Annual Report and Accounts 2018...3 | St Andrews Links Trust: Scottish Charity No. SC006161 Chief...

St Andrews Links Trust: Scottish Charity No. SC006161

2018Annual Report and Accounts

Contents

1 Contents

2 Chairmen’s Statement

3 - 7 Chief Executive’s Report

8 - 11 Trustees’ Report

12 -13 Independent Auditor’s Report

14 - 29 Accounts for the year ended 31 December 2018 14 Consolidated Statement of Financial Activities 15 Balance Sheets 16 Cash Flow Statements 17 - 29 Notes to the Accounts

30 - 33 Reference and Administrative Information

34 - 36 Unaudited Statistical Analysis

1 | St Andrews Links Trust: Scottish Charity No. SC006161

Chairmen’s Statementfor the year ended 31 December 2018

Golf in all its forms is an integral part of life in St Andrews. The Links Trust plays a signifi cant role in that way of life and as we look back on a successful year, we are very conscious that high standards do not come without considerable effort. At the heart of this is a wonderful team of colleagues, each working throughout our 800 acres of living landscape to provide a fi rst-class experience within the four pillars of Play; Learn; Shop and Relax.

Organisational success has been matched by increased interest in coming to enjoy St Andrews as well as participating in this unique multi-generational sport. The statistics speak for themselves, with more than 224,000 rounds of golf played across the six 18-hole courses and many more rounds enjoyed by the young, older golfers and families on the very accessible Balgove Course. All of these golf courses have, once again, been presented in fantastic condition throughout the year. Our varied offering here at the Home of Golf is a particular strength and we will continue to develop our facilities in a way that maintains the principles of openness and public access in order to encourage new entrants to the sport as well as sustaining a variety of challenges for more experienced golfers.

Investing in quality underpins such ambitions and we continue to place emphasis on programmes such as the St Andrews Links Junior Golf Academy, which helps introduce and further the golf development of children attending schools in the town. We are pleased to see that this programme has maintained its popularity, attracting 275 children aged between 5 and 18 to participate in tuition and competition in a fun learning environment. Our ambition to widen the reach of golf in St Andrews was enhanced in June 2018 with the installation of a Trackman Range at the Golf Academy. This state-of-the-art radar technology continues the commitment of the Links Trust to innovation and provides a different kind of golfi ng experience, through data analysis and interactive games. In the months following installation there has been a signifi cant increase in visitors to the 32 Trackman Range enabled bays with golfers of all ages and abilities sampling the technology and providing very positive feedback.

It has also been pleasing to see other investments in irrigation technology leading to a reduction in water consumption as well as landscaping improvements to the courses and the start of several infrastructure projects that will enhance the customer journey at the Home of Golf. All of this work is focussed on pursuing the vision of continually developing St Andrews Links as the most renowned public golf complex in the world, where we deliver unique and memorable experiences and do so in an environmentally and economically sustainable way.

The Senior Leadership Team has once again helped to spearhead these efforts translating strategic intent into delivery and done so, this year, at a time of signifi cant change in two key appointments. In August and then in December, we marked the departure of Euan MacGregor and Gordon Moir, Directors of Finance and Greenkeeping respectively, stepping down after more than 50 years combined service. We would like to thank them for their dedicated contribution to the Links. They both played signifi cant roles in helping to develop the Links Trust throughout a pivotal time in its history, contributing to outstanding standards of fi nancial prudence in the stewardship of the Trust and excellent standards of agronomy and turf-care on the Links courses. Their responsibilities now pass to Lyall Dochard and Sandy Reid, who bring with them a host of experience, enthusiasm and new ideas to help ensure the Trust and St Andrews remain at the forefront of golf.

On behalf of the Board of Trustees and Links Management Committee, we would like to commend everyone associated with St Andrews Links Trust for their ongoing work. The continued success of the Home of Golf would not be possible without their expertise and unswerving commitment to excellence.

Gordon D Mackenzie OBE Steven G RaceChairman of Trustees Chairman of Links Management Committee

24 May 2019

Gordon D Mackenzie OBEChairman of Trustees

Steven G RaceChairman of Links Management Committee

2 | St Andrews Links Trust: Annual Report and Accounts 2018


Chief Executive’s Report for the year ended 31 December 2018

As the Chairmen have said, 2018 was a good year. We continue to make progress on our core drivers of Courses, Customer Journey and Brand and a great deal of the credit for all of this should go to the outstanding commitment of all of the staff working at St Andrews Links Trust. Without exception, be they permanent, or seasonal employees, the whole team is focussed on enhancing the customer experience and increasing the renown and reputation of the Home of Golf.

Several years ago, we identifi ed and established our unifying purpose as ‘continually developing St Andrews Links as the world’s most renowned public golfi ng complex, where we deliver unique and memorable experiences for golfers to play, learn, shop and relax’. This is embedded in our culture at St Andrews Links and we count ourselves lucky that the delivery of our shared goals is supported on a daily basis by a suite of world class Partners. Their number increased in January 2018 when we signed a new long-term partnership with NBC Golf as the ‘Offi cial Media Partner of St Andrews Links’. This gives St Andrews an unprecedented platform, with one of the world’s most prestigious media companies, to reach and inspire a truly international audience. In the coming years we hope to create exciting, innovative content that will showcase the unique relationship between history, golf and St Andrews, enabling more people than ever to develop an affi nity with this special place. We are very excited by the values of authenticity and passion that we share and that are so evident in NBC Golf’s storytelling and production values and techniques.

Attracting and engaging with partnerships of this quality relies signifi cantly on the integrity of the Trust’s Intellectual Property and as I have said before the protection of IP assets can be unglamorous and controversial but it is essential for the long-term development of the well-being and reputation of St Andrews Links. The infringement of “rights” cannot be disregarded and we will continue to challenge such behaviour both now and into the future.

The popularity of the golf courses, in particular the Old Course, remains exceptionally high. There was a very marginal drop in overall rounds played compared with 2017 but this, in large part, was a result of course closures due to adverse weather conditions and some one-off tournament commitments at St Andrews in 2018.

We delivered an increase in golfi ng income in 2018 as we completed the fi rst calendar year of managing our Old Course Commercial Tee Times under a new system, which involved working with a large number of Authorised Providers of guaranteed tee times on two or more of the Links courses. This innovation also served as the inspiration for our commercial photography offering which was launched in 2018. This provides golfers, within 24 hours of their tee times, with access to an online gallery of images documenting their experience on Holes 1, 17 and 18 of the Old Course. It proved very popular in its debut year and we would expect interest in this to grow in the years to come.

Facilitating golf is what we do but all of this work depends on our careful environmental management of 800 or so acres of living landscape. This involves striking a sensitive balance between people’s expectations, the many and varied opportunities that are offered at the Home of Golf, as well as coping with a demanding set of statutory and other duties that impact on our custodianship of this famous golf Links. The bedrock of all of this is daily excellence in the preparation and presentation of the courses. Sometimes Mother Nature presents us with unusual challenges and 2018 was a rare combination of extreme cold in springtime and one of the hottest Scottish summers on record. The move from courses covered in snow in March to baking hot sun from May to July meant that the courses were presented in fantastic condition with crisp, brown

Euan Loudon CBEChief Executive

fairways thrilling all fans of Links golf. There is a great deal of human skill, knowledge and professionalism involved in our greenkeeping operation and the team is lucky to be supported, so enthusiastically, by our turf-care machinery partner Toro. Throughout 2018 they continued to upgrade the fl eet of equipment across our three greenkeeping centres, positioning St Andrews at the very forefront of technological innovation in the maintenance and irrigation of fi ne grasses and turf. We also took delivery of and helped Toro trial a semi-autonomous grass-cutting machine which has already operated both at the Castle and Strathtyrum Courses. Real time information feedback was provided to Toro R&D Headquarters in Minneapolis and we look forward to learning more about how this type of technology will assist greenkeeping operations in the future.

