Newbury Racecourse Plc Interim Results for the 6 Months Ended 30 June 2021

 
TIDMNYR 
 
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. 
 
                                                              15 September 2021 
 
                            NEWBURY RACECOURSE PLC 
 
                      (the "Racecourse" or the "Company") 
 
              Interim results for the 6 months ended 30 June 2021 
 
Newbury Racecourse plc, the racing, entertainment and events business, today 
announces its half year results for the six months ended 30 June 2021. 
 
2021 Financial and Business Update 
 
·      Statutory turnover increased by 72% to £5.37m (2020: £3.12m). 
 
·      Loss before interest, tax and exceptional items reduced to £0.38m (2020: 
Loss of £1.64m) 
 
·      Consolidated group loss on ordinary activities before tax of £0.32m 
(2020: Loss of £1.6m). 
 
·      Raceday attendances of 4,400 (2020: 10,900). Twelve meetings (two with a 
paying attendance) compared with six (three with paying attendance) in 2020. 
 
·      In 2021 the Company has continued to be severely impacted by the 
COVID-19 pandemic alongside the decision by the UK Government to implement 
national lockdowns which subsequently placed restrictions on our business's 
ability to operate normally. 
 
·      The Company has operated all its 2021 racing fixtures, with, for the 
majority, the only income coming from our betting and media rights agreements. 
The nursery is trading as normal and the conference & events business has 
re-opened to a cautious market. The Hotel has remained closed since 17 March 
last year. 
 
·      In June 2021, the Company announced a joint-venture partnership 
agreement with Levy Restaurants (a division of Compass Group) to provide all 
raceday, events, hotel and nursery catering. The Board is confident that this 
relationship, which became effective from 1 June 2021, will provide the 
racecourse with access to innovative technology solutions, new restaurant, bar 
and food outlet concepts and improved commercial benefits for many years to 
come. 
 
·      On 7 July 2021, the Company announced that it had signed an all media 
rights agreement with Arena Leisure Racing Ltd & At The Races Ltd (Sky Sports 
Racing) to replace the existing contract with Racecourse Media Group Ltd. This 
existing agreement expires in respect of retail rights on 31 March 2023 and in 
respect of all other rights on 31 December 2023. It is anticipated that the new 
agreement will provide the Racecourse with both financial and strategic 
benefits and will run until the end of 2028. 
 
Outlook Update 
 
·      The UK Government's lifting of all legal restrictions on public life 
from 19 July 2021 means the Company is now in a position to plan accordingly. 
Paying attendance with unlimited crowds is now permitted, our raceday 
hospitality businesses have reopened and our nursery remains fully open to all 
children. 
 
·      Providing that no new restrictions are implemented then the outlook for 
the remainder of the year looks positive, but we remain cautious of the fact 
that the UK Government guidance could change this situation at any time. The 
business continues to manage and mitigate the risks associated with COVID-19. 
 
·      The Company is confident that it has the resources to trade through 
until receipt of the David Wilson Homes final payment which is due in March 
2022, within its current banking facilities. The Board anticipates being in a 
position to provide a further update on capital returns to shareholders and 
future prize money when our 2021 results are announced in spring next year. 
 
Dominic Burke, Chairman of Newbury Racecourse plc commented: 
 
"Following the challenges that 2020 presented for both the horseracing industry 
and our business it is pleasing to see that in 2021 we may finally have turned 
a corner. Up to 30 June we welcomed a crowd to two of our racedays and have 
subsequently been able to host a paying attendance, with certain elements of 
restrictions, at a subsequent eight race meetings. Whilst we were able to 
generate income during the behind closed doors meetings through our media and 
betting rights agreements, we lost the significant benefit of being able to 
generate key revenues through catering and hospitality but this will now be 
possible. Likewise, our Conference & Events business relaunched following 
suspension in March last year but unfortunately the Lodge Hotel remains closed 
whilst we identify the most appropriate opportunity to relaunch. We have 
continued to keep our Nursery business open during the year. During the period 
when the site was partially closed in the early part of this year we are proud 
to have provided support to the NHS by offering our facilities as a vaccination 
centre. 
 
