⌘K
t
| Date | 9 May 2025 |
| Time | 07:00:06 |
| Category | Miscellaneous |
| ID | 9843H |
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.
9 May 2025
NEWBURY RACECOURSE PLC
(the "Racecourse" or the "Company")
Preliminary results for the twelve months ended 31 December 2024
Newbury Racecourse plc, the racing, entertainment and events business, today announces its preliminary results for the twelve months ended 31 December 2024.
2024 Financial and Business Summary
· Revenue of £22.04m (2023: £18.96m), an increase of 16.3%.
· Profit before tax of £1.1m (2023: £0.72m).
· Consolidated group profit on ordinary activities after tax of £0.79m (2023: £0.72m).
· Raceday attendances of 133,896 (2023: 129,836). Thirty race meetings compared with twenty-eight in 2023, with one race meeting abandoned as a result of adverse weather.
· Raceday attendances, excluding "Party In the Paddock" events and adjusted for abandonments, of 101,738 (2023: 95,753).
· The impact of inflation, the National Minimum Wage, increased cost of utilities and additional prize money investment all contributed to an 10.6% increase in the cost base.
· 18.1% increase in total prize money paid to £6.87m (2023: £5.82m) with a 22.0% increase in executive contribution to £3.45m (2023: £2.82m), both metrics unadjusted for the abandoned fixtures. This followed previous record prize money increases in 2023.
· New five-year Media Rights Agreement with Arena Leisure/Sky Sports Racing fully effective from 1 January 2024.
· Five races on Lockinge Stakes Day included within the World Pool, the collaboration between global pool betting totes and the Hong Kong Jockey Club.
· Shaun Hinds joined as the Company's new Chief Executive in June 2024 and is already having a positive impact with all of the Company's stakeholders.
· The directors are recommending a final dividend of 6p per share (2023: nil), which will be proposed at the annual general meeting. If approved the proposed final dividend will be paid to shareholders on 4 July 2025. The record date for the proposed final dividend will be 13 June 2025 and the Company's shares will be marked "ex-dividend" on 12 June 2025.
2025 Update
· The full card of eight races committed by the Hong Kong Jockey Club to World Pool on Lockinge Day.
· New multi-year headline sponsors secured for Lockinge Day (BoyleSports) and February Super Saturday (William Hill).
· Four "Party in the Paddock" concerts confirmed for 2025: 19 July (Sophie Ellis-Bextor & Ella Henderson); 15 August (Bjorn Again); 16 August (Clean Bandit); and 20 September (James Bay) with all artists performing after racing. Sales are currently in line with Company expectations.
· 2025 prize money increasing on 2024 prize money, with additional funds being added into Mill Reef Stakes and Hungerford Stakes, as well as creating an additional race on Lockinge Day. Any future prize money changes will be dependent on any changes resulting from the British Horseracing Authority review of Premier Racing fixtures. In 2025 Newbury hosts 11 Premier fixtures, the same as 2024, which will conclude the two-year trial.
· Continued investment into improving the racecourse's facilities, track drainage and nursery.
· Non-Executive Director changes to the board with James Richardson joining on 6 January 2025 and Juliet Slot also being welcomed at the AGM, with John Dodds stepping down on the same date having served the company since 2010. Further details will be announced in due course.
Dominic Burke, Chairman of Newbury Racecourse plc commented:
"I am delighted to announce a 16% revenue growth in the underlying business, demonstrating the success of several initiatives across many areas of the business. The 2024 financial year was the first full year of our new media rights agreement. As anticipated, we have benefited by the positive financial impact of the additional capacity in the children's nursery, as well as the performance of our Conference & Events business, as we continue to seek opportunities to diversify our revenue streams.
"The Company's commitment to prize money was demonstrated by an 18% increase in 2024, compared with 2023, combined with a 22% increase in our executive contribution. This investment into racing has been made despite a very challenging cost inflation environment. The Company continues to invest in racecourse facilities to ensure that we provide high quality facilities for all of our visitors, event delegates, racegoers and racecourse attendees, as we continually strive to invest for the future benefit of the business.
"Our sincere thanks, as ever, to all sponsors, partners, owners, trainers, stable staff, members, racegoers and all customers for their ongoing support."
For further information please contact:
Newbury Racecourse plc
Shaun Hinds, Chief Executive Tel: 01635 40015
Mark Leigh, Finance Director
Allenby Capital Limited Tel: 0203 328 5656
Nick Naylor/Dan Dearden-Williams (Corporate Finance)
Hudson Sandler Tel: 0207 796 4133
newbury@hudsonsandler.com
Alex Brennan/Andy Richards
CHAIRMAN'S STATEMENT
Year ended 31 December 2024
The 2024 financial year saw the Company deliver a growth in revenues offset by cost inflation challenges and our commitment to prize money investment. Total revenue grew by 16% to £20.04m in 2024 (2023: £18.96m). Operating Profit in the year was £0.86m (2023: £0.49m) and Consolidated Profit before tax was £1.10m (2023: £0.72m). 2023 included an exceptional profit of £0.7m. As a result of this financial performance the directors are recommending a dividend of 6p per share (2023: nil).