The appearance of the courses during the summer months prompted a healthy dose of reminiscing for many of us who romanticise about the endless summers of our youth. This sense of nostalgia culminated in July with the arrival of The Senior Open presented by Rolex. This tournament was hosted on the Old Course for the fi rst time and a fi eld of star-studded names from yesteryear: the likes of Langer, Daly, Faldo, Montgomerie, Watson, Singh, Couples and Rocca returned to St Andrews Links determined to win the fi rst-ever Senior Major at the Home of Golf. More than 40 Ryder Cup players, 11 Ryder Cup Captains, 71 European Tour winners and more than 50 PGA Tour victors rolled back the years to provide fans with a wonderful spectacle, with Miguel Ángel Jiménez securing his fi rst Senior Open Championship victory. But it was the record entry of more than 600 golfers from around the world for Monday qualifying at courses across Fife that really showcased the enduring appeal of St Andrews Links. Each of these golfers took on the

Chief Executive’s Report continued

for the year ended 31 December 2018

challenge to secure one of 24 qualifying places available in the fi eld, each desperate to play the Old Course in a competitive environment. Their appearance at St Andrews served to remind us, not only of the magnetic draw of this place but also the wonderful opportunities that golf affords people of all ages. Our commitment to encourage more people to participate in and engage with golf was also refl ected in the many prestigious male and female amateur events that we hosted. In 2018, this manifested itself through some truly outstanding young talent on our courses, starting with the Links Trophy, presented in association with Allianz. Ireland’s John Murphy beat German left-hander Jannik de Bruyn on the fi rst hole of a playoff. The 19-year-old victor provided a fi tting reminder of the rapidly changing nature of the world, advising that his victory on his Old Course debut owed much to a decade of playing virtual golf Old Course video games. The St Rule Trophy was held in June, and saw Lianna Bailey record her fi rst top amateur title with a tightly contested fi eld. Lianna was the fi rst English winner of the St Rule trophy since Mel Reid in 2007.

We are acutely aware of the changing demands and expectations of a younger audience. We are proud of the St Andrews Links Junior Golf Academy Programme as well as the work of our team of PGA instructors, who deliver hundreds of hours of tuition with St Leonards School and to university students at both novice and elite level each year. Many of these young golfers become familiar faces at the Academy, on the courses and in our clubhouses. And it was pleasing to see a familiar face, in the form of 17-year-old Ben Caton, from the New Club, St Andrews, prevail over Blairgowrie’s Fraser Matthews to lift the

Miguel Ángel Jiménez,winner of The Senior Open presented by Rolex


John Murphy (Kinsale) clinched the Links Trophy following a dramatic play-off win over Germany’s Jannik De Bruyn

Junior Ladies’ Open winner Kimberley Beveridge (Aboyne) lifts the Golf Monthly trophy


Merchants Cup at the Boys Open as part of our jam-packed calendar of August Tournaments. Joining Ben in the winner’s circle was Aboyne’s Kimberley Beveridge, who defeated Fern Clark, from South Staffs, in the Junior Ladies Open. Ben’s victory meant he became the fi rst St Andrews-based winner since Jamie Farmer, in 1998, and we wish him further success with his golfi ng exploits.

We are also proud of the regular staple of tournaments and the opportunity it affords to golfers of all ages, gender and ability to compete and make lasting friendships at St Andrews Links. With Carnoustie hosting the 147th Open we were delighted to welcome a record entry of 142 emerging boy and girl golfers from 78 countries to compete in the fi rst Junior Open to be contested in St Andrews. The Eden Course provided the perfect stage for some late drama as Martin Vorster from South Africa survived a major scare to claim his fi rst-ever major international title. With previous participants including the likes of Jordan Spieth, Rory McIlroy and Paula Creamer, we look forward to welcoming many of these incredible young talents back to St Andrews in the future.

Working closely with the R&A, Scottish Golf Limited and the many visiting delegations from amateur governing bodies around the world gives us a unique insight into the latest efforts within the golfi ng sector to encourage more people to participate in some form of golf experience. In June, we began to offer golfers a unique opportunity to play and practice golf with the assistance of a Trackman Range at the Golf Academy. Although these are early days, the feedback, particularly from novices and newcomers to the game, has been exceptionally positive.

Our retail business enjoyed another year of growth in the fi ve stores we operate in St Andrews. 2018 was also the fi rst year of the new Open Merchandising arrangements, which saw our retail team manage, under contract, the retail and merchandise operations of The Open Championship. This included the large on-site shop at The Open, which caters for thousands of fans during the Championship, as well as the year round operation of a permanent Open Shop in St Andrews. During the fi rst year of operations we exceeded budget and with 12 months experience under our belts, we are confi dent this relationship will go from strength to strength as the Open moves to Royal Portrush in 2019. We remain committed to investing in the quality of our infrastructure and equipment at St Andrews Links. During the winter of 2018/19 a new Half-way House was constructed adjacent to the 9th green of the Old Course. This replaces the refreshment van which has been in use for many years and will provide a more extensive refreshment service for golfers. The proximity of this new facility to the New Course will also enable golfers playing on that course to utilise the service.

The Open Shop opened for business in March 2018.

Trackman Range at the Golf Academy provides instant feedback and gaming capabilities to golfers of all ages and abilities.

Chief Executive’s Report continued


Elsewhere on the Links, the former offi ce known as Pilmour Lodge has been demolished. In its place we will build a new Headquarters that will provide the Trust with a 2-storey building that, once completed, will serve as the hub for more than 50 staff working across a range of different disciplines, including IT, HR, Food & Beverage, Events, Finance, Technical Services, Tournaments, Golf and Commerce.


On the courses a number of projects were undertaken, including continued renovation work on the New Course and the erection of a larger putting green and repositioned fi rst tee at The Castle Course. Alongside their work on the New Course, award-winning Golf Course Architecture fi rm Mackenzie and Ebert undertook a major revamp of the short-game facility at the Golf Academy.

Ben Caton (New Club, St Andrews) won the Boys’ Open, the fi rst local golfer to lift the Merchants’ Cup since Jamie Farmer in 1998.

England’s Lianna Bailey was crowned the 2018 St Rule Trophy winner.

Work began in winter 2018 to prepare the site of a new Headquarters for the Trust.


The Junior Open was staged over the Eden Course attracting a record entry of 142 emerging boy and girl golfers from 78 countries.

The Trust’s commitment to the West Sands continued with environmental measures and renovation work on the West Sands Café

Previously, the site comprised of a large fl at green with fi ve bunkers on one side offering limited shot selection. The re-profi led site offers more bunkers and four new greens, three of which have been raised and shaped to mimic shots more akin to those golfers might experience out on the courses.

In April 2016, the Trust agreed, with Fife Council, to take a more proactive role in the maintenance of the land between the perimeter of the Jubilee Course and the High Water Mark of West Sands Beach. Our commitment to this special and renowned area extended during the winter of 2018 when we signed a lease to operate the former Sea Shell Café at the West Sands. After an extensive programme of refurbishment it will be renamed and then operate as the West Sands Café. We see this facility as an important focus for public facilities, catering for the needs of local residents and the many visitors who come to enjoy their visits to the West Sands each year. I believe the news of this development was received well in the local tourism community and

we will continue to liaise with stakeholders such as Fife Council and the Fife Coast and Countryside Trust to manage and maintain the unique ecological nature of the West Sands.

It is a signature of the culture at St Andrews Links Trust – and one which I have noted and been impressed by since my fi rst days here – that colleagues are so committed to behaving with warmth and integrity in their dealings with customers. By striving to make the experience the best it can be, they build a bond of trust that strengthens the relationships we have across a broad spectrum of stakeholders, both in St Andrews as well as beyond the town boundary. I am extremely proud of their dedication and very grateful for their efforts.

At a local level, such efforts reinforce the sense that the Trust is always aspiring to be a good neighbour. I was pleased to see that in 2018 we gave £121,896 to the St Andrews Community Trust - which receives a payment of a percentage of our licensing royalties each year- towards projects of public benefi t in St Andrews and the surrounding area. St Andrews Links greenkeepers assisted in a national project to help regenerate the saltmarsh below the seawall near the Eden Course. The “Green Shores” project is focussed on the Eden Estuary, the wider Tay Estuary and Dornoch Firth. The greenkeeping team also assisted Fife Coast and Countryside Trust with a project to stabilise a part of the sand dunes on the West Sands using old Christmas trees. We have also been active with the Tourism St Andrews Beach Wheelchair Project and we hope to continue this support in 2019. Lastly, I applaud our colleagues who raised £1,600 in their 2018 Christmas raffl e and donated the proceeds to the RNLI in Fife and Pancreatic Cancer Scotland.

