annual report and accounts 2015 - st andrews links · 2016-08-11 · 4 | st andrews links trust:...

St Andrews Links Trust: Scottish Charity No. SC006161

2015Annual Report and Accounts

Contents

1 Contents

2 Chairmen’s Statement

3 - 7 Chief Executive’s Report

8 - 12 Trustees’ Report

13 Independent Auditor’s Report

14 - 29 Financial Statements for the year ended 31 December 2015 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 Statementfor the year ended 31 December 2015

As we reflect on a successful 2015 we do so with pride and gratitude for the endeavours of everyone associated with St Andrews Links Trust.

In recent years the commitment to delivering memorable experiences for every golfer at St Andrews has been at the forefront of what we do. The Trustees have sought to support the objective of meeting and, where possible, exceeding people’s expectations; an objective that applies not just to the world’s greatest professional and amateur players but also golfers of all ages and abilities who play on the Links courses.

This commitment came under real scrutiny in 2015, not least because of the huge amount of planning, preparation and the physical effects on the living landscape -that is St Andrews Links- before, during and after our opportunity to be the host venue of the 144th Open. Regardless of the challenge put in front of staff at the Links, their attitude and effort showcased the remarkable combination of talent, passion and commitment to success that we are blessed with across the board at the Home of Golf.

As the start of the 144th Open approached, many were anticipating a great test not least because of the fantastic condition the Old Course was presented in. It would not only challenge the world’s best but also the staff across the Links, as unprecedented weather conditions prompted only the second Monday finish in the history of the championship. In front of a global TV audience the greenkeeping staff produced a truly herculean effort, fittingly recognised a few months later as they received the British and International Golf Greenkeeper’s Association Championship Team of the Year Award.

Such efforts are not reserved to those who are responsible for the presentation, appearance and condition of the Old Course. Just a matter of hours after Zach Johnson was crowned Champion Golfer, many aspects of our famous Links were operational and available to every golfer. This would not have been possible without a collective effort from those at the forefront of customer service, as well as the support of the many dedicated teams, often working behind the scenes.

We are fortunate that our famous Links is revered by golfers around the world but it is particularly pleasing to see working practices and our standards of customer

care recognised with the retention of Visit Scotland’s 5-star Visitor Attraction status and as recipients of Visit Scotland’s “Tourism Everyone’s Business” Award for Tayside, Fife and Perth. This award recognised the true team effort at the Links and is testament to the commitment of all colleagues to deliver unique and memorable experiences to our customers. It is the first time we have been in receipt of this award and combined with the retention of our 5-star Visitor Attraction status, we are delighted to see our collective work being recognised within Scotland at the national level.

We are also pleased to see our commitment to managing our golf courses and facilities in an environmentally and economically sustainable way going from strength to strength. In 2015 this was recognised by the Sports Turf Research Institute (STRI), who presented the Links Trust with a “Highly Commended” award in their Golf Environment Awards and this builds on our Golf Environment Organisation (GEO) certification. We are also glad to see sustainability and waste recycling continuing to be integrated into our daily operations.

The year in which The Open is played on St Andrews Links always presents additional financial challenges and 2015 was no different. Despite the considerable reduction in green fee income in 2015 we were pleased to see turnover increase. This reflects ambition, enterprise and professionalism on the part of all our members of staff, particularly those on the financial and commercial side of our activities; success in these areas provides the enabling element of long term development, as well as assisting in the delivery of our day to day operations.

R D Muckart S G RaceChairman of Trustees Chairman of Links Management Committee

27 May 2016

R D MuckartChairman of Trustees

S G RaceChairman of Links Management Committee

2 | St Andrews Links Trust: Annual Report and Accounts 2015


Chief Executive’s Reportfor the year ended 31 December 2015

I am pleased to report that 2015 was as memorable a year as we all hoped for, with success both on and off the courses. There was no shortage of drama on the Links, as the championship golf we hosted witnessed weather conditions which tested our staff to the limit. However, in the face of, at times, extremely challenging conditions across the board I was delighted to see how dynamic and enterprising our workforce truly is, adapting and responding to every eventuality. The main event was undoubtedly the 144th Open played over the Old Course and I will return to this in a moment but first I want to reflect on events either side of July.

In June, Italy’s Federico Zucchetti lifted the St Andrews Links Trophy, the tournament reduced to 54 holes due to winds gusting in excess of 56mph on the second day’s play. The cancellation of an entire day’s play on the Jubilee Course was the subject of much deliberation for the Tournament Committee but they were left with little choice. The team of Links staff and hardy volunteers responsible for planning, preparing and marshalling the international field of 144 golfers did a fantastic job managing the dislocated expectations of the many golfers who saw their hopes of lifting the trophy dashed. A by-product of the decision was a bunched field competing on the Old Course over 36 holes on the final day. Federico emerged from the pack to claim Italy’s first victory in a competition which has been contested by his compatriots Eduardo and Federico Molinari in recent years. This prestigious amateur tournament continues to attract a stellar field and we hope Federico, a student at the University of Central Florida, will help to enhance further its reputation on the international stage.

Fast forward to the end of September and the 2015 Alfred Dunhill Links Championship was played against the backdrop of one of the most remarkable Indian summers in living memory. Practice rounds and the first three days of the Tournament were blessed with unbelievable sunshine and the Home of Golf was showcased in wonderful condition, despite the event being staged just weeks after the infrastructure of the 144th Open had departed. As has been the case in recent years, the Dunhill has become something of a redemption story for the victor and so it would prove with Denmark’s Thorbjørn Olesen, who overcame a troubled 12 months contending with injury and form to be crowned champion. It was a fantastic advert for autumnal golf in St Andrews and across Scotland and I hope it will encourage many more golfers, both from home and abroad, to continue the trend of extending the golfing season long into October.

W E B Loudon CBEChief Executive

Thorbjørn Olesen

What our colleagues in the R&A would have given to have had those sunkissed days of September when we hosted the 144th Open in July at the Home of Golf! The world’s oldest Major played at St Andrews is a truly unique event. Despite years of planning and months of intense preparation, the 29th Open to be staged on the Old Course was greeted with some of the most extreme weather conditions witnessed at the Links. Unseasonal cold temperatures, record rainfall and gusting winds combined to force the event into a fifth day for only the second time in its history. Despite such adversity the event was a resounding success and produced a worthy champion in Zach Johnson. The American showed remarkable stamina and skill to lift the Claret Jug.

Such commendable qualities were replicated by the efforts of the Trust’s greenkeeping teams before, during and after the event. Their work, and in fact that of the entire team across the Links, did not stop after the 144th Open and a matter of hours after its conclusion a massive effort was underway to reopen the courses and to present them to the expected standard, despite the disruption caused by the dismantling of the many grandstands, scoreboards and substantial television and media complexes, not to mention the tented village in the weeks that followed.

While the focus of the 144th Open was centred largely around one week on the Old Course, its reach and impact was felt far wider on the Links, in the town of St Andrews and in Scotland as a whole. That we can reflect on a good 12 months of trading despite the Old Course


Chief Executive’s Report continued

for the year ended 31 December 2015

being closed for four weeks is, in itself, an excellent achievement. Our strong operating performance in 2015 was in part thanks to our sustained effort to become less dependent on green fee income, primarily through diversification in other income streams such as retail and licensing and the continuing development of our partnership programme.

This work is represented within our commercial pyramid led, at the highest level, by our global partner Allianz, and I am very pleased that we have now renewed our agreement with them for a further three years. Since we first forged this relationship in 2009 it has grown into a celebration of shared values, not least trust, integrity, quality and sustainability. Six years ago both parties entered into the relationship with real ambition but with unanswered questions about what the partnership would represent above and beyond the terms and conditions found in legal agreements. We are delighted that it has now established a real foundation and platform to help raise awareness of the partnership as well as the unique nature of St Andrews. The relationship continues to evolve and I was pleased to see this work deliver the first-ever Allianz Old Course Tournament in April, the continued Allianz Golf Camp in August and some TV filming in June which saw St Andrews Links feature prominently alongside Formula One World Champion Lewis Hamilton, world renowned pianist Lang Lang, FC Bayern Munich and the Paralympic movement in a new Allianz global campaign.


Raising awareness of what St Andrews means to golf on a global stage is important to us and with the support of partners we aired a series of St Andrews Links TV commercials in and around the 144th Open in July. These commercials reached a potential viewing audience of 641 million people, in territories around the world and on platforms such as CNN, ESPN, CANAL+ and Sky Sports Germany. They celebrated not just the Old Course and the Links but also the uniqueness of St Andrews as a destination for golf, heritage and hospitality. Operating under the banner “Write Your Own History” the campaign captured the imagination of the viewing public and gained real-time support through our digital platforms. It took a tremendous amount of effort to complete the commercials, we are proud of the finished product and we hope they will continue to play a part in promoting St Andrews in the short to medium term.

We have an exceptional core product: our golf courses and their history but we would not be able to undertake projects such as the TV Commercial were it not for the global recognition and knowledge many have of the world’s most famous Links. In helping to sustain that reputation I acknowledge the expertise and assistance of the valued partnership programme we have with Allianz, Rolex, Callaway and Brooks Brothers.

Zach Johnson

Chief Executive’s Report continued


An important area of ongoing and future partnership is our relationship with suppliers of turf maintenance machinery. Our official equipment supplier for the last 16 years has been Toro but in April 2015 we published an Invitation to Tender asking the three main manufacturers of turf care equipment to make offers for the future provision of greenkeeping machinery to St Andrews Links Trust. The evaluation stage of this process is nearing completion and we will enter commercial discussions in August 2016 with the aim of announcing our preferred future greenkeeping partner by the end of 2016.

Successful partnership arrangements require integrity within brands and this involves degrees of protection which are aimed at enhancing the reputation and heritage of St Andrews. In the early stages of this work there was some apprehension and misunderstanding about our objectives but we believe there is far greater understanding and support today. We were delighted to host the first-ever Champions Charity Golf Day in July. Organised by St Andrews Links and Auchterlonies of St Andrews, the monies raised will be split 50:50, in the names of two of St Andrews’ greatest sons, Tom Morris and Willie Auchterlonie, to support sport and the arts in St Andrews and in the Scottish Borders.