The Step 4 final lifting of the UK Government's restrictions means that we are 
now in a position to be able to plan ahead for the remainder of 2021 and 
beyond. We hosted Olly Murs at our August Party in The Paddock and look forward 
to welcoming another sizeable crowd in September for Rick Astley. Likewise, we 
still have some exciting National Hunt meetings this year at the racecourse 
including the Ladbrokes Winter Carnival in November. 
 
However, the Board remains fully aware that the effects of the pandemic and its 
potential impact could remain with us for some while to come, so we are 
prepared for this and have proven that we can adapt the business accordingly. 
The impact of the financial operating losses from 2020 and the first half of 
2021 remain substantial. 
 
Recently we have signed two major strategic agreements, with Levy Restaurants 
becoming our Catering partner with effect from 1 June 2021 and all our media 
rights transferring to Arena Leisure Racing (Sky Sports Racing) in two separate 
stages starting with retail rights from 1 April 2023 followed by all other 
rights from 1 January 2024. We anticipate that both of these changes will 
influence our ability to improve the financial performance of the Company. I 
also remain confident that the redevelopment of the racecourse has provided us 
with an exceptional venue which, following a particularly challenging 18 
months, will continue to enable us to host racing and other events of the 
highest quality in the future. 
 
Unfortunately, I end this update on a very sad note. Long-standing supporter of 
Newbury Racecourse and former Chairman, Christopher Spence, has sadly passed 
away this week aged 84. Christopher was a special man and great friend to many 
at Newbury and within the horseracing industry. He will be sadly missed. Our 
thoughts go out to everyone who knew him and to his family at this difficult 
time." 
 
For further information please contact: 
 
Newbury Racecourse plc 
Tel: [phone] 
 
Julian Thick, Chief Executive 
 
Harriet Collins, Marcomms & Sponsorship Director 
 
Allenby Capital 
Limited                                                          Tel: [phone] 
5656 
 
Nick Naylor/Liz Kirchner (Corporate Finance) 
 
Hudson Sandler 
                                                                     Tel: 0207 
796 4133 
 
Charlie Jack 
 
CHAIRMAN'S STATEMENT 
 
2021 Trading 
 
The Company was initially forced to cease all of its trading activities in 
March 2020 but has subsequently adapted to changes in restrictions during the 
different lockdown stages through to mid-2021. After a year of behind closed 
doors racing, and with the exception of a restricted raceday in December, our 
first meeting with a limited paying crowd in attendance took place on 10 June 
2021. In the first half of 2021 we held a total of 12 racedays with only two 
being able to host a paying public attendance and both with limited 
hospitality. Licenced Betting Shops, which when fully operational are an 
important factor in our income generation, have also been closed in various 
forms and only became fully open with no restrictions from 17 May 2021. 
 
Whilst the Rocking Horse Nursery has remained opened throughout this year, our 
Conference and Events business only re-opened during April when restriction 
easing permitted whereas The Lodge Hotel remains closed and we continue to 
monitor the market to identify the most appropriate time to relaunch. 
 
In the meantime, we are proud to have played our part in helping the local West 
Berkshire community at this difficult time by allowing the NHS use of our 
facilities as a local vaccine centre from January. During the period of 
occupation they administered 66,500 COVID-19 vaccinations. 
 
In the first six months of 2021, total turnover has increased by 72%, compared 
to the same period in 2020, to £5.37m (2020: £3.12m). Overall operating losses 
to 30 June 2021 were £0.38m (2020: loss of £1.64m). Losses after tax for the 
period were £0.06m (2020: loss of £1.6m). There were 12 racedays in the first 
half of 2021 compared with six in 2020. 
 
These results were mitigated by a number of actions to manage overheads. Last 
year the Company undertook the difficult decision to reduce headcount by 30%, 
which has helped to control fixed overheads, whilst we have also carefully 
managed establishment and discretionary costs. The Company has made limited use 
of the Government Coronavirus Job Retention Scheme in 2021, has accepted the 
Business Rates discount but made no other use of any direct Government support 
package. 
 