We look forward keenly to next year where we will continue to strive to optimise the number of people who benefi t from the open and accessible golfi ng opportunities that are available at St Andrews Links.

Euan Loudon CBEChief Executive

24 May 2019

IntroductionThe Trustees of St Andrews Links Trust present their Annual Report and Accounts for the year ended 31 December 2018. This report is prepared in compliance with the Charities Accounts (Scotland) Regulations, 2006 (as amended), Financial Reporting Standard 102 (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 Confi rmation Act, 1974 (the “Links Act”), a private Act of Parliament.

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 fi rst meeting each year, Trustees elect a chairperson and are reminded of their duties and responsibilities under the Links Act and other charities legislation.

Trustee recruitment, induction and trainingAlthough Fife Council and The R&A each appoint three Trustees and the Scottish Government appoints one it is important to stress that the Trustees are not in any way representatives or delegates of their appointing body.

Newly 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 briefi ngs on all areas of the Trust’s operations from senior management.

GovernanceDay to day management of the Trust and its subsidiary companies is performed 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 committees and working parties exist to facilitate more detailed consideration of key aspects of the Trust’s operations.

Each of the wholly owned subsidiary companies has a Board of Directors which include a mixture of Trustees, members of the management team and, where benefi cial, independent non-executive directors. The committees, working parties and Boards report to the Trustees at their formal meetings.

The Audit and Risk Committee is responsible for meeting with the Auditors to agree the planning for the audit, reviewing the audit fi ndings and the draft audited Annual Report & Accounts and approving them for submission to Trustees. They also review the Trust’s risk register and, if approved, recommend it to Trustees for adoption. The Committee also has oversight over the Trust’s investments policy and performance.

The Finance Committee is responsible for reviewing and approving draft budgets and pricing recommendations prior to their submission to Trustees for approval. In addition, the Committee was tasked with reviewing those risks regarded as fi nancial risks and reporting back to the Audit & Risk Committee whether, in their opinion, they are adequately refl ected in the risk register.

A Governance Committee is tasked with ensuring the Trust’s governance practices remain appropriate for an organisation of the Trust’s size and complexity.

A Remuneration Committee sets the pay and remuneration of the management team having regard to various factors including the movement in RPI and CPI indices.

A Nomination Committee meets when required to select suitable candidates to fi ll Trustee vacancies.

A statement of the Trustees’ responsibilities in respect of the accounts is contained in the Reference and Administrative Information on page 32.

Charitable purposeThe Trust is a registered charity 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 profi ts 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 ActivitiesThe Trust’s principal objective, as stated in the Links Act, 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”.

St Andrews is famous worldwide, not just in golfi ng but also in academic and ecclesiastical circles, and has a rich history. It is widely recognised as the “Home of Golf”, where the game began and largely evolved into its current form, is home to The Old Course - the oldest and most famous golf course in the world - and is renowned for its golfi ng connections.

Trustees’ Report for the year ended 31 December 2018



Many hundreds of thousands of people all over the world feel a strong emotional attachment to St Andrews and this bond raises the expectations of the thousands of visitors who fl ock to the town, many of them to fulfi l a lifelong dream. Their expectations are high and the Trustees are acutely aware that only the highest standards of course presentation, facilities and service will meet or exceed those expectations. The Trustees’ vision is 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.

Locally, too, the Trust and the golf courses play an important role in the everyday life of the town. This is recognised in the Links Act which extends certain entitlements to residents of the town and to 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 fi xtures 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.

Nearly 50% of all golf on the Trust’s courses is played by yearly ticket holders, R&A members and residents of St Andrews yet only a very small proportion of the Trust’s income is derived from these sources. The Trust depends on visitors for the great majority of its golfi ng and other revenues and it is therefore important, for both the Trust and the town, that the Trustees maintain an equitable balance between ‘local’ and ‘visitor’ play.

The activities of the Trust’s subsidiaries, St Andrews Links Golf Shops Limited (SALGS) and St Andrews Links Limited (SALL), make a major contribution to the Trust’s turnover and surplus and provide a degree of diversifi cation from reliance solely on income derived from the golf courses. Profi ts earned from the retail and licensing activities help to underwrite the Trust’s ability to keep yearly ticket prices as low as possible.

The Trustees are proud that the town and the wider public benefi t from the Trust’s efforts to commercialise its intellectual property portfolio. St Andrews Links Limited pays a royalty to the St Andrews Community Trust which applies those royalties towards projects of public benefi t to St Andrews and the surrounding area. In 2018 royalties of £121,896 accrued to the benefi t of the Community Trust, bringing the total amount of royalties since the Community Trust was established in 2010 to more than £760,000.

During 2018 the Trust participated in the National Coastal Change Assessment, set up by the Scottish Government in furtherance of The Climate Change (Scotland) Act 2009. Although the assessment of the coastline around St Andrews Links indicated that there are a few localised areas which may be at long-term risk of erosion the Trustees believe there is no medium-term risk to the Links.

Achievements and PerformancePlease refer to the Chairmen’s Statement and Chief Executive’s Report.

Financial ReviewPresentation of the accountsThe accounts are prepared in compliance with the Charities SORP (FRS102). 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 accountsNet income, before the remeasurement movement on the defi ned benefi t pension scheme, increased 8% to £2,796,342, including growth in Golf, Merchandise and Royalty income, offset by continued investment in both personnel and infrastructure during the year, and a reduction in Catering income. Pleasingly the total Trust expenditure margin was held in line with 2017 levels at just over 89%.

The liquidity position continued to improve during 2018, with cash balances reported at £15,313,375 at year end. This improvement includes the positive earnings performance reported above together with an improvement in the working capital profi le of the Trust, including an increase in prepaid visitor golfi ng income and a reduction in inventory levels.

Total income reached record levels with an increase of 7% or £1,623,436 from 2017 performance.

Golfi ng income increased 7% in 2018, this despite a reduction in visitor rounds played during the year due to the inclement weather experienced in early 2018, together with the impact of both the Junior and Senior Open tournaments which were held in the summer months. Those tournaments generated additional income for the Trust.

Merchandise sales increased by 5% with all shops reporting a growth in sales during the year. Sales from internet and mail order channels also performed well and recorded double digit revenue growth in the year. 2018 was also the fi rst year of the new Open Merchandising arrangements with the R&A, which also performed ahead of expectationsas mentioned in the Chief Executive’s Report.

During July 2018 the Scottish Tourist Board conducted their annual Quality Assurance visit to the Trust and we were delighted to report that once again our catering facilities were given a 5-star rating award. However, driven by the reduction in visitor golfers together with the impact of the Senior Open tournament in the year, catering sales fell by 6% to £2,292,235.

Partnership and licensing income grew by 19% in 2018, following the addition of NBC and TSI to the offi cial partnership programme.

Total expenditure increased by 6% or £1,408,395 in 2018. Note that this included two signifi cant and exceptional items, namely an additional £400,000 funding to the Fife Council pension scheme (please see note 18 to the accounts), and a further write down of Tom Morris inventory totalling £320,000. Excluding both items the underlying normalised overheads increase was 3%.

Total payroll costs increased by £810,100, including the additional pension cost funding referred to above, and a £130,000 FRS102 adjustment relating to the estimated liability in respect of the Fife Council pension scheme (see below). The underlying normalised increase was 9% or £886,100 which included the addition of new roles combined with the annual salary review effective from January of each year.

The catering, non-payroll, and merchandising cost of goods sold expenditure increased by £399,475 or 9% in 2018. Note that this included the £320,000 stock write down mentioned above. Excluding this item the underlying normalised increase would have been 2%.

General expenses increased by 15% to £5,135,201 (2017 - £4,463,250). The main reasons for this uplift included the continued investment in the planned irrigation upgrade programme, with the completion of the Castle Course during the year; and further improvements to clubhouse facilities.

Depreciation charges continued to reduce during 2018 largely as a result of the planned programme to fi nance new greenkeeping equipment via operating lease rather than direct purchase.

