TIDMNYR
RNS Number : 8635Y
Newbury Racecourse PLC
10 May 2023
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.
10 May 2023
NEWBURY RACECOURSE PLC
(the "Racecourse" or the "Company")
Preliminary results for the 12 months ended 31 December 2022
Newbury Racecourse plc, the racing, entertainment and events
business, today announces its preliminary results for the twelve
months ended 31 December 2022.
2022 Financial and Business Summary
-- Revenue of GBP17.42m (2021: GBP14.83m), an increase of 17%.
-- Consolidated group profit on ordinary activities before tax
of GBP0.13m (2021: GBP0.18m), including exceptional profit of
GBP0.01m (2021: GBP0.15m).
-- Consolidated group profit on ordinary activities after tax of
GBP0.07m (2021: loss of GBP0.88m).
-- Raceday attendances of 141,000 (2021: 105,000). Thirty race
meetings compared with twenty-nine in 2021, including one insured
abandoned meeting (due to adverse weather) on 14 th December
2022.
-- Total prize money of GBP5.17m (2021: GBP4.71m) with executive
contribution of GBP2.47m (2021: GBP1.51m), an increase of 64%.
-- Final GBP10.7m payment received from David Wilson Homes in
March under the 2012 development agreement.
-- Nat West Bank and Compton Beauchamp loans fully repaid
resulting in the Company currently being debt-free.
-- The Company satisfied the commitment made in 2012 to return
capital to shareholders with a special interim dividend of 89.6
pence per share, which was announced in May 2022 and paid in June
2022.
-- GBP1.2m investment in the Berkshire Stand's first floor
facilities alongside Levy Restaurants (the Company's catering
partner).
-- Updated commercial relationship between the Company and
Entain Group meaning that Coral became the title sponsor of the
Company's prestigious two-day Coral Gold Cup Meeting at the end of
November in a new three-year deal.
-- Alongside a reputable events partner, Underbelly Limited
("Underbelly"), the Company launched the Great Christmas Carnival
which took place at the racecourse for thirty-five days commencing
on 25 th November 2022. The Company had expected this arrangement
to create an important new revenue stream and broaden the business
base beyond racing. However, the event failed to deliver the
attendances that Underbelly expected resulting in a material loss
for both the Company and Underbelly. Final agreement now reached
with Underbelly, and the Company's share of this loss (being
GBP0.67m) is less than that expected by the board when the Company
updated shareholders in January of this year. The event, under this
arrangement, is not expected to be repeated.
-- Excluding the financial loss on the Great Christmas Carnival,
the underlying Racecourse business performed strongly, in line with
the Board's expectations.
2023 Update
-- The Company's new Betting Office retail rights agreement
commenced on 1 st April 2023, which will be followed by all other
media rights on 1 st January 2024. Subject to normal trading
conditions continuing and the Government review of the Gambling Act
not materially impacting betting turnover on the Company's racing
activities, the Board is currently committing to investing a
minimum of 40% of its total media rights income into prize money.
This percentage will then be reviewed in two years from now.
-- The Company announced a substantial increase in its prize
money commitment for 2023 to a record GBP6.06m (17% increase) with
an executive contribution of GBP3.1m (26% increase).
-- The Great Christmas Carnival project enabled the Company to
create an important upgraded site in the centre of the racecourse
for future event use. Following these works the Company has
completed a review of its Conference & Events business and
decided to recommence its activities within this sector.
-- As previously reported, subject to future financial
performance, the Board intends to declare an annual dividend,
funded from trading activities in respect of future years, with the
dividend per share being declared annually alongside the Company's
preliminary results announcement.
Dominic Burke, Chairman of Newbury Racecourse plc commented:
"Following two years of restrictions and disruption caused by
the COVID-19 pandemic, 2022 saw the business return to normal
trading with growth reported in the underlying business. Turnover
grew by 17% as we were able to host 30 fixtures during the year,
all with a paying crowd in attendance. Both our Nursery business
and The Lodge Hotel also operated fully throughout the year. This
financial performance was broadly in line with management's
expectations, but as advised in January 2023, the Great Christmas
Carnival generated a material loss for the Company. Despite this,
our reported 2022 profit before tax was similar to 2021,
demonstrating a strong underlying business performance.
