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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Newbury Racecourse plc | AQSE:NYR | Aquis Stock Exchange | Ordinary Share | GB0002910429 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 585.00 | 460.00 | 750.00 | 605.00 | 555.00 | 585.00 | 0.00 | 15:29:50 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
TIDMNYR
4 May 2016
NEWBURY RACECOURSE PLC
("the Racecourse" or "the Company")
Preliminary Results for the 12 months ended 31 December 2015
Newbury Racecourse plc, the racing, entertainment and events business, today
announces its preliminary results for the twelve months ended 31 December 2015.
Financial Highlights
· Trading business turnover up 15% to GBP14.3m (2014: GBP12.4m), with racing
revenues also up 15%
· Consolidated group profit on ordinary activities before tax GBP1.61m (2014
restated: loss, GBP1.54m)
· Trading business profit before tax of GBP0.43m (2014 restated: GBP0.05m)
Operational Highlights
· Raceday attendance up 7% to 210,000
· bet365 Hennessy Festival attendance 30,000. Attendance on Hennessy Gold
Cup day the highest for 21 years
· Prize money increased by 21% to GBP4.72m
· Events hosted for a number of blue chip companies, including: Thames
Water, Open University, Boden, NHS, John Lewis, Lloyds Bank and Albourne
Partners
· Three successful Party in The Paddock events with DJ Fresh & Danny
Howard, Bjorn Again and Madness
Property Development Highlights
· Houses and apartments continued to sell well, with the first phase in
the Western Area now 98% sold
· Construction of the second phase in the Central Area has commenced
· Completion of new nursery, hostel, estates yard and car parks
· Construction of the new access bridge complete
· Cash payments to the company of GBP5.49m
Dominic Burke, Chairman of Newbury Racecourse plc commented:
"2015 was a year of positive growth and improved financial performance for
Newbury Racecourse. We are pleased to have seen significant improvements in the
trading performance across a number of areas of the business, with revenues
from our racing activities growing by 15% and our Conference & Events revenues
growing by 31%. The full year profit after tax was GBP1.61 million, reflecting a
15% increase in turnover to GBP14.3 million, together with exceptional profits of
GBP0.72 million.
We are delighted with the tremendous progress made on both the residential
development by David Wilson Homes and the delivery of a number of racecourse
infrastructure improvements during the year. The plans for our own
redevelopment, which will enhance the raceday experience and generate improved
financial returns for the business in the long term, were approved in October
and works will commence in the summer of 2016."
For further information please contact:
Newbury Racecourse plc
Tel: 01635 40015
Julian Thick, Chief Executive
Andy Clifton, Head of Communications
Hudson Sandler
Tel: 020 7796 4133
Charlie Jack / Katie Matthews
Chairman's Statement [1]
2015 was a year of positive growth and improved financial performance for
Newbury Racecourse.
The full year profit after tax was GBP1.61m compared to a loss of (GBP0.98m) in
2014 (restated following the adoption of FRS102 as per footnote) reflecting a
15% increase in turnover to GBP14.3m, with an overall improvement in the
underlying trading operating profits of GBP0.39m. It also includes exceptional
profits of GBP0.72m (2014: GBP0.37m), relating to the recognition of value on
completion of the new nursery, hostel accommodation, maintenance compound and
owners and trainers car park, all funded as part of the agreement with David
Wilson Homes.
We are pleased to have seen significant improvements in the trading performance
across a number of areas of the business, in particular with revenues from our
racing activities growing by 15% and our Conference & Events revenues growing
by 31% year on year.
Racing Highlights
Overall raceday attendances increased by 7% year on year to 210,000.
We played host to some top class racing during the year with the equine stars
of our sport once again providing our racegoers with some outstanding
performances on the track.
Betfair Super Saturday featured a superb display by Coneygree, who went on to
win the Cheltenham Gold Cup.
Dubai Duty Free Spring Trials Weekend got our flat racing season off to a
tremendous start and Muhaarar, the winner of the AON Greenham Stakes, went on
to win three Group 1 races and became the champion sprinter of Europe, whilst
Star of Seville, another winner that weekend, went on to win the French Oaks,
arguably the most important race for fillies in France.
In May, we hosted the GBP750,000 Al Shaqab Lockinge Day, the richest race meeting
in Newbury's history, which was attended by over 13,000 racegoers. This was a
positive start to our five year partnership with Al Shaqab, as we continue to
develop this meeting as the flagship event in our flat racing calendar.