Our own retail operations, primarily through the Trust’s subsidiary company St Andrews Links Golf Shops Limited, once again made a strong contribution to the Trust’s turnover. Although retail sales were relatively poor after the Old Course closed for play on 20 June, sales during the 144th Open week itself and for the remainder of the year were strong. Such is the nature of buying and selling cycles that this work does not fit neatly into the window of the golfing season and requires a year round commitment to ensuring we continue to deliver the right variety and quality of products the consumer demands.

Over the course of 2015 Tom Morris International Limited (TMI) explored possible licensing opportunities with several new entities. After many constructive conversations and rigorous analysis, the board of TMI decided to alter its business model, shifting away from wholesale to pursue other licensing opportunities through St Andrews Links Limited. These opportunities could not have been contemplated had TMI not been set up to develop the Tom Morris brand and the Board of Trustees believe that the investment in TMI, combined with this exciting new licensing opportunity, will bring significant benefits in the years to come.

In December we announced that we would assume responsibility for the distribution of all commercial Old Course tee times for the season commencing April 2018. The decision by Trustees will bring to an end our long-standing contractual arrangement with partners Old Course Experience in 2017. We would like to put on record our gratitude to the entire team at Old Course Experience in St Andrews, London and New York for all their hard work, support and assistance over the past 20 years. The relationship with OCE has been successful and they have helped to enhance the visiting golfer’s experience at the Home of Golf with their commitment


to high levels of customer service as well as their passion, not just for our golf courses and facilities but also the town as a whole.

This decision has prompted us to reflect on the landscape 20 years ago compared to that which we occupy now. Much has changed and today our service and commitment to customer care strives to match our historical importance. In 2015 we continued to invest in our people with our Learning and Development programmes and we were delighted to be recognised nationally in the Visit Scotland tourism awards, lifting the “Tourism Everyone’s Business” award for the Fife, Tayside and Perth region, as well as through our retention of Visit Scotland’s 5-star Visitor Attraction rating. Achieving this status for the first time two years ago marked the culmination of a long held ambition for many at the Links. However, we could not rest on our laurels and assessors at Visit Scotland advised us that experience suggested that, having achieved 5-star status, many found it hard to retain the award. It is particularly pleasing to have done so and I commend everyone at the Links for playing a part in retaining our status in 2015.

It is always a privilege for the Links and the town of St Andrews to host The Open; in the words of a BBC sports journalist, it is a moment in time “when the Old Course transforms itself into one of the greatest sporting venues in the world”. The positive economic impact of this phenomenon is felt throughout Fife and beyond and

although there have been in-year financial challenges for the Trust, it is pleasing to see that the underlying trading results have shown consistency and resilience. There is, however, no room for complacency and it is important for us to be alive to the wider risks facing the game of golf and how these work through into the market conditions affecting the Trust. With one eye on the future this will involve more investment in infrastructure, communications and digital platforms but we must not lose sight of the expectations of our core customers: the local and visiting golfer. The strategy -which has been in place for four years now- of investing in quality, developing our pre-eminent position and maintaining our unique reputation has delivered success and will be continued for the foreseeable future. Ambition such as this enables the creation and delivery of memorable experiences to current customers and sustains the viability of the organisation which has been entrusted to look after and to protect the world’s most famous golf links.

Euan Loudon CBEChief Executive

27 May 2016

IntroductionThe Trustees of St Andrews Links Trust present their Annual Report and Accounts for the year ended 31 December 2015. This report is prepared in compliance with the Charities Accounts (Scotland) Regulations, 2006 (as amended), FRS102 and the Charities SORP (FRS102) (referred to as SORP).

Reference and Administrative InformationReference and administrative information is shown on pages 30 to 33.

Structure, Governance and ManagementGoverning legislation and appointment of TrusteesThe Trust was established by the St Andrews Links Order Confirmation Act, 1974 (the “Links Act”), a private Act of Parliament. The principal objective of the Trust is to “hold and maintain the Links as a public park and place of public resort and recreation for the residents of St Andrews and others resorting thereto”.

The Links Act provides for the appointment of eight Trustees, three nominated by the ‘local authority’ (Fife Council), three by The R&A and one by the Scottish Government. The eighth Trustee is the Member of Parliament in whose constituency the Links are situated. With the exception of the MP, Trustees are appointed for a three year term and are eligible for reappointment at the end of that term.

At their first meeting each year, Trustees elect a chairperson and are reminded of their duties and responsibilities under the Links Act and other charities legislation. Trustees are not representatives or delegates of their appointing body and must have regard only for the best interests of the Trust.

Trustee Induction and TrainingNewly appointed Trustees participate in an induction programme. They are provided with the latest Annual Report and Accounts, copies of past minutes and other background information and receive briefings on all areas of the Trust’s operations from senior management.

GovernanceDay to day management of the Trust and its subsidiary companies is carried out by a management team, headed by a Chief Executive, which reports to the Trustees at regular formal meetings, the minutes of which are published.

Several sub-committees and working parties exist to facilitate more detailed consideration of key aspects of the Trust’s operations and each of the subsidiary companies has a Board of Directors which include a mixture of Trustees, members of the management team and, where beneficial, independent non-executive directors. The sub-committees, working parties and Boards report to the Trustees at their formal meetings.

The Audit and Risk Committee is responsible for agreeing the planning for and discussing the outcome of the annual audit, approving the draft Annual Report & Accounts for submission to Trustees and for reviewing the Trust’s risk register. The Finance Committee is responsible for reviewing and approving draft budgets and pricing recommendations prior to their submission to Trustees for approval. A Governance Sub-Committee is tasked with ensuring the Trust’s governance practices remain appropriate for an organisation of the Trust’s size and complexity. A Remuneration Sub-Committee sets the pay and remuneration of the key management personnel having regard to various factors including the movement in RPI and CPI indices.

The Trustees have overall responsibility for ensuring that appropriate systems of internal control, both financial and otherwise, exist. The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include;-• annual budgets approved in advance by Trustees,• strategic plans, periodically updated and approved by Trustees,• regular consideration of financial performance by the Trustees through management accounts and trading performance reports,• delegation of authority and segregation of duties, and• identification and management of risks.

The Trustees are of the opinion that the major risks to which the Trust is exposed have been identified and evaluated and that systems are in place to manage those risks and identify any new risks to which the Trust may become exposed. The principal risks identified by the Trustees are discussed in more detail in the Financial Review section of this report.

Charitable PurposeThe Trust benefits from charitable status and is therefore exempt from income and corporation taxes on its charitable activities. Trading activities which are considered to be outwith the Trust’s charitable purposes are carried out by subsidiary companies, and their profits are remitted to the Trust under Gift Aid arrangements.

Related PartiesInformation on transactions with related parties is given in Note 22 to the accounts.

Objectives and ActivitiesAs stated above, the Trust’s principal objective is to “hold and maintain the Links as a public park and place of public resort and recreation for the residents of St Andrews and others resorting thereto”.

Trustees’ Reportfor the year ended 31 December 2015



St Andrews is widely recognised as the “Home of Golf” as it is where the game began and largely evolved into its current form. It is home to the Old Course- the oldest and most famous golf course in the world- and is recognised internationally for its golfing connections.

This historic background raises the expectations of the thousands of visitors who flock to St Andrews, many of them to fulfil a lifelong dream. The Trustees are acutely aware that only the highest standards of course presentation, facilities and service will suffice and it is their vision to develop St Andrews Links as the most renowned public golf complex in the world, delivering unique and memorable experiences for golfers to play, learn, shop and relax.

In addition to this international perspective, the Links play an important role in the everyday life of the town. This is recognised in the Links Act which extends certain privileges to residents of the town and to Ordinary and Life members of the R&A. The town is home to several long-established golf clubs and the Trust works closely with those clubs to facilitate their access to the courses for fixtures and competitions. Pricing and access privileges have been extended to holders of yearly tickets, the majority of whom are members of these local golf clubs.

R&A Members, yearly ticket holders and residents of St Andrews play approximately 50% of all golf played on the Trust’s courses yet only a small proportion of the Trust’s income is derived from these sources. The Trust therefore has a heavy dependence on visitors for its golfing and other revenues, supplemented by royalties earned from the Trust’s intellectual property portfolio.

Retail activities through the Trust’s subsidiary St Andrews Links Golf Shops Limited (Golf Shops), make a strong contribution to the Trust’s turnover and surplus. The profits earned from these retail activities help to underwrite the Trust’s ability to keep yearly ticket prices as low as possible.

Income earned by St Andrews Links Limited (Links Ltd), the subsidiary company which exploits the Trust’s intellectual properties, does not depend on customers physically travelling to St Andrews and therefore provides a degree of diversification to offset circumstances which could result in a fall in visitor numbers.

Through a contract with the St Andrews Community Council, Links Ltd pays a royalty to the St Andrews Community Trust which applies those royalties towards projects of public benefit to St Andrews and the surrounding area. This ensures that the wider public can benefit from the Trust’s success in building and commercialising its intellectual properties. In 2015 royalties of £88,000 accrued to the benefit of the Community Trust, bringing the total amount of royalties since the Community Trust was established in 2010 to more than £400,000.

Achievements and PerformanceThe most visible achievement in 2015 was the successful hosting of the 144th Open. Despite extremely challenging weather conditions, which forced the event into a fifth day for only the second time in its history, the event was a resounding success. The efforts of the Trust’s greenkeeping teams before, during and after the event deserve special mention.

Construction work on the grandstands and event infrastructure began several months before the championship. Although the Old Course became the focus of the golfing world’s attention during the event, a massive effort was required in the aftermath to reopen the courses and to present them to the expected standard despite the disruption caused by the dismantling of the many grandstands, scoreboards and substantial television and media complexes, not to mention the 30,000 square metres of tented village.

The 144th Open had a significant effect on play, as the Old Course closed for just over four weeks, with shorter closures affecting all except The Castle Course. In addition, Golf Academy operations were curtailed between mid-May and the end of August because of the tented village. It is worth recording that the impact of the Old Course on Scottish golf tourism is such that most leading Scottish golfing venues suffer a decline in demand during the Old Course closure.

