Our main business here at EGCC is to continue last year’s good work so that we can we guarantee a decent quality playing surfaces for golfers. My job is to ensure the long-term success of AS EGCC and to grow shareholder value. Today, we have made a lot of preparations for the construction of a new course, and we have been making good progress. We have taken steps to ensure that the costs incurred and the agreements we have entered into will have no negative impact on our daily business. Among other things, we have agreed, for example, with European Golf Design, a design contract that can be interrupted at any time without financial penalty.
In 2016 we fulfilled all obligations to the banks after a less than perfect year, and we are able to do so in the future whilst continuing to invest in the course moving forward.
Finally, some numerical indicators of how EGCC is doing:
AS EGCC balance sheet total shows €6,7m of which long terms commitments are € 1.5m, € 0.2m of short-term, the equity share is 4.5, nearly 80%
In recent years, we have made a profit of up to €50K a year, or at least broken even. The loss from the previous financial year will be in the order of €70K including interest, depreciation, etc.
AS EGCC depreciation for the year was €110K (machines, buildings, course, etc.).
EGCC sales turnover in 2016 was €1,1m, of which approx €400K came from playing rights €300K in green fees, and the rest from competitions and corporate services.
Whilst recent times have not been so easy, as a team we want to provide the best we can and we know that the greens do not satisfy anyone’s expectations. As I wrote at the end of the year, I have great faith in our now maintenance manager Kris and his team.
We have over 400 different shareholders, and we have all had our ups and downs. The media today are merciless when they see an opportunity. Almost every time I happen to read Äripäev, I see one of the owners of the EGCC as headline news, and I fully understand that golfers and our other shareholders who might suspect the links between Mait, Bauschmidt and the EGCC.
However, I for one, hope that Mait as well as others, who from time to time have their difficulties, will overcome. Fortunately, we have golf as a safe haven, where you can always come for some peace and quiet – preferably with your smart devices switched off!
In a few weeks we expect the first rounds of the season to be played.
Hanno Kross
AS EGCC