The 2024 racing programme was affected by an abandonment on 17th January, but we still welcomed just under 134,000 racegoers (2023: 130,000) to the racecourse for our 30 fixtures (2023: 28). Excluding the Party in the Paddock events and the impact of abandonments, total attendances on a comparable basis were just under 102,000 (2023: 96,000) an increase of 6.3%. In 2024 we continued to demonstrate our support to the industry by making a further significant contribution into prize money, with a 18% increase to £6.87m (2023: £5.82m) as we also increased our Executive Contribution to prizemoney by 22% to £3.45m (2023: £2.82m). Any future changes in prize money and contribution will be dependent on the outcome of the British Horseracing Authority Premier fixtures review and the overall financial performance of the business.
During 2024, we played host to some top-class competitive racing, demonstrating our ability to appeal to the best horses across both codes and providing our racegoers with some outstanding performances on the track. Highlights in the early part of the year included wins for Iberico Lord in the Betfair Hurdle and, for another Nicky Henderson trained horse, Shishkin in the Betfair Denman Chase. The Betfair Exchange Game Spirit Chase on the same day was won by Edwardstone.
The opening of the 2024 flat season in late April, provided wins for with Folgaria, Hamish and Esquire in the main races at the Dubai Duty Free Spring Trials. In May, the Group One Lockinge Stakes, sponsored for the final time by Al Shaqab, was won by Audience against another strong field. The Lockinge Stakes Day represented our second year as part of World Pool, which is the collaboration between global totes and the Hong Kong Jockey Club, for five key races that day alongside which we hosted Hong Kong themed activities around the racecourse.
The first Party in the Paddock event took place after the Weatherby's Super Sprint meeting, with a crowd of over 10,000 being entertained by Sigala after an excellent day's racing, which saw Caburn win the Super Sprint and Elite Status win the Fidelity Energy Hackwood Stakes. Our second Party in the Paddock in August saw Dizzee Rascal perform to over 13,500 at the BetVictor Hungerford meeting where Tiber Flow was victorious in the feature race of the day.
Rounding off 2024, Kandoo Kid thrilled crowds by winning the Coral Gold Cup in November, whilst Coral also sponsored the 2024 running of the Grade One Challow Novices Hurdle won by The New Lion.
The addition of the Nursery single-room extension, which opened in August 2023, saw the enlarged facility generate turnover of £2.29m (2023: £1.93m). We were also extremely pleased that the Nursery was rated 'Outstanding' in the periodic OFSTED inspection, acknowledging the high quality and standards of both the facility and staff. Our on-site accommodation, The Lodge Hotel generated income of £0.90m (2023: £0.86m) and our direct share of Conference & Events business produced income of £0.46m (2023: £0.31m). Our revenue share from the Catering partnership with Levy Restaurants increased to £0.66m (2023: £0.53m).
Our commitment to improving facilities at the racecourse continues with further amounts invested on the track and in many racegoer and conference attendee areas, as well as the Hotel and Nursery. We believe in the importance of balancing the investment of our financial resources into high quality facilities for all racecourse guests.
In June we were pleased to welcome Shaun Hinds as the Company's new Chief Executive. Shaun brings over 25 years of experience in the events, hospitality and travel sectors, and prior to joining Newbury was in a similar role at Manchester Central Convention Centre. He is already having a positive impact with all of our stakeholders.
On behalf of the board, I would like to thank all our staff and third-party providers for their continued hard work during the year. In addition, I would also like to thank our sponsors for their ongoing support as well as members, customers, owners, trainers and all those associated with racing industry for their continued support of Newbury Racecourse.
DOMINIC J BURKE
Chairman
8 May 2025
STRATEGIC REPORT
Year ended 31 December 2024
STRATEGY AND OBJECTIVES
The Board's strategy is for Newbury Racecourse plc to provide a profitable and diversified business for the benefit of all stakeholders. This will be delivered through first class facilities including a modern market-leading racecourse along with hotel, children's nursery, and conference and events businesses. Where commercially viable these will be supported by investment in further innovative activities. One of the key aims of this Strategic Report is to set out and appraise the business model through which we deliver that strategy.
THE BUSINESS MODEL
Newbury Racecourse plc is the parent of a Group of companies which own Newbury Racecourse and engages in racing, hospitality and associated food and beverage retail activities. In addition, the Group operates a conference and events business, a children's nursery, and an on-site hotel. Alongside its trading activities, the Group also owns freehold property from which it receives annual income.