It is therefore very satisfying that the Trustees can report on a strong operating performance in 2015, which is analysed in more detail below.

Recognition of the Trust’s service levels came in the retention of Visit Scotland’s 5-star Visitor Attraction rating, following an inspection during 2015. This award is tangible evidence of the delivery of the Trustees’ ambition to deliver unique and memorable experiences to its customers.

The ecological and sustainability focus of the Trust’s greenkeeping activities was recognised by the Sports Turf Research Institute (STRI), who gave the Trust a “Highly Commended” award in their Golf Environment Awards. This builds on the Trust’s Golf Environment Organisation (GEO) certification.

The Trust’s retail activities through Golf Shops continue to thrive, achieving record turnover in 2015. This success demonstrates the recognition achieved by the “St Andrews Links” brand, which is further evidenced by the steady growth over the past decade in royalty income.

The Trust has continued to develop its brands throughout the world and, following a strategic review, it has been decided to route all retail activities through Golf Shops and all licensing activities through Links Ltd. To facilitate this, all intellectual properties, including those purchased with Tom Morris Limited, will be held and exploited by Links Ltd and all retail and merchandising activities, including those hitherto carried out by Tom Morris International Limited, will be carried out by Golf Shops.

Links Ltd will work with strategic partners to continue the development of the Trust’s intellectual properties in different regions of the world. The consolidation of intellectual properties within a single entity is expected to reduce legal and trademark protection costs and provide greater clarity to partners, official suppliers and licensees.

This refocussing of roles means that, having achieved its objective of developing a marketable “Tom Morris” range of products, Tom Morris International Limited will no longer generate income in its own name. TMI’s directors will make a recommendation to the Trustees as to the future direction of the company during 2016. In the interim, Trustees believe it is appropriate for the Trust to make full provision against the carrying value of TMI, and the intra-group loan account balance as at 31 December 2015.

Financial ReviewPresentation of the accountsThe accounts have been prepared in compliance with the Charities SORP (FRS102), which became effective for accounting periods beginning on or after 1 January 2015.

Consolidated accounts are presented, with the results of the Trust and its subsidiary companies combined as if they were a single entity. Intra-group trading is eliminated from income and expenditure in the Consolidated Statement of Financial Activities and intra-group balances are eliminated from the Consolidated Balance Sheet. Commentary on the AccountsThe year in which The Open is played in St Andrews always presents additional challenges and 2015 was no different, with golfing income depressed as a result of course closures to facilitate the event. Catering income increased, however, due to a combination of additional marketing efforts to promote The Castle Course outwith high season, increased sales at The Old Pavilion and the provision of some corporate hospitality to partners and official suppliers during the 144th Open itself.

Although retail sales were relatively poor after the Old Course closed for play on 20 June, sales during the 144th Open week and for the remainder of the year were strong, reaching new record levels. Royalties receivable increased due to the renewal of some licensing agreements, particularly for computer games and simulators, together with further payments received from our licenced golf academy in China.

Expenditure, after allowing for the impact of the FRS102 adjustment in respect of the defined benefit pension scheme, was slightly higher in 2015 than in 2014. Expenditure on charitable activities- basically the Links Trust and Castle Course combined- increased, with the main components of the rise being in catering costs, legal & professional fees and development expenditure and the impact on payroll and notional interest charges of the FRS102 adjustment.

Expenditure on raising funds- effectively the costs of the other subsidiary companies- reduced mainly due to the change of focus to licencing of the “Tom Morris” marks, which enabled savings in payroll and operating costs to be achieved.

Payroll costs remain the largest component of total expenditure. Total payroll costs increased in 2015 mainly due to adjustments required to comply with FRS102, with the actual cash cost of payroll, ignoring the FRS102 adjustments, increasing by 1% to £9,018,692 (2014 - £8,926,598).

Cost of sales and catering costs increased due to a combination of higher sales volumes and, in the case of catering costs, the need to hire in some equipment to cover functions during the 144th Open.

Depreciation charges reduced slightly as some shop fittings and other equipment became fully depreciated during the year. Further intellectual properties were registered or acquired during the year, resulting in an increase in amortisation charges.

Payments under operating leases reduced significantly because a lease for warehouse space at Slotline House in St Andrews came to an end in December 2015 but, as the property was not going to be used during 2015 the rent payable in 2015 was written off in the 2014 accounts as an onerous lease. Consequently, the 2015 accounts do not include the rent for Slotline House within operating lease costs.

The total cost of legal and professional fees reduced in 2015, continuing a trend over the past few years. The strengthening of the Trust’s trademark portfolio has helped to reduce legal costs, as it has made it easier, and therefore less expensive, to tackle infringements. There was also a reduction in non-trademark related legal work.

Development expenditure was considerably higher in 2015. The main project is the replacement of all on-course shelters and the provision of additional shelters. This represents a considerable undertaking which will continue into 2016. The Trust has continued to update the greenkeeping centres and, after the additional wear and tear of the 144th Open, replaced and extended some of the internal roads and paths.

Trustees’ Report continued




Interest charges decreased as £600,000 of the fixed rate element of the 2008 term loan was repaid and the Trust’s positive cash flow minimised the overdraft requirement. Irrecoverable VAT was very slightly higher than in 2014 with the difference being attributable to an increase in the proportion of input tax which could not be recovered.

Capital expenditure on tangible fixed assets was just over half that incurred in 2014 and for the first time in many years depreciation charges exceeded new fixed asset purchases. As a result, the net book value of tangible fixed assets reduced slightly over the year. Expenditure on intangible fixed assets increased in 2015 resulting in an increase in both amortisation charges and net book value.

Following the exceptional level of merchandise sales in the year, stock levels have decreased slightly. Debtors were relatively little changed, but there has been a substantial reduction in creditors due within one year. This can be attributed to the repayment of the overdraft and a reduction in trade creditors and accruals, offset by an increase in the VAT liability at December 2015.

The increase in deferred income at December 2015 generated substantial cash which was applied to extinguish the overdraft and to repay the £500,000 term loan taken out in January 2014. The scale of the increase highlights one of the financial impacts of the 144th Open as the number of advance reservations which could be taken in 2014 for play in 2015 was very much lower than in a normal year.

As well as repaying the 2014 term loan, repayments of £640,000 were made on the original 2008 term loan and one element of the historic interest-free loans received from the R&A was fully repaid. The remaining loan is repayable over four years instead of five and the long-term balance due to the R&A has reduced by £250,000.

The Cash Flow Statements emphasise the strength of the Trust’s underlying cash flow, which has been used to fund the Trust’s major developments over the past two decades. Nearly £4 million was generated by the Trust’s operations, most of which was used to invest in additional fixed assets and to service and repay borrowings, leaving a net positive cash inflow of over £1.5 million.

Reserves PolicyAlthough the 2015 accounts show a total reserves figure of £21,454,772 (2014 - £17,804,088) and the cash flow statements demonstrate strong cash generation, it is important to put this into context. The reserves figure represents the aggregate total of all surpluses earned by the Trust since its inception in 1974. This figure bears no relation to the cash and bank facilities available to the Trust.

Although the Trust traditionally enjoys strong positive cash flows, continued investment in the courses and facilities means that there has been no opportunity to build up free cash reserves and after allowing for loan

balances repayable over the next four years the Trust has net debts payable of £1,190,398 (2014 - £4,121,891).

The Audit & Risk Committee has highlighted to the Trustees that the Trust is vulnerable to major events outwith its control which affect visitor numbers and, over the longer term, Trustees aim to accumulate free cash reserves appropriate to the Trust’s needs.

Principal Risks to the Trust’s ActivitiesDuring 2015 the Audit & Risk Committee updated the Trust’s risk register and presented it to Trustees for discussion and approval.

Given the Trust’s dependence on visiting golfers for the majority of its income, the principal risks are connected with the ability to attract and accommodate sufficient visitors to generate that income. Not all of these risks can be controlled or influenced by the Trustees.

For example, a major disruption to air travel, if for a prolonged period, could have a serious impact on the number of overseas visitors to St Andrews and it is unlikely that they could be wholly replaced by domestic visitors. It is not viable to insure against such a risk but it can be offset to some extent by developing other sources of income, e.g., royalties from the Trust’s intellectual property portfolio.

One set of risks which can be mitigated to some extent, is the availability of the courses for play. The Trust’s greenkeeping staff have a wealth of experience in course maintenance and are therefore well placed to prevent plant diseases or inappropriate maintenance procedures from causing course closures. The utilisation of the best available greenkeeping equipment and supplies, in combination with an active training programme for all greenkeeping staff, help to mitigate this risk.

The failure of the Trust’s coastal defences is another critical risk which is not entirely controllable by the Trustees. Parts of the Links are designated as a Site of Special Scientific Interest (SSSI) and there are numerous regulatory hurdles to be surmounted before significant engineering or protection works can take place. A monitoring programme of existing coastal defences is in place with the aim of providing early warning of potential trouble spots.

Plans for Future PeriodsThe Trustees continually review the adequacy of the Trust’s facilities and will continue to invest in them and in the equipment used on the Links in pursuit of their objective of delivering unique and memorable experiences for all.

The greenkeeping squads have throughout 2015, in a process which will continue in 2016, been conducting extensive trials of turfcare equipment from three major manufacturers to ensure that when the Trust’s existing equipment supply contract with Toro ends in 2017 any new contract ensures that the Trust will continue to have access to the best available machinery and support.

A review of the facilities serving the western side of the Links, primarily the Eden, Strathtyrum and Balgove Courses and the Golf Academy is being undertaken. The Trust’s operations, and public expectations, have changed very considerably since Pilmour House and the Eden Clubhouse were opened in 2000 and some redevelopment of that area may reap both operational efficiencies and improved facilities for customers. The Trust is currently working with architects to identify sympathetic and cost effective plans, although actual work on any redevelopment project is unlikely to begin in the short term.

As Fife Council struggles to balance its budget, discussions have been held regarding the maintenance of the West Sands area between the beach and the boundary of the Jubilee Course. With effect from April 2016 the Trust agreed to undertake additional maintenance works on the grassed areas. The Trust will work with existing bodies including the Fife Coast & Countryside Trust and the West Sands Partnership to maintain public access to this area

while improving and conserving it for the future. The Council will retain responsibility for the beach, toilets, litter collection and West Sands Road.

