The information contained within
this announcement is deemed by the Group to constitute inside
information as stipulated under the Regulation 11 of the Market
Abuse (Amendment) (EU Exit) Regulations 2019/310 ("MAR"). With the
publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
13 September
2024
NEWBURY RACECOURSE
PLC
("Newbury Racecourse" or the
"Company")
Interim results for the 6
months ended 30 June 2024
Newbury Racecourse plc, the racing,
entertainment and events business, today announces its unaudited
half year results for the six months ended 30 June 2024.
HY
2024 Business update and outlook
· Statutory turnover increased by 16% to £9.28m (6 months ended
30 June 2023: £8.03m).
· The
impact of inflation, increased cost of utilities and additional
prize money investment all contributing to an 11% increase in the
cost base for the same period.
· Operating loss before interest and tax of £0.35m (6 months
ended 30 June 2023: £0.65m).
· Consolidated group loss on ordinary activities before tax of
£0.26m (6 months ended 30 June 2023: £0.57m).
· Declared raceday attendances to 30 June 2024 of 43,733 (6
months ended 30 June 2023: 43,016), up 2%. Twelve meetings compared
to thirteen in 2023, with one BHA fixture moved to September 2024
from June 2023. On a comparable basis, declared attendances were up
5%.
· New
five-year Media Rights Agreement with Arena Leisure/Sky Sports
Racing fully effective from 1 January 2024.
· Prize
money paid during the 6 months ended 30 June 2024 increased by
£0.32m (12% increase on 6 months ended 30 June 2023) in line with
the figures announced in January 2024. Any future year increases in
prize money will be dependent on the profitability of the
underlying business.
· Five
races on Lockinge Stakes Day included within World Pool, the
collaboration between global totes and the Hong Kong Jockey Club.
Discussions continue regarding additional World Pool races in
2025.
· Eleven
of the Company's race fixtures have successfully retained their BHA
Premier status for 2025.
Dominic Burke, Chairman of Newbury Racecourse plc
commented:
"Trading for the first half of 2024
was slightly ahead of management's expectations, with raceday
attendances broadly in line with 2023. Compared with the first six
months of last year, our revenues have been stronger across all our
income streams. We have also been able to improve our profit margin
despite rising costs and our commitment to make an additional
contribution to prize money."
"With the continued headwinds facing
the racing industry the remainder of the year is expected to be
challenging but we remain very confident in the long-term prospects
of the Company, given the benefit from the full effect of our new
media rights agreement, along with, once again, being able to host
eleven BHA Premier fixtures during 2025."
For further information please
contact:
Newbury Racecourse plc
Tel: 01635 40015
Shaun Hinds, Chief
Executive
Mark Leigh, Finance
Director
Allenby Capital Limited
Tel: 0203 328 5656
Nick Naylor/Liz Kirchner (Corporate
Finance)
Hudson Sandler
Tel: 0207 796 4133
Charlie Jack
CHAIRMAN'S STATEMENT
Total turnover increased by 16%
compared to the same period in 2023 to £9.28m. Overall operating
loss for the six months to 30 June 2024 was £0.37m (H1 2023:
£0.65m). The losses before tax for the period were £0.26m (H1 2023:
£0.57m)
Trading for the first half of the
year was slightly ahead of management's expectations, with reported
raceday attendances up 5% compared with the first half of 2023, on
a like-for-like fixture basis. We are starting to see the full
benefit of our new Media Rights agreement which was effective from
1 January 2024. We also saw an uplift in revenue from the five
races on Lockinge Stakes Day (two in 2023) which were included in
the World Pool betting pool, with this day supported with
additional Hong Kong themed activity as part of the
event.
Our cost base has been affected, as
expected, by the impact of high inflation, business rates returning
to normal levels as well as an increase in utility costs. The cost
base has also increased due to our stated commitment to increase
prize money. Earlier this year we announced that prize money for
2024 would increase year-on-year by 13% to £7.0m and the executive
contribution would increase by 14% to £3.5m. Our non-racing
businesses continue to be of significant focus as we seek to
broaden our trading activities. The Lodge Hotel, The Rocking Horse
Nursery and our Conference & Events businesses are all
generating revenue ahead of the comparable period last year. We
were also extremely pleased that the Nursery was rated as
'Outstanding' during the recent periodic OFSTED inspection,
acknowledging the quality and standards of both the facility and
staff.