FINANCIAL & BUSINESS REVIEW
Consolidated group profit on ordinary activities before tax in the year ended 31st December 2024 was £1.1m (2023: £0.72m, including an exceptional gain of £0.7m).
Total turnover increased by 16% to £22.04m (2023: £18.96m). Racing revenues increased by 16% from £15.27m to £17.67m, income, with only one abandonment in the year (2023: Three). Across our other businesses, Conference & Events income increased by 47% from £0.31m to £0.46m, the Nursery saw a 19% increase from £1.93m to £2.29m and the Lodge delivered revenue of £0.9m, an increase of £0.04m on 2023.
Total costs increased by 11% to £21.2m (2023: £19.2m). Gross profit increased to £4.37m (2023: £2.69m) with the gross margin improving from 14% to 20%.
Overall operating profit before interest was £0.86m (2023: £0.49m) with net Interest receivable of £0.25m (2023: £0.23m) with the majority of this interest from the lease asset. The tax charge of £0.30m (2023: nil) relates to the movement in deferred tax during the period.
Profit after tax was £0.79m (2023: £0.72m).
The positive movement in cash reserves of £3.12m in the period (2023: negative movement of £1.81m) was due to the improvement in trading cash being generated and the timing of working capital movements offset by investments made in the Hampshire Stand and site facilities. The Company remains free of debt. The board are recommending a final dividend of 6p per share.
Racing
In 2024 we were scheduled to host three BHA fixtures in addition to the twenty-eight owned fixtures. The accounts include a total of 30 days racing (2023: 28) with one abandonment on 17th January. Overall declared raceday attendances in 2024 were 133,896 (2023: 129,836).
The Company's new media rights agreement with Arena Leisure/Sky Sports Racing came into full effect on 1st January 2024. Total media related revenues, including World Pool income, were £8m. In the year this accounted for 36% of our total trading revenue which compares with 30% in 2023.
May marked the tenth, and final, year of Al Shaqab's sponsorship of Lockinge Day, Newbury's richest race meeting, which was attended by 9,600 racegoers, an increase of 15% on 2023. This meeting has established itself as the flagship event in our flat racing calendar and the action on the track once again featured a string of outstanding performances. The day also represented our second year of collaboration alongside the Hong Kong Jockey Club with the Lockinge Stakes, London Gold Cup and three further races being included within the World Pool commingling pool.
Our cornerstone jump meeting at the end of November marked the third year of our renewed partnership with Entain featuring the Coral Gold Cup (formerly the Ladbrokes Trophy). Attendances across the two-day meeting were just over 17,600, an increase of 11% on 2023.
We continued to make further significant investment into prizemoney, with a 18% increase to £6.87m (2023: £5.82m) and also increased our Executive Contribution to prizemoney by 22% to £3.45m (2023: £2.82m).
We are grateful to have received continued significant support from all of our key sponsors, with particular thanks to Al Shaqab Racing, BetVictor, Betfair, Coral, Dubai Duty Free, Goffs UK and Weatherby's for their commitment in 2024.
STRATEGIC REPORT (continued)
Year ended 31 December 2024
Catering, Hospitality and Conference & Events
Conference & Events revenues were £0.46m (2023: £0.31m), resulting in an operating Gross Operating Profit of £0.22m (2023: £0.15m). These figures exclude the income that is attributable to our catering partner, but overall, we are especially pleased with the progress made in this sector following the previous decision in early 2022 to cease proactive marketing. The restructured and enlarged team is now focused entirely on growing this part of the business.
2024 represented the third full year with Levy Restaurants operating our catering business which runs through to the end of 2031. The reported trading income of £0.66m (2023: £0.53m), which is our share of the profit, demonstrates the improvements made in the partnership and the renewed management approach to support this area of the business.
The Rocking Horse Nursery
The Rocking Horse Nursery traded positively throughout 2024 with revenues of £2.29m, up 19% against 2023, supported by the full year impact of the additional room extension which opened in August 2023. This business unit reported an operating profit of £0.7m (2023: £0.61m).
The Lodge Hotel
Our on-site hotel generated revenues of £0.9m (2023: £0.86m). This business unit reported an operating profit of £0.08m (2023: £0.09m)
KEY PERFORMANCE INDICATORS
The Group uses raceday attendance, trading operating profit and cash generated from operating activities, as the primary performance indicators. 2024 total attendance was 133,896 (2023: 129,836). Operating profit is shown within the profit and loss account on page 28 and cash generated from operating activities is shown within the consolidated statement of cashflows on page 11.
PRINCIPAL RISKS AND UNCERTAINTIES
Cashflow Risk
The main cash flow risks, under normal trading circumstances, are the vulnerability of race meetings to abandonment due to adverse weather conditions, animal disease and fluctuating attendances particularly for the Party in the Paddock events. The practice of covering the racetrack to protect it from frost and investment in improved drainage, as well as insuring key racedays, mitigates some of the raceday risk.
