CASE STUDY: CLOSE HOUSE FINANCES
‘Retaining key staff really is a massive part of what we do’
Close House is one of the UK’s premier golf resorts. It also used to run at a loss. But the Newcastle club now turns a healthy profit. Here’s how they did it
IT was an incredible tussle. Rory McIlroy was on a weekend charge – a two-round run of 64 and 63 thrilling the record North East crowds. Then Paul Dunne chipped in on the final hole, to card a 61 and take the British Masters title.
The golf was exhilarating and the spectacular Northumberland countryside that framed Close House was broadcast all over Europe.
That 2017 tournament would prove a turning point for the Heddon-on-the-Wall venue. Once a Georgian country house for the Bewicke family, and a former botanical laboratory for Newcastle University, the estate was bought by businessman Graham Wylie in 2004.
He poured in the investment. An academy the envy of the region was built. A new championship course, designed by Scott Macpherson, was constructed along with No, 19, a sparkling clubhouse and restaurant. It was all opened by the World No. 1, Lee Westwood, who became the club’s touring professional.
And yet Close House lost money. But the club’s experienced management team continued to prioritise putting customers at the centre of the journey. That approach is now paying off.
The business turned a profit in 2021 and has been in the black ever since. Their last set of accounts showed a rise in turnover to more than £5.1 million and overall profits of £443,171. That was despite cost-of-living rises, increases in the minimum wage, and the vagaries of the British weather.
So how did the Close House team turn it around and transform the business into a profitable concern?
Jonathan Lupton has been around for much of Wylie’s 20-year ownership. A celebrated amateur, who won the Brabazon Trophy, he was the head professional before becoming managing director eight years ago.
He said it’s been about securing “marginal gains”. “We’ve doubled turnover. We’ve listened to customers. We’ve followed a consistent path.
“Some of the times when we were losing money, there was a lot of change within the business, and we’ve been pretty stable for the last eight years.
“Without doubt, the British Masters in 2017 put us on the map a little bit more. We have tried to hold events to raise the profile of the business and I think we’ve done that successfully over the last few years.
“But it’s looking at the customer journey, whether it’s a member or guest, and trying to improve that journey year on year as best we can. It’s the easiest way to get more business and retain the customers you’ve got.”
The progress has been startling. Membership revenue rose last year by 16 per cent. There are now waiting lists in nearly all categories.
Corporate interest remains strong and the club hosted another big event in 2023 as the Asian Tour’s International Series England saw some of the game’s top players take on the Colt Course challenge.
The key, for Lupton, has been to “try and set the standard within the region”. “We’re not competing necessarily with everyone else but I’m aware that if somebody only has so much disposable income then it’s very easy to continue playing golf at a lower price in the area we are in,” he said.
“We’ve managed over the course of time at Close House to retain key staff and that really is a massive part of what we do.”
“We have to continue to try and set the standards we do to hold our place in the market. We’ve managed over the course of time at Close House to retain key staff and that really is a massive part of what we do.
“Graham bought the estate in 2004 and we’ve got staff celebrating 20 years at Close House.
“They’ve been on that full journey since Graham purchased the property. This is my 16th year at Close House, in different roles, and I sit in the heads of department [meeting] and I’m pretty much in the middle of that group in terms of experience.
“I was here before the Colt Course opened and so that experience across the site – and dealing with the pressure – gives us an element of confidence that we can continue to deliver.
“We’ve not been scared to try new things. We do also understand some things that work. Don’t get me wrong. We don’t get everything right – but we certainly try.”
And the investment continues – whether that’s in the two golf courses, the Colt and Filly, the Academy, which is about to be significantly expanded this winter, or in the new Michelin-starred enterprise which will see Close House link up with Hjem, one of the region’s most successful restaurants.
“The golf courses are the crown jewel,” said Lupton. “We’re proud of what we deliver in food and beverage and at the Academy but the golf course ultimately is the crown jewel.
“We see it as a working canvas that we’re continually trying to improve. It would be remiss of us not to try and invest where possible.
“The Academy was the first place I worked and ran at Close House, so it’s an area that means an awful lot to me. When I went and saw the Toptracer technology in Scotland I thought it was an absolute no-brainer. We put that in in 2018 and it’s done everything we wanted it to at the Academy.
“I’m proud that we have five PGA professionals who teach full time. We hope to set the standard in terms of custom fitting and giving impartial advice to customers.
“But we listen to the members. We listen to member feedback on the surveys. It’s incredibly important to us. A couple of years ago, they said there was just not enough availability of bays – particularly in the dark winter nights.
“We applied for planning, we’ll put in an additional 10 bays this winter, which will be a benefit for members and Close House guests.”
It’s a remarkable turnaround and a profitable enterprise that stands on its own two feet. At times, it must have been hard to see the wood from the trees.
But that has just made the transformation more impressive and the growing club is looking forward with confidence.
Lupton said: “When I first sat in board meetings, we used to set targets that were 15 or 20 per cent above our turnover. I used to speak to Graham and say I thought initially they were unrealistic.
“We used to miss our targets every month, and I felt it was demotivating for the staff. But using a little bit of my golf coaching experience, we tried to make the targets – while still a stretch – a little bit more achievable.
“Once we started achieving them, it almost became a snowball effect. Going back eight years ago, it didn’t seem like it was, but I am incredibly proud that we’ve achieved it.”
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