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 28^tDecember 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