I'm pleased that the final payment for the balance of the
guaranteed minimum land value was received from David Wilson Homes
in March which enabled the Company to settle the outstanding
balances on our loans meaning that the Company is currently free of
debt. Given these transactions we were also able to satisfy the
commitment made in 2012, and in many subsequent announcements, to
return capital to shareholders which was made via a special interim
dividend paid in June 2022. Additionally, our commitment to
improving facilities at the racecourse has been demonstrated with a
major investment in the Berkshire Stand's facilities. We also
committed to invest in a similar project in the Hampshire Stand
Hennessy Restaurant completed for re-launch in April 2023. These
developments have been made in the face of a very challenging
environment for racing, both at Newbury and throughout rest of the
UK, but we believe in the importance of providing high class
facilities for all of our racegoers.
Likewise, our commitment to investing in our racing programme
was again evident in 2022 with a 10% increase in prize money to
GBP5.17m of which our Executive Contribution increased by 64% to
GBP2.47m, with further record increases confirmed and announced for
2023.
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 Tel: 01635 40015
Julian Thick, Chief Executive
Allenby Capital Limited Tel: 0203 328 5656
Nick Naylor/George Payne (Corporate Finance)
Hudson Sandler Tel: 0207 796 4133
Charlie Jack
CHAIRMAN'S STATEMENT
Year ended 31 December 2022
2022 Financial Performance
Following two years of restrictions and disruption caused by the
pandemic, 2022 enabled the business to return to normal trading
with growth reported in the underlying business. Revenue grew by
17% to GBP17.42m in 2022 (2021: GBP14.83m). We were able to host 30
fixtures during the year, compared with 29 in 2021, with 1 fixture
abandoned on 14th December 2022 due to adverse weather. The Nursery
business operated throughout the year and generated turnover of
GBP1.72m (2021: GBP1.56m). The Lodge Hotel re-opened in January
after 22 months of closure and generated income of GBP0.74m (2021:
GBP0.04m).
It has always been the board's strategy to develop the
racecourse into a year-round leisure and events business. The
Company entered into an agreement with reputable events partner
Underbelly Ltd to launch the Great Christmas Carnival which took
place at the racecourse from 25thNovember 2022 until 2ndJanuary
2023. This was expected to create an important new revenue stream
and broaden the business base beyond racing, but due to a number of
factors, the event was not as well attended as Underbelly expected
and has resulted in a material loss of GBP0.67m to the Company.
Operating loss in the year was GBP0.01m (2021: Profit of
GBP0.20m). The company Profit before tax was GBP0.13m (2021:
GBP0.18m). Excluding the impact of the Great Christmas Carnival
event loss, the Profit before tax was GBP0.80m (2021: GBP0.18m)
2022 Racing Highlights
The 2022 racing programme returned to its normal calendar
following the disruption of the previous two years with over
141,000 racegoers (2021:105,000) being welcomed to the
racecourse.
We played host to some top-class racing during the year,
enhancing our ability to attract the very best horses across both
codes and once again providing our racegoers with some outstanding
performances on the track. Highlights early in the year included
wins in the Betfair Hurdle for Glory and Fortune and for Eldorado
Allen in the Betfair Denman Chase.
The start of the 2022 flat season was held over the Easter
weekend in April, with Wild Beauty, Max Vega and Perfect Power
winning the main races in the Dubai Duty Free Spring Trials. In May
the Al Shaqab Lockinge Stakes was won in majestic fashion by
Baaeed, which kicked off an outstanding campaign for one of the
world's top-ranked racehorses.
The first Party in the Paddock event took place after the
Weatherby's Super Sprint meeting, with a crowd of over 15,000
enjoying the return of Craig David who performed after an excellent
day's racing, which saw Eddie's Boywin the Super Sprint and Minzaal
win the Bet365 Hackwood Stakes. Our second Party in the Paddock in
August saw the Ministry of Sound Classical orchestra perform at the
BetVictor Hungerford meeting where Jumby was victorious in the
day's feature race.