Short term cash flow risk is mitigated by regular review of the expected timing of receipts and by ensuring that the Group has committed contingencies in place in order to manage its working capital and investment requirements.
Credit Risk
The Group's principal financial assets are trade and other receivables. The Group's credit risk is primarily attributable to its trade receivables. The amounts in the balance sheet are net of allowances for doubtful receivables. Payment is required in advance for ticket, hospitality, sponsorship, and conference and event sales, reducing the risk of bad debt.
Liquidity Risk
In order to maintain liquidity to ensure that sufficient funds are available for all ongoing operations, the Board regularly reviews the facilities available to the Group to ensure that there is sufficient working capital available.
Price Risk
The Group operates within the leisure sector and regularly benchmarks its prices to ensure that it remains competitive.
Cost Risk
The Group has had a historically stable cost base. The key risks are unforeseen maintenance liabilities, movement in utility costs and additional regulatory costs for the racing business. A programme of regular maintenance is in place to manage the risk of failure in the infrastructure, while utility contracts are professionally managed. The Group is a member of the Racecourse Association, a trade association which actively seeks to manage increases in regulatory risk.
Interest Rate Risk
The Group previously managed its exposure to interest rates through an appropriate mixture of interest rate caps and swaps, although this is currently not required.
STRATEGIC REPORT (continued)
Year ended 31 December 2024
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 most sensitive to fluctuating revenue streams from ticket sales, corporate hospitality, conference and event income. A system of regular reviews of the forecasted business is in place 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 Company's and Group's 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.
SECTION 172 STATEMENT
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Directors continue to have regard to the interests of the Company's employees, members, partners, the horseracing community and other stakeholders, the impact of its activities on the local community, the environment and the Company's reputation for good business conduct, when making decisions. The board identifies stakeholders through its annual strategic review. As the business evolves the board recognises that those with a direct interest and involvement in the decisions of the Company changes.
In this context, acting in good faith and fairly, the Directors consider what is most likely to promote the success of the Company and for these stakeholders in the long term. For example:
· The engagement of the business with the horseracing community and stakeholders, such as the Racecourse Association and Thoroughbred Group is routinely considered during the board's decision-making process.
· The Company has a frequent forum with local residents to ensure that communication channels are open & accessible.
· The Company continues to regularly engage with Annual members and corporate box holders and to encourage feedback and improve the service provided.
· The Company encourages a supportive and inclusive working culture within the business as set out in the 'Our Newbury' employee programme, alongside supporting personal development and promoting wellness & mental health awareness.
· The Company has a sub-group which has adopted and implemented a Diversity & Inclusion policy across the business.
STRATEGIC REPORT (continued)
Year ended 31 December 2024
Key board decisions made during the year in the interests of overall business success set out below:
|
Significant events/decisions |
Key S172 matters affected |
Actions and impact |
|
Investment in racecourse facilities |
Customers, suppliers, employees, shareholders, West Berkshire community |
· Following the catering partnership agreement with Levy Restaurants signed in 2021, the Company triggered their right to extend this to the end of 2031 by accepting the final phase of investment. The initial phase included the redevelopment of the Berkshire Stand facilities and, in 2023, this extended to the Hampshire Stand and the Hennessy Restaurant. Subsequent smaller investments during 2024 have been made in the catering facilities. The decision to enter into the longer-term agreement enabled the Company to continue to gain access to technology, innovation, human resources and deliver the most effective commercial benefits. · Additional investments during the year included external areas of the Nursery, Company owned accommodation, audio equipment around the customer areas of the racecourse, heating & toilet facilities as well as track drainage. · In all the above cases, the decisions made were considered to be in the best interest of all key stakeholders.
|
|
Premier Racing and Prize Money policy |
Customers, employees, shareholders, industry stakeholders. |
· Following a previous review the board considered the impact of increasing prize money in response to its position, relative to peer racecourses. Financial analysis of the annual race programme was undertaken alongside the cost impact versus the benefit of high-quality racing for all stakeholders. · During 2023 the British Horseracing Authority introduced 'Premier Racing' which identified those fixtures which warranted a higher status and standing within the racing calendar. In response racecourses would need to commit to an additional funding contribution to prize money in order to secure these fixtures. · The board decided that in order for the Company to remain competitive and attract the best horses that a further increase in prize money and additional contribution would be the most appropriate approach, and in addition enable the racecourse to secure eleven Premier fixtures. · This decision was considered to be in the best interests of racing and racing related stakeholders and, ultimately, shareholders.
|
During the period to 31 December 2024 the Company has sought to act in a way that upholds these principals. The Directors believe that the application of Section 172 requirements can be demonstrated in relation to some of the key decisions made and actions taken during 2024.