Financing and Liquidity 
 
During the first half of 2021 we repaid £1.5m of the previously fully drawn 
revolving credit facility to National Westminster Bank plc ("NWB") as a result 
of our improved cash position and outlook given the easing of restrictions on 
the business. During 2020 we agreed with NWB to replace the covenants in place 

with a single measure, based on minimum liquidity levels, which continue to be 
tested through to April 2022, by which time we expect to receive £10.7m (being 
the final payment in relation to the residential development at the racecourse) 
from David Wilson Homes, a wholly owned subsidiary of Barratt Developments plc. 
 
The final repayment of the loan to Compton Beauchamp Estates Limited remains 
set for April 2022. 
 
Outlook 
 
Following the UK Government's lifting of all legal restrictions from 19 July 
2021, the Company is now in a position to plan accordingly for the remainder of 
this year and beyond. Paying attendance with unlimited crowds is now permitted, 
our raceday hospitality businesses have reopened and our nursery continues to 
operate normally. However, the Lodge Hotel remains closed whilst we regularly 
monitor the market for the appropriate time to relaunch. Licenced Betting Shops 
are now able to fully open back to pre-COVID levels. Despite the easing of 
restrictions the Company responsibly ensures that a safe environment for 
racegoers and other attendees to our site is maintained. 
 
We hosted Olly Murs at our August Party in The Paddock and look forward to 
welcoming another sizeable crowd in September for Rick Astley. Likewise, we 
still have some exciting National Hunt meetings this year at the racecourse 
including the Ladbrokes Winter Carnival in November and December's Challow 
Hurdle. However, the Board remains fully aware that the effects of the pandemic 
and its potential impact could remain with us for some while to come, so we are 
prepared for this and have proved during the past 18 months that we can adapt 
the business accordingly. 
 
Recently we have signed two major strategic agreements. Firstly, Levy 
Restaurants have become our Catering partner with effect from 1 June 2021 and 
we look forward to working with them and developing this important segment of 
the business. Secondly, all our media rights will transfer to Arena Leisure 
Racing (broadcast on Sky Sports Racing) in two separate stages starting with 
retail rights from 1 April 2023, with all other rights from 1 January 2024. We 
anticipate that both of these changes will influence our ability to improve the 
financial performance of the company. The Board anticipates being in a position 
to provide a further update on capital returns to shareholders and future prize 
money when our 2021 results are announced in spring next year. 
 
The impact of the financial losses from 2020 and the first half of 2021 remains 
substantial. The Board remains confident that the Company has the financial 
resources in place to trade through the period until the loans are due for 
repayment which coincides with the final receipt from David Wilson Homes in 
spring 2022. 
 
On behalf of the Board, I would like to thank all the staff for their continued 
hard work, resolve and commitment to the business during this extraordinary and 
challenging period. 
 
DOMINIC J BURKE 
 
Chairman 
 
15 September 2021 
 
CHIEF EXECUTIVE'S REPORT 
 
Performance Review 
 
Due to the UK Government's restrictions affecting our ability to operate as 
normal since spring 2020, the business remains substantially behind 2019 
levels. However, in the first half of 2021 we have experienced a 72% increase 
in group turnover to £5.37m (2020: £3.12m) compared to last year, which also 
demonstrates the significant impact that the initial lockdown had during the 
early part of 2020 once all trading was ceased on 17th March. 
 
Revenues across all our businesses were higher than 2020 but that in no way 
represents a positive position for the business compared with expectations 
under normal circumstances. Racing with a paying crowd resumed on 10 June 2021, 
which along with Licenced Betting Shops fully re-opening, has resulted in 
revenue being up 44% on 2020. Our Conference & Events business re-opened on 12 
April 2021 with income down 22% and the Nursery has seen a 56% increase in 
income compared with the same period last year. 
 
Despite these revenue improvements, the Company is reporting mid-year operating 
losses before exceptional items of £0.38m (2020: loss of £1.64m). 
 
Exceptional items in the first six months of 2021 were a credit of £0.06m 
(2020: credit of £0.03m) being the fair value movement on the David Wilson 
Homes debtor, based upon the expected timing and value of future receipts. 
 