To comply with accounting standards, the Trustees are required to commission a valuation exercise of the Fife Council pension scheme, referred to as the FRS102 valuation, from the scheme actuary. That valuation is prepared on an estimated basis using projected fi gures from the latest available triennial valuation, in this case as at 31 March 2017, and using a prescribed formula for discount rates and other key elements.

This treatment contrasts with the triennial valuation, which sets the contribution rates for the period between triennial valuation dates, and is carried out in great detail on an individual member basis. It is this triennial valuation which the trustees of the pension scheme will use in assessing the long-term health of the pension scheme as a whole.

In 2018 the calculation has given rise to a decrease in the theoretical liability by £1,465,000.

In addition to the balance sheet impact, the FRS102 calculation also impacts on the Consolidated Statement of Financial Activities in the following ways.

i) Included within payroll costs, as analysed in Note 17 to the accounts, is an amount intended to refl ect the calculated difference between Current Service Cost, i.e., the increase in the present value of the long-term obligations resulting from employee service in the current fi nancial year and the amount actually paid by way of employer calculations. This fi gure is calculated to be £130,000 for 2018 compared to £606,000 in 2017 due to both an increase in the calculated obligation and a reduction in employer contributions as a result of scheme members retiring or leaving the Trust’s employment during 2018.

ii) A notional interest cost is calculated, being the difference between the estimated cost of fi nancing the long-term obligations of the scheme and the actual investment returns received during the year. This fi gure is disclosed within Note 4 to the accounts and has reduced from £285,000 in 2017 to £138,000 in 2018.

The triennial valuation showed an increase in the scheme’s overall funding level to 92.9% at 31 March 2017 (87.8% at 31 March 2014), and the actuary has stated that the Trust’s portion of the scheme was 101% funded (99% funded at 31 March 2014).

The Consolidated Balance Sheet is presented on page 15 of the Report and Accounts.

As mentioned above the net income for the year together with the improvement in the working capital profi le for the Trust has resulted in a further improvement in bank and cash balances at the year end. Reserves policyThe Trustees wish to accumulate reserves in the form of freely available funds appropriate to the Trust’s needs. Those reserves would potentially be available to cover major unforeseen expenditure or loss of income arising from the occurrence of any of the principal risks described below or to fund the Trust’s infrastructure development plan.

The reserves would be available to cover emergency expenditure or a shortfall in income and to maintain the Trust’s ability to operate following a period of disruption.

In the Trustees’ opinion an appropriate level of reserves would be based on a multiple of ordinary operating expenditure plus a margin to allow for infrastructure developments.

Trustees’ Report continued




Principal risks to the Trust’s activitiesDuring 2018 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 suffi cient visitors to generate that income. Not all of these risks can be controlled or infl uenced by the Trustees.

For example, a major and prolonged disruption to air travel 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. This risk can be offset to some extent by developing other sources of income, e.g., royalties from the Trust’s intellectual property portfolio, but it would take considerable time to do so, potentially exposing the Trust to temporary cash fl ow issues.

The quality of the courses and facilities may also infl uence visitor numbers. The experience of the Trust’s greenkeeping staff, coupled with the best available equipment and supplies together with active training programmes, enable the Trust to set a benchmark in course maintenance standards. Continued investment in the facilities supporting the courses is also important.

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 Scientifi c Interest (SSSI) and there are numerous regulatory hurdles to be surmounted before signifi cant 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.

The Trustees are of the opinion that the major risks to which the Trust is exposed have been identifi ed and evaluated and that systems are in place to manage those risks and identify any new risks to which the Trust may become exposed.

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.

As part of the rolling ten-year infrastructure development plan, the Trust unveiled plans in early 2019 for the building of the new Head Offi ce during the year. The successful contractor is expected to be appointed in June 2019, with work expected to complete in winter 2020.

The next signifi cant infrastructure project will be the development of the Eden Clubhouse facility. This project is expected to commence in 2021 following the Open Championship, and project design and specifi cation discussions are now in full swing with our architects and professional advisors.

Gordon D Mackenzie OBEChairman of Trustees24 May 2019

Opinion We have audited the accounts of St Andrews Links Trust (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2018 which comprise the group Statement of Financial Activities, the charity and group Balance Sheets and the charity and group cash fl ow statements and notes to the accounts, including a summary of signifi cant accounting policies. The fi nancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity’s Trustees, as a body, in accordance with 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 the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the accounts:

• give a true and fair view of the state of the group’s and parent charity’s affairs as at 31 December 2018, and of the 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 regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfi lled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our opinion.

Independent Auditor’s Report to the Trustees of St Andrews Links Trust for the year ended 31 December 2018

Conclusions relating to going concernWe have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the Trustees’ use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or

• the Trustees have not disclosed in the accounts any identifi ed material uncertainties that may cast signifi cant doubt about the group’s or parent charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.

Other informationThe Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ annual report, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

• the information given in the accounts is inconsistent in any material respect with the trustees’ report; or

• proper accounting records have not been kept; or

• the parent charity’s accounts are not in agreement with the accounting records; or

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


Responsibilities of trusteesAs explained more fully in the Trustees’ responsibilities statement [set out on page 32], the Trustees are responsible for the preparation of accounts which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the Trustees are responsible for assessing the group’s and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accountsWe 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 objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to infl uence the economic decisions of users taken on the basis of these accounts.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor’s report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signifi cant audit fi ndings, including any signifi cant defi ciencies in internal control that we identify during our audit.

MHA Henderson LoggieChartered AccountantsStatutory Auditor(Eligible to act as an Auditor in terms of section 1212 of the Companies Act 2006)The Vision Building20 GreenmarketDundeeDD1 4QB

27 May 2019

MHA Henderson Loggie is a trading name of Henderson Loggie LLP


INCOMEINCOME FROM CHARITABLE ACTIVITIES Golfi ng 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 fi xed assets

TOTAL INCOME

EXPENDITURE Expenditure on raising funds Expenditure on charitable activitiesTOTAL EXPENDITURE

NET INCOME

OTHER RECOGNISED GAINS Remeasurement gain on defi ned benefi t pension scheme

NET MOVEMENT IN FUNDS IN THE YEAR

RECONCILIATION OF FUNDS Balance brought forward

BALANCE CARRIED FORWARD

All funds are unrestricted.

2017£

13,936,4032,444,876

18,28216,399,561

6,687,0081,435,449

90,1448,212,601

18,777

136,849

24,767,788

6,198,35315,988,13422,186,487

2,581,301

5,743,000

8,324,301

17,888,142

£26,212,443

2018£

17,177,168

9,013,260

35,121

165,675

26,391,224

23,594,882

2,796,342

1,733,000

4,529,342

26,212,443

£30,741,785

£

14,852,5012,292,235

32,432

7,044,3001,706,121

262,839

6,693,77916,901,103

Notes

3

4

18

14

Consolidated Statement of Financial Activities for the year ended 31 December 2018


AUDITOR’S REPORT – PAGES 12 AND 13THE NOTES ON PAGES 17 TO 29 FORM PART OF THESE ACCOUNTS


FIXED ASSETS Tangible assets Intangible fi xed assets Investment in subsidiary companies Goodwill arising on consolidationTOTAL FIXED ASSETS CURRENT ASSETS Stocks Debtors- due within one year Cash at bank and in hand CREDITORS Amounts falling due within one year Deferred income NET CURRENT ASSETS 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

2017as restated

£ 22,682,601

-1,150,001

-23,832,602

177,9092,030,485

11,250,67213,459,066

3,518,9685,528,9079,047,875

4,411,191

28,243,793

(250,000)

27,993,793

(5,467,000)

£22,526,793

22,526,793

£22,526,793

2018£

22,830,478-

1,150,001-

23,980,479

230,5632,065,352

14,465,57916,761,494

3,884,5735,938,9159,823,488

6,938,006

30,918,485

(89,250)

30,829,235

(4,002,000)

£26,827,235

26,827,235

£26,827,235

2017£

23,371,7282,336,208

-239,714

25,947,650

1,465,216525,025

11,328,60213,318,843

1,408,5945,928,4567,337,050

5,981,793

31,929,443

(250,000)

31,679,443

(5,467,000)