CORPORATE GOVERNANCE
The Company is committed to maintaining the highest standards in corporate governance throughout its operations and to ensure all of its practices are conducted transparently, ethically and efficiently. The Company believes scrutinising all aspects of its business and reflecting, analysing and improving its procedures will result in the continued success of the Company and deliver value to shareholders. Therefore, and in accordance with the Aquis Growth Market Apex Rule Book, (the "AQSE Rules"), the Company has chosen to comply with the UK's Quoted Companies Alliance Corporate Governance Code 2018 (the "QCA Code"). The Company is committed to the ten principles of corporate governance as practiced by the AQSE market. These principles are disclosed in the 'Corporate Governance Statement' within this report.
|
STRATEGIC REPORT (continued) Year ended 31 December 2024
CORPORATE AND SOCIAL RESPONSIBILITY
|
Employee Consultation
The Group places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Group and the Company. This is achieved through formal and informal meetings, and distribution of the annual financial statements. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests through the 'Our Newbury' employee engagement programme at the forefront of these initiatives.
Policy on Payments to Suppliers
Although no specific code is followed, it is the Group's and Company's policy, unless otherwise agreed with suppliers, to pay suppliers within 30 days of the receipt of an invoice, subject to satisfactory performance by the supplier. The amount owed to trade creditors at 31 December 2024 is 12% (2023: 5%) of the amounts invoiced by suppliers during the year. This percentage, expressed as a proportion of the number of days in the year, is 42 days (2023: 19 days).
Business Relationships
The Directors recognise the need to foster the Company's business relationships with suppliers, customers and others. To that effect, the Company have policies and procedures in place, by which principal decisions taken by the Company during the financial year were followed.
Employees who have a disability
Applications for employment by persons with a disability are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Group continues and the appropriate training is arranged. It is the policy of the Group and the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Charitable Donations
During the year the Group made charitable contributions totalling £6,600 to national charities (2023: £5,800).
This report was approved by the board and signed on its behalf by:
|
S C Hinds Chief Executive |
Consolidated Profit and Loss Account
Year ended 31 December 2024
|
|
Note |
2024 £'000 |
2023 £'000 |
|
|
Turnover |
|
22,040 |
18,958 |
|
|
Cost of sales - other |
|
(17,668) |
(16,270) |
|
|
Gross profit |
|
4,372 |
2,688 |
|
|
Administrative expenses |
|
(3,515) |
(2,899) |
|
|
Net exceptional items |
4 |
- |
700 |
|
|
Operating profit |
|
857 |
489 |
|
|
Interest receivable and similar income |
|
253 |
230 |
|
|
Interest payable and similar charges |
|
(10) |
- |
|
|
Profit before tax |
|
1,100 |
719 |
|
|
Tax (charge) |
|
(306) |
- |
|
|
Profit after tax |
|
794 |
719 |
|
|
|
|
|
|
|
|
Profit per share (basic and diluted) (Note 5) |
|
23.71p |
21.47p |
|
|
All amounts derive from continuing operations
|
|
|
|
|
|
|
|
|
||
Year ended 31 December 2024
|
|
|
|
|
|
|
2024 £'000 |
2023 £'000 |
|
|||
|
Profit for the financial year |
|
|
|
|
|
794 |
719 |
|
|||
|
Remeasurement of the net defined benefit liability |
|
|
|
|
(164) |
(148) |
|
||||
|
Deferred tax on actuarial (loss)/gain |
|
|
|
|
|
- |
- |
|
|||
|
Other comprehensive (loss) for the year |
|
|
|
|
(164) |
(148) |
|
||||
|
Total recognised profit in the year |
|
|
|
|
|
630 |
571 |
|
|||
|
|
|
|
|
|
|
|
|
||||
Consolidated Balance Sheet
As at 31 December 2024
Company No. 00080774
|
|
|
|
|
|
|
2024 £'000 |
2023 £'000 |
|
Fixed assets |
|
|
|
|
|
|
|
|
Tangible assets |
|
|
|
|
|
42,102 |
43,214 |
|
Investments |
|
|
|
|
|
- |
- |
|
|
|
|
|
|
|
42,102 |
43,214 |
|
Current assets |
|
|
|
|
|
|
|
|
Stocks |
|
|
|
|
|
28 |
38 |
|
Debtors |
|
|
|
|
|
|
|
|
- due within one year |
|
|
|
|
|
1,401 |
2,959 |
|
- due after more than one year |
|
|
|
|
|
3,557 |
3,545 |
|
Short term deposits at bank |
|
|
|
|
|
2,093 |
2,019 |
|
Cash at bank and in hand |
|
|
|
|
|
5,416 |
2,301 |
|
|
|
|
|
|
|
12,495 |
10,862 |
|
Creditors: amounts falling due within one year |