The loss on ordinary activities after interest and tax was £0.06m (2020: loss £ 
1.6m). 
 
Racing 
 
The racecourse has hosted 12 racedays to 30th June 2021, ten of which were 
Behind Closed Doors ("BCD"). This compares to six staged during the same period 
in 2020, of which three were BCD. 
 
Total media related revenues of £2.12m, were up 120% on the same period in 
2020, as a direct consequence of the higher number of racedays being hosted. 
 
We are grateful for the continued and significant support from all of our 
sponsors for the racedays that we were able to host in the first half of the 
year, with particular thanks to Al Shaqab, Dubai Duty Free, Betfair, 
Mansionbet, Greatwood and West Berkshire Mencap for their ongoing support. 
 
Catering, Hospitality and Conference & Events 
 
Conference & Events started well in 2020 until the March COVID shutdown 
resulted in the cancellation of much of this business in a key trading period. 
2021 has seen the opposite with the business re-opening in April following 
almost a year of enforced closure. Consequently, revenues up to 30 June 2021 
were £0.12m compared with £0.5m in 2020, resulting in an operating loss of £ 
0.03m (2020: loss £0.26m). 
 
Our Catering business transferred to a joint venture partnership with Levy 
Restaurants on 1 June 2021 which will result in the Company receiving royalty 
income from the shared arrangement rather than reporting the full income and 
costs. Prior to that date there was minimal trading whilst the business 
remained closed, although we have continued with the outdoor pop-up Pub concept 
that we introduced last year in order to generate income within restriction 
guidelines. 
 
The Lodge 
 
Our 36 bedroom onsite hotel has remained closed to the public since March 2020. 
Now that UK Government restrictions have been lifted on accommodation stays we 
continue to monitor the market for the most appropriate opportunity to re-open 
and relaunch this business, which was previously delivering good growth in 
occupancy levels and average room rates. 
 
Rocking Horse Nursery 
 
The Rocking Horse Nursery has traded at normal levels throughout 2021, 
returning to those experienced in 2019. Revenues in the first six months of 
2021 were £0.8m, up 56% on the comparative period in 2020. This business unit 
reported an operating profit of £0.31m (2020: loss of £0.17m). 
 
The Development 
 
The 2020 restoration and refurbishment of the Royal Box completed the final 
stage of the racecourse heartspace redevelopment. Under the circumstances all 
other investment projects remain on hold until the trading and cash position of 
the business permits. 
 
The David Wilson Homes ("DWH") residential development continues to progress 
with the Central Area apartments now fully completed and sold, with the Company 
now owning the freeholds of a further ten apartment blocks. DWH is continuing 
with construction in the Eastern Area of the site. Approximately 1,000 homes 
out of the planned total of c.1,500 are now built. The final date for the 
balance of the guaranteed minimum land value due from DWH is March 2022 and as 
at 30 June 2021 the balance outstanding was £10.8m. 
 
JULIAN THICK 
 
Chief Executive 
 
15 September 2021 
 
Consolidated Profit and Loss Account 
 
Six months ended 30 June 2021 
 
                                                Note        Unaudited Restated* 
                                                      6 months 30/06/ Unaudited 
                                                                   21  6 months 
                                                                £'000  30/06/20 
                                                                          £'000 
 
Turnover                                           7            5,365     3,124 
 
Cost of sales                                                 (4,662)   (4,103) 
 
Gross (loss) / profit                              7              703     (979) 
 
Administrative expenses                                       (1,152)   (1,150) 
 
Other operating income                             8               66       494 
 
Operating loss before exceptional items                         (383)   (1,635) 
 
Exceptional Items                                  9               62        34 
 
Loss before interest and tax                                    (321)   (1,601) 
 
Interest receivable and similar income                             85        85 
 
Interest payable and similar charges                            (100)      (86) 
 
Loss before taxation                                            (336)   (1,602) 
 
Tax credit                                        10              280         9 
 
Loss after taxation                                              (56)   (1,593) 
 
Loss per share (basic and diluted) (See Note                  (1.67p)   (47.6p) 
11) 
 
All amounts derived from continuing operations 
 
*Refer to Note 16. 
 