Since the start of the 1996 season, the Trust has channelled commercial advance reservations for the Old Course through ‘The Old Course Experience’, a subsidiary of Compass Group, on an exclusive basis. That arrangement has been highly beneficial to the Trust, generating enhanced cash flow which has played a material part in the development of the Links over the past two decades. After lengthy consideration, the Trustees decided to end the exclusivity enjoyed by Compass Group, with effect from the start of the 2018 season, to deal directly with tour operators in the commercial allocation of Old Course tee times.

Trustees would like to place on record their appreciation of the important contribution made by Compass Group and, in particular, their locally-based staff to the golf tourism market as well as to the Trust’s financial stability.

R D MuckartChairman of Trustees27 May 2016

Trustees’ Report continued




We have audited the accounts of St Andrews Links Trust for the year ended 31 December 2015 which comprise the group Statement of Financial Activities, the charity and group Balance Sheets, the charity and group Cash Flow Statements and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity’s Trustees, as a body, in accordance with section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and auditorAs explained more fully in the Statement of Trustees’ Responsibilities set out on page 32, the Trustees are responsible for preparation of accounts which give a true and fair view.

We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under that Act. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’S) Ethical Standards for Auditors.

Scope of the audit of the accountsAn audit involves obtaining evidence about the amounts and disclosures in the accounts sufficient to give reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and parent charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the accounts. In addition, we read all the financial and non-financial information in the Trustees’ Report to identify material inconsistencies with the audited accounts and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Independent Auditor’s Report to the Trustees of St Andrews Links Trust for the year ended 31 December 2015

OpinionIn our opinion the accounts:

• give a true and fair view of the state of the charity’s and group’s affairs as at 31 December 2015 and of the charity’s and group’s incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Charity Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

• the information given in the Report of the Trustees is inconsistent in any material respect with the accounts; or

• proper accounting records have not been kept; or

• the accounts are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Henderson LoggieStatutory Auditor(Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006)The Vision Building20 GreenmarketDundeeDD1 4QB

27 May 2016

INCOMEINCOME FROM CHARITABLE ACTIVITIES Golfing income Catering income Rents receivable

INCOME FROM OTHER TRADING ACTIVITIES Merchandise income Royalties Other income

INVESTMENT INCOME Bank interest

OTHER INCOME Gain on disposal of fixed assets

TOTAL INCOME

EXPENDITURE Expenditure on raising funds Expenditure on charitable activitiesTOTAL EXPENDITURE

NET INCOME

OTHER RECOGNISED GAINS / (LOSSES) Remeasurement gain / (loss) on defined benefit pension scheme

NET MOVEMENT IN FUNDS IN THE YEAR

RECONCILIATION OF FUNDS Balance brought forward

BALANCE CARRIED FORWARD

All funds are unrestricted.

2014as restated

£

11,949,8182,072,139

7,72914,029,686

4,845,2691,323,382

71,2816,239,932

863

29,329

20,299,810

6,234,73113,165,57319,400,304

£899,506

(1,932,000)

(1,032,494)

18,836,582

£17,804,088

2015£

13,729,925

6,828,195

1,210

40,560

20,599,890

19,607,206

£992,684

2,658,000

3,650,684

17,804,088

£21,454,772

£

11,524,0942,197,657

8,174

5,126,5821,566,782

134,831

5,776,01513,831,191

Notes

2

3

18

13

Consolidated Statement of Financial Activitiesfor the year ended 31 December 2015


AUDITOR’S REPORT - Page 13THE NOTES ON PAGES 17 TO 29 FORM PART OF THESE ACCOUNTS


FIXED ASSETS Tangible assets Intangible fixed assets Investment in subsidiary companies Goodwill arising on consolidationTOTAL FIXED ASSETS CURRENT ASSETS Stocks Debtors- due within one year Debtors- due after more than one year Cash at bank and in hand CREDITORS Amounts falling due within one year Deferred income NET CURRENT ASSETS / (LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS DUE AFTER MORE THAN ONE YEAR NET ASSETS EXCLUDING PENSION SCHEME LIABILITY PENSION SCHEME LIABILITY NET ASSETS REPRESENTED BY UNRESTRICTED RESERVES MINORITY INTEREST

2014£

24,432,129-

2,949,741-

27,381,870

155,0361,918,5833,809,000

31,6245,914,243

3,689,5132,044,9225,734,435

179,808

27,561,678

(2,420,000)

25,141,678

(5,677,000)

£19,464,678

19,464,678

-

£19,464,678

2015£

24,064,901-

2,949,666-

27,014,567

160,9363,698,210

-646,533

4,505,679

2,206,2902,640,9514,847,241

(341,562)

26,673,005

(1,150,000)

25,523,005

(3,681,000)

£21,842,005

21,842,005

-

£21,842,005

2014£

25,259,9872,259,047

-493,535

28,012,569

2,463,366780,609

-72,296

3,316,271

3,119,1332,308,5945,427,727

(2,111,456)

25,901,113

(2,420,000)

23,481,113

(5,677,000)

£17,804,113

17,804,088

25

£17,804,113

2015£

24,791,7382,291,079

-408,928

27,491,745

2,357,424662,226

-729,602

3,749,252

1,915,8423,039,3834,955,225

(1,205,973)

26,285,772

(1,150,000)

25,135,772

(3,681,000)

£21,454,772

21,454,772

-

£21,454,772

Notes

5678

9 a.9 b.

1011

12

18

13

7

Balance Sheetsas at 31 December 2015

Consolidated Trust Only


These accounts were approved by the Trustees at their meeting on 27th May 2016 and are signed on their behalf by:

R D MuckartChairman of Trustees

Cash flows from operating activities Net cash provided by operating activities (Note a. below) Cash flows from investing activities Interest received on bank deposits Interest received on intra-group loan accounts Payments to acquire tangible fixed assets Payments to acquire intangible fixed assets Receipts from sales of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Term loans from Royal Bank of Scotland- decrease in long-term balance new facility (repaid) / advanced R&A Foundation- decrease in long-term balance Net cash used in financing activities Change in cash and cash equivalents during the year

Cash and cash equivalents at 1 January

Cash and cash equivalents at 31 December NOTES TO THE CASH FLOW STATEMENT a. Reconciliation of net movement in funds to net cash flows from operating activities Net incoming resources before other recognised losses Add back: Depreciation charges net of gain/(loss) on sale Add back: Amortisation of intangible assets Add back: Amortisation of Goodwill Arising on Consolidation Non-cash movements associated with FRS102 Retirement Benefits adjustments Write off minority interest in Tom Morris International Limited, relinquished during the year Deduct: Interest income shown in investing activities Decrease / (Increase) in stocks Decrease / (Increase) in debtors due within one year Decrease / (Increase) in debtors due after more than one year Increase / (Decrease) in creditors and deferred income Net cash inflow from operating activities b. Analysis of the balances of cash and cash equivalents as shown in the balance sheet Cash in bank and on hand Bank overdraft

2014£

1,009,323

255191,136

(1,483,001)-

86,700

(1,204,910)

(640,000)500,000

(200,000)

(340,000)

(535,587)

(366,976)

(902,563)

1,368,275927,929

-

-

379,000

-(191,391)

(2,573)(85,022)

(1,671,800)284,905

1,009,323

31,624(934,187)

(902,563)

2015£

3,271,898

1,135163,294

(676,955)-

59,724

(452,802)

(520,000)(500,000)

(250,000)

(1,270,000)

1,549,096

(902,563)

646,533

1,507,876984,459

-

-

662,000

(25)(164,429)

(5,900)(1,779,627)

2,020,55146,993

3,271,898

646,533-

646,533

2014£

1,412,600

863-

(1,651,531)(301,057)106,770

(1,844,955)

(640,000)500,000

(200,000)

(340,000)

(772,355)

(89,536)

(861,891)

899,5061,258,625

305,974

84,607

379,000

-(863)

(673,878)18,035

-(858,406)

1,412,600

72,296(934,187)

(861,891)

2015£

3,962,278

1,210-

(834,230)(354,522)

86,757

(1,100,785)

(520,000)(500,000)

(250,000)

(1,270,000)

1,591,493

(861,891)

729,602

992,6841,215,722

322,490

84,607

662,000

(25)(1,210)

105,942118,383

-461,685

3,962,278

729,602-

729,602

Cash Flow Statementsfor the year ended 31 December 2015





1. ACCOUNTING POLICIES

a) Accounting convention: the accounts are prepared under the historical cost convention.

b) Basis of preparation of accounts: the Trust constitutes a public benefit entity as defined by FRS102. The accounts are prepared in accordance with the Charities and Trustee Investment (Scotland) Act, 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS102 and the Charities SORP (FRS102) (referred to as SORP).

c) FRS102 first time adoption: the accounts for the year ended 31 December 2015 are the first accounts of St Andrews Links Trust prepared in accordance with FRS102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition for FRS102 was 1 January 2014. The effects on the reported financial position and financial performance for the previous period of adopting FRS102 are explained in Note 14 below.

d) Basis of consolidation: the consolidated accounts consist of St Andrews Links Trust and its subsidiary companies, St Andrews Links Limited, St Andrews Links Golf Shops Limited, The Castle Course St Andrews Limited, Tom Morris Limited and Tom Morris International Limited. With the exception of golfing activities, the gross turnover and expenditure of the subsidiary companies are treated as Income from Other Trading Activities within the Consolidated Statement of Financial Activities. Gross turnover and expenditure of The Castle Course St Andrews Limited are included within Charitable Activities in the Consolidated Statement of Financial Activities. The assets and liabilities of the subsidiary companies are included on a line-by-line basis within the Consolidated Balance Sheet. Where St Andrews Links Trust owns less than 100% of the issued share capital of a company, third party interests are shown in these accounts as Minority Interests.

e) Turnover: turnover is stated net of Value Added Tax.

f) Incoming resources: income is generally recognised on a receivable basis where the amount is reasonably certain and there is adequate certainty of receipt, and is stated gross of related expenditure.