|
|
|
|
(3,695) |
(4,101) |
|
|
Net current assets |
|
|
|
|
|
8,800 |
6,761 |
|
Total assets less current liabilities |
|
|
|
|
|
50,902 |
49,975 |
|
Creditors: amounts falling due after more than one year |
|
|
|
- |
- |
||
|
Provisions for liabilities |
|
|
|
|
|
(3,593) |
(3,287) |
|
Pension deficit |
|
|
|
|
|
- |
- |
|
Net assets |
|
|
|
|
|
47,309 |
46,688 |
|
Capital grants |
|
|
|
|
|
|
|
|
Deferred capital grants |
|
|
|
|
|
13 |
22 |
|
Capital and reserves |
|
|
|
|
|
|
|
|
Called up share capital |
|
|
|
|
|
335 |
335 |
|
Share premium account |
|
|
|
|
|
10,202 |
10,202 |
|
Revaluation reserve |
|
|
|
|
|
75 |
75 |
|
Equity reserve |
|
|
|
|
|
143 |
143 |
|
Profit and loss account surplus |
|
|
|
|
|
36,541 |
35,911 |
|
Shareholders' funds |
|
|
|
|
|
47,296 |
46,666 |
|
Net assets |
|
|
|
|
|
47,309 |
46,688 |
Consolidated Statement of Changes in Equity
As at 31 December 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 |
|||
|
Profit for the year |
- |
- |
- |
- |
794 |
794 |
|||
|
Other comprehensive income |
- |
- |
- |
- |
(164) |
(164) |
|||
|
Total comprehensive income |
- |
- |
- |
- |
630 |
630 |
|||
|
Dividends Paid |
- |
- |
- |
- |
- |
- |
|||
|
At 31 December 2024 |
335 |
10,202 |
143 |
75 |
36,541 |
47,296 |
|||
|
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 |
|||
|
Profit for the year |
- |
- |
- |
- |
719 |
719 |
|||
|
Other comprehensive income |
- |
- |
- |
- |
(148) |
(148) |
|||
|
Total comprehensive income |
- |
- |
- |
- |
571 |
571 |
|||
|
Dividends Paid |
- |
- |
- |
- |
- |
- |
|||
|
At 31 December 2023 |
335 |
10,202 |
143 |
75 |
35,911 |
46,666 |
|||
Consolidated Cash Flow Statement
Year ended 31 December 2024
|
|
|
|
|
|
|
2024 £'000 |
2023 £'000 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Profit for the financial year |
|
|
|
|
|
794 |
719 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
Exceptional items |
|
|
|
|
|
(21) |
(700) |
|
Investment Write off |
|
|
|
|
|
- |
117 |
|
Amortisation of capital grants |
|
|
|
|
|
(9) |
(3) |
|
Depreciation charges |
|
|
|
|
|
1,546 |
1,459 |
|
Interest payable |
|
|
|
|
|
10 |
- |
|
Interest receivable |
|
|
|
|
|
(253) |
(230) |
|
Tax charge |
|
|
|
|
|
306 |
- |
|
Decrease in stocks |
|
|
|
|
|
10 |
2 |
|
Decrease/(Increase) in debtors |
|
|
|
|
|
1,427 |
(249) |
|
(Decrease)/Increase in creditors |
|
|
|
|
|
176 |
(305) |
|
Corporation tax received |
|
|
|
|
|
- |
- |
|
Other associated property receipts |
|
|
|
|
|
259 |
51 |
|
Pension top up payments |
|
|
|
|
|
(173) |
(142) |
|
Net cash inflow from operating activities |
|
|
|
|
4,072 |
719 |
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Interest received |
|
|
|
|
40 |
30 |
|
|
Loan repayments received |
|
|
|
|
- |
103 |
|
|
Purchase of fixed assets |
|
|
|
|
|
(1,035) |
(2,659) |
|
Purchase of short-term investments |
|
|
|
|
|
- |
(19) |
|
Receipts from exceptional sale of fixed assets |
|
|
|
|
38 |
- |
|
|
Net cash (outflow) from investing activities |
|
|
|
|
(957) |
(2,545) |
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) in cash in the year |
|
|
|
|
|
3,115 |
(1,826) |
|
|
|
|
|
|
|
|
|
|
Cash as at 1 January 2024 Cash as at 31 December 2024 |
|
|
|
|
|
2,301 5,416 |
4,127 2,301 |
Notes to the Financial Statements
Year ended 31 December 2024
1. GENERAL INFORMATION
Newbury Racecourse plc (the "Company") is a Public Limited Company, domiciled and registered in England in the UK. The registered number is 00080774 and the registered address is The Racecourse, Newbury, Berkshire, RG14 7NZ.
2. ACCOUNTING POLICIES
2.1 Basis of preparation of financial statements
The Group and Company financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, "the Financial Reporting Standard applicable in the UK and the Republic of Ireland" (FRS 102) and the Companies Act 2006.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
The Parent Company is included in the consolidated financial statements and is considered to be a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The following exemptions available under FRS 102 in respect of certain disclosures for the Parent Company financial statements have been applied:
· No separate Parent Company Cash Flow Statement with related notes is included
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements. Judgements made by the directors, in the application of these accounting policies that have significant effect on the financial statements are discussed in note 3.