Consolidated Statement of Comprehensive Income 
 
Six months ended 30 June 2021 
 
                                           Unaudited Restated* 
                                            6 months Unaudited 
                                            30/06/21  6 months 
                                               £'000  30/06/20 
                                                         £'000 
 
Total comprehensive loss for the period         (56)   (1,593) 
 
*Refer to Note 16. 
 
Consolidated Balance Sheet 
 
As at 30 June 2021 
 
                                                       Unaudited 

                                                        30/06/21     Audited 
                                                           £'000    31/12/20 
                                                  Note                £'000 
 
Fixed assets 
 
Tangible assets                                     12    41,213         41,549 
 
Investments                                                  117            117 
 
                                                          41,330         41,666 
 
Current assets 
 
Stocks                                                        27            177 
 
Debtors: amounts falling due after more than one           3,675         14,046 
year 
 
Debtors: amounts falling due within one year              15,006          4,130 
 
Cash at bank and in hand                                   4,932          5,529 
 
                                                          23,640         23,882 
 
Creditors:  amounts falling due within one year         (10,434)        (2,304) 
 
Net current assets                                        13,206         21,578 
 
Total assets less current liabilities                     54,536         63,244 
 
Creditors: amounts falling due after more than                 -        (8,611) 
one year 
 
Provisions for liabilities 
 
Provisions                                               (4,178)        (4,169) 
 
Pension liability                                   14   (1,497)        (1,538) 
 
Net assets                                                48,861         48,926 
 
Capital grants 
 
Deferred capital grants                                       43             52 
 
Capital and reserves 
 
Called up share capital                             13       335            335 
 
Share premium account                                     10,202         10,202 
 
Revaluation reserve                                           75             75 
 
Equity reserve                                               143            143 
 
Profit and loss account surplus                           38,063         38,119 
 
Shareholders' funds                                       48,818         48,874 
 
Net assets                                                48,861         48,926 
 
 
The unaudited half year financial statements of Newbury Racecourse PLC, company 
registration 00080774, were approved by the Board of Directors on 15 September 
2021 and signed on its behalf by: 
 
D J Burke (Chairman) 
                                                                  J M Thick 
(Chief Executive) 
 
Consolidated Statement of Changes in Equity 
 
At 30 June 2021 
 
GROUP                Share   Share    Capital Revaluation    Profit and   Total 
                 Capital £ Premium redemption   reserve £  loss account   £'000 
                      '000   £'000    Reserve        '000         £'000 
                                        £'000 
 
At 1 January           335  10,202        143          75        40,640  51,395 
2020 
 
Loss for the             -       -          -           -       (1,593) (1,593) 
period to 30 
June 2020 
 
Other                    -       -          -           -             -       - 
comprehensive 
income 
 
At 30 June 2020        335  10,202        143          75        39,047  49,802 
 
GROUP                Share   Share    Capital Revaluation    Profit and   Total 
                 Capital £ Premium redemption   reserve £  loss account   £'000 
                      '000   £'000    Reserve        '000         £'000 
                                        £'000 
 
At 1 January           335  10,202        143          75        38,119  48,874 
2021 
 
Loss for the             -       -          -           -      (56)        (56) 
period to 30 
June 2021 
 
Other                    -       -          -           -             -       - 
comprehensive 
income 
 
At 30 June 2021        335  10,202        143          75        38,063  48,818 
 
Consolidated Cash Flow Statement 
 
Six months ended 30 June 2021 
 
                                                     Unaudited          Restated 
                                             6 months 30/06/21         Unaudited 
                                                               6 months 30/06/20 
 
                                                          £000              £000 
 
 
Cash flows from operating activities 
 
Loss for the financial period                      (56)             (1,593) 
 
 
Adjustments for: 
 
Exceptional items                                  (62)              (34) 
 
Amortisation of capital grants                      (9)               (9) 
 
Depreciation charges                                625               602 
 
Interest paid                                       100               86 
 
Interest received                                  (85)              (85) 
 
Tax credit                                         (280)              (9) 
 