g) Resources expended: expenditure is accounted for on an accruals basis • Expenditure on raising funds includes the expenses of non-charitable trading activities • Charitable activities comprise direct expenditure including direct staff costs attributable to charitable activities • Governance costs include costs associated with constitutional and statutory requirements • Support costs are allocated against the above categories on a basis consistent with the use of resources

h) Development expenditure: expenditure on projects carried out on land not owned by the Trust is treated as development expenditure unless the projects have income earning potential, in which case expenditure is capitalised as tenant’s improvements. Capital expenditure incurred on land and buildings owned by the Trust is capitalised and included in fixed assets.

i) Tangible fixed assets: tangible fixed assets are stated at original historic cost including, where appropriate, the cost of irrecoverable VAT. Depreciation is provided as described more fully in note 1 k) below. Items with an original cost of less than £500 (excluding VAT) are not capitalised unless they are part of a larger pattern of expenditure.

j) Tenant’s improvements: in the Trust’s accounts, tenant’s improvements are defined as expenditure of a capital nature and with income generating potential undertaken on land not owned by the Trust, for example, the Links Clubhouse. Where wholly-owned companies incur expenditure of a capital nature on land and buildings not owned by them, that expenditure is also capitalised as tenant’s improvements.

k) Depreciation: depreciation is provided on tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life. Depreciation on buildings and tenant’s improvements is charged from the date the underlying assets are first brought into use. Depreciation is charged on a straight line basis using the following rates: • Vehicles, plant and equipment 20% • Office furniture and equipment between 20% and 33% • Heritable property, including alterations 2% • Tenant’s improvements 2% No depreciation is provided on freehold land or golf courses. No depreciation is charged on assets under construction until such time as they are brought into use at which point depreciation is charged at the appropriate rate.

l) Intangible fixed assets: expenditure incurred to register or protect trademarks or other intellectual properties which, in the opinion of the Trustees or the Directors of the company concerned, have a reasonable probability of generating income is capitalised as intangible fixed assets. These assets are amortised over a ten year period on the straight line basis. The Trustees believe that amortising intangible fixed assets over ten years is reasonable because it can take several years to negotiate agreements to

Notes to the Accountsfor the year ended 31 December 2015

generate income from registered marks. An impairment review of all intangible fixed assets is carried out annually at the balance sheet date. Further information on intangible fixed assets is shown in Note 6 below. All other expenditure on trademark registrations and intellectual properties is written off when incurred on the basis that future revenues are uncertain.

m) Goodwill arising on consolidation: where a wholly- owned company is acquired at a price in excess of the fair value of its underlying assets and liabilities, the difference between that fair value and the purchase price is treated as goodwill arising on consolidation. Goodwill arising on consolidation is amortised over ten years on a straight line basis from the date of acquisition.

n) Debtors: trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

o) Creditors and provisions: creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p) Grants receivable: grants receivable in respect of capital projects are offset against the cost of the relevant project; depreciation is calculated on the project cost net of grants, thereby amortising the grant over the expected useful life of the underlying asset. Grants of a revenue or non-capital nature are credited to general reserve as income when received.

q) Operating leases: rentals applicable to operating leases are charged on a time basis over the lease term.

r) Donations: donations received are credited to the Statement of Financial Activities as received. Donations made are included within operating expenses.

s) Stocks: stocks are valued at the lower of original invoice cost or net realisable value.

t) Value Added Tax: the Trust is partially exempt for VAT purposes and is therefore unable to recover all of the input VAT it incurs on its purchases. Irrecoverable VAT relating to the purchase of fixed assets is capitalised and written off at the same rate and over the same period as the underlying asset.

u) Taxation: the Trust is exempt from income and corporation taxes by virtue of its charitable status. The wholly-owned companies are liable to corporation tax but no taxation liability arose for the year ended 31 December 2015.

v) Foreign currency transactions: assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the exchange rate applicable at the transaction date. All differences on exchange are taken to the Statement of Financial Activities.

w) Pensions: retirement benefits to employees are provided primarily through the Fife Council superannuation scheme. This is a defined benefit scheme which is externally funded and contracted out of the State Earnings Related Pension Scheme. Note 18 below gives further information regarding pension arrangements.

x) Support costs: support costs on activities for generating funds are charged to those activities by means of invoices raised by the Trust to the wholly- owned companies. The amount charged for the year was £247,000 (2014 - £199,000). Support costs relating to governance are allocated on the basis described in Note 3 below. All other costs are regarded as directly related to the delivery of the charitable activity.

y) Going concern: at the time of approving the accounts, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future.

2. ANALYSIS OF GOLFING INCOME Golfing income can be analysed as follows:

Visitor green fees and Old Course premiumYearly ticket revenue and annual contribution fromThe Royal and Ancient Golf ClubOther golfing income

2014£

8,987,577

1,303,5371,658,704

£11,949,818

2015£

7,695,282

1,401,4612,427,351

£11,524,094

Consolidated


Notes to the Accounts continuedfor the year ended 31 December 2015


Payroll costs (note 17) Cost of goods sold and catering non-payroll expenses Operating expenses Depreciation Amortisation and impairment of intangible fixed assetsAmortisation of Goodwill Arising on ConsolidationPayments under operating leases land and buildingsLegal & professional fees Auditor’s remuneration non-audit servicesBad debts written off Development expenditure (note 4) Bank interest Notional net interest cost on FRS102 calculation on pension scheme liability VAT not recoverable (note 1 t) Governance costs (see table below) GOVERNANCE COSTS Auditor’s remuneration audit work

Total2014

£

9,145,598

3,426,6964,175,5331,287,954

305,974

84,607

206,117198,960

6,05510,20489,872

132,700

160,000142,73427,300

£19,400,304

Total2014

£

27,300£27,300

Total2015

£

9,467,692

3,631,2313,891,6731,256,282

322,490

84,607

157,675178,864

9,477-

134,75382,326

213,000149,88627,250

£19,607,206

Total2015

£

27,250£27,250

Expenditureon charitable

activities£

8,519,813

992,6762,470,0541,096,704

-

84,607

5,37561,349

6,552-

134,75382,322

213,000149,88614,100

£13,831,191

Expenditureon charitable

activities£

14,100£14,100

Expenditureon raising

funds£

947,879

2,638,5551,421,619

159,578

322,490

-

152,300117,515

2,925--4

--

13,150£5,776,015

Expenditureon raising

funds£

13,150£13,150

Basis ofapportionment

Usage

UsageUsageUsage

Usage

Usage

UsageUsage

UsageUsageUsageUsage

UsageUsageUsage

Basis ofapportionment

Usage

3. ANALYSIS OF TOTAL RESOURCES EXPENDED

On-course sheltersGreenkeeping Centre improvementsRoad and pathways improvementsIrrigation system extensionsCoastal protection worksOld Course first tee area improvementsGeneral development work

4. DEVELOPMENT EXPENDITURE

All development expenditure is incurred by St Andrews Links Trust. The subsidiary companies have no expenditure of this nature. Expenditure can be analysed as follows:

2014£

31,36133,817

9729,7785,2938,273

378£89,872

2015£

59,39435,06127,9046,746

252-

5,396£134,753

i) CONSOLIDATED

COSTAt 1 January 2015AdditionsDisposalsAt 31 December 2015

DEPRECIATIONAt 1 January 2015Charge for yearDisposalsAt 31 December 2015

NET BOOK VALUEAt 31 December 2015

At 31 December 2014

ii) LINKS TRUST ONLY

COSTAt 1 January 2015AdditionsIntra-group transfersDisposalsAt 31 December 2015

DEPRECIATIONAt 1 January 2015Charge for yearIntra-group transfersDisposalsAt 31 December 2015


At 31 December 2014

Total£

35,213,996834,230

(482,796)£35,565,430

9,954,0091,256,282(436,599)

£10,773,692

£24,791,738

£25,259,987

Total£

32,181,434676,955(10,668)

(320,993)£32,526,728

7,749,3051,034,256

(25,807)(295,927)

£8,461,827

£24,064,901

£24,432,129

Assets underconstruction

£

-77,518

-£77,518

---

£-

£77,518

£-

Assets underconstruction

£

-53,898

--

£53,898

----

£-

£53,898

£-

Officefurniture &equipment

£

4,605,214206,491

(148,332)£4,663,373

3,589,401365,559

(124,636)£3,830,324

£833,049

£1,015,813

Officefurniture &equipment

£

2,830,399151,89322,067

(57,951)£2,946,408

2,192,365231,564

6,620(50,922)

£2,379,627

£566,781

£638,034

Vehicles,plant andequipment

£

5,000,402526,189

(334,464)£5,192,127

3,420,508578,840

(311,963)£3,687,385

£1,504,742

£1,579,894

Vehicles,plant andequipment

£

4,018,341447,132(32,735)

(263,042)£4,169,696

2,648,679496,323(32,427)

(245,005)£2,867,570

£1,302,126

£1,369,662

Tenant’simprovements

£

6,384,00918,198

-£6,402,207

1,714,046124,752

-£1,838,798

£4,563,409

£4,669,963

Tenant’simprovements

£

6,108,32318,198

--

£6,126,521

1,678,207119,238

--

£1,797,445

£4,329,076

£4,430,116

5. FIXED ASSETS

Land and buildings

£

19,224,3715,834

-£19,230,205

1,230,054187,131

-£1,417,185

£17,813,020

£17,994,317

Land and buildings

£

19,224,3715,834

--

£19,230,205

1,230,054187,131

--

£1,417,185

£17,813,020

£17,994,317




6. INTANGIBLE FIXED ASSETSDuring the year St Andrews Links Limited and Tom Morris Limited incurred expenditure to acquire or develop trademarks and other intellectual properties. Where this expenditure is likely to result in the successful registration of a mark with revenue earning potential that expenditure is capitalised as an intangible fixed asset and amortised, on a straight line basis, over ten years.

Tom Morris Limited, which was acquired by the Trust in October 2010, owned certain intellectual properties which, in the opinion of the Trustees, had revenue earning potential. No value had been attributed to these properties in the accounts of Tom Morris Limited but an estimated fair value of £750,000 was attributed to them by the Trustees as at the date of acquisition.