£26,212,443

26,212,443

£26,212,443

2018£

23,412,0402,303,201

-155,107

25,870,348

1,092,0211,298,318

15,313,37517,703,714

2,299,4056,441,6228,741,027

8,962,687

34,833,035

(89,250)

34,743,785

(4,002,000)

£30,741,785

30,741,785

£30,741,785

Notes

6789

10

1112

13

18

14

Balance Sheets as at 31 December 2018

Consolidated Links Trust Only


These accounts were approved by the Trustees at their meeting on 24 May 2019 and are signed on their behalf by

Gordon D Mackenzie OBEChairman of Trustees

Cash fl ows from operating activities Net cash provided by operating activities (Note a. below) Cash fl ows from investing activities Interest received on bank deposits Interest received on intra-group loan accounts Payments to acquire tangible fi xed assets Payments to acquire intangible fi xed assets Receipts from sales of tangible fi xed assets Net cash used in investing activities Cash fl ows from fi nancing activities Finance Leases Increase in fi nance lease balance R&A Foundation- Decrease in long-term balance Net cash used in fi nancing 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 fl ows from operating activities Net incoming resources before other recognised losses Add back: Depreciation charges net of gain on sale Add back: Amortisation of intangible fi xed assets Add back: Amortisation of goodwill arising on consolidation Non-cash movements associated with FRS102 Retirement Benefi ts adjustments Deduct: Interest income shown in investing activities Decrease / (Increase) in stocks Decrease / (Increase) in debtors due within one year Increase / (Decrease) in creditors and deferred income Net cash infl ow 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

2017as restated

£7,324,913

18,75432,531

(397,638)-

280,922

(65,431)

-

(250,000)

(250,000)

7,009,482

4,241,190

11,250,672

901,5441,037,602

-

-

891,000(51,285)(28,843)187,461

4,387,4347,324,913

11,250,672-

11,250,672

2018£

4,306,823

34,63930,276

(1,245,397)-

249,316

(931,166)

89,250

(250,000)

(160,750)

3,214,907

11,250,672

14,465,579

2,567,443848,204

-

-

268,000(64,915)(52,655)(34,867)775,613

4,306,823

14,465,579-

14,465,579

2017£

7,851,747

18,777-

(570,052)(334,617)250,071

(635,821)

-

(250,000)

(250,000)

6,965,926

4,362,676

11,328,602

2,581,3011,256,305

416,267

84,607

891,000(18,777)16,524

(13,861)2,638,3817,851,747

11,328,602-

11,328,602

2018£

5,572,900

35,121-

(1,395,606)(410,809)343,917

(1,427,377)

89,250

(250,000)

(160,750)

3,984,773

11,328,602

15,313,375

2,796,3421,011,377

443,816

84,607

268,000(35,121)373,195

(773,293)1,403,9775,572,900

15,313,375-

15,313,375

Cash Flow Statements for the year ended 31 December 2018





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 benefi t entity as defi ned 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) 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 and Tom Morris Limited. With the exception of golfi ng activities, the gross turnover and expenditure of the subsidiary companies are treated as Activities for Generating Funds within the consolidated statement of fi nancial activities. Gross turnover and expenditure of The Castle Course St Andrews Limited are included within Charitable Activities in the consolidated statement of fi nancial activities. The assets and liabilities of the subsidiary companies are included on a line-by-line basis within the consolidated balance sheet.

d) 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.

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

• Costs of generated funds include 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 are of a capital nature, in which case expenditure is capitalised. Capital expenditure incurred on land and buildings owned by the Trust is capitalised and included in fi xed assets.

i) Tangible fi xed assets: tangible fi xed 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 defi ned as expenditure of a capital nature 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 fi xed 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 fi rst brought into use. Depreciation is charged on a straight line basis using the following rates:

• Vehicles, plant and equipment 20% • Offi ce 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 fi xed assets. These assets are amortised over a ten year period on the straight line basis. The Trustees believe that amortising intangible fi xed assets over ten years is reasonable because it can take several years to negotiate agreements to generate income from registered marks. An impairment review of all intangible fi xed assets is carried out annually at the balance sheet date. Further information on intangible fi xed assets is shown in Note 7 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.

Notes to the Accounts for the year ended 31 December 2018

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. 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 fi xed 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 2018.

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 benefi ts to employees are provided through the Fife Council defi ned benefi t superannuation scheme and a defi ned contribution scheme with NOW:Pensions. Note 18 below gives further information regarding pension arrangements.

x) Support costs: support costs on activities for generating funds are allocated to those activities by means of charges raised by the Trust to the wholly-owned companies. The amount charged for the year was £236,650 (2017 - £247,150). Support costs relating to governance are allocated on the basis described in Note 4 below. All other costs are regarded as directly related to the delivery of the charitable activity.

y) Accounting Estimates: in the Trustees’ opinion the only fi gure in these accounts which results from a signifi cant estimate is the defi ned benefi t pension scheme liability, calculated by the pension scheme actuary in compliance with FRS102. The actual performance is unlikely to be in line with the actuarial valuation as a result of the valuation being based upon assumptions on future unpredictable events such as return on assets and mortality rates. That estimate has a material impact on the accounts which is explained in more detail in Note 23 below.

3. ANALYSIS OF GOLFING INCOME Golfi ng income can be analysed as follows:

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

2017£

10,393,382

1,513,2482,029,773

£13,936,403

2018£

10,654,885

1,589,6372,607,979

£14,852,501


Notes to the Accounts continued


2. CHANGE IN ACCOUNTING POLICY

In the current year, the following new and revised Standards and Interpretations have been adopted by the charity and have an effect on the current period or a prior period or may have an effect on future periods:

Following the issue of Update Bulletin 2 in October 2018 amending the Charities SORP (FRS102), the treatment of gift aid to the parent company has been amended to refl ect that the gift aid payment is only recognised when paid and no longer accrued as payable to the parent charity.

The impact of this change is that 31 December 2017 retained profi ts for the Links Trust only have been decreased to £22,526,793 refl ecting the reversal of the previous 2017 provision for gift aid of £1,448,685. Consolidated retained profi ts are unchanged.


Payroll costs (note 17) Cost of goods sold and catering non-payroll expenses Operating expenses Depreciation Amortisation and impairment of intangible fi xed assetsAmortisation of Goodwill Arising on ConsolidationPayments under operating leases land and buildings EquipmentLegal & professional fees Auditor’s remuneration non-audit services Development expenditure (note 5) Bank interest Notional net interest cost on FRS102 calculation on pension scheme liabilityVAT not recoverable (note 1 t) Governance costs (see table below) GOVERNANCE COSTS Auditor’s remuneration audit work

TotalExpenditure

2017£

10,564,637

4,252,1914,001,6031,393,154

416,267

84,607

190,944264,548271,942

6,155282,356

-

285,000149,33323,750

£22,186,487

TotalExpenditure

2017£

23,750£23,750

TotalExpenditure

2018£

11,374,737

4,651,6664,604,7271,177,052

443,816

84,607

196,551325,584226,857

8,340148,720

12

138,000189,74824,465

£23,594,882

TotalExpenditure

2018£

24,465£24,465

Expenditureon charitable

activities£

10,000,558

1,239,5253,563,1341,082,085

-

84,607

5,500325,584106,690

4,490148,720

12

138,000189,74812,450

£16,901,103

Expenditureon charitable

activities£

12,450£12,450

Expenditureon raising

funds£

1,374,179

3,412,1411,041,593

94,967

443,816

-

191,051-

120,167

3,850--

--

12,015£6,693,779

Expenditureon raising

funds£

12,015£12,015

Basis ofapportionment

Usage

UsageUsageUsage

Usage

Usage

UsageUsageUsage

UsageUsageUsage

UsageUsageUsage

Basis ofapportionment

Usage

4. ANALYSIS OF TOTAL RESOURCES EXPENDED

On-course toilets & shelters Ecological improvements on courses Road and pathways improvements Coastal protection works General development work