Decrease in stocks                                  151               49 
 
(Increase)/decrease in debtors                     (190)              338 
 
Increase/(decrease) in creditors                    989              (398) 
 
Corporation tax paid                                 -                 - 
 
Other associated property receipts                   7                53 
 
Pension funding deficit payments                   (55)              (55) 
 
Net cash generated from operating activities 
                                                    1,135            (1,055) 
 
 
Cash flows from investing activities 
 
Receipts from David Wilson Homes                    112               84 
 
Purchase of fixed assets                           (299)            (1,621) 
 
Interest received                                    -                 2 
 
 
Net cash from investing activities                  (187)            (1,535) 
 
 
 
Cash flows from financing activities 
 
Repayment of bank loan                            (1,500)            5,500 
 
Interest paid                                      (45)              (39) 
 
Net cash used in financing activities             (1,545)            5,461 
 
 
Net (Decrease)/increase in cash and cash           (597)             2,871 
equivalents 
 
                                                   5,529             1,269 
Cash and cash equivalents at beginning of 
period 
 
 
Cash and cash equivalents at the end of            4,932             4,140 
period 
 
 
Cash and cash equivalents at the end of 
period comprise: 
 
                                                   4,932             4,140 
Cash at bank and in hand 
 
 
                                                   4,932             4,140 
 
Advantage has been taken of the exemption under FRS102 not to disclose the 
individual cash flow statements of the company and of its subsidiaries. 
 
Notes to the Interim Financial Statements 
 
Six months ended 30 June 2021 
 
1. BASIS OF PREPARATION 
 
Newbury Racecourse PLC (the "Company") is a public company incorporated, 
domiciled and registered in England in the UK. The registered number is 
00080774 and the registered address is The Racecourse, Newbury, Berkshire, RG14 
7NZ. 
 
These Group and parent company financial statements were prepared in accordance 
with Financial Reporting Standard 102 The Financial Reporting Standard 
applicable in the UK and Republic of Ireland ("FRS 102"). 
 
These interim financial statements do not include all of the notes and 
disclosures required to comply with FRS102, as they have been prepared in 
accordance with the content, recognition and measurement principles for interim 
financial reports, Financial Reporting Standard 104 (FRS 104). 
 
The abridged results for the six months ended 30 June 2021 do not constitute 
statutory accounts within the meaning of S434 of the Companies Act 2006. The 
auditor's report on the accounts of Newbury Racecourse plc for the 12 months to 
31 December 2020 was unqualified, did not draw attention to any matters by way 
of emphasis and did not contain any statement under S498 (2) or (3) of the 
Companies Act 2006 and has been delivered to the Registrar of Companies. 
 
2. SIGNIFICANT ACCOUNTING POLICIES 
 
The Interim Financial Statements have been prepared in accordance with the 
accounting policies adopted in the Group's most recent annual financial 
statements for the year ended 31 December 2020 and those expected to be applied 
for the year ending 31 December 2021. 
 
3. ESTIMATES 
 
When preparing the Interim Financial Statements, management undertakes a number 
of judgements, estimates and assumptions about recognition and measurement of 
assets, liabilities, income and expenses. The actual results may differ from 
the judgements, estimates and assumptions made by management, and will seldom 
equal the estimated results. 
 
The judgements, estimates and assumptions applied in the Interim Financial 
Statements, including the key sources of estimation uncertainty, were the same 
as those applied in the Group's last annual financial statements for the year 
ended 31 December 2020. The only exceptions are the estimate of income tax 
liabilities which is determined in the Interim Financial Statements using the 
estimated average annual effective income tax rate applied to the pre-tax 
income of the interim period. 
 
4. GOING CONCERN 
 
The Board has undertaken a full, thorough and continual review of the Group's 
forecasts and associated risks and sensitivities, over the next twelve months. 
The extent of this review reflects the 19th July 2021 easing of lockdown 
guidance from the Government as well as specific financial circumstances of the 
Group. 
 
The Board reviews the cash flow and working capital requirements in detail on a 
frequent basis, whilst during the past eighteen months under the current COVID 
19 circumstances the regularity of this scrutiny has increased 
 
The Board also identifies 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. 
 
