The accounts state that “having taken account of the relative immaturity” of the overall operation, directors “have changed their assessment of the growth prospects” of the business.
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“Having taken account of this assessment, the directors believed it was reasonable to reflect a reduction in the carrying value of the investment in Golf It,” the accounts state. “Therefore, the company has recognised an impairment charge of £4.5 million (2023: £Nil) against its investment in R&A Golf and Leisure Limited, the legal entity containing the Golf It business.”
Directors added that the value of the business, now adjusted to £7.9m, will remain under review as it matures. Visitor numbers for the current year are said to be tracking ahead of 2024.
Announced in February 2021 and opened in August 2023, Golf It’s facilities include the double-decker driving range, a 9-hole course, and three adventure golf courses along with a variety of other indoor and outdoor activities such as nature trails, Padel courts and casual dining. It is located on the former municipal Lethamhill Golf Course next to Hogganfield Loch.
Designed to bring the sport into the heart of community life with a focus on affordability and inclusivity, the facility has been billed as a blueprint for how golf can be offered in the future.
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“We are focused on making this facility a success initially but believe that this model can position golf in many appealing ways to new and existing audiences so that the growth we are currently seeing in participation can be sustained in the years ahead,” a spokesman for the R&A told The Herald, adding that Golf It contributed more than £17m in savings and benefits across health, wellbeing and GDP for the local community last year.
Elsewhere, the accounts show that the R&A generated £156 million in turnover during 2024, up from £151.6m the previous year. This included an increase in sponsorship, ticketing and hospitality income that is generated predominantly by The Open, which attracted crowds in excess of 258,000 last year at Royal Troon.
The R&A made a profit after tax of £5.2m in 2024, down from £8.5m previously, which included an upward adjustment of £1.1m on the fair value of its £163.8m investment portfolio. This is held in two sub-funds of listed and unlisted investments spread globally.
DotGolf – which provides management systems and website solutions for golf clubs – generated £2.75m in revenues last year. The R&A acquired a 50% stake in DotGolf from Golf New Zealand in 2023.
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“We have a long-term vision for how golf can thrive in the future and a large part of that is based on embracing technological solutions,” the R&A spokesman said.
“We believe DotGolf has huge potential to deliver cutting-edge platforms and solutions to the industry and have already seen national golf federations in Scotland, England, Ireland, Wales, New Zealand, Australia and the Philippines adopt it, [and] we are seeing increasing interest from other territories which shows its potential for future growth.”
The R&A is continuing to work with its USGA counterparts in the United States to refine the World Handicap System (WHS), which was implemented in 2020. The WHS underwent its first scheduled revision last year with the next one planned for 2028.
Work continues to progress on the R&A’s new headquarters in St Andrews, which is due to open in the middle of next year. The new four-storey facility will bring together staff currently working across five offices.
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“It is an exciting development for the future of the organisation and we are creating an environment that will reflect the role, work and heritage of the R&A and provide a collaborative space for employees and visitors to enjoy,” the spokesman said.
“It signals our commitment to the town of St Andrews and will place a focus on wellbeing and sustainability as well as being highly enabled by technology.”
The R&A employed an average of 289 people last year, up from 265 in 2023. Its total wage bill was £14.9m, up from £13m in 2023, with an unspecified number of “key management personnel” receiving total compensation of £2.4m.
The R&A’s executive team has been led since November 2024 by Mark Darbon, former chief executive of Premiership Rugby club Northampton Saints.