At the Weatherbys Super Sprint meeting in July we hosted DJs Danny Howard and
DJ Fresh, who performed after an excellent day's racing, which was attended by
almost 14,000 people. In addition, following a successful appearance at the
Racecourse in 2009, we were delighted to welcome back Madness in September on
Dubai Duty Free International Weekend, which attracted an attendance of 20,995,
the highest crowd number since 2012. We were also pleased to partner with the
charity Breast Cancer Care, at one of the highlights of our summer racing
calendar, Betfred Ladies Day in August, which was attended by 13,000 people and
raised GBP25,000 for the charity.
Rounding off 2015 in style, Smad Place delighted the crowds with his exuberant
front-running win in the Hennessy Gold Cup in November.
The Development
The David Wilson Homes residential development has continued to make very good
progress, with the Western
Area construction now complete with virtually all units now sold. The next
phase of the residential development is well underway in the Central Area and
early interest has been very positive. 360 apartments are being constructed,
with first occupations anticipated for summer 2017.
We are delighted with the tremendous progress that was made during 2015 on the
racecourse infrastructure improvements. The new main public car park at the
eastern end of the racecourse, together with the new nursery, stable staff
hostel and the new owners' and trainers' car park have all now been completed
and have been very well received.
The new access bridge from the north of the site is also now complete providing
a much improved arrival and departure experience for our customers. It opened
for the first time at the three day bet365 Festival, featuring the Hennessy
Gold Cup and received good feedback from racegoers.
In July, the Board announced that it had submitted detailed planning proposals
for the racecourse's own redevelopment. These plans, which were approved in
October, include new entrances, remodelling of the parade ring areas and a new
owners and trainers facility. These improvements are focused on enhancing the
experience for all of our racegoers, whilst generating improved financial
returns for the wider business in the longer term. The works will commence
during the early summer of 2016.
Outlook
We continue to receive positive feedback from all stakeholders about the
improved atmosphere and facilities at the racecourse and our plans for the
future. We were delighted that the hard work of the Newbury team was recently
recognised as the only UK racecourse to receive the Racecourse Association and
VisitEngland Excellence Accolade for customer service.
On behalf of the board, I would like to thank all of our staff for their
continued hard work and commitment during the year. Our thanks also to the
parents and children of the Rocking Horse Nursery and all of our Conference and
Events customers and partners for their patronage; and all our sponsors,
owners, trainers, all horsemen and racegoers for their continuing support and
patronage during this period of transformation for the racecourse.
In light of the strong trading performance and the positive progress being made
to the infrastructure and the development of the racecourse, the board has
every confidence in the financial outturn for 2016 and beyond.
DOMINIC J BURKE
Chairman
3 May 2016
STRATEGIC REPORT
STRATEGY AND OBJECTIVES
The Board's long term strategy is to continue the profitable development of
Newbury Racecourse as a leading racecourse, entertainment and events business
with racing at its core. Continued significant progress towards this aim has
been made in 2015, with improved financial results, reinvestment in prize money
and facilities.
THE BUSINESS MODEL
Newbury Racecourse PLC is the parent of a Group of companies which own Newbury
Racecourse and engage in racing, hospitality and catering retail activities.
In addition, the Group operates a conference and events business, and a
children's nursery. Alongside its trading activities, the Group owns freehold
property from which it receives annual income and also benefits from the sale
of residential properties on the site, as part of its long term development
agreement with David Wilson Homes.
PERFORMANCE REVIEW
Consolidated Group profit on ordinary activities before tax in the year ended
31 December 2015 was GBP1.61m (2014: loss GBP1.54m) which includes GBP0.72m of
exceptional profits (2014: GBP0.37m exceptional profits). The underlying trading
business's improved performance resulted in a profit before tax of GBP0.43m
(2014: GBP0.05m).
Turnover for the trading business increased by 15% (GBP1.88m) to GBP14.3m (2014: GBP
12.4m). Racing revenues increased by 15% (GBP1.57m) on prior year, with increased
attendances in part due to the two additional racedays in 2015, together with
the success of our after-racing music and the increased sponsorship of the Al
Shaqab Lockinge. Conference and Events revenues increased by 31% (GBP0.27m) on
prior year. The Rocking Horse Nursery revenues showed an improvement of 3% (GBP
0.02m) on 2014.