At the balance sheet date, the Company has adequate cash reserves, together 
with banking facilities which are in place through to the end of March 2022 to 
support trading requirements and committed loan repayments and covenants. 
 
Following this review the Board has concluded that it has a reasonable 
expectation that the Group has adequate resources and banking facilities 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. 
 
5. REVENUE RECOGNITION 
 
Services rendered, raceday income including admissions, catering revenues, 
sponsorship and licence fee income is recognised on the relevant raceday. 
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. 
 
Sale of goods revenue is recognised for the sale of food and liquor when the 
transaction occurs. 
 
6. PROPERTY RECEIPTS 
 
Property receipts are recognised in accordance with the nature of the 
transaction being that of an exceptional sale of land. The minimum guaranteed 
sum, as set out in the agreement with David Wilson Homes, is recognised at the 
point of sale. In accordance with FRS102, at each reporting date, the sum 
receivable is re-estimated based upon currently projected land value with the 
difference between this value and the discounted net present value recorded in 
the profit and loss account. 
 
RESPONSIBILITY STATEMENT 
 
We confirm that to the best of our knowledge: 
 
a.   The condensed set of financial statements has been prepared in accordance 
with FRS 104 'Interim Financial Reporting' giving a true and fair value of the 
assets, liabilities, financial position and profit or loss of the undertakings 
included in the consolidation as a whole as required by DTR 4.2.4R. 
 
a.   The interim report includes a fair review of the information required by 
DTR 4.2.7R (indication of important events during the first six months and 
description of principal risks and uncertainties for the remaining six months 
of the year); and 
 
a.   The interim management report includes a fair review of the information 
required by DTR 4.2.8R (disclosure of related parties' transactions and changes 
therein). 
 
By order of the Board, 
 
J M Thick                                                  M Leigh 
 
Chief Executive                                        Finance Director 
 
15 September 2021                                 15 September 2021 
 
7. SEGMENTAL ANALYSIS 
 
30 June 2021 Turnover     Gross  Operating (Loss)/profit   (Loss)/profit   *Net 
                £'000   Profit/ before exceptional items    before tax £ Assets 
                         (Loss)                    £'000            '000  £'000 
                          £'000 
 
Trading         4,527       368                    (655)           (670) 31,610 
 
Nursery           800       314                      314             314  2,637 
 
Lodge               8       (9)                      (9)             (9)  1,543 
 
Property           30        30                     (33)              29 13,071 
 
Total           5,365       703                    (383)           (336) 48,861 
 
30 June 2020 Turnover     Gross  Operating (Loss)/profit   (Loss)/profit   *Net 
- restated      £'000   Profit/ before exceptional items    before tax £ Assets 
                         (Loss)                    £'000            '000  £'000 
                          £'000 
 
Trading         2,458   (1,141)                  (1,787)         (1,793) 33,139 
 
Nursery           514       170                      170             170  2,674 
 
Lodge             125      (35)                     (35)            (35)  1,363 
 
Property           27        27                       17              56 12,687 
 
Total           3,124     (979)                  (1,635)         (1,602) 49,863 
 
* Net assets represents fixed assets less deferred income and term loans for 
property, nursery and lodge; all working capital is included within the 
'Trading' segment. 
 
8. OTHER OPERATING INCOME 
 
                                     6 months 
                            6 months 30/06/20 
                            30/06/21    £'000 
                               £'000 
 
Other Operating Income            66      494 
 
Total                             66      494 
 
Other operating income is attributable to government grants received from the 
Coronavirus Job Retention Scheme. 
 
9. EXCEPTIONAL ITEMS 
 
                                                6 months 
                                       6 months 30/06/20 
                                       30/06/21    £'000 
                                          £'000 
 
DWH debtor movement in fair value            62       39 
 
Loss on sale of fixed assets                  -      (5) 
 
Total                                        62       34 
 
In accordance with the audited financial statements, accounting transactions 
related to the DWH agreement are considered outside the ordinary course of 
business. 
 
10. TAXATION 
 
The tax has been computed in accordance with FRS 104 Interim Financial 
Reporting.  This requires the company to apply the estimated annual effective 
tax rate to the loss for the interim period and recognise a tax credit only to 
the extent that the resulting tax asset is more likely than not to reverse. 
 