Rounding off 2022 in style, Le Milos delighted crowds by winning
the rebranded Coral Gold Cup. A new commercial relationship between
the Company and Entain Group means that Coral has become the title
sponsor of the two-day Gold Cup Meeting in a three-year deal. Coral
also sponsored the 2022 running of the Grade 1 Challow Novices
Hurdle won by Hermes Allen.
Liquidity and Investments
The David Wilson Homes ('DWH') residential development continued
throughout 2022 with construction now continuing into the final
phase at the Eastern end of the site. Approximately 1,100 homes out
of the planned total of c.1,500 are now built. The final payment
for the balance of the guaranteed minimum land value of GBP10.7m
due from DWH, under the 2012 development agreement, was received in
March 2022 so the Company does not expect to receive any further
payments from this agreement.
Subsequently this enabled the business to settle the outstanding
GBP4.5m balance on the NatWest Bank loan as well as make the final
GBP2.7m repayment of the Compton Beauchamp Estates Loan, meaning
that the Company is currently free of debt. Given these
transactions we were able to satisfy the commitment made in 2012,
and in many subsequent announcements, to return capital to
shareholders. The Board announced on 5 May 2022 the declaration of
an 89.6 pence per share special interim dividend totalling GBP3m
which was paid in June.
Our commitment to investing in our racing was again evident with
a 10% increase in prize money to GBP5.17m of which our Executive
Contribution increased by 64% to GBP2.47m.
Additionally, our commitment to improving facilities at the
racecourse has been demonstrated with a joint GBP1.2m investment
in
the Berkshire Stand's first floor facilities shared equally with
our catering operator Levy Restaurants as well as a further
joint
GBP1.8m for a similar project in the Hampshire Stand Hennessy
Restaurant in the first quarter of 2023. These developments have
been made in the face of a very challenging environment for racing
both at Newbury and throughout rest of the UK, but we believe in
the importance of providing high class facilities for all of our
racegoers.
On behalf of the board, I would like to thank our staff 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
9 May 2023
STRATEGIC REPORT
Year ended 31 December 2022
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, hotel, children's
nursery, hospitality, and events businesses. Where commercially
viable these will be supported by 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 and, until March 2022, benefitted from the sale of
residential properties on the site, as part of a long-term
development agreement with David Wilson Homes.
PERFORMANCE REVIEW
Consolidated group profit on ordinary activities before tax in
the year ended 31st December 2022 was GBP0.13m (2021: GBP0.18m)
which included the GBP0.67m loss incurred by the Great Christmas
Carnival event.
Turnover increased by 17% to GBP17.42m (2021: GBP14.83m). Racing
revenues increased by 12% on the prior year, mainly through an
increase in media rights income but with one abandonment in the
year (2021: none). Our Conference & Events business income was
in line with 2021, the Nursery has seen a 10% increase in income
and the Lodge delivered revenue of GBP0.74m having been closed from
March 2020 until re-opening January 2022.
Total costs increased by 17% to GBP17.4m (2021: GBP14.9m). Gross
profit reduced to GBP2.64m (2021: GBP2.74m) with the margin
reducing from 18% to 15% due to the Great Christmas Carnival costs
as well as the year-on-year revenue improvements being through
lower margin income streams, due to the prior year impact of the
pandemic.
Loss before interest, tax and exceptional items was GBP0.02m
(2021: Profit of GBP0.04m).
Exceptional items in 2022 were a credit of GBP0.01m (2021:
credit of GBP0.15m) being the fair value movement on the David
Wilson Homes ("DWH") debtor, based upon the expected timing and
value of future receipts. Following the final receipt being
received in 2022, the DWH debtor has now been fully settled so will
have no impact on future financial statement reporting.
The profit after tax was GBP0.07m (2021: loss GBP0.88m).