Despite losing our January fixture
to adverse weather, we have hosted some top-class competitive
racing this year, demonstrating our continued ability to attract
the very best horses across both codes. Highlights to date have
included wins for Iberico
Lord in the February Betfair Hurdle, Shishkin in the Betfair Denman Chase
and for Edwardstone in the
Betfair Exchange Game Spirit Chase. The start of the 2024 flat
season during April featured wins for Hamish, Folgaria and Esquire in the
main races of the Dubai Duty Free Spring Trials. This was followed
in May with the Al Shaqab Lockinge Stakes which was won by
Audience for Cheveley Park
Stud. The 2024 running represented the final year of Al Shaqab's
sponsorship of our flagship Group One race so I would like to thank
them for their tremendous ten-year support of Newbury
Racecourse.
We were delighted to welcome Shaun
Hinds as Chief Executive on 3 June 2024. Shaun has brought a wealth
of experience having led businesses in the events, hospitality and
travel sectors. Prior to joining Newbury Racecourse, Shaun was CEO
of Manchester Central Convention Centre, the UK's largest
city centre convention, exhibition and events complex, for six and
a half years.
Beyond this set of results, the July
Weatherby's Super Sprint Day featured our first Party in the
Paddock event of the year with Sigala performing to an excited
crowd after an excellent day's racing. The feature race of the day
attracted nineteen runners and was won by Caburn ridden by Dylan Hogan. Our
second Party in the Paddock took place at August's BetVictor
Hungerford Day where the BetVictor Hungerford Stakes was won by
Tiber Flow ridden by Tom
Marquand. The day's racing being followed by a vibrant performance
by Dizzee Rascal.
Meanwhile we now look ahead to the
final fixtures of the Autumn Flat programme. The Dubai Duty Free
International Weekend in September will be followed by our
Oktoberfest themed event during October's weekend racing. Attention
will then turn to the National Hunt season in November with both
the Winter Carnival weekend and Gold Cup race into their third year
of Coral sponsorship. The year will then draw to a close on
28tDecember with the popular festive gathering of the
Challow Hurdle, also sponsored by Coral.
Looking ahead to 2025, the
racecourse has been successful in retaining Premier status for
eleven of our twenty-eight fixtures, as well as securing an
additional three BHA allocated fixtures. This will enable us to
ensure our racing remains attractive and competitive, although any
future year increases in prize money will be dependent on the
profitability of the underlying business. Additionally, we are in
discussions to host further World Pool supported races on Lockinge
Stakes Day.
We look forward to welcoming all
those associated with the racecourse to our remaining 2024 fixtures
and our other businesses this year.
DOMINIC J BURKE
Chairman
13 September 2024
CHIEF EXECUTIVE'S REPORT
Performance Review
Turnover increased by 16% to £9.28m
(6 months ended 30 June 2023: £8.03m) in the first half of the
year. Gross profit increased to £1.45m (6 months ended 30 June
2023: £0.8m) with our margin improving to 16% (6 months ended 30
June 2023: 10%) despite the increase in the cost base due to
inflation, increased cost of utilities and additional prize money.
Administrative expenses increased to £1.83m (6 months ended 30 June
2023: £1.45m) due to a non-recurring item.
Mid-year operating losses of £0.37m
(6 months ended 30 June 2023: £0.65m) were in line with
management's expectations, given the anticipated cost
increases.
The pre-tax loss on ordinary
activities was £0.26m (6 months ended 30 June 2023:
£0.57m).
Racing
The racecourse has hosted twelve
racedays to 30 June 2024, with the January fixture abandoned due to
the weather. This compares to thirteen staged during the same
period in 2023 as a BHA fixture has moved from June 2023 to
September 2024. Declared attendances in the first six months were
43,733, compared with 43,016 for the same period in 2023, which is
a 2% increase. On a like-for-like fixture basis declared
attendances are up 5%.
Media related revenues are now via
Arena Leisure/Sky Sports Racing where the 5-year agreement took
full effect from 1 January 2024. In addition, we generated income
from World Pool on Lockinge Stakes Day where we hosted five races
in 2024 compared with two in 2023. The World Pool income was offset
by additional costs associated with marketing, themed activity and
entertainment in support of the day.
We are grateful to have received
continued support from all of our sponsors, with particular thanks
to Betfair, BetVictor, Starlight Children's Foundation, Compton
Beauchamp Estates, Goffs, Watership Down Stud and Dubai Duty Free
for their committed investment in the first half of the year. We
would also like to give special thanks to Al Shaqab for their
sponsorship of the Lockinge Stakes Day races which has now come to
an end after ten years.