(MORE TO FOLLOW) Dow Jones Newswires
May 04, 2016 02:00 ET (06:00 GMT)
The improvement in overall trading performance resulted in a GBP0.39m increase in trading operating profit to GBP0.69m (2014: GBP0.30m) before operating exceptional items. The operating loss for the property business before operating exceptional items was GBP0.14m (2014: loss (GBP0.075m)), reflecting the costs of managing the ongoing relationship with David Wilson Homes (DWH), our development partner, together with the cost of temporary works to minimise disruption to our customers around the site during the ongoing redevelopment. The overall operating profit on ordinary activities before interest and non-operating exceptional items was GBP0.55m (2014: loss (GBP0.55m)). Exceptional profits during 2015 of GBP0.72m (2014: GBP0.36m) is the recognition of the new nursery, hostel accommodation, estates yard and car parks provided by DWH as part of the consideration for the land sale. Interest receivable of GBP0.66m includes the partial unwinding of the DWH debtor discount charge relating to the year ended 31 December 2015. Profit on ordinary activities after tax was GBP1.61m (2014: loss (GBP0.98m)). The increase in cash reserves of GBP4.51m in the period (2014: GBP3.43m increase) includes GBP5.49m of cash receipts from DWH in respect of properties sold in the period, and is net of GBP2.39m of capital expenditure. Racing The accounts include a total of 30 days racing (2014: 28) comprising 12 days National Hunt racing (2014: 11) and 18 days flat racing (2014: 17). As ever the racecourse hosted some very high quality racing during 2015, with no meetings abandoned (2014: no meetings abandoned). In May we hosted Al Shaqab Lockinge Day, the richest race meeting in Newbury's history, which was attended by over 13,000 racegoers and was a positive start to our five year partnership with Al Shaqab. We continue to develop this meeting as the flagship event in our flat racing calendar and the action on the track featured a string of outstanding performances. Our cornerstone jump meeting, the three day bet365 Hennessy Festival, continued to make progress and we were delighted once again with attendances across the three days of approximately 30,000 and the highest attendance on the Saturday, Hennessy Gold Cup day, for 21 years. Overall raceday attendances in 2015 increased by 7% to 210,000 (2014: 196,000). This was, in the main, due to increased attendances at a number of key fixtures, in particular Party in the Paddock with Madness in September and the addition of two racedays in the year. We are grateful to have received continued significant support from all of our sponsors, with particular thanks to Al Shaqab Racing, bet365, Betfair, Betfred, Dubai Duty Free and JLT for their investment in 2015. This support has allowed us to continue to invest in our prize money and we are pleased to report that prize money increased by 21% in 2015 to GBP4.72m. We hosted three successful music events in 2015 with DJ Fresh and Danny Howard in July, Bjorn Again in August and Madness in September, attracting total attendance in excess of 47,000 and producing financial returns in excess of our expectations. Media revenues increased by c. GBP0.3m, to GBP3.14m for the twelve months to 31 December 2015, reflecting the continued growth in this important revenue stream, driven predominantly by progress in streaming and overseas activities of Racecourse Media Group. Catering, Hospitality and Retail Total catering revenues increased by GBP0.6m (17%) on 2014, to GBP4.24m. During 2015 we implemented a number of initiatives and invested in a number of key areas of our food and beverage retail facilities, as part of our continued drive to improve both our offer to customers and the financial returns that this part of the business delivers. Alongside our continued investment in the training of our staff, which has seen us achieve industry accolades for customer service, we are starting to see the financial rewards for our efforts in this area. Leisure, Conference and Events Conference and Events revenues grew by 31% (GBP0.27m) versus 2014, to GBP1.14m. Gross operating profits of GBP0.31m were 82% (GBP0.14m) ahead. Once again we were delighted to host successful events for a number of blue chip clients, welcoming back Thames Water, Open University, Boden and NHS, alongside a number of prestigious new clients including John Lewis, Lloyds Bank and Albourne Partners. The total number of event days sold increased 78% on the previous year. Our sales team continues to focus on growing this part of our business, through proactive selling and relationship building within key sectors and with a number of agents. As the redeveloped racecourse facilities come on stream over the next three years, the Conference and Events business performance will continue to improve. The Rocking Horse Nursery We are pleased to report that the trading performance of the Rocking Horse Nursery has continued to improve steadily, with turnover increasing by 3% (GBP 0.02m) and operating profits of GBP0.1m in line with 2014. Following the move to our new, larger, state of the art facility in August, we saw like for like average occupancy increase from 48% in 2014 to 53%. Property Redevelopment The DWH residential development has continued to make excellent progress, with 98% of homes in the Western Area now occupied. In line with our expectations the Group's cash flows were enhanced by an additional GBP5.49m of payments received from DWH during the year to December 2015. A number of the racecourse's own development works are now completed including the refurbished stables, the new nursery, the new hostel (known as The Lodge) and the new estates yard, together with the vast majority of improved public car parking facilities, all have received excellent initial feedback. Construction of the new access bridge from the north is now complete. We have been able to open this on racedays since November and this has significantly improved ingress and egress for all our customers. FUTURE DEVELOPMENTS The Board announced in July that the racecourse had