The negative movement in cash reserves of GBP1.88m in the period
(2021: GBP0.48m increase) includes GBP10.71m of final cash receipts
from DWH in respect of the minimum guarantee, GBP4.5m repayment of
the Nat West bank loan, GBP2.71m repayment of the Compton Beauchamp
loan and GBP2m invested in short-term deposits. GBP3.0m of cash was
distributed to shareholders in 2022 by way of a special interim
dividend. The company is now debt free.
Racing
In 2022 we hosted two additional BHA fixtures so the accounts
include a total of 30 days racing (2021: 29) with one abandonment
on 14th December. Overall raceday attendances in 2022 were 141,000
(2021: 105,000). In the prior year, racing with a crowd commenced
in June 2021.
Total media related revenues of GBP5.14m, were up 17% compared
with 2021. In the year this accounted for 30% of our total trading
revenue which compares exactly with 2021.
May marked the eighth year of Al Shaqab's sponsorship of
Lockinge Day, Newbury's richest race meeting, which was attended by
almost 11,000 racegoers. 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.
Our cornerstone jump meeting at the end of November celebrated
the start of our new three-year partnership with Entain and
featured the inaugural running of the renamed Coral Gold Cup
(formerly the Ladbrokes Trophy). Attendances across the two-day
meeting were just over 18,000.
We continued to make further significant investment into
prizemoney, with a 10% (GBP0.46m) like for like increase in our
contributions to GBP5.17m (2021: GBP4.71m). We also increased our
Executive Contribution to prizemoney by 64% to GBP2.47m (2021:
GBP1.51m).
We are grateful to have received continued significant support
from all of our sponsors, with particular thanks to Al Shaqab
Racing, bet365, Betfair, BetVictor, Dubai Duty Free and Coral for
their commitment in 2022.
Catering, Hospitality and Conference & Events
Conference & Events revenues were GBP0.26m (2021: GBP0.26m),
resulting in an operating Gross Operating Profit of GBP0.18m
(2021:
GBP0.15m). These are encouraging figures given the decision in
early 2022 to cease proactive marketing in this sector whilst we
reviewed the market.
Having concluded this review, going forward our restructured
Conference & Events team is now focused entirely on growing
this part of our business, through proactive selling and
relationship building within key sectors and with several
agents.
Our Catering business transferred to an outsourced arrangement
with Levy Restaurants in 2021 which, following a joint commitment
to facility investment, means that the contractual arrangement will
continue through to the end of 2031. Despite challenges within the
hospitality sector we have been encouraged by trading with reported
income of GBP0.62m (2021: GBP0.43m).
The Rocking Horse Nursery
The Rocking Horse Nursery traded positively throughout 2022 with
revenues of GBP1.72m, up 10% against 2021. This business unit
reported an operating profit of GBP0.57m (2021: GBP0.53m).
The Lodge
Having reopened in January 2022 following a 22-month closure,
our on-site hotel performed strongly with revenues of GBP0.74m
(2021: GBP0.04m). This business unit reported an operating profit
of GBP0.1m (2021: Loss of GBP0.05m)
The Redevelopment
The final balance of the guaranteed minimum land value to be
paid by DWH was received in March 2022 which concludes the final
arrangement from the 2012 Development Agreement. However, the
residential development continues with the final phase of
construction at the Eastern end of the site. Approximately 1,100
homes out of the total c.1,500 are now built and sold with a
further 80 currently under construction.
FINANCIAL COMMENTARY
Consolidated Group profit before tax in the year ended 31
December 2022 was GBP0.13m (2021: GBP0.18m) which includes GBP0.01m
of exceptional profit (2021: GBP0.15m).
Total statutory turnover in 2022 was GBP17.42m (2021:
GBP14.83m). Overall racing revenues increased to GBP14.03m compared
with 2021 (GBP12.48m). Overall media and betting rights revenues
(included in overall racing income) were GBP5.14m (2021: GBP4.38m),
in part due to LBO's being closed for the early part of 2021.
Our Conference and Events revenues were GBP0.26m (2021:
GBP0.26m) and The Lodge was GBP0.74m (2021: GBP0.04m) due to the
former trading consolidating after the impact of the pandemic and
the latter re-opening to the public in January after 22 months of
closure. The Nursery turnover was GBP1.72m (2021: GBP1.56m) which
was up 10% as a result of normal business being fully resumed.