The table below analyses intangible fixed assets:

COSTAt 1 January 2015AdditionsWritten off following impairment review as at 31 DecemberAt 31 December 2015

AMORTISATIONAt 1 January 2015Charge for year Written off following impairment review as at 31 DecemberAt 31 December 2015


At 31 December 2014

As at 31 December each year, impairment reviews are performed on all intangible fixed assets in accordance with accounting standards. If, in the opinion of the Directors or Trustees, any of the capitalised items no longer have reasonable prospects of generating future revenues, the remaining net book value of those items is written off.

Following the impairment review carried out at 31 December 2015 intangible fixed assets with a net book value of £1,453 (2014 - £14,188) were written off.

As at 31 December 2015, all intellectual properties registered to Tom Morris Limited were transferred to St Andrews Links Limited thereby placing all intellectual properties within a single company.

7. INVESTMENT IN SUBSIDIARY COMPANIESThe table below lists the Trust’s subsidiary companies. As at 31 December 2015 the Trust owned 100% of the issued share capital in each company. During the year, the 25% shareholding in Tom Morris International Limited held by TPD International Limited as at 31 December 2014 was transferred to the Trust.

Unless otherwise stated, the value attributed to each company in the Trust’s accounts is equal to the nominal value of the issued share capital. The results of the subsidiary companies are included in the consolidated accounts. Any taxable profits of the companies are remitted to the Trust through Gift Aid arrangements.

Total£

3,104,458354,522

(1,495)£3,457,485

845,411321,037

(42)£1,166,406

£2,291,079

£2,259,047

Tom Morris Ltd at Fair

Value£

750,000--

£750,000

312,50075,000

-£387,500

£362,500

£437,500

Registrations etc. acquired

£

2,354,458354,522

(1,495)£2,707,485

532,911246,037

(42)£778,906

£1,928,579

£1,821,547

NameSt Andrews Links LimitedThe Castle Course St Andrews LimitedSt Andrews Links Golf Shops LimitedTom Morris LimitedTom Morris International Limited Deduct provision against the carrying value of Tom Morris International Limited

The following notes describe the activities of each subsidiary company.

i. St Andrews Links Limited (Links Ltd): The company receives royalties and other income derived from the exploitation of trademarks and other intellectual properties and bears the costs associated with protecting those intellectual properties. As at 31 December 2015 the company’s aggregate assets and liabilities were £190,346 and it reported a profit on ordinary activities of £5,366 (2014 - £79,902) after making payments to the Trust under Gift Aid of £313,578 (2014 - £nil).

ii. The Castle Course St Andrews Limited: The company was formed in 2005 to operate an 18-hole golf course- The Castle Course. As at December 2015 the company’s aggregate assets and liabilities were £686,492 and it reported a profit on ordinary activities of £67,755 (2014 - £72,508). No Gift Aid payments were made to the Trust in either 2015 or 2014.

iii. St Andrews Links Golf Shops Limited (Golf Shops): The company was formed in 1999 to sell clothing and other memorabilia and merchandise bearing the Trust’s brands. As at 31 December 2015 the company’s aggregate assets and liabilities were £1,906,307 and it reported a loss on ordinary activities of £47,406 (2014 – profit of £825,823) after making payments to the Trust under Gift Aid of £857,324 (2014 - £nil).

iv. Tom Morris Limited: The company was acquired by the Trust in October 2010 and its carrying value in these accounts represents the purchase price together with additional ordinary shares subscribed for by the Trust. Prior to acquisition the company had registered various ‘Old Course’ and ‘St Andrews’ trademarks, primarily in the United States, the acquisition of which materially improved the strength of the Group’s trademark portfolio. Since acquisition, the company acquired various ‘Tom Morris’ marks which produce income for the Group.

During the year the company incurred expenditure relating to these marks and, as a result, incurred a loss of £27,439 (2014 - £19,280). As at 31 December 2015 the company’s intellectual properties were transferred to St Andrews Links Limited at book value and, from that date, that company assumed responsibility for all costs and revenues connected with the intellectual properties.

Although the company will have limited activity in 2016, the Trustees have confirmed their ongoing support for the company and are of the opinion that the carrying value in these accounts is represented by the value of the assets now held by St Andrews Links Ltd.

v. Tom Morris International Limited (TMI): The company was formed to develop and market products bearing the “Tom Morris” brand and began trading in 2012. A trading history has since been established behind the brand through the achievement of sales to wholesale customers and to retail customers via the internet and the Tom Morris Shop in St Andrews. During 2015, the Board of TMI decided that building on the establishment of the brand, a licensing model offered more scope for long term development of the registered “Tom Morris” trademarks.

In line with the strategic review discussed in the Trustees’ Report, all merchandise stocks have been transferred to St Andrews Links Golf Shops Ltd for future sale through that company’s existing retail outlets. Intellectual properties relating to “Tom Morris” are now included in the portfolio managed by St Andrews Links Ltd.

As a result, future income generated from the sale of merchandise and the licensing of the “Tom Morris” marks will be received by other group entities and not by TMI. As an example, during May 2016 St Andrews Links Ltd entered in to a licensing contract with a major overseas corporation guaranteeing revenue attributable to the “Tom Morris” brand and other St Andrews marks over a number of years. The Trustees have therefore decided to make a provision against the carrying value of the investment in TMI. The provision recognised in the Trust’s own accounts of £1,788,549 comprises £100 in respect of the share capital and £1,788,449 in respect of the intra-group loan account balance as at 31 December 2015.

2014£

150,000500,000500,000

1,799,66675

-£2,949,741

2015£

150,000500,000500,000

1,799,666100

(100)£2,949,666

%ageowned

100%100%100%100%100%




8. GOODWILL ARISING ON CONSOLIDATIONThe goodwill arising on consolidation relates to the acquisition in 2010 of Tom Morris Limited and represents the difference between the estimated fair value of the company’s assets and the purchase price paid. Goodwill is being amortised over ten years on a straight line basis and the following table analyses the figure in the accounts.

Original goodwill arising on consolidation

Amortisation As at 1 January 2015 Charge for the year ended 31 December 2015

Book Value as at 31 December 2015

Book value as at 31 December 2014

£

846,063

352,52884,607

437,135

£408,928

£493,535

9. DEBTORS

a. Amounts due within one yearTrade debtorsAmounts due by wholly-owned companiesPrepaymentsTaxation and Social Security

b. Amounts due after more than one yearLoans to Tom Morris International Limited

2014£

165,7021,618,656

134,13887

£1,918,583

£3,809,000

2015£

100,5913,485,227

112,392-

£3,698,210

£-

2014£

201,317-

579,20587

£780,609

£-

2015£

135,633-

526,593-

£662,226

£-


As explained in Note 7 v. above, the Trustees have made full provision in these accounts against the carrying value of the investment in TMI and the intra-group loan account balance with the company as at 31 December 2015.

10. CREDITORS: Amounts falling due within one year

Trade creditors Bank overdrafts Current portion of bank Term Loans Current portion of R&A Trust Company (No. 1) Limited loan Current portion of R&A Foundation loan Amounts due to wholly-owned companies Taxation and Social Security Accruals

2014£

356,736934,187640,000

-200,000

1,116,577288,173153,840

£3,689,513

2015£

359,590-

520,000250,000

-588,246370,251118,203

£2,206,290

2014£

529,437934,187640,000

-200,000

-296,479519,030

£3,119,133

2015£

432,728-

520,000250,000

--

376,588336,526

£1,915,842


11. DEFERRED INCOMEThe following items are treated as deferred income:i. payments received in advance to confirm reservations for play in the following yearii. the unexpired portion of yearly ticket revenues and the annual contribution from the R&Aiii. tournament and championship facility fees received in advanceiv. liability in respect of unredeemed gift cardsv. payments recieved in advance for golf academy tuition

The total of deferred income on the Links Trust’s balance sheet at 31 December 2015 was £2,640,951 (2014 - £2,044,922). On a consolidated basis, deferred income at 31 December 2015 was £3,039,383 (2014 - £2,308,594).

12. CREDITORS DUE AFTER MORE THAN ONE YEAR

i) Royal Bank of Scotland Term Loan- 2008ii) Royal Bank of Scotland Term Loan- 2014iii) R&A Trust Company (No. 1) Limited

2014£

920,000500,000

1,000,000£2,420,000

2015£

400,000-

750,000£1,150,000

2014£

920,000500,000

1,000,000£2,420,000

2015£

400,000-

750,000£1,150,000

i) Royal Bank of Scotland Term Loan – 2008On 31 May 2008 a development loan was converted to a Term Loan, repayable in thirty-six quarterly instalments and with a principal sum of £5,400,000. Repayments began on 31 March 2009 and the final repayment is due on 31 December 2017. All of the £400,000 shown above bears interest at 1.5% over RBS LIBOR rate.

ii) Royal Bank of Scotland Term Loan – 2014In January 2014 an additional term loan of £500,000 was agreed with RBS. The loan bore interest at 2% over RBS LIBOR rate and was repayable at any time prior to 31 July 2018. Trustees decided to repay this loan in full in December 2015.

iii) R&A Trust Company (No. 1) LimitedDuring 1994 and 1996 the Royal and Ancient Golf Club advanced interest-free loans in the aggregate amount of £1 million. These loans were subsequently assigned to R&A Trust Company (No. 1) Limited and are due to be repaid in four equal annual instalments, the first of which is due in July 2016. The instalments due for repayment between July 2017 and July 2019 are shown as long term liabilities.

13. UNRESTRICTED RESERVES (RETAINED SURPLUS)Unrestricted reserves represent the aggregate of all surpluses earned by the Trust or, in the case of the Consolidated Balance Sheet, the Trust and its subsidiary companies. Unrestricted reserves bear no relationship whatsoever to cash or bank facilities available to the Trust.