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

2017£

184,39036,97623,39811,59026,002

£282,356

2018£

31,50063,1721,688

41,57510,785

£148,720

i) CONSOLIDATED

COSTAt 1 January 2018AdditionsReclassifi cationsDisposalsAt 31 December 2018

DEPRECIATIONAt 1 January 2018Charge for yearDisposalsAt 31 December 2018

NET BOOK VALUEAt 31 December 2018

At 31 December 2017

ii) LINKS TRUST ONLY

COSTAt 1 January 2018AdditionsReclassifi cationsIntra-group transfersDisposalsAt 31 December 2018

DEPRECIATIONAt 1 January 2018Charge for yearIntra-group transfersDisposalsAt 31 December 2018

NET BOOK VALUEAt 31 December 2018

At 31 December 2017

Total£

35,372,3431,395,606

-(1,042,489)

£35,725,460

12,000,6151,177,052(864,247)

£12,313,420

£23,412,040

£23,371,728

Total£

32,103,6151,245,397

-182,338

(838,420)£32,692,930

9,421,014985,092147,657

(691,311)£9,862,452

£22,830,478

£22,682,601

Assets underconstruction

£

15,162592,430

(1,596)-

£605,996

----

£605,996

£15,162

Assets underconstruction

£15,162

592,430(1,596)

--

£605,996

-----

£605,996

£15,162

Offi cefurniture &equipment

£

5,214,979445,767

1,596(785)

£5,661,557

4,495,127356,094

(785)£4,850,436

£811,121

£719,852

Offi cefurniture &equipment

£3,324.070

331,6631,596

-(785)

£3,656,544

2,815,130253,160

-(785)

£3,067,505

£589,039

£508,940

Vehicles,plant andequipment

£

4,180,556357,409

-(1,041,704)£3,496,261

3,330,142322,872

(863,462)£2,789,552

£706,709

£850,414

Vehicles,plant andequipment

£3,078,423

321,304-

182,338(837,635)

£2,744,430

2,482,918239,360147,657

(690,526)£2,179,409

£565,021

£595,505

Tenant’simprovements

£

6,416,685---

£6,416,685

2,088,861124,778

-£2,213,639

£4,203,046

£4,327,824

Tenant’simprovements

£6,140,999

----

£6,140,999

2,036,481119,264

--

£2,155,745

£3,985,254

£4,104,518

6. FIXED ASSETS

Land and buildings

£

19,544,961---

£19,544,961

2,086,485373,308

-£2,459,793

£17,085,168

£17,458,476

Land and buildings

£19,544,961

----

£19,544,961

2,086,485373,308

--

£2,459,793

£17,085,168

£17,458,476





7. INTANGIBLE FIXED ASSETS

During the year St Andrews Links Limited incurred expenditure to acquire or develop trademarks and other intellectual prop-erties. 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 fi xed asset and amortised, on a straight line basis, over ten years.

As at 31 December each year impairment reviews are performed of all intangible fi xed 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 2018 intangible fi xed assets with a net book value of £9,239 (2017 - £12,003) were written off.

The table below analyses intangible fi xed assets:

COST At 1 January 2018 Additions Written off following impairment review as at 31 December At 31 December 2018

AMORTISATION At 1 January 2018 Charge for year Written off following impairment review as at 31 December At 31 December 2018 NET BOOK VALUE At 31 December 2018 At 31 December 2017

8. INVESTMENT IN SUBSIDIARY COMPANIES

The table below lists the Trust’s subsidiary companies. 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 profi ts of the companies are remitted to the Trust through Gift Aid arrangements.

£4,264,544

410,809(11,968)

£4,663,385

1,928,336434,577(2,729)

£2,360,184

£2,303,201

£2,336,208

NameSt Andrews Links LimitedThe Castle Course St Andrews LimitedSt Andrews Links Golf Shops LimitedTom Morris Limited

2017£

150,000500,000500,000

1£1,150,001

2018£

150,000500,000500,000

1£1,150,001

%ageowned

100%100%100%100%

Note

8. i.8. ii.8. iii.8. iv.

The following notes describe the activities of each subsidiary company.

i. St Andrews Links Limited: 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 2018 the company’s aggregate assets and liabilities were £688,825 and it reported a profi t on ordinary activities of £351,181 (2017 – £170,852 as restated), after paying a management fee of £87,000 (2017 - £87,000) and Gift Aid of £30,136 (2017 - £nil as restated) to the Trust.

ii. The Castle Course St Andrews Limited: The company operates an 18-hole golf course- The Castle Course. As at December 2018 the company’s aggregate assets and liabilities were £852,395 and it reported a loss on ordinary activities of £68,510 (2017 – profi t £13,640), after paying a management fee of £23,000 (2017 - £24,500) to the Trust.

iii.St Andrews Links Golf Shops Limited: The company sells clothing and other memorabilia and merchandise bearing the Trust’s brands. As at 31 December 2018 the company’s aggregate assets and liabilities were £3,230,230 and it reported a profi t on ordinary activities of £105,343 (2017 – £1,652,823 as restated), after paying a management fee of £129,500 (2017 - £138,500) and Gift Aid of £1,418,549 (2017 - £nil as restated) to the Trust.

iv.Tom Morris Limited: The company operates the lease for one of the retail locations. As at 31 December 2018 the company’s aggregate assets and liabilities were £495 and it reported a profi t on ordinary activities of £495 (2017 – profi t £2,050), after paying a management fee of £150 (2017 - £150) to the Trust.




9. GOODWILL ARISING ON CONSOLIDATION

The 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 fi gure in the accounts.

Original goodwill arising on consolidation

Amortisation As at 1 January 2018 Charge for the year ended 31 December 2018

Book Value as at 31 December 2018

Book value as at 31 December 2017

£

846,063

606,34984,607

690,956

£155,107

£239,714


10. DEBTORS

Trade debtorsAmounts due by wholly-owned companiesPrepayments

2017as restated

£57,934

1,783,745188,806

£2,030,485

2018£

263,9421,347,908

453,502£2,065,352

2017£

76,126-

448,899£525,025

2018£

300,143-

998,175£1,298,318


11. CREDITORS: Amounts falling due within one year

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

2017as restated

£309,138250,000

2,354,824506,092

98,914£3,518,968

2018£

632,790250,000

2,061,416755,463184,904

£3,884,573

2017£

423,068250,000

-506,092229,434

£1,408,594

2018£

758,697250,000

-785,536505,172

£2,299,405


12. DEFERRED INCOME

The following items are treated as deferred income:i. payments received in advance to confi rm 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 cards and prepaid Golf Academy lessons

The total of deferred income on the Links Trust’s balance sheet at 31 December 2018 was £5,938,915 (2017 - £5,528,907). On a consolidated basis, deferred income at 31 December 2018 was £6,441,622 (2017 - £5,928,456).

13. CREDITORS DUE AFTER MORE THAN ONE YEAR

LeaseR&A Trust Company (No. 1) Limited

2017£

-250,000

£250,000

2018£

89,250-

89,250

2017£

-250,000

£250,000

2018£

89,250-

£89,250


During 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 were repayable in four equal annual instalments, the last of which is due in July 2019. The instalment due for repayment in July 2019 is shown as a current liability (note 11).

14. 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

2017as restated

£17,681,914

4,844,879 £22,526,793

2018£

22,526,7934,300,442

£26,827,235

2017£

17,888,1428,324,301

£26,212,443

2018£

26,212,4434,529,342

£30,741,785





15. FINANCIAL ACTIVITIES OF ST ANDREWS LINKS TRUST (the Charity)The fi nancial 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 defi ned benefi t pension schemeReduction in carrying value of investment in Tom Morris Limited Net incoming / (outgoing) resources after other recognised gains / (losses) Total funds brought forward Total funds carried forward Represented by Unrestricted reserves

2017as restated

£14,887,448

(13,973,804)(12,100)901,544

5,743,000(1,799,665)

4,844,87917,681,914

£22,526,793

£22,526,793

2018£

17,260,902(14,681,010)

(12,450)2,567,4421,733,000

-4,300,442

22,526,793£26,827,235

£26,827,235

17. EMPLOYEES AND THEIR REMUNERATION

The average number of employees of the Trust and its subsidiary companies during the year ended 31 December 2018 was 329 (2017 – 312) and their aggregate remuneration, including the cost of pension contributions, employers National Insurance and benefi ts in kind was £11,374,737 (2017 - £10,564,637).