Total costs for the year were GBP17.44m (2021: GBP14.86m) due to
the cost of the Great Christmas Carnival and year-on-year increased
number of racedays with a paying attendance.
Exceptional profits during 2022 were GBP0.01m (2021: GBP0.15m)
being the final movement in the fair value of the DWH debtor.
Overall operating loss before interest was GBP0.01m (2021:
GBP0.20m profit). Interest payable was GBP0.05m (2021: GBP0.19m)
due to the decrease in interest charges on loan facilities which
were settled during the year. Net interest was a receivable of
GBP0.14m (2021 payable of GBP0.02m) The tax charge of GBP0.05m
(2021: charge GBP1.06m) relates to the movement in deferred tax
during the period. Profit after tax was GBP0.07m (2021: GBP0.88m
loss).
KEY PERFORMANCE INDICATORS
The Group uses raceday attendance, trading operating profit and
cash generated from operating activities, as the primary
performance indicators. Total attendance was 141,000 (2021:
105,000). Operating profit is shown within the profit and loss
account on page 29 and cash generated from operating activities is
shown within the consolidated statement of cashflows on page
33.
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,
together with the previous 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 some of the raceday risk.
Regular review of variable conferencing costs reduces the impact of
a decline in conference sales.
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 both ongoing operations and the property
redevelopment, the Group uses a mixture of term debt and revolving
credit facilities which are 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, as
well as having a dynamic pricing model in place.
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.
GOING CONCERN
The Board has undertaken a full, thorough and continual review
of the Group's forecasts and associated risks and sensitivities,
over the next twelve months. The extent of this review reflects the
current economic climate as well as the specific financial
circumstances of the Group.
The Board identified that the Group's cash flow forecasts are
sensitive to fluctuating revenue streams from ticket sales,
corporate hospitality, conference and event income. A system of
regular reviews of the forecasted business has been implemented to
ensure all variable costs are flexed to match anticipated revenues.
In addition, a number of race meetings have been insured for
adverse weather conditions (and other factors such as animal
disease and national mourning), reducing the levels of risk carried
by the Group.
The Board has reviewed the cash flow and working capital
requirements in detail. Following this review the Board has
concluded that it has reasonable expectation that the Group has
adequate resources in place to continue in operational existence
for the foreseeable future and has not identified a material
uncertainty in this regard. On this basis the going concern basis
has been adopted in preparing the financial statements.
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 Horsemen's Group is routinely considered during the board's
decision-making process.
-- The Company has a frequent forum with local residents to
ensure communication lines are open & accessible.
-- The Company continues to regularly engage with Annual members
and corporate box holders and to encourage feedback.
-- The Company encourages a supportive and inclusive working
culture within the business as set out in our 'Uniquely Newbury'
employee programme, alongside supporting personal development and
promoting wellness & mental health awareness.
Key board decisions made during the year in the interests of
overall business success set out below:
Significant Key S172 matters Actions and impact
events/decisions affected
Racecourse catering Customers, suppliers,
refurbishment employees, * Following the outsourced catering arrangement with
shareholders. Levy Restaurants signed in 2021, the company had the
option to accept investment as part of this which
would extend the contract through to 31 st December
2031.
* Financial analysis was conducted to calculate the
benefits of this method of funding against other
external borrowing options, alongside commercial
returns.
* A decision was made by the board to accept the Levy
investment proposal and therefore extend the contract
in the best interests of the combined arrangement.
* Agreeing to extend the arrangement through to the end
of 2031 gives the business certainty around its
future catering management, along with consistency of
relationship and product offering.
* It also enables the company to continue to gain
access to technology, innovation, human resources and
with the most effective commercial benefits.
----------------------- --------------------------------------------------------------------
Prize Money policy Customers, employees,
shareholders, industry * During 2022 the board considered the impact of
stakeholders. increasing prize money in response to its previous
position, relative to peer racecourses.
* Financial analysis of the race programme from August
onwards was undertaken and the cost impact versus the
benefit of high-quality racing for all stakeholders.