submitted its plans for the redevelopment of the "heartspace" and we were pleased to receive planning approval in October. These works, which include new entrances, remodelling of the parade ring areas and a new owners' and trainers' facility, are focused on enhancing the experience for all of our racegoers, whilst generating improved financial returns for the wider business in the longer term. Works are expected to commence during early summer 2016, starting with the construction of the new Horseman's Club at the western end of the site. The operational challenges that the redevelopment has presented to date have been successfully managed by the racecourse team alongside our development partners DWH, minimising as far as possible disruption to our customers and neighbours, to whom we are grateful for their continued support and patience. We will continue to manage this proactively during the next phases of development and we remain confident that the enhanced racecourse will deliver material benefits for all stakeholders in the long term. KEY PERFORMANCE INDICATORS The Group uses raceday attendance and trading operating profit/loss as the primary performance indicators. Total attendance was 210,000 (2014: 196,000). Operating profit/loss is shown within the profit and loss account on page 13. PRINCIPAL RISKS AND UNCERTAINTIES Cashflow Risk The main cash flow risks are the vulnerability of race meetings to abandonment due to adverse weather conditions and fluctuating attendances particularly for the Party in the Paddock events, together with the possibility of delayed property receipts from David Wilson Homes. The practice of covering the racetrack to protect it from frost and investment in improved drainage, as well as insuring key racedays, mitigates the raceday risk. Regular review of variable conferencing costs reduces the impact of a decline in conference sales. The timing and amount of receipts from David Wilson Homes is dependent upon the rate of sales of residential plots. The risk of delayed receipts is mitigated to some extent by the long stop dates in the sale agreement, in respect of the minimum guaranteed land value. Short term cash flow risk is mitigated by regular review of the expected timing of receipts and by ensuring that the Group has committed facilities 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. The David Wilson Homes debtor is backed by a parent Company guarantee from Barratt Homes Plc. Liquidity Risk In order to maintain liquidity to ensure that sufficient funds are available for both ongoing operations and the property redevelopment, the Group uses a mixture of long-term and short-term debt finance which is secured on the property assets of the Group. The Board regularly review 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.
(MORE TO FOLLOW) Dow Jones Newswires
May 04, 2016 02:00 ET (06:00 GMT)
Interest Rate Risk
The Group manages its exposure to interest rates through an appropriate mixture
of interest rate caps and swaps, where necessary.
Going Concern
The Board has undertaken a full and thorough review of the Group's forecasts
and associated risks and sensitivities, over the next three years. The extent
of this review reflects the current economic climate as well as 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 and the timing of receipts and payments in respect
of the property redevelopment. A system of regular reviews of forecast
business and expected property receipts 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, reducing the
levels of risk carried by the Group.
The Board has reviewed the cash flow and working capital requirements in
detail. The Group currently has committed credit facilities in place through
to March 2022. Following this review the Board has concluded that it has a
reasonable expectation that the Group has adequate resources in place to
continue in operational existence for the foreseeable future and on that basis
the going concern basis has been adopted in preparing the financial statements.
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.
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 2015 is 7.7% (2014: 6.2%) of
the amounts invoiced by suppliers during the year. This percentage, expressed
as a proportion of the number of days in the year, is 28 days (2014: 23 days).
Disabled Employees
Applications for employment by disabled persons 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 GBP27,120 to
national charities (2014: GBP3,972).
By order of the Board
JULIAN THICK
Chief Executive
3 May 2016
Sponsors in the year for 31 December 2015
We would like to thank our leading sponsors for their significant support in
2015
Al Basti Equiworld
Al Shaqab
Bet365
Betfair
Betfred
British European Breeders Fund
Dubai Duty Free
JLT
Moët Hennessy UK
Thoroughbred Breeders Association
Weatherbys
Worthington's
We also received much appreciated support from the following sponsors
Academy Insurance
Agetur UK
AJC Premier
Aon Limited
Ballymacoll Stud
Bathwick Tyres
Berry Bros & Rudd
Bewiser Insurance
BJP Insurance Brokers
Blackmore Building Contractors Ltd
Bloomsbury Auctions
Burges Salmon LLP
Carter Jonas
Christopher Smith Associates LLP
Compton Beauchamp Estates Ltd
Coln Valley Stud
Crossland Employment Solicitors
CSP
Denford Stud
Doom Bar
Doncaster Bloodstock Sales
Emma Lavelle Racing Ltd
Event Bar Management
Fuller Smith & Turner PLC
Greatwood
Grundon
Haynes Hanson & Clark
HBLB
Heatherwold Stud
Highclere Thoroughbred Racing
Hot to Trot Racing Club
Infiniti
Inkerman
KKA
Kentford Racing
Key4Life
Luck Greayor Bloodstock
Malone Roofing
NSPCC
Oakley Coachbuilders
Pertemps Group
Powersolve Electronics
Premier Food Courts
Pump Technology Ltd
Punter Southall
Q Associates Ltd
Racing UK
Rayner Bosch Car Services
Relyon Cleaning Services
R & M Electrical
Smith & Williamson
South Down Water
Sri Lanka Tourist Board
Starlight
The Hawk Inn
The Pheasant Inn
TKP Surfacing
Ultima Business Solutions
Vodafone Group PLC
Wedgewood Estates
West Berkshire Mencap
West Berkshire Racing Club
Whitley Stud
Zenergi
There were also 6 races sponsored for birthdays, retirement or in memoriam.
