitors to the 32 Trackman Range Management Committee enabled bays with golfers of all ages and abilities sampling the technology and providing very positive feedback. 24 May 2019 2 | St Andrews Links Trust: Annual Report and Accounts 2018 Chief Executive’s Report for the year ended 31 December 2018 The popularity of the golf courses, in particular the Old Course, remains exceptionally high. There was a very marginal drop in overall rounds played compared with 2017 but this, in large part, was a result of course closures due to adverse weather conditions and some one-off tournament commitments at St Andrews in 2018. Euan Loudon CBE Chief Executive We delivered an increase in golfi ng income in 2018 as we completed the fi rst calendar year of managing our Old Course Commercial Tee Times under a new system, which involved working with a large number of As the Chairmen have said, 2018 was a good year. Authorised Providers of guaranteed tee times on two or We continue to make progress on our core drivers of more of the Links courses. This innovation also served as Courses, Customer Journey and Brand and a great deal the inspiration for our commercial photography offering of the credit for all of this should go to the outstanding which was launched in 2018. This provides golfers, within commitment of all of the staff working at St Andrews 24 hours of their tee times, with access to an online Links Trust. Without exception, be they permanent, or gallery of images documenting their experience on Holes seasonal employees, the whole team is focussed on 1, 17 and 18 of the Old Course. It proved very popular enhancing the customer experience and increasing the in its debut year and we would expect interest in this to renown and reputation of the Home of Golf. grow in the years to come. Several years ago, we identifi ed and established our unifying purpose as ‘continually developing St Andrews Links as the world’s most renowned public golfi ng complex, where we deliver unique and memorable experiences for golfers to play, learn, shop and relax’. This is embedded in our culture at St Andrews Links and we count ourselves lucky that the delivery of our shared goals is supported on a daily basis by a suite of world class Partners. Their number increased in January 2018 when we signed a new long-term partnership with NBC Golf as the ‘Offi cial Media Partner of St Andrews Links’. This gives St Andrews an unprecedented platform, with one of the world’s most prestigious media companies, to reach and inspire a truly international audience. In the coming years we hope to create exciting, innovative content that Facilitating golf is what we do but all of this work will showcase the unique relationship between history, depends on our careful environmental management of golf and St Andrews, enabling more people than ever to 800 or so acres of living landscape. This involves striking develop an affi nity with this special place. We are very a sensitive balance between people’s expectations, the excited by the values of authenticity and passion that we many and varied opportunities that are offered at the share and that are so evident in NBC Golf’s storytelling Home of Golf, as well as coping with a demanding and production values and techniques. set of statutory and other duties that impact on our custodianship of this famous golf Links. The bedrock Attracting and engaging with partnerships of this of all of this is daily excellence in the preparation and quality relies signifi cantly on the integrity of the presentation of the courses. Sometimes Mother Nature Trust’s Intellectual Property and as I have said before presents us with unusual challenges and 2018 was a the protection of IP assets can be unglamorous and rare combination of extreme cold in springtime and controversial but it is essential for the long-term one of the hottest Scottish summers on record. The development of the well-being and reputation of St move from courses covered in snow in March to baking Andrews Links. The infringement of “rights” cannot hot sun from May to July meant that the courses were be disregarded and we will continue to challenge such presented in fantastic condition with crisp, brown behaviour both now and into the future. 3 | St Andrews Links Trust: Scottish Charity No. SC006161 Chief Executive’s Report continued for the year ended 31 December 2018 fairways thrilling all fans of Links golf. There is a great challenge to secure one of 24 qualifying places available deal of human skill, knowledge and professionalism in the fi eld, each desperate to play the Old Course in a involved in our greenkeeping operation and the team is competitive environment. Their appearance at St Andrews lucky to be supported, so enthusiastically, by our turf-care served to remind us, not only of the magnetic draw of machinery partner Toro.