Lumut International Yacht Club winds up membership scheme

Participants taking part in a yacht sailing competition on the waters of Lumut during the Pesta Laut Lumut Pangkor 2013 on Feb 2.

KUALA LUMPUR: The Lumut International Yacht Club (LIYC), operated by a subsidiary of Johan Holdings Bhd, is winding up its membership scheme and will refund part of the fees paid by existing members.

Johan told Bursa Malaysia that its 70% owned subsidiary Lumut Marine Resort Bhd (LMRB), which owns the club. decided to end the scheme because of the low membership base, which resulted in LIYC incurring monthly operating losses and negative cashflow.

The group, whose Diner card services and hospitality businesses contribute more than 60% of its revenue, said a total of 239 membership were sold, comprising 227 individual members and 12 corporate members, since the launch of sale of LIYC membership in December 1995.

“However over the years, LIYC membership had decreased due to high attrition of members who voluntarily resigned as members. Despite various efforts made by LMRB over the years to promote and market the LIYC membership scheme, LIYC was not able to acquire new members, as the facilities in the club were limited and catered only to yachting/boating enthusiasts,” Johan said.

Based on the Register of Members as at April 30, LIYC only had 65 members.

“The situation had resulted in LIYC no longer commercially viable to continue with its operation,” the company said.

At the meeting of LIYC members on April 30, those present in person or represented by proxies unanimously approved the proposed winding up of the LIYC Membership Scheme.

It was also agreed that LMRB would refund a portion of membership fees to the 65 eligible members based on a refund formula that took into account the unexpired membership of each eligible member from the date of first registration as member up to April 29, 2093, the expiry date of membership.
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Johan’s card services and hospitality division, which contributed RM152.05mil to its total revenue of RM222.43mil for the financial year ended Jan 31, 2016, includes the operations of LIYC and The Orient Star Resort Lumut.