Consolidated Profit and Loss Account
Year ended 31 December 2015
2014 2014
2015 2015 2015 (restated) (restated) 2014
Note Trading Property Total Trading GBP Property (restated)
GBP'000 GBP'000 GBP'000 '000 GBP'000 Total GBP
'000
Turnover 2 14,266 49 14,315 12,383 31 12,414
Cost of sales (11,333) - (11,333) (10,016) - (10,016)
Gross profit 2,933 49 2,982 2,367 31 2,398
Administrative expenses (2,246) (184) (2,430) (2,068) (882) (2,950)
Operating profit/(loss) 687 (135) 552 299 (851) (552)
Operating profit/(loss) 687 (135) 552 299 (75) 224
before
exceptional operating
items
Asset impairment 3 - - - - (776) (776)
687 (135) 552 299 (851) (552)
Profit/(loss) on ordinary
activities
before interest and non-
operating
exceptional items 687 (135) 552 299 (851) (552)
Exceptional Items
Profit on disposal of 3 - 722 722 2 363 365
fixed assets
Profit/(loss) on ordinary
activities
before interest 687 587 1,274 301 (488) (187)
Interest receivable and 34 629 663 4 3 7
similar income
Interest payable and (289) (38) (327) (256) (1,101) (1,357)
similar charges
Profit/(loss) on ordinary
activities
before taxation 432 1,178 1,610 49 (1,586) (1,537)
Tax (charge)/credit 4 (71) 66 (5) 99 457 556
Profit/(loss) on ordinary
activities
after taxation being
profit/(loss)
for the financial year 361 1,244 1,605 148 (1,129) (981)
Profit/(loss) per share 48p (29p)
(basic and diluted) (Note
5)
All amounts derive from
continuing operations
Consolidated Statement of Total Recognised Gains and Losses
Year ended 31 December 2015
2015 2014
GBP'000 GBP'000
Profit/(loss) for the 1,605 (981)
financial year
Actuarial gain/(loss) relating to 566 (410)
pension scheme
Deferred tax on actuarial (120) 31
(gain)/loss
Total recognised profit/ 2,051 (1,360)
(loss) in the year
Consolidated Balance Sheet
Year ended 31 December 2015
2014
Note 2015 (restated)
GBP'000 GBP'000
Fixed assets
Tangible assets 6 35,535 31,871
Investment 192 117
35,727 31,988
Current assets
Stocks 206 187
Debtors
- due within one year 4,285 8,690
Cash at bank and in hand 2,105 2,402
Cash investment 6,837 2,030
13,433 13,309
Creditors: amounts falling due (8,378) (6,393)
within one year
Net current assets 5,055 6,916
Total assets less current 40,782 38,904
liabilities
Creditors: amounts falling due after more 7 (7,238) (7,021)
than one year
Provisions for liabilities (1,570) (1,499)
Net assets before pension 31,974 30,384
deficit
Pension deficit (303) (704)
Net assets after pension 31,671 29,680
deficit
Deferred income
(MORE TO FOLLOW) Dow Jones Newswires
May 04, 2016 02:00 ET (06:00 GMT)
Deferred capital grants 3,963 4,023
Capital and reserves
Called up share capital 8 335 335
Share premium account 10,202 10,202
Revaluation reserve 75 75
Equity reserve 143 143
Profit and loss account 16,953 14,902
surplus
Shareholders' funds 27,708 25,657
31,671 29,680
The financial statements of Newbury Racecourse PLC, Company registration
00080774, were approved by the Board of Directors on 3 May 2016 and signed on
its behalf by:
D J BURKE (Chairman) J
THICK (Chief Executive)
Consolidated Statement of Changes in Equity
At 31 December 2015
GROUP Capital Profit
Share Share redemption Revaluation and loss
Capital Premium Reserve reserve GBP account Total
GBP'000 GBP'000 GBP'000 '000 GBP'000 GBP'000
At 31 December 2013 335 10,202 143 75 4,822 15,577
Changes on transition to FRS - - - - 11,440 11,440
102 (see note 10)
At 1 January 2014 (restated) 335 10,202 143 75 16,262 27,017
Loss for the year to 31 - - - - (1,360) (1,360)
December 2014 (restated)
At 31 December 2014 (restated) 335 10,202 143 75 14,902 25,657
Profit for the year to - - - - 2,051 2,051
December 2015
At 31 December 2015 335 10,202 143 75 16,953 27,708
Unrealised other reserves of GBP198,000 arose in Newbury Racecourse plc on
disposal of the land south of the racecourse to Newbury Racecourse Enterprises
Ltd in 2001
Consolidated Cash Flow Statement
Year ended 31 December 2015
2014 2014
2015 GBP 2015 GBP (restated) (restated)