Payroll costs can be analysed as follows:

Salaries and benefi ts in kind Social Security costs Contributions to Defi ned Benefi t pension schemes Contributions to Defi ned Contribution pension schemes Other employee benefi ts FRS102 adjustments

2017£

8,085,714701,418864,018230,95676,531

606,000£10,564,637

2018£

8,812,170750,646

1,346,793243,34891,780

130,000£11,374,737

16. ST ANDREWS LINKS JUNIOR GOLF ASSOCIATION

St Andrews Links Junior Golf Association (SALJGA) was set up by the Trustees in 2002 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 2018 the net cost to the Trust was £27,162 (2017 - £47,991).

Links Trust Only


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

£60,000 - £69,999£80,000 - £89,999£90,000 - £99,999£100,000 - £109,999£110,000 - £119,999£160,000 - £169,999£170,000 - £179,999

In 2018 and 2017 all of the employees in the above table participated in the Fife Council defi ned benefi ts pension scheme. Contributions of £56,766 (2017 - £66,116) were made to defi ned contribution schemes in respect of these employees. The total amount of employee benefi ts, including salary, benefi ts in kind and employer pension contributions, received by key management personnel was £923,795 (2017 - £852,770).

2017

221111-

8

2018

21121-1

8

18. PENSIONS

The Trust provides pension benefi ts in two principal ways.

a) Defi ned Contribution schemesTo meet its obligations to comply with regulations regarding workplace pensions (Automatic Enrolment) the Trust operates a compliant defi ned 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 contributions based on 5% of salary rather than the 1% required by law (2% required by law from 5 April 2018).

During 2018 employer contributions of £186,582 (2017 - £164,839) were made to the NOW:Pensions scheme.

A separate defi ned contribution scheme is available to some staff, total contributions to which amounted to £48,146 (2017 - £57,823).

b) Defi ned Benefi t schemeThe Trust is an admitted body to the Fife Council Pension Scheme, which is a funded defi ned benefi t scheme providing benefi ts based on career average salaries. During the year the Trust made employers contributions to the scheme of £1,346,793 (2017 - £864,018). The Trustees closed this scheme to new members in August 2014.

In compliance with the scheme rules, the actuary carried out a triennial valuation of the scheme as a whole, and the Trust’s portion of the scheme, as at 31 March 2017. As a result of that valuation, the Trust agreed to make a lump sum payment to the scheme of £400,000. Based on this payment the contribution rates for the three years commencing 1 April 2018 were agreed. The triennial valuation showed that the overall funding rate of the scheme as a whole had improved from 87.8% at 31 March 2014 to 92.9% at 31 March 2017.

The fi nancial year end of the Fife Council scheme is 31 March. To meet the requirements of FRS102, the Trustees commissioned a valuation from the Scheme actuary, Hymans Robertson, of the Trust’s portion of the overall scheme assets and liabilities as at 31 December 2018. That valuation was based on estimated information in some respects rather than detailed information and analysis as at 31 December 2018 and for the year then ended. The valuation impacted these accounts in the following ways;

i) a reduction in the balance sheet liability of £1,465,000 (2017 – reduction of £4,852,000) ii) a charge of £130,000 (2017 - £606,000), included within payroll costs in Note 17, representing changes in

employee service costs, and iii) a notional interest charge, included within Note 4, of £138,000 (2017 - £285,000) representing the fi nance cost of

projected long-term pension obligations.

The following tables summarise the assumptions used by the actuary and his valuation of the Trust’s share of assets and liabilities.

i) Financial assumptionsThe last actuarial valuation of the Scheme was carried out as at 31 March 2017 and the actuary prepared his valuation at December 2018 by projecting the results of that valuation forward using approximate methods. The valuation as at 31 December 2018 used the following principal assumptions:




Pension increase rateSalary increase rateExpected returns on assetsDiscount rate

2017

2.4%2.9%2.5%2.5%

2018

2.4%2.9%2.9%2.9%

Mortality assumptions are based on SAPS year of birth tables with mortality loadings applied based on membership class.

Current PensionersFuture Pensioners

Females

23.8 years25.8 years

Males

21.2 years22.6 years

The Trust expects to pay employer’s contributions of approximately £1,182,000 in 2019.

ii) Analysis of assetsThe estimated split of assets attributable to the Trust’s portion of the Scheme is as follows:

EquitiesBondsPropertyCash

2017

73%14%8%5%

2018

72%14%8%6%

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

2017£’000

26,271(31,695)(5,424)

(43)£(5,467)

2018£’000

26,871(30,830)(3,959)

(43)£(4,002)

As at 31st December


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 defi ned benefi t obligationCurrent service costInterest costContributions by membersRemeasurement (gains) / lossesEstimated unfunded benefi ts paidEstimated benefi ts paidClosing defi ned benefi t obligation

2017£’000

32,7251,475

899265

(3,155)(5)

(466)£31,738

2018£’000

32,7381,481

809262

(2,978)(5)

(434)£30,873

Year ended 31st December

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 attributable to the Trust:

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

Opening fair value of assetsEstimated return on assetsContributions by membersEmployer contributionsContributions in respect of unfunded benefi tsEstimated unfunded benefi ts paidEstimated benefi ts paidClosing fair value of assets

2017£’000

22,4063,202

265864

5(5)

(466)£26,271

2018 £’000

26,271(574)262

1,3465

(5)(434)

£26,871


2017£’000

1,475285

(2,588)£(828)

2018£’000

1,481138

1,245£2,864




19. TRUSTEE REMUNERATION AND BENEFITSTrustees do not receive any remuneration, nor have any Trustees received any benefi ts from an employment with St Andrews Links Trust or any of the subsidiary companies. During 2018 accommodation and subsistence expenses of £nil were reim-bursed to Trustees (2017 - £345).

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

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

21. FUTURE CAPITAL COMMITMENTS AND PLANNED CAPITAL AND DEVELOPMENT EXPENDITUREThe following capital expenditure has been authorised or contracted for as at 31 December 2018:

Contracted for but not yet incurred

2017£

-

2018£

£494,306

2017£

£27,023

2018£

£494,306


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

During 2018 a Trustee, Michael C Cordner, purchased an allocation of commercial tee times for 2019. The times were allocated on an arms-length basis under the same terms and conditions as for any other third party. The total value of the payments made to the Trust in respect of these commercial tee times was £10,320, (2017 - £10,200).

During 2018 the Trust sold goods to the value of £nil (2017 - £230) to a charitable trust of which a Trustee, Irene Morrison, is a Trustee.

i) CONSOLIDATED Operating lease payments due- Within one year Between two and fi ve years More than fi ve years

2017£

190,944749,586

1,668,996£2,609,526

2018£

198,420961,940

2,332,306£3,492,666

Land and buildings

ii) LINKS TRUST ONLY Operating lease payments due- Within one year Between two and fi ve years More than fi ve years

2017£

5,5007,810

-£13,310

2018£

5,5002,310

-£7,810

Land and buildings

2017£

63,85579,819

-£143,674

2018£

75,46618,867

-£94,333

Plant & Equipment

2017£

183,739459,851

-£643,590

2018£

261,929596,490

-£858,419

Plant & Equipment


24. PRIOR PERIOD ADJUSTMENT


23. EFFECT OF ACCOUNTING ESTIMATESTo comply with the requirements of FRS102, the Trustees have commissioned the actuary to the Fife Council pension scheme to carry out a valuation, following the rules set out in FRS102, of the Trust’s theoretical liability to the scheme. That calcula-tion depends on numerous estimates and has a material impact on these accounts. The component parts of the adjustment are analysed below.

Remeasurement gain shown in Consolidated Statement of Financial Activities Estimated changes in employee service costs (see Note 17) Estimated notional interest cost of funding future scheme benefi ts (see Note 4) Decrease in estimated pension scheme liability on the Consolidated Balance Sheet

2017£’000

5,743

(606)

(285)

£4,852

2018£’000

1,733

(130)

(138)

£1,465

Reconciliation of changes in reserves

Unrestricted reserves as previously reported

Adjustment to prior year Gift aid provision reversed (see Note 2)Unrestricted reserves as adjusted

Reconciliation of changes in surplus for the previous fi nancial period

Surplus as previously reported

Adjustment to prior yearGift aid provision reversed (see Note 2)

Surplus as adjusted

31st December2017

£

23,975,478

(1,448,685)£22,526,793

2017 £

6,293,564

(1,448,685)

£4,844,879

1st January2017

£

17,681,914

£17,681,914

Links Trust Only

Notes to reconciliation

Gift aid provisionsUnder changes to FRS102 SORP the treatment of gift aid from the subsidiaries, St Andrews Links Golf Shops Limited and St Andrews Links Limited, has been changed from provision for the amount receivable in each year to recognising the gift aid when received.