* The board decided that in order for the company to
remain competitive and attract the best horses that a
significant increase in prize money and executive
cost would be the most appropriate approach.
* A further review of the company's position would be
considered for the 2023 race programme.
----------------------- --------------------------------------------------------------------
Payment of a Special Shareholders
Interim Dividend * Following the final David Wilson Homes Development
Agreement receipt the company was in a position of
having surplus cash funds available once all
outstanding debt had been repaid.
* The board had previously made announcements since
2012, when the agreement was made to sell the land,
that its strategy would be to return any surplus
capital to shareholders in the most tax efficient
manner available.
* Having carefully considered all the options along
with advice from the company's Corporate Advisers,
the board decided that this manner would be by way of
a special interim dividend.
* The amount to be distributed in May was decided at
GBP3m given other cash demands
that the business faced at the
time, which represented 89.6pence
per share.
The board also decided to adopt
a future dividend policy from 2024
onwards which would be subject
to the financial performance of
the company.
----------------------- --------------------------------------------------------------------
Significant Key S172 matters Actions and impact
events/decisions affected
Great Christmas Customers, suppliers,
Carnival employees, * The company had been in discussions since 2018 with a
shareholders, quality respected event provider, Underbelly Ltd, to
West Berkshire deliver a Christmas carnival experience at the
community racecourse.
* Due to the impact of the COVID-19 pandemic the
earliest opportunity to launch and deliver this event
was set, following several board meetings in the
preceding years, for 2022.
* In order for the event to be able to go ahead a
number of consultations with local residents and
interested local stakeholders were factored in, as
well as extensive market research and an economic
impact study, before planning permission was sought
and approved for the 35-day event.
* The board considered the impact on a wide range of
further stakeholders when considering whether to
proceed with the event commencing on 25 th November
2022.
The final decision was made to
proceed (on a 50:50 profit share
arrangement) on the basis of all
the information available at the
time, along with financial sensitivity
analysis.
----------------------- --------------------------------------------------------------------
During the period to 31 December 2022 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 2022.
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.
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 with our 'Uniquely 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 2022 is 7% (2021: 11%) of the amounts
invoiced by suppliers during the year. This percentage, expressed
as a proportion of the number of days in the year, is 25 days
(2021: 40 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.
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 GBP3,500 to national charities (2021: GBP3,000). This
report was approved by the board and signed on its behalf by:
J M THICK
Chief Executive
9 MAY 2023
Consolidated Profit and Loss Account
Year ended 31 December 2022
2022 2021
GBP'000 GBP'000
---------------------------------------------- -------- --------------
Turnover 17,422 14,831
Cost of sales - other (14,108) (12,107)
Cost of sales - exceptional (674) -
---------------------------------------------- -------- --------------
Gross profit 2,640 2,724
---------------------------------------------- -------- --------------
Administrative expenses (2,659) (2,748)
---------------------------------------------- -------- --------------
Other operating income - 66
---------------------------------------------- -------- --------------
Net exceptional items 7 154
---------------------------------------------- -------- --------------
Operating (loss)/profit (12) 196
---------------------------------------------- -------- --------------
Interest receivable and similar income 190 175
Interest payable and similar charges (52) (192)
---------------------------------------------- -------- --------------
Profit before tax 126 179
---------------------------------------------- -------- --------------
Tax (charge)/credit (52) (1,062)
---------------------------------------------- -------- --------------
Profit /(loss) after tax 74 (883)
---------------------------------------------- -------- --------------
Profit per share (basic and diluted)
(Note 13) 2.21p (26.4)p
All amounts derive from continuing operations
Consolidated Statement of Comprehensive Income
Year ended 31 December 2022
2022 2021
GBP'000 GBP'000
----------------------------------------- -------- ------------
Profit/(loss) for the financial year 74 (883)
----------------------------------------- -------- ------------