Catering, Hospitality and Conference &
Events
The partnership agreement with Levy
Restaurants (part of Compass Group) which commenced in June 2021,
is now into its third full financial trading year. The reported
royalty income for the first half of 2024 was £0.10m, compared with
£0.08m in the first half of 2023. The improvement in performance is
due to steady attendance levels as well as the benefit of the
Hennessy Restaurant fully operating following closure for
substantial refurbishment during the same period in
2023.
Conference & Events has
performed well in 2024 following the full relaunch of this part of
the business last year. Consequently, our revenues up to 30 June
2024 were £0.23m, up 75% on the first half of 2023, resulting in an
operating profit of £0.11m (6 months ended 30 June 2023:
£0.07m).
The
Lodge
The Lodge (our 36-bedroom onsite
hotel) has achieved revenues for the first half of the year of
£0.41m (6 months ended 30 June 2023: £0.39m) and a reported profit
of £0.02m (6 months ended 30 June 2023: £0.05m). Occupancy as at 30
June 2024 was 60% (30 June 2023: 65%) with Average Room Rate up 3%
year-on-year.
Rocking Horse Nursery
The Rocking Horse Nursery has
continued to trade strongly this year with the facility benefitting
from the extension which opened in August last year. Revenues in
the first six months of 2024 were £1.16m, up 19% on the comparative
period in 2023 of £0.98m, with this business unit reporting an
operating profit of £0.38m (6 months ended 30 June 2023: £0.34m).
The Nursery was also rated as 'Outstanding' in the recent periodic
OFSTED inspection.
SHAUN HINDS
Chief Executive
13 September 2024
Consolidated Profit and Loss Account
Six months ended 30 June
2024
|
|
Note
|
Unaudited
6 months
30/06/24
£'000
|
Unaudited
6
months
30/06/23
£'000
|
|
Turnover
|
7
|
9,276
|
8,028
|
|
Cost of sales
|
|
(7,823)
|
(7,227)
|
|
Gross profit
|
7
|
1,453
|
801
|
|
Administrative expenses
|
|
(1,826)
|
(1,450)
|
|
Other operating income
|
|
-
|
-
|
|
Operating (loss)/profit before exceptional
items
|
|
(373)
|
(649)
|
|
Exceptional Items
|
8
|
21
|
-
|
|
(Loss)/profit before interest and tax
|
|
(352)
|
(649)
|
|
Interest receivable and similar
income
|
|
110
|
93
|
|
Interest payable and similar
charges
|
|
(14)
|
(14)
|
|
(Loss)/profit before taxation
|
|
(256)
|
(570)
|
|
Tax (charge)/credit
|
9
|
(30)
|
52
|
|
(Loss)/profit after taxation
|
|
(286)
|
(518)
|
|
|
|
|
|
|
Loss / Profit per share (basic and
diluted) (See Note 10)
|
|
(8.54)p
|
(15.47)p
|
|
|
|
|
|
All amounts are derived from
continuing operations
Consolidated Statement of Comprehensive
Income
Six months ended 30 June
2024
|
|
|
|
|
Unaudited
6 months
30/06/24
£'000
|
Unaudited
6
months
30/06/23
£'000
|
|
(Loss)/profit for the
period
|
|
|
|
(286)
|
(518)
|
|
Remeasurement of the net defined
pension liability
|
|
|
|
(58)
|
(56)
|
|
Deferred tax on
remeasurement
|
|
|
|
14
|
14
|
|
Total comprehensive (loss)/income for the
period
|
|
|
|
(330)
|
(560)
|
Consolidated Balance Sheet
As at 30 June 2024
|
|
|
Note
|
Unaudited
30/06/24
£'000
|
|
Audited
31/12/23
£'000
|
|
Fixed assets
|
|
|
|
|
|
|
Tangible assets
|
|
11
|
42,703
|
|
43,214
|
|
Investments
|
|
|
|
|
-
|
|
|
|
|
42,703
|
|
43,214
|
|
Current assets
|
|
|
|
|
|
|
Stocks
|
|
|
48
|
|
38
|
|
Debtors: amounts falling due after
more than one year
|
|
|
3,551
|
|
3,545
|
|
Debtors: amounts falling due within
one year
|
|
|
1,251
|
|
2,959
|
|
Short term deposits at
bank
|
|
|
2,041
|
|
2,019
|
|
Cash at bank and in hand
|
|
|
4,245
|
|
2,301
|
|
|
|
|
11,136
|
|
10,862
|
|
Creditors: amounts falling due
within one year
|
|
(4,185)
|
|
(4,101)
|
|
Net
current assets
|
|
|
6,951
|
|
6,761
|
|
Total assets less current liabilities
|
|
|
49,654
|
|
49,975
|
|
Creditors: amounts falling due
after more than one year