Note '000 '000 GBP'000 GBP'000
Net cash inflow/(outflow) from 9 1,231 1,430
operating activities
Returns on investments and servicing
of finance
Interest received and other 34 -
investment income
Interest paid (80) (91)
Net cash outflow from returns on investments
and servicing (46) (91)
of finance
Taxation
UK corporation tax refunded 151 -
/(paid)
Total tax refunded/(paid) 151 -
Capital expenditure
Payments to acquire (2,386) (600)
tangible fixed assets
Receipts from exceptional sale of 5,494 3,293
fixed assets
Grant from HBLB 50 -
Net cash inflow from capital 3,158 2,693
expenditure
Net cash inflow/(outflow) before 4,494 4,032
financing
Financing
Loan finance received 16 -
Loan repayment - (599)
Net cash inflow/(outflow) 16 (599)
from financing
Increase in cash in the 4,510 3,433
year
Notes to the Financial Statements
Year ended 31 December 2015
1. ACCOUNTING POLICIES
The financial statements have been prepared in accordance with applicable
United Kingdom accounting standards. The financial statements for the year
ended 31 December 2015 reflect the transition to FRS102 and the restatement of
the comparative year's results - see Note 11 for details. The particular
accounting policies adopted in the current and preceding year are described
below.
Going concern
The Board has undertaken a full and thorough review of the Group's forecasts
and associated risks and sensitivities. 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 and the timing of receipts and payments in respect
of the property redevelopment. A system of regular reviews of forecast
business and expected property receipts 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, reducing the
levels of risk carried by the Group.
The Board has reviewed the cash flow and working capital requirements in
detail. At the balance sheet date the Company has adequate cash reserves,
together with revolving credit facilities which are in place through to March
2022.
2. TURNOVER
Trading turnover, which arises solely in the United Kingdom, represents
admissions to the racecourse, catering, hospitality sales, sponsorship, media
rights licence fees, annual membership fees and all income from the provision
of services for race meetings. It also includes income from conference and
events (shown under trading) and fees for the Rocking Horse Nursery. HBLB
revenue grants are not included in turnover, instead they are included as a
contribution against prize money in cost of sales. Property turnover represents
rental income. 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.
Segmental Analysis
2015 Operating
Profit/
(loss) Profit/
Before Exceptional (loss)
Gross Exceptional Operating Exceptional Before *Net
Turnover Profit Items Items Items Tax assets
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Trading 13,557 2,831 585 - - 330 33,225
Nursery 709 102 102 - - 102 2,275
Total 14,266 2,933 687 - - 432 35,500
Property 49 49 (135) - 722 1,178 (3,829)
Total 14,315 2,982 552 - 722 1,610 31,671
2014 (restated) Operating
Profit/
(loss) Profit/
Before Exceptional (loss)
Gross Exceptional Operating Exceptional Before *Net
Turnover Profit Items Items Items Tax assets
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Trading 11,693 2,257 189 - 2 (61) 30,798
Nursery 690 110 110 - - 110 (9)
Total 12,383 2,367 299 - 2 49 30,789
Property 31 31 (75) (776) 363 (1,586) (1,109)
Total 12,414 2,398 224 (776) 365 (1,537) 29,680
*Net asset represents fixed assets less deferred income and term loans for
property and nursery; all working capital is included within the 'Racecourse
Trading' segment.
Notes to the Financial Statements
Year ended 31 December 2015
3. EXCEPTIONAL ITEMS
Operating Items 2014
2015 (restated)
GBP'000 GBP'000
Asset impairment - (776)
Total - (776)
Asset Impairment
Asset impairment of GBP776,000 in 2014 is the write off of capitalised costs
associated with historic design and planning fees in connection with racecourse
redevelopment plans.