Movements on unrestricted reserves can be analysed as follows:

Unrestricted reserves brought forward at 1 January Net incoming resources Unrestricted reserves carried forward at 31 December

2014£

20,028,403(563,725)

£19,464,678

2015£

19,464,6782,377,327

£21,842,005

2014£

18,836,582(1,032,494)

£17,804,088

2015£

17,804,0883,650,684

£21,454,772






14. EFFECT OF TRANSITION TO FRS102i) Defined benefit pension scheme There is a presentation change under FRS102 whereby net interest on the net defined benefit pension liability is presented in the Statement of Financial Activities using the liability discount rate. Under previous UK GAAP the interest in the expected return on net assets was calculated using an expected asset discount rate. This had no impact on the reserves on transition but affects the allocation of interest between net income and other gains/(losses).

ii) Reconciliation of net movement in funds for the year ended 31 December 2014

Net income for the year ended 31 December 2014Adjustment to net interest on net defined pension liability

Remeasurement of defined benefit pension liability at 31 December 2014Adjustment to remeasurement of defined pension liability

Trust£

1,608,275(240,000)

1,368,275

(2,172,000)240,000

(1,932,000)

Consolidated£

1,139,506(240,000)899,506

(2,172,000)240,000

(1,932,000)

15. FINANCIAL ACTIVITIES OF ST ANDREWS LINKS TRUST (the Charity)The financial activities undertaken by St Andrews Links Trust are analysed in the following table:

Gross incoming resources Total expenditure on charitable activities Governance costs Net incoming resources before other recognised gains / (losses) Remeasurement gain / (loss) on defined benefit pension scheme Provision against investment in Tom Morris International Limited Net incoming / (outgoing) resources after remeasurement loss on pension scheme Total funds brought forward Total funds carried forward Represented by Unrestricted reserves

2014as restated

£

12,976,736(11,562,761)

(45,700)1,368,275

(1,932,000)-

(563,725)20,028,403

£19,464,678

£19,464,678

2015£

13,787,896(12,268,820)

(11,200)1,507,8762,658,000

(1,788,549)2,377,327

19,464,678£21,842,005

£21,842,005

16. ST ANDREWS LINKS JUNIOR GOLF ASSOCIATIONSt Andrews Links Junior Golf Association (SALJGA) was set up by the Trustees in 2002 to continue and expand existing town initiatives to promote the development of junior golf in St Andrews. Membership is open to any child, aged 5 to 18, residing in or attending a school in St Andrews. Members receive coaching from both professional and trained volunteer coaches, each of whom has received specialist training in golf tuition and child protection. The Trust underwrites the costs of the SALJGA programme, although some funds are generated through membership subscriptions, events and other sponsorships. In 2015 The R&A Foundation made a grant to the Trust of £15,000 (2014 - £15,000), which the Trustees applied against SALJGA costs. In 2015 the net cost to the Trust was £37,138 (2014 - £46,320).

17. EMPLOYEES AND THEIR REMUNERATIONThe average number of employees of the Trust and its subsidiary companies during the year ended 31 December 2015 was 298 (2014 – 288) and their aggregate remuneration, including the cost of pension contributions, employers National Insurance and benefits in kind was £9,467,692 (2014 - £9,145,598).

Payroll costs can be analysed as follows:

Salaries and benefits in kind Social Security costs Contributions to Defined Benefit pension schemes Contributions to Defined Contribution pension schemes Other employee benefits FRS102 adjustments

The numbers of employees whose pay and taxable benefits exceeded £60,000 fell within the following bands:

£60,000 - £69,999£80,000 - £89,999£90,000 - £99,999£100,000 - £109,999£150,000 - £159,999

In 2015 all of the employees (2014 – 6) in the above table participated in the Fife Council defined benefits pension scheme. Contributions of £63,557 (2014 - £58,109) were made to defined contribution schemes in respect of these employees.

The total amount of employee benefits, including salary, benefits in kind and employer’s pension contributions, received by the key management personnel shown in the organisation chart on page 33 was £824,990 (2014 - £808,533).

2014as restated

£

7,295,108540,369858,327138,51294,282

219,000£9,145,598

2015£

7,358,179522,813886,979189,74860,973

449,000£9,467,692

2014

13-217

2015

-21216

18. PENSIONSThe Trust provides pension benefits in two principal ways.

To meet its obligations to comply with regulations regarding workplace pensions (Automatic Enrolment) the Trust operates a compliant defined contribution scheme with NOW:Pensions. Since 1 August 2014 this scheme has been the Trust’s default pension provision. Trustees decided to enhance pension provision by making employer’s contributions based on 5% of salary rather than the 1% required by law.

During 2015 employer contributions of £126,191 (2014 - £80,653) were made to the NOW:Pensions scheme.

The Trust is an admitted body to the Fife Council Pension Scheme, which is a funded defined benefit scheme providing benefits based on career average earnings. During the year the Trust made employers contributions to the scheme of £894,299 (2014 - £854,741). This scheme closed to new admissions on 1 August 2014.




Pension increase rateSalary increase rateDiscount rate

2014

2.4%4.8%3.6%

2015

2.4%3.5%3.9%

Mortality assumptions are based on SAPS year of birth tables with mortality loadings applied based on membership class. The valuation as at 31 December 2015 used the following assumptions of longevity (in years) following retirement:

Current PensionersFuture Pensioners

Females

23.7 years26.4 years

Males

22.0 years24.1 years

ii) Analysis of assets and expected rates of returnThe estimated split of assets attributable to the Trust’s portion of the scheme, and the expected return on assets for each category is as follows:

EquitiesBondsPropertyCash

Expected return

3.6%3.6%3.6%3.6%

Share of Assets

71%16%9%4%

Expected return

3.9%3.9%3.9%3.9%

Share of Assets

69%15%10%6%

2015 2014

iii) Reconciliation to the balance sheetThe following table provides the reconciliation of funded status to the balance sheet:

Fair value of Scheme assetsPresent value of funded Scheme liabilitiesNet underfunding in funded plansPresent value of unfunded liabilitiesNet liability

The financial year end of the Fife Council Scheme is 31 March and, to meet the requirements of FRS102, the Trustees commissioned a valuation from the Scheme actuaries, Hymans Robertson, of the Trust’s portion of the overall scheme assets and liabilities as at 31 December 2015. That valuation was based on estimated information in some respects rather than detailed information and analysis as at 31 December 2015 and for the year then ended. The following tables summarise the assumptions used by the actuaries and their valuation of the Trust’s share of assets and liabilities. The outcome of their valuation at 31 December 2015 has resulted in a material reduction in the Trust’s theoretical liability from £5,677,000 at 31 December 2014 as restated to £3,681,000 at 31 December 2015.

i) Financial assumptionsThe last actuarial valuation of the scheme was carried out as at 31 March 2014 and the actuary prepared his valuation at 31 December 2015 by projecting the results of that valuation forward using approximate methods. The valuation as at 31 December 2015 used the following principal assumptions:

2014£’000

16,873(22,495)(5,622)

(55)£(5,677)

2015£’000

18,282(21,917)(3,635)

(46)£(3,681)

As at 31st December

The actuary expects the Trust to pay employer’s contributions of approximately £884,000 in 2016.

iv) Changes to the present value of liabilities during the yearThe following table analyses the component parts of the change during the year in the present value of scheme liabilities attributable to the Trust:

Opening defined benefit obligationCurrent service costInterest costContributions by membersRemeasurement (gains) / lossesEstimated unfunded benefits paidEstimated benefits paidClosing defined benefit obligation

v) Changes to the fair value of assets during the yearThe following table analyses the component parts of the change during the year in the fair value of scheme assets attributa-ble to the Trust:

Opening fair value of assetsExpected return on assetsContributions by membersEmployer contributionsContributions in respect of unfunded benefitsRemeasurement gains / (losses)Estimated unfunded benefits paidEstimated benefits paidClosing fair value of assets

vi) Amounts recognised in net outgoing resourcesThe following table analyses the component parts of amounts recognised in net outgoing resources:

Current service costNet interest costRemeasurement of return on assetsTotal

A separate defined contribution scheme is available to some staff, contributions to which amounted to £63,557 (2014 - £55,859).

2015£’000

17,9821,113

852273

2,641(5)

(306)£22,550

2015£’000

22,5501,348

835276

(2,738)(5)

(303)£21,963

Year ended 31st December

2014£’000

14,616932273889

5469

(5)(306)

£16,873

2015£’000

16,873542276894

50

(5)(303)

£18,282


2014£’000

1,113(80)

-£1,033

2015£’000

1,34821380

£1,641





19. TRUSTEE REMUNERATION AND BENEFITSTrustees do not receive any remuneration, nor have any Trustees received any benefits from an employment with St Andrews Links Trust or any of the subsidiary companies. During 2015 accommodation and subsistence expenses of £692 were reim-bursed to one Trustee (2014 - £nil) who represented the Trust at an international championship.

As part of its overall insurance cover, the Trust has Directors and Officers Liability Insurance which provides cover for Trustees, members of the Links Management Committee and staff. The proportion of the cost of this cover attributable to Trustees cannot be ascertained but is immaterial.

20. OBLIGATIONS UNDER OPERATING LEASESAmounts payable over the remaining term of non-cancellable operating leases are analysed below:

i) Links Trust onlyOperating leases with expiry date-Within one yearBetween two and five yearsMore than five years

21. FUTURE CAPITAL COMMITMENTS AND PLANNED CAPITAL AND DEVELOPMENT EXPENDITUREThe following capital expenditure has been authorised or contracted for as at 31 December 2015:

a) Contracted for but not yet incurred

b) Authorised but not yet contracted for

2014£

£-

£551,000

2015£

£49,065

£778,044

2014£

£-

£843,800

2015£

£76,749

£1,016,060

Consolidated Trust

22. RELATED PARTIESThe Trustees are aware of the following transactions with individuals or bodies falling within the definition of related parties contained in the Charities and Trustee Investment (Scotland) Act, 2005 or which would require disclosure under the SORP.

TP Dally, a director of Tom Morris International Limited until he resigned on 27 November 2015, was also a director of TPD International Limited.

TPD International Limited provided sales and marketing services to Tom Morris International Limited for which a fee of £92,341 (2014 - £75,000) was paid during the year. In addition, the company was paid £5,174 (2014 - £9,833) for various office, travel and subsistence and other expenses.