11. PROFIT PER SHARE 
 
Basic and diluted loss per share of 1.7p (2020: 47.6p) is calculated by 
dividing the loss attributable to ordinary shareholders for the period ended 30 
June 2021 of £56,000 (2020 restated: loss £1,593,000) by the weighted average 
number of ordinary shares during the period of 3,348,326 (2020: 3,348,326). 
 
12. TANGIBLE FIXED ASSETS 
 
GROUP                           Freehold    Fixtures  Tractors and motor  Total 
                                property         and            vehicles  £'000 
                                   £'000    fittings               £'000 
                                               £'000 
 
Cost or valuation 
 
As at 1 January 2021              53,795       9,497                 313 63,605 
 
Additions                              9 280                                289 
 
Disposals                              -           -                          - 
 
At 30 June 2021                   53,804       9,777                 313 63,894 
 
Depreciation 
 
At 1 January 2021                 16,777       5,120                 159 22,056 
 
Charge for year                      342         272                  11    625 
 
Disposals                              -           -                   -      - 
 
At 30 June 2021                   17,119       5,392                 170 22,680 
 
Net book value at 30              36,685       4,385                 143 41,213 
June 2021 
 
Net book value at 31              37,018       4,377                 154 41,549 
December 2020 
 
In 1959 a revaluation of part of the freehold land at £117,864 gave rise to an 
excess of £75,486 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 (and excluding outdoor 
fixtures) determined by the historical cost convention is £36,609,000 (2019: £ 
36,350,000). 
 
In 2018 the board revisited the residual values and useful economic lives of 
the land enhancements and major buildings on the site. Savills were instructed 
to provide an estimate of the residual values and these were applied in re 
estimating the depreciation charge for those assets. There was no further 
change in the residual values or useful economic lives during 2021. 
 
13. SHARE CAPITAL 
 
                               30/06/21 30/06/20 
                                  £'000    £'000 
 
Authorised 
 
Ordinary shares of 10p each         600      600 
 
Total                               600      600 
 
                               30/06/21 30/06/20 
                                  £'000    £'000 
 
Allotted and fully paid 
 
Ordinary shares of 10p each         335      335 
 
Total                               335      335 
 
 
14. RETIREMENT BENEFIT OBLIGATIONS 
 
The defined benefit obligation at 30 June 2021 has been determined with 
reference to the figures recorded at 31 December 2020, which were calculated in 
accordance with FRS102 s.28, as in the Directors' opinion there have not been 
any significant fluctuations in the key assumptions. The movement in the 
defined benefit deficit relates to the top-up payment made during the period 
ended 30 June 2021 of £0.05m, net of interest charges accrued. 
 
15. RELATED PARTY TRANSACTIONS 
 
There are no significant changes to the nature and treatment of related party 
transactions for the period to those reported in the 2020 Annual Report and 
Accounts. 
 
16. EXPLANATION OF PRIOR YEAR ADJUSTMENTS 
 
As at 31 December 2020 the group restated comparative financial information in 
order to bring the accounting treatment of the leasehold asset receivable in 
line with the requirements of FRS 102. 
 

In 2012, under the terms of the David Wilson Homes land sale agreement, part of 
the consideration arising from David Wilson Homes was an option to purchase, at 
a substantial discount to market value, the interest in the ground rents of the 
new residential apartment buildings. This had been recognised in the financial 
statements as a lease receivable of £3.56m for the present value of all 
expected future rentals is recognised at 31 December 2016, with any ground 
rents received being netted off against the debtor. 
 
On further consideration, the accounting of the present value of the lease 
receivable has been updated to reflect the length of the leasehold period of 
125 years, and to split out the value of the exercised freehold option that has 
been purchased, to be held as freehold property. 
 
The impact on 2020 profit for the period to 30 June 2020 is to increase the 
profit by £0.08m, which is the amount applicable to the effective interest on 
the unwinding of the discount applied to lease receivable. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

September 15, 2021 02:00 ET (06:00 GMT)