2.2 Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries Newbury Racecourse Enterprises Limited and Newbury Racecourse Management Limited.
2.3 Going concern
The Group and Company were, as in the prior year, cash flow positive at the operating level and has continued to invest in its fixed asset infrastructure. The cash position and trading during 2024 meant that the Company recommends a final dividend to shareholders and, as at the balance sheet date, was free of debt. The Board has undertaken a full, thorough and continual review of the Group's forecasts and associated risks and sensitivities, over, not less than, 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 most 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 Company's and Group's 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.
2.4 Revenue recognition
Services rendered, raceday income including admissions, catering arrangement & hospitality revenues, sponsorship and media related licence fee income is recognised on the relevant raceday. Income from the arrangement with outsourced caterers, and other activities where the Company is considered the agent rather than the principal, is recognised at the agreed share rate on profits or losses generated from such operation. Annual membership income and box rental is recognised over the period to which they relate.
Other income streams are also recognised over the period to which they relate, for example, conference income is recognised on the day of the conference, the Lodge Hotel income is recognised over the duration of the guests stay and nursery income is recognised as the child attends the nursery.
Notes to the Financial Statements
Year ended 31 December 2024
2.4 Revenue recognition (continued)
All income relating to prizemoney such as HBLB grants and Owner's entry stakes are allocated as revenue.
Sale of goods: revenue is recognised for the sale of food and liquor when the transaction occurs.
Turnover is stated net of VAT (where applicable) and is recognised when the significant risks and rewards are considered to have been transferred to the buyer.
2.5 Other investments
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Profit and Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
2.6 Investment income
Dividends and other investment income receivable are included in the Profit and Loss Account inclusive of withholding tax but exclusive of other taxes.
2.7 Lease assets receivable
Lease assets receivable relates to freeholds that the Group has acquired from David Wilson Homes. The freeholds concerned relate to residential apartment buildings constructed as part of the overall residential development. Individual apartments in the development were sold by David Wilson Homes to purchasers under long term leases, typically of 125 years. Under the terms of their long-term leases, lessees are required to pay 'ground rent' to the freehold owner for the duration of their lease. As the majority of the risks and rewards, for much of the life of the property, lie with the lessee, the Group does not recognise a fixed asset in relation to the freehold to the extent attributable to the lease.
These are initially recognised at fair value which is calculated based on the net present value of future cashflows arising from the ground rents receivable over the lease term. This also represents the market value of the freehold agreed at the time of the underlying transaction. These amounts are included in the balance sheet as debtors less than and greater than one year. Ground rent receipts relating to the period, are applied against the net receivable balance. The amounts arising from the unwinding of discounted cashflows are included in interest receivable.
2.8 Tangible fixed assets
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.
Depreciation is provided on the following basis:
Freehold buildings and outdoor fixtures 2% - 5% straight line
Tractors and motor vehicles 5% - 10% straight line
Fixtures, fittings and equipment 2% - 25% straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date (see note 3).
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Profit and Loss Account.
Notes to the Financial Statements
Year ended 31 December 2024
2.9 Impairment of assets
Financial assets (including trade and other debtors)
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
2.10 Impairment of fixed assets
Assets that are subject to depreciation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have previously been impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
2.11 Stocks
Stocks are valued at the lower of cost and net realisable value. Provision is made for obsolete, slow moving or defective items where appropriate.
2.12 Repairs and renewals
Expenditure on repairs and renewals and costs of temporary facilities during construction works are written off against profits in the year in which they are incurred.
2.13 Cash and cash equivalents
Cash is represented by cash in hand and cash equivalents, being short term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.
2.14 Provisions for liabilities
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated Profit and Loss Account in the year that the Group becomes aware of the obligation and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
2.15 Dividends
Where dividends are declared, appropriately authorised (and hence no longer at the discretion of the Group) after the balance sheet date but before the relevant financial statements are authorised for issue, dividends are not recognised as a liability at the balance sheet date because they do not meet the criteria of a present obligation in FRS102.
Notes to the Financial Statements
Year ended 31 December 2024
2.16 Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; and differences relating to investments in subsidiaries, to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.
Deferred tax is provided in respect of the additional tax that will be paid or avoided on differences between the amount at which an asset or liability is recognised in a business combination and the corresponding amount that can be deducted or assessed for tax.
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. For non-depreciable assets that are measured using the revaluation model, or investment property that is measured at fair value, deferred tax is provided at the rates and allowances applicable to the sale of the asset/property. Deferred tax balances are not discounted.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax assets and deferred tax liabilities are offset when the entity has a legally enforceable right to set off current tax assets against current tax liabilities, and when the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.