1. Trustees

The following persons served as Trustees during the year. The appointing body for each Trustee is noted below, as are the Committees and Subsidiary Company Boards that each Trustee has served on.

Gordon D Mackenzie OBE (Chairman)Michael C CordnerStephen GethinsAlan FrizzellJames LeishmanMark DobellIrene MorrisonAnn Verner

The Royal and Ancient Golf ClubThe Royal and Ancient Golf ClubMP for North East FifeThe Scottish GovernmentFife CouncilThe Royal and Ancient Golf ClubFife Council Fife Council

Reference and Administrative Informationas at 31 December 2018

On 31 December 2018, James Leishman reached the end of his term of appointment and was reappointed to serve a further term.

At the fi rst Trustees meeting of 2019 Gordon Mackenzie was re-elected Chairman of Trustees.


(Back Row: L-R) Michael Cordner, Alan Frizzell, James Leishman and Mark Dobell(Front Row: L-R) Irene Morrison, Gordon Mackenzie (Chairman) and Ann Verner(Inset above right): Stephen Gethins

Committee posts heldF, G, R, N, LF, G, SGA, R, L

A, R, SA, G, N, SA

Key to Committee posts:A - Audit & RiskF - FinanceG - GovernanceR - Remuneration

Stephen Gethins

N - NominationL - St Andrews Links LtdS - St Andrews Links Golf Shops Ltd


2. Links Management Committee

The following persons served on the Links Management Committee during the year. The appointing body for each member is noted below as are the Committees that each member has served on.

Steven G Race (Chairman)Lesley BackhouseBrian ThomsonJames LindsayDavid A CombProf J Stewart ForsythIan M MarshallAlison O White

Fife CouncilFife CouncilFife CouncilFife CouncilThe Royal and Ancient Golf ClubThe Royal and Ancient Golf ClubThe Royal and Ancient Golf ClubThe Royal and Ancient Golf Club

At the fi rst Links Management Committee meeting of 2019 Steven G Race was re-elected Chairman of the Committee.

(L-R) Ian Marshall, David Comb, Steven Race (Chairman), Alison White and Professor Stewart Forsyth

Committee posts heldF

GSCGSCFGSCGSC

Lesley Backhouse

James Lindsay

Key to Committee posts:F - FinanceGSC - Green sub-committee

Brian Thomson

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

4. AuditorsThe Trust’s auditors are: MHA 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 fi nancial 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 fi nancial statements for each fi nancial 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 2015 (FRS102); • 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 fi nancial position of the charity and enable them to ensure that the fi nancial 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 Confi rmation 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 fi nancial 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 continued

as at 31 December 2018


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

Chief Executive

EUAN LOUDON

Director of Operations

EWEN BOWMAN

• Food & beverageoperations

• Reception

• Facilities & property maintenance

Director of Finance

LYALL J DOCHARD

• Accounting & reporting

• Information technology

• People & development

Director of Greenkeeping

SANDY REID

• Greenkeepers

• Workshop & stores

• Environmentalinitiatives andconservation

Director of Golf

JOHN GRANT

• Reservations

• Golfers’ assistants & caddie department

• Golf Academy, Practice Centre

& Custom Fitting

• Junior Golf

• Tournaments and championships

Commercial Director

DANNY CAMPBELL

• Retail operations

• Partnerships, licensing and brand

management

• Management of Intellectual Properties

• Communications

• Digitalmarketing

Five year analysis of Consolidated Statement of Financial Activities

2014£

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

2016£

13,635,8142,310,6885,600,2951,154,835

78,64656,12410,5179,122

22,856,041

9,484,799

4,330,7153,763,8451,223,579

-375,974

84,607297,53623,900

-23,864

145,000126,903154,949

20,035,671

£2,820,370

2,820,370

(6,387,000)

£(3,566,630)

2017£

13,936,4032,444,8766,687,0081,435,449

90,144136,84918,28218,777

24,767,788

10,564,637

4,252,1914,463,2501,393,154

-416,267

84,607271,94223,750

--

285,000282,356149,333

22,186,487

£2,581,301

2,581,301

5,743,000

£8,324,301

2018£

14,852,5012,292,2357,044,3001,706,121

262,839165,67532,43235,121

26,391,224

11,374,737

4,651,6665,135,2011,177,052

-443,816

84,607226,85824,465

-12

138,000148,720189,748

23,594,882

£2,796,342

2,796,342

1,733,000

£4,529,342

INCOME Golfi ng income Catering income Merchandise income Royalties Other non-golfi ng income Gain on disposal of fi xed assets Rents receivable Interest receivable EXPENDITURE Payroll Catering non-payroll costs and goods for resale General expenses Depreciation Loss on disposal of fi xed 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 VATTotal revenue account expenditure Net incoming resources before other recognised gains / (losses) OTHER GAINS / (LOSSES) Net incoming resources before other recognised gains/(losses) Other recognised gains/(losses) Remeasurement (loss)/gain on defi ned benefi t pension scheme RETAINED SURPLUS / (DEFICIT)

Unaudited Statistical Analysisprepared from consolidated fi nancial statements



Five year summary of Consolidated Balance Sheet

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

2016£

24,308,0522,417,858

324,32127,050,231

1,481,740511,164

4,362,6766,355,580

-1,460,1703,238,4994,698,669

1,656,911

(500,000)

(10,319,000)

£17,888,142

17,888,142-

£17,888,142

2017£

23,371,7282,336,208

239,71425,947,650

1,465,216525,025

11,328,60213,318,843

-1,408,5945,928,4567,337,050

5,981,793

(250,000)

(5,467,000)

£26,212,443

26,212,443-

£26,212,443

2018£

23,412,0402,303,201

155,10725,870,348

1,092,0211,298,318

15,313,37517,703,714

-2,299,4056,441,6228,741,027

8,962,687

(89,250)

(4,002,000)

£30,741,785

30,741,785-

£30,741,785

FIXED ASSETS Tangible fi xed 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

The total number of rounds played on the Trust’s 18-hole courses was 224,048. This was slightly less than 2017 levels, due in part to the inclement weather in early 2018 and the Senior Open hosted in July.

Play by yearly ticket holders and R&A members accounted for 46% of this play (2017 – 47%) and visitors 54% (2017 – 53%).

The split of play between the courses was consistent between 2018 and 2017 with any variations, either for visitor or local play being less than 1%.

The Old Course continues to carry the greatest proportion of total play and it is, by a considerable margin, the most popular course for visitor play.

There is a signifi cant concentration of local play on the Eden and Strathtyrum Courses.

The proportion of visitor play on the Castle Course is substantially higher than the proportion of local play. The Castle Course has become well-established as a ‘must play’ course for many visiting golfers and, in addition to providing signifi cant green fee income, the popularity of the course has created more availability of local play on the New and Jubilee Courses.


Unaudited Statistical Analysis continued

Analysis of rounds played on the Trust’s 18-hole golf courses

14.3%21.9%

12.9%

17.0%16.8%

17.1%

Old

Castle

New

Jubilee

Eden

Strathtyrum

2018 All Play

22.4%15.7%

7.0%

14.9%

16.1%

23.9%

2018 Local Play

7.2%

27.3%

18.0%

18.9%

11.2%

17.4%

2018 Visitor Play

Old

Castle

New

Jubilee

Eden

Strathtyrum

Old

Castle

New

Jubilee

Eden

Strathtyrum

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

T: +44 (0)1334 466666 E: [email protected]

Scottish Charity no. SC006161

standrews.com

Annual Report and Accounts 2018...3 | St Andrews Links Trust: Scottish Charity No. SC006161 Chief...

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