St Andrews, Scotland - The R&A, golf's world rules and development body and organiser of The Open Championship, has published its first operations review as a group of companies registered in Scotland.

R&A companies now carry out the rulemaking, championship organisation, golf development and course management activities formerly undertaken by The Royal and Ancient Golf Club of St Andrews. Financial performance highlights are published for the first time and The R&A reports a consolidated operating profit of £5.25m (US$9.7m), after gift and grant aid to the game valued at £3.02m (US$5.6m), in the year to 31 December 2004.

Gift aid to the new R&A Foundation in the year is reported at £1.05m (US$1.9m) in addition to fund establishing investments totalling £5.63m (US$10.4m), transferred in instalments in 2003 and 2004, from The Royal and Ancient Golf Club. A further £1.97m (US$3.6m) was paid directly from The Open Championship accounts in 2004 to fund golf development work with elite amateurs and professional players worldwide.

In addition, £2.51m (US$4.6m) was spent on rulemaking and other governance activity at no cost to the sport.

Introducing his first report as R&A Chairman, David Harrison said:

"Our challenge is to build on the considerable achievements of our founding Club as a commercial entity and as an organisation dedicated to the promotion of our sport."

Mr Harrison also praised the generosity of members of The Royal and Ancient Golf Club who voted overwhelmingly to bring The R&A companies into being without financial reward and in the best interests of golf.

Expressing confidence in the future financial performance of R&A companies, Chief Executive Peter Dawson said in the review:

"The R&A, in following the example of its founding Club, values its long lasting relationships with our commercial partners. In the year under review, our long-standing adviser, IMG, continued to assist us to develop the commercial performance of The Open Championship. The 2004 Open was beamed to 191 territories worldwide by 40 rights' holding broadcasters including the BBC as host broadcaster, ABC and Turner Television in the United States and TV Asahi in Japan."

"From 2004 to 2010, we plan to direct in excess of £50m (US$92.5m) from operating profits back into the game," added Dawson.

The R&A review will be posted on the Internet later this week at www.randa.org and abbreviated accounts will be available later this year on request and from Companies House.

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