|
|
-
|
|
-
|
|
Provisions for liabilities
|
|
|
|
|
|
Provisions
|
|
|
(3,301)
|
|
(3,287)
|
|
Pension liability
|
|
13
|
-
|
|
-
|
|
Net
assets
|
|
|
46,353
|
|
46,688
|
|
Capital grants
|
|
|
|
|
|
|
Deferred capital grants
|
|
|
17
|
|
22
|
|
Capital and reserves
|
|
|
|
|
|
|
Called up share capital
|
|
12
|
335
|
|
335
|
|
Share premium account
|
|
|
10,202
|
|
10,202
|
|
Revaluation reserve
|
|
|
75
|
|
75
|
|
Equity reserve
|
|
|
143
|
|
143
|
|
Profit and loss account
surplus
|
|
|
35,581
|
|
35,911
|
|
Shareholders' funds
|
|
|
46,336
|
|
46,666
|
|
Net
assets
|
|
|
46,353
|
|
46,688
|
|
|
|
|
|
|
|
The unaudited half year financial
statements of Newbury Racecourse PLC, company registration
00080774, were approved by the Board of Directors on 12 September
2024 and signed on its behalf by:
D J Burke
(Chairman)
S C Hinds (Chief Executive)
Consolidated Statement of Changes in Equity
At 30 June 2024
|
GROUP
|
Share Capital
£'000
|
Share
Premium
£'000
|
Capital
redemption
Reserve
£'000
|
Revaluation reserve
£'000
|
Profit and loss account
£'000
|
Total
£'000
|
|
At
1 January 2024
|
335
|
10,202
|
143
|
75
|
35,911
|
46,666
|
|
Loss for the period to 30 June
2024
|
-
|
-
|
-
|
-
|
(286)
|
(286)
|
|
Other comprehensive
income
|
-
|
-
|
-
|
-
|
(44)
|
(44)
|
|
Total Comprehensive income
|
|
|
|
|
(330)
|
(330)
|
|
At
30 June 2024
|
335
|
10,202
|
143
|
75
|
35,581
|
46,336
|
|
|
|
|
|
|
|
|
|
GROUP
|
Share Capital
£'000
|
Share
Premium
£'000
|
Capital
redemption
Reserve
£'000
|
Revaluation reserve
£'000
|
Profit and loss account
£'000
|
Total
£'000
|
|
At
1 January 2023
|
335
|
10,202
|
143
|
75
|
35,340
|
46,095
|
|
Loss for the period to 30 June
2023
|
-
|
-
|
-
|
-
|
(518)
|
(518)
|
|
Other comprehensive
income
|
-
|
-
|
-
|
-
|
(42)
|
(42)
|
|
Total Comprehensive income
|
|
|
|
|
(560)
|
(560)
|
|
At
30 June 2023
|
335
|
10,202
|
143
|
75
|
34,780
|
45,535
|
|
|
|
|
|
|
|
|
Consolidated Cash Flow Statement
Six months ended 30 June
2024
|
|
|
|
Unaudited
6 months 30/06/24
|
Unaudited
6 months 30/06/23
|
|
|
|
|
£000
|
£000
|
|
Cash flows from operating
activities
|
|
|
|
(Loss)/profit for the financial
period
|
(286)
|
(518)
|
|
Adjustments for:
|
|
|
|
Exceptional items
|
-
|
-
|
|
Amortisation of capital
grants
|
(4)
|
(4)
|
|
Depreciation charges
|
778
|
720
|
|
Interest paid
|
14
|
14
|
|
Interest received
|
(110)
|
(93)
|
|
Tax charge /(credit)
|
30
|
(52)
|
|
Decrease/(increase) in
stocks
|
(10)
|
1
|
|
Decrease/(increase) in
debtors
|
1,612
|
539
|
|
Increase in creditors
|
596
|
795
|
|
Corporation tax paid
|
-
|
-
|
|
Other associated property
receipts
|
140
|
23
|
|
Pension funding deficit
payments
|
(72)
|
(70)
|
|
Net cash generated from operating
activities
|
2,688
|
1,355
|
|
Cash flows from investing
activities
|
|
|
|
Purchase of fixed assets
|
(772)
|
(1,559)
|
|
Interest received
|
28
|
30
|
|
Net cash from investing
activities
|
(744)
|
(1,529)
|
|
Cash flows from financing
activities
|
|
|
|
Repayment of bank loan
|
-
|
-
|
|
Repayment of CBEL Loan
|
-
|
-
|
|
Interest paid
|
-
|
-
|
|
Dividend paid
|
-
|
-
|
|
Net cash used in financing
activities
|
-
|
-
|
|
Net Increase/(decrease) in cash and
cash equivalents
|
1,944
|
174
|
|
Cash and cash equivalents at
beginning of period
|
2,301
|
4.127
|
|
Cash and cash equivalents at the end
of period
|
4,245
|
3.953
|
Notes to the Interim Financial Statements
Six months ended 30 June
2024
RESPONSIBILITY STATEMENT
We confirm that to the best of our
knowledge:
(a) The condensed set of
financial statements has been prepared in accordance with FRS 104
'Interim Financial Reporting' giving a true and fair value of the
assets, liabilities, financial position and profit or loss of the
undertakings included in the consolidation as a whole as required
by DTR 4.2.4R.