2.17 Grants
Capital grants received are accounted for as deferred grants on the Balance Sheet and credited to the Profit and Loss Account over the estimated economic lives of the asset to which they relate. Capital grants are in deferred capital grants on the Balance Sheet as the associated works have been performed and it is not in any way repayable.
2.18 Pensions
Defined contribution plans and other long term employee benefits
A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.
Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The entity's net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The fair value of any plan assets is deducted. The entity determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate as determined at the beginning of the annual period to the net defined benefit liability (asset) taking account of changes arising as a result of contributions and benefit payments.
Notes to the Financial Statements
Year ended 31 December 2024
2.18 Pensions (continued)
The discount rate is the yield at the balance sheet date on AA credit rated bonds denominated in the currency of, and having maturity dates approximating to the terms of the entity's obligations. A valuation is performed annually by a qualified actuary using the projected unit credit method. The entity recognises net defined benefit plan assets to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan.
Changes in the net defined benefit liability arising from employee service rendered during the period, net interest on net defined benefit liability, and the cost of plan introductions, benefit changes, curtailments and settlements during the period are recognised in profit or loss.
Remeasurement of the net defined benefit liability/asset is recognised in other comprehensive income in the period in which it occurs. A defined benefit pension surplus is recognised only to the extent that the entity has an economic right, by reference to the terms and conditions of the plan and relevant statutory requirements, to realise the asset over the course of the expected life of the plan or when the plan is settled.
2.19 Borrowing and loan issue costs
Interest bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance charges, including premiums payable on settlement or redemption and direct issue costs are accounted for on an accrual basis in the profit and loss account using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period which they arise. Debt issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
2.20 Financial instruments
Trade and other debtors / creditors
Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.
Interest bearing borrowings classified as basic financial instruments
Interest bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.
Fair value measurement
Assets and liabilities that are measured at fair value are classified by level of fair value hierarchy as follows:
Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 - inputs for the asset or liability that are not based on observable market data.
2.21 Exceptional items
The directors exercise their judgement in classification of certain items as exceptional and outside the Group's underlying results. The determination of whether items should be separately disclosed as an exceptional item or other adjustment requires judgement on its materiality, nature and incidence.
Notes to the Financial Statements
Year ended 31 December 2024
3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Group's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the critical judgements and key sources of estimation uncertainty that the directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Impairment of assets
Determining whether assets are impaired requires an estimation of the value in use of the cash generating units to which assets have been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. The carrying amount of tangible fixed assets and investment property at the Balance Sheet date was £42.1 million (2023: £43.2 million). No indication of impairment has been identified in 2024 (2023: none identified).
Residual values and useful economic lives
The Group's tangible fixed assets are reviewed, whenever there is a relevant change in circumstances or after relevant review, in order to assess whether the residual values and useful economic lives, based on management estimates, continue to be appropriate for calculating depreciation in the period. There was no change in residual values or useful economic lives during 2024.
4. EXCEPTIONAL ITEMS
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
Net Exceptional Items: |
|
|
|
|
|
|||
|
|
2024 £'000 |
2023 £'000 |
|
|||||
|
Release of property provision |
- |
700 |
|
|||||
|
Total |
- |
700 |
|
|||||
|
|
|
|
|
|||||
|
|
||||||||
5. PROFIT PER SHARE
Basic and diluted profit per share is calculated by dividing the profit attributable to ordinary shareholders for the year ended 31 December 2024 of £794,000 (2023: £719,000) by the weighted average number of ordinary shares during the year of 3,348,326 (2023: 3,348,326).
NOTES
The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2024 or 2023 but is derived from those accounts. Statutory accounts for 2023 have been delivered to the Registrar of Companies and those for 2024 will be delivered following the Company's annual general meeting.
The information included in this announcement is taken from the audited financial statements which are expected to be dispatched to the members shortly and will be available at www.newburyracecourse.co.uk. The audit report for the year ended 31 December 2024 and for the year ended 31 December 2023 was unqualified and did not include a reference to any matters to which the auditor drew attention by way of emphasis, without qualifying their report or qualified, including if the audit report contained a statement under section 498(2) (accounting records or returns inadequate or accounts or directors' remuneration report not agreeing with records and returns) or section 498(3) (failure to obtain necessary information and explanations).
This announcement is based on the Company's financial statements, which are prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland and with those parts of the Companies Act 2006 that are applicable to companies reporting under UK GAAP.
Neither an audit nor a review provides assurance on the maintenance and integrity of the website, including controls used to achieve this, and in particular whether any changes may have occurred to the financial information since first published. These matters are the responsibility of the directors, but no control procedures can provide absolute assurance in this area.
Legislation in the United Kingdom governing the preparation and dissemination of financial information differs from legislation in other jurisdictions.
This preliminary statement was approved by the Board of Directors on 8 May 2025