Non-Operating Items 2014
2015 (restated)
GBP'000 GBP'000
Profit on Sale of Fixed 722 365
(MORE TO FOLLOW) Dow Jones Newswires
May 04, 2016 02:00 ET (06:00 GMT)
Asset
Total 722 365
Profit on sale of fixed assets of GBP722,000, is the recognition of the
incremental value of the newly built hostel, nursery, estates yard and owners'
and trainers' car park, all funded by David Wilson Homes in part consideration
for the land sold as part of the development agreement signed in 2012. (2014: GBP
365,000 is the value of the refurbished stables, head lads' facility and
horsebox parking)
4. TAXATION
2014
2015 (restated)
GBP'000 GBP'000
Charge for the year 89 -
Adjustments in respect of (155) (457)
prior years
Total current tax (66) (457)
Deferred taxation:
Origination and reversal of timing 165 (122)
differences
Utilisation of tax losses - -
Effect of change in rate (174) -
Adjustment in respect of 80 25
prior years
71 (97)
Deferred tax on interest charge on - (2)
pension scheme
Tax (credit)/charge 5 (556)
The actual tax charge for the current and previous year differs from the
effective rate 20.25%, (2014: 21.50%) for the reasons set out in the following
reconciliation.
2014
2015 (restated)
GBP'000 GBP'000
Profit/(loss) on ordinary activities 1,610 (1,537)
before tax
Tax on profit on ordinary activities at 326 (330)
the standard UK rate
Income not chargeable for (125) (40)
tax purposes
Expenses not deductible 95 134
for tax purposes
Depreciation in excess of capital (56) -
allowances
Permanent difference in respect of exceptional 94 (251)
property transaction
Effect in change of rate (174) -
Adjustment in respect of (155) (457)
prior years
Utilisation of tax losses - 388
Total actual amount of 5 (556)
current tax
Notes to the Financial Statements
Year ended 31 December 2015
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 2015 of GBP
1,605,000 (2014: loss (GBP981,000)) by the weighted average number of ordinary
shares during the year of 3,348,326 (2014: 3,348,326)
6. TANGIBLE FIXED ASSETS
GROUP Freehold
land and
buildings Fixtures Tractors
and fittings and
outdoor and motor
fixtures GBP equipment vehicles Total
'000 GBP'000 GBP'000 GBP'000
Cost or valuation
As at 1 January 2015 39,810 5,690 242 45,742
(restated)
Additions 4,240 460 38 4,738
Disposals - - (14) (14)
As 31 December 2015 44,050 6,150 266 50,466
Depreciation
At 1 January 2015 9,269 4,406 196 13,871
(restated)
Charge for year 682 368 10 1,060
Disposals - - - -
At 31 December 2015 9,951 4,774 206 14,931
Net book value at 31 34,099 1,376 60 35,535
December 2015
Net book value at 31 30,541 1,284 46 31,871
December 2014 (restated)
The transitional rules set out in FRS102 regarding Tangible Assets have been
applied on implementing FRS102. Accordingly the book values at implementation
have been retained. In 1959 a revaluation of part of the freehold land at GBP
117,864 gave rise to an excess of GBP75,486 over its cost and this sum is
included in the total value of this asset. The excess on revaluation is
credited to the Revaluation Reserve. The net book value of freehold land and
buildings determined by the historical cost convention is GBP34,024,000 (2014: GBP
30,466,000).
Freehold land and buildings and outdoor fixtures includes GBP1,420,000 (2014: GBP
107,000) in respect of assets under construction, being capitalised design fees
in connection with the heartspace redevelopment which received planning
approval in October 2015. Freehold land and buildings and outdoor fixtures also
includes GBP1,804,000 (2014: GBP10,641,000) in respect of prepaid assets, being
racecourse enabling works remaining to be undertaken by DWH under the terms of
the 2012 development agreement.
Notes to the Financial Statements
Year ended 31 December 2015
7. LOANS
GROUP & COMPANY
Analysis of loan 2014
repayments: 2015 (restated)
GBP'000 GBP'000
Between three and five 7,238 4,333
years
More than five years - 2,688
7,238 7,021
Compton Beauchamp Estates Limited Loan
Under an agreement dated 29 October 2012 , Compton Beauchamp Estates Limited
granted the Group the
following facilities :
Purpose Repayment Interest* Amount
Dates Drawn
GBP6,500,000 Purchase of own 15.11.18 2.88% GBP7,238,230
shares
15.11.19
15.11.20
The loan is secured by a charge of the Group's property to a Deed of Priority
dated 3 May 2016 between
National Westminster Bank PLC, Trustees of the Newbury Racecourse PLC Pension
and Life Assurance Plan and Compton Beauchamp Estates Limited.
The capital sum is repayable in three equal instalments on the dates as shown,
with the balance of interest accrued payable on the final payment date.