As at 31 December 2015 Tom Morris International Limited owed £nil to TPD International Limited (2014 – £5,108).

ii) ConsolidatedOperating leases with expiry date-Within one yearBetween two and five yearsMore than five years

2014£

1,250--

£1,250

2015£

-18,810

-£18,810

Land and buildings

2014as restated

£

24,343-

1,397,635£1,421,978

2015£

-18,810

1,217,335£1,236,145

Land and buildings

1. TrusteesThe following persons served as Trustees during the year. The appointing body for each Trustee is noted below.

R D Muckart (Chairman)Sir W M CampbellS GethinsMrs G G KirkwoodCouncillor J LeishmanCouncillor D F MacgregorG D MackenzieMrs I MorrisonJ C Noble

The Royal and Ancient Golf ClubMP for North East Fife (Retired 30 March 2015- see below)MP for North East Fife (Elected 7 May 2015- see below)The Scottish GovernmentFife CouncilFife CouncilThe Royal and Ancient Golf ClubFife CouncilThe Royal and Ancient Golf Club

Reference and Administrative Informationas at 31 December 2015

Sir W M Campbell ceased to be a Trustee when Parliament was prorogued on 30 March 2015 prior to the General Election on 7 May 2015. At that election S Gethins was elected as the Member of Parliament for the North East Fife constituency and, accordingly, became a Trustee.

On 31 December 2015 Councillor J Leishman and G D Mackenzie reached the end of their terms of appointment. Both were reappointed to serve a further term.

At the first Trustees’ Meeting of 2016 R D Muckart was re-elected Chairman of Trustees.


(Back Row; L-R) G D Mackenzie, Cllr D Macgregor, S Gethins MP and J Noble(Front Row; L-R) Mrs G Kirkwood, R Muckart (Chairman) and Mrs I Morrison(Inset Above) Cllr J Leishman


2. Links Management CommitteeThe following persons served on the Links Management Committee during the year. The appointing body for each member is noted below.

S G Race (Chairman)Professor J S ForsythMrs D KennedyI M MarshallB MillarCouncillor D MorrisonDr E ThainCouncillor B Thompson

Fife CouncilThe Royal and Ancient Golf ClubThe Royal and Ancient Golf Club (Retired 31 December 2015)The Royal and Ancient Golf ClubFife CouncilFife CouncilThe Royal and Ancient Golf Club (Retired 31 December 2015)Fife Council

On 31 December 2015 Mrs D Kennedy and Dr E Thain reached the end of their terms of office and retired. They were replaced by Mrs A O White and D A Comb.

At the first Links Management Committee meeting of 2016 S G Race was re-elected Chairman of the Committee.

(Back Row; L-R) D A Comb, Cllr B Thomson, B Millar and I M Marshall(Front Row; L-R) Cllr D Morrison, S G Race (Chairman) and Mrs A O White(Inset Above) Professor J S Forsyth

3. Address of Administrative OfficesThe Trust’s offices are located at: Pilmour House St Andrews Fife, KY16 9SF Telephone 01334 466666 Website www.standrews.com

4. AuditorsThe Trust’s auditors are: Henderson Loggie The Vision Building 20 Greenmarket Dundee, DD1 4QB

5. BankersThe Trust’s bankers are: Royal Bank of Scotland plc 113-115 South Street St Andrews Fife, KY16 9QB

6. LawyersThe Trust’s lawyers are: Thorntons Law LLP Kinburn Castle St Andrews Fife, KY16 9DR

7. Charity Registration NumberSt Andrews Links Trust is a registered Scottish charity. The registered charity number is SC006161.

8. Statement of Trustees’ responsibilities in respect of the Financial StatementsThe Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in Scotland requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and the group and of the incoming resources and application of resources of the charity and the group for that period. In preparing these accounts, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed, and explained in the accounts; and

• prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the St Andrews Links Order Confirmation Act, 1974. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.


Reference and Administrative Information continuedas at 31 December 2015


9. Organisation Chart- key management personnelThe day-to-day management of the Trust is carried out by a full-time management team. The members of that team, and their principal areas of responsibility, are shown below.

Chief ExecutiveEuan Loudon

Director of Operations

Ewen Bowman

• Food and BeverageOperations

• Reception

• Facilities & property maintenance

• Training & Development

Director of Finance

Euan MacGregor

• Accounting & reporting

• Information technology

• Human resources

Director of Greenkeeping

Gordon Moir

• Greenkeepers

• Workshop & stores

Director of Golf

John Grant

• Reservations

• Players’ assistants & Caddie department

• Golf Academy, Practice Centre

& Custom Fitting

• Junior Golf

• Tournaments and Championships

Commercial Director

Danny Campbell

• Retail shops

• Partnerships, licensing and brand

management

• External relations & media

• Marketing

Five year analysis of Consolidated Statement of Financial Activities

2011as restated

£

10,819,7051,840,9334,036,3231,048,605

31,88468,7178,741

10,30917,865,217

6,995,993

2,697,8063,109,4501,118,480

-132,857

84,607244,31622,125

-250,032

-57,794

189,82314,903,283

£2,961,934

2,961,934

(349,000)

£2,612,934

2012£

10,968,6961,860,5543,952,9971,359,773

73,93276,9918,291

34,46318,335,697

7,332,645

2,859,6663,786,1961,102,713

73161,860

84,607220,81423,475

-204,400

-53,999

132,57015,963,018

£2,372,679

2,372,679

(1,757,000)

£615,679

2013£

11,168,4381,971,5554,573,0841,290,265

83,500121,003

7,6724,832

19,220,349

8,071,542

3,244,3534,582,3071,153,871

-198,346

84,607218,52324,0508,658

153,334

-272,208143,214

18,155,013

£1,065,336

1,065,336

(106,000)

£959,336

2014as restated

£

11,949,8182,072,1394,845,2691,323,382

71,28185,9507,729

86320,356,431

9,145,598

3,426,6964,387,7051,287,954

56,621305,974

84,607198,96027,30010,204

132,700

160,00089,872

142,73419,456,925

£899,506

899,506

(1,932,000)

£(1,032,494)

2015£

11,524,0942,197,6575,126,5821,566,782

134,83140,5608,1741,210

20,599,890

9,467,692

3,631,2314,058,8251,256,282

-322,490

84,607178,86427,250

-82,326

213,000134,753149,886

19,607,206

£992,684

992,684

2,658,000

£3,650,684

INCOME Golfing income Catering income Merchandise income Royalties Other non-golfing income Gain on disposal of fixed assets Rents receivable Interest receivable EXPENDITURE Payroll Catering non-payroll costs and goods for resale General expenses Depreciation Loss on disposal of fixed assets Amortisation of intangible assets Amortisation of goodwill arising on consolidation Legal & professional fees Audit fees Bad debts written off Interest payable Notional net interest cost on FRS102 calculation on pension scheme liability Development expenditure Irrecoverable VAT

Net incoming resources before other recognised gains / (losses) OTHER GAINS / (LOSSES) Net incoming resources before other recognised gains/(losses) Other recognised gains/(losses) Remeasurement gain/(loss) on defined benefit pension scheme RETAINED SURPLUS / (DEFICIT)

Unaudited Statistical Analysisprepared from consolidated financial statements



Five year Balance Sheet summary

2011as restated

£

21,999,6911,315,823

747,35624,062,870

877,060489,419

2,627,6813,994,160

715,1701,550,9012,374,3924,640,463

(646,303)

(4,680,000)

(1,475,000)

£17,261,567

17,261,567-

£17,261,567

2012£

23,748,0101,428,147

662,74925,838,906

1,274,243726,356

1,055,1533,055,752

640,0001,217,5422,257,8454,115,387

(1,059,635)

(3,720,000)

(3,182,000)

£17,877,271

17,877,24625

£17,877,271

2013£

24,973,8512,263,964

578,14227,815,957

1,789,488798,644303,833

2,891,965

640,0002,579,2412,526,0745,745,315

(2,853,350)

(2,760,000)

(3,366,000)

£18,836,607

18,836,58225

£18,836,607

2014£

25,259,9872,259,047

493,53528,012,569

2,463,366780,60972,296

3,316,271

640,0002,479,1332,308,5945,427,727

(2,111,456)

(2,420,000)

(5,677,000)

£17,804,113

17,804,08825

£17,804,113

2015£

24,791,7382,291,079

408,92827,491,745

2,357,424662,226729,602

3,749,252

520,0001,395,8423,039,3834,955,225

(1,205,973)

(1,150,000)

(3,681,000)

£21,454,772

21,454,772-

£21,454,772

FIXED ASSETS Tangible fixed assets Intangible assets Goodwill arising on consolidation

CURRENT ASSETS Stock Debtors Cash at bank and in hand

CURRENT LIABILITIES Bank term loan-current repayments Creditors Deferred income

NET CURRENT LIABILITIES

LONG-TERM LIABILITIES

PENSION SCHEME LIABILITY

NET ASSETS

REPRESENTED BY:- Unrestricted reserve Minority interest

TOTAL RESERVES

Old

Castle

New

2014 2013 20122015 2011

Jubilee

Eden

Strathtyrum

100%

80%

60%

40%

20%

0%

Five year analysis of rounds played on the Trust’s golf courses

2011

110,861

119,306

230,167

2012

104,539

111,935

216,474

2013

105,061

108,025

213,086

2014

115,243

116,929

232,172

2015

107,906

101,283

209,189

By local golfers

By visiting golfers

Total rounds

The 144th Open had a major impact on rounds played in 2015. The Old Course closed on 20 June, reopening on Tuesday 21 July after bad weather forced the postponement of the final round until Monday 20 July. With the exception of The Castle Course, which remained open throughout the period, all of the other courses were closed for between one and five weeks. During any Old Course closure, visitor rounds on the other courses tend to fall as, in many cases, it is the potential of gaining access to the Old Course, either through advance reservations, the ballot or as a casual golfer, that brings visitors to the town. Thus, although total play was down by just under 10%, the course closures affected visitor play more than local play. Visitor rounds fell by 13.4% compared to a 6.4% reduction in local play. As a result, and for the first time since 2010, visitor play represented less than 50% of total rounds played.

Analysis of rounds played by course (18-hole courses only)

Proportion of play on 18 hole courses


Unaudited Statistical Analysis continuedprepared from consolidated financial statements

St Andrews Links TrustPilmour House • St Andrews • Fife • KY16 9SF • Scotland

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