(b) The interim report
includes a fair review of the information required by DTR 4.2.7R
(indication of important events during the first six months and
description of principal risks and uncertainties for the remaining
six months of the year); and
(c) The interim
management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions
and changes therein).
By order of the Board,
S C
Hinds
M Leigh
Chief
Executive
Finance Director
12 September
2024
12 September 2024
Notes to the Interim Financial Statements
(Continued)
Six months ended 30 June
2024
1. BASIS OF PREPARATION
Newbury Racecourse PLC (the
"Company") is a public company incorporated, domiciled and
registered in England in the UK. The registered number is 00080774
and the registered address is The Racecourse, Newbury, Berkshire,
RG14 7NZ.
These Group and parent company
financial statements were prepared in accordance with Financial
Reporting Standard 102 The Financial Reporting Standard applicable
in the UK and Republic of Ireland ("FRS 102").
These interim financial statements
do not include all of the notes and disclosures required to comply
with FRS102, as they have been prepared in accordance with the
content, recognition and measurement principles for interim
financial reports, Financial Reporting Standard 104 (FRS
104).
The interim financial statements for
the six months ended 30 June 2024 do not constitute statutory
accounts within the meaning of S434 of the Companies Act 2006. The
auditor's report on the accounts of Newbury Racecourse plc for the
12 months to 31 December 2023 was unqualified, did not draw
attention to any matters by way of emphasis and did not contain any
statement under S498 (2) or (3) of the Companies Act 2006 and has
been delivered to the Registrar of Companies.
2. SIGNIFICANT ACCOUNTING
POLICIES
The Interim Financial Statements
have been prepared in accordance with the accounting policies
adopted in the Group's most recent annual financial statements for
the year ended 31 December 2023 and those expected to be applied
for the year ending 31 December 2024.
3. ESTIMATES
When preparing the Interim Financial
Statements, management undertakes a number of judgements, estimates
and assumptions about recognition and measurement of assets,
liabilities, income and expenses. The actual results may differ
from the judgements, estimates and assumptions made by management,
and will seldom equal the estimated results.
The judgements, estimates and
assumptions applied in the Interim Financial Statements, including
the key sources of estimation uncertainty, were the same as those
applied in the Group's last annual financial statements for the
year ended 31 December 2023. The only exceptions are the estimate
of income tax liabilities which is determined in the Interim
Financial Statements using the estimated average annual effective
income tax rate applied to the pre-tax income of the interim
period.
4. GOING CONCERN
The Board has undertaken a full,
thorough and continual review of the Group's forecasts and
associated risks and sensitivities, over the next twelve months.
The extent of this review reflects the current economic climate as
well as the specific financial circumstances of the
Group.
The Board identified that the
Group's cash flow forecasts are sensitive to fluctuating revenue
streams from ticket sales, corporate hospitality, conference and
event income. A system of regular reviews of the forecasted
business has been implemented to ensure all variable costs are
flexed to match anticipated revenues. In addition, a number of race
meetings have been insured for adverse weather conditions (and
other factors such as animal disease and national mourning),
reducing the levels of risk carried by the Group.
The Board has reviewed the cash flow
and working capital requirements in detail. Following this review,
the Board has concluded that it has reasonable expectation that the
Group has adequate resources in place to continue in operational
existence for the foreseeable future and has not identified a
material uncertainty in this regard. On this basis the going
concern basis has been adopted in preparing the financial
statements.