* Under the terms of the loan the interest is rolled up into the loan capital
sum. Interest accrued in the period to 31 December 2015 was GBP201,000 (2014: GBP
195,000). Interest is calculated using the six monthly LGT Bank (Ireland)
Limited International Bank Rate plus 2%.
8. SHARE CAPITAL 2015 2014
GBP'000 GBP'000
Authorised
Ordinary shares at 10p each 600 600
Total 600 600
Allotted and fully paid 2015 2014
GBP'000 GBP'000
Ordinary shares of 10p each 335 335
Total 335 335
Notes to the Financial Statements
Year ended 31 December 2015
9. CASHFLOW
1. Reconciliation of operating loss to net cash (inflow) 2014
from operating activities 2015 (restated)
GBP'000 GBP'000
Operating profit 552 224
Depreciation charges 1,060 1,008
Amortisation of capital (110) (110)
grants - (4)
Disposal of fixed asset
(Increase) in stocks (19) (8)
(Increase) in debtors and (282) (91)
prepayments
Increase in creditors and accruals 30 411
Net cash inflow from operating 1,231 1,430
(MORE TO FOLLOW) Dow Jones Newswires
May 04, 2016 02:00 ET (06:00 GMT)
activities
2. Reconciliation of net cash flow to movement in net debt 2014
2015 (restated)
GBP'000 GBP'000
Increase in cash in the 4,510 3,433
period
Inception of loans (233) 390
Change in net debt resulting from 4,277 3,823
cash flows
Non cash movements - (22)
Net debt at 1 January (2,591) (6,392)
Net debt at 31 December 1,686 (2,591)
3. Analysis of change At 1 Jan At 31 Dec
in net debt 2015 Non cash 2015
(restated) Cash changes GBP'000
GBP'000 flow GBP'000
GBP'000
Cash at bank and in hand 4,431 4,510 - 8,941
Debt due within one year
- Loan - - - -
Debt due after one year
- Loan (7,022) (16) (217) (7,255)
(2,591) 4,494 (217) 1,686
Notes to the Financial Statements
Year ended 31 December 2015
10. SUBSEQUENT EVENTS
On 26 April 2016, the Group completed the transfer of the third and final
tranche of land to David Wilson Homes, under the terms of the development
agreement dated 18 September 2012. The profits and associated costs
attributable to this transaction will be recognised in the financial statements
for the year ended 31 December 2016.
11. EXPLANATION OF TRANSITION TO FRS 102
This is the first year that the Company has presented its financial statements
under Financial Reporting Standard 102 (FRS 102) issued by the Financial
Reporting Council. The following disclosures are required in the year of
transition. The last financial statements under previous UK GAAP were for the
year ended 31 December 2014 and the date of transition to FRS 102 was therefore
1 January 2014. As a consequence of adopting FRS 102, a number of accounting
policies have changed to comply with that standard.
RECONCILIATION OF EQUITY
Group
At 1 January At 31 December
2014 2014
GBP'000 GBP'000
Equity reported under previous UK GAAP 15,577 17,212
FRS 102 transition adjustments:
1 Recognition of DWH transaction at fair value 12,710 9,677
2 Compton Beauchamp loan on effective rate (8) (22)
interest basis
3 Deferred tax on 2003 rollover relief claim (1,262) (1,210)
Equity reported under FRS 102 27,017 25,657
RECONCILIATION OF PROFIT FOR YEAR ENDED 31 DECEMBER 2014
GBP'000
Profit for the financial period under previous UK GAAP 1,635
1 Movement in fair value of DWH debtor (1,497)
2 Reversal of original DWH asset gains (1,536)
3 Movement in Compton Beauchamp loan on effective rate interest (13)
basis
4 Movement on deferred tax on 2003 rollover relief claim 51
Loss for the financial period under FRS 102 (1,360)
Notes
The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2015 or 2014, but is derived
from those accounts. Statutory accounts for 2014 have been delivered to the
Registrar of Companies and those for 2015 will be delivered following the
company's annual general meeting. The auditors have reported on those accounts;
their reports were unqualified, did not draw attention to any matters by way of
emphasis without qualifying their report and did not contain statements under
s498(2) or (3) Companies Act 2006.
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.
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
Irelandand with those parts of the Companies Act 2006 that are applicable to
companies reporting under UK GAAP.
The financial statements for the year ended 31 December 2015 reflect the
transition to FRS102 and the restatement of the comparative year's results.
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 3 May
2016.
[1] 2014 results referred to throughout these financial statements are in all
cases restated following the adoption of FRS102.
END
(END) Dow Jones Newswires
May 04, 2016 02:00 ET (06:00 GMT)
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