RBS tees off with Direct Golf UK

ONE of the wettest periods on record has not dampened the spirits of retailer Direct Golf UK, which has secured a £3.5m funding package.

John Andrew, the chairman and founder of the Huddersfield-based business, admitted that he had had to invest more than half a million pounds of his own money into the company last year.

“Our aggressive retail openings in the last few years were funded purely from our own cash flow,” the PGA professional said.

“A poor summer in 2012 increased this pressure on our cash flow, which meant I had to personally inject over £500,000 into the business – although I am sure many SMEs did the same.”

Mr Andrew established Direct Golf in 1991 and it has grown to boast 21 stores, employing more than 300 staff including 50 PGA professionals. It also has a 75,000 sq ft warehouse for stock and trades online.

The company, which is 100%-owned by Mr Andrew, has now secured a £3.5m funding package backed by the Royal Bank of Scotland (RBS).
 
Mr Andrew said: “We are delighted to have made the move to RBS after being with our previous bank for 22 years.”
 
Since 2010, Direct Golf UK has added nine new retail outlets, including seven Nevada Bob’s sites.

However, last year’s poor summer, the wettest summer on record for 100 years, coupled with other events such as the Olympics and Queen’s Diamond Jubilee, led to the number of rounds of golf played being down by more than 30% during the key season, resulting in golf equipment sales being lower than expected.
 
“As a result, we sought funding to allow us some room to breathe and this funding package with RBS allows us to focus on the future of our business, to pay our suppliers and take our settlement discounts, which add up to a considerable amount over a period of 12 months,” Mr Andrew added.
 
“The support in funding has given us the room to grow and develop our award-winning business to the next level. We’ve got some exciting plans for 2013 and the next phase in our growth” concluded Mr Andrew, who said the company’s annual turnover would once again be up on previous years this year.

Turnover was £32m in 2012.
 
Craig Bebbington, relationship director at RBS Corporate and Institutional Banking, said: “Direct Golf has a 22 year history and is now one of the largest specialist golf retailers in UK and Europe, with a presence that continues to grow across the country.

“We are delighted to be able to support the expansion of this sector-leading UK company and are confident that going forward our team will work hard to help the company continue to realise its ambitions.”