Remeasurement of the net defined benefit
liability 585 737
Deferred tax on actuarial (loss)/gain (176) (116)
Other comprehensive profit for the year 409 621
----------------------------------------- -------- ------------
Total recognised profit/(loss) in the
year 483 (262)
----------------------------------------- -------- ------------
Consolidated Balance Sheet
As at 31 December 2022
2022 2021
GBP'000 GBP'000
------------------------------------------ -------- -------------
Fixed assets
Tangible assets 41,395 40,811
Investments 117 117
------------------------------------------ -------- -------------
41,512 40,928
------------------------------------------ -------- -------------
Current assets
Stocks 40 22
Debtors
- due within one year 2,676 12,695
- due after more than one year 3,533 3,618
Short term deposits at bank 2,000 -
Cash at bank and in hand 4,127 6,009
------------------------------------------ -------- -------------
12,376 22,344
------------------------------------------ -------- -------------
Creditors: amounts falling due within one
year (3,787) (10,160)
------------------------------------------ -------- -------------
Net current assets 8,589 12,184
------------------------------------------ -------- -------------
Total assets less current liabilities 50,101 53,112
------------------------------------------ -------- -------------
Creditors: amounts falling due after more - -
than one year
Provisions for liabilities (3,987) (3,759)
------------------------------------------ -------- -------------
Pension deficit - (705)
------------------------------------------ -------- -------------
Net assets 46,114 48,648
------------------------------------------ -------- -------------
Capital grants
Deferred capital grants 19 36
------------------------------------------ -------- -------------
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 35,340 37,857
------------------------------------------ -------- -------------
Shareholders' funds 46,095 48,612
------------------------------------------ -------- -------------
Net assets 46,114 48,648
------------------------------------------ -------- -------------
Consolidated Statement of Changes in Equity
As at 31 December 2022
Capital Profit
Share Share redemption Revaluation and
Capital Premium Reserve reserve loss Total
GROUP GBP'000 GBP'000 GBP'000 GBP'000 account GBP'000
GBP'000
================ ====================== =============== =========== ============= ================ =============
At 1 January
2022 335 10,202 143 75 37,857 48,612
---------------- ---------------------- --------------- ----------- ------------- ---------------- -------------
Profit for the
year - - - - 74 74
Other
comprehensive
income - - - - 409 409
---------------- ---------------------- --------------- ----------- ------------- ---------------- -------------
Total
comprehensive
income - - - - 483 483
---------------- ---------------------- --------------- ----------- ------------- ---------------- -------------
Dividends Paid (3,000) (3,000)
================ ====================== =============== =========== ============= ================ =============
At 31 December
2022 335 10,202 143 75 35,340 46,095
================ ====================== =============== =========== ============= ================ =============
Capital Profit
Share Share redemption Revaluation and
Capital Premium Reserve reserve loss Total
GROUP GBP'000 GBP'000 GBP'000 GBP'000 account GBP'000
GBP'000
================ ====================== =============== =========== ============= ================ =============
At 1 January
2021 335 10,202 143 75 38,119 48,874
---------------- ---------------------- --------------- ----------- ------------- ---------------- -------------
Loss for the
year - - - - (883) (883)
Other
comprehensive
income - - - - 621 621
---------------- ---------------------- --------------- ----------- ------------- ---------------- -------------
Total
comprehensive
income - - - - (262) (262)
================ ====================== =============== =========== ============= ================ =============
At 31 December
2021 335 10,202 143 75 37,857 48,612
================ ====================== =============== =========== ============= ================ =============
Consolidated Cash Flow Statement
Year ended 31 December 2022
2022 2021
GBP'000 GBP'000
Cash flows from operating activities
Profit/(loss) for the financial year 74 (883)
Adjustments for:
Exceptional items (7) (154)
Amortisation of capital grants (17) (17)
Depreciation charges 1,322 1,262
Interest payable 52 192
Interest receivable (190) (175)
Tax charge/(credit) 52 1,062
(Increase)/decrease in stocks (18) 155
(Increase)/decrease in debtors (553) 2
Increase/(decrease) in creditors 645 672
Corporation tax received - 287
Other associated property receipts 148 128
Pension top up payments (138) (122)
------------------------------------------- -------- ------------
Net cash inflow from operating activities 1,370 2,409
------------------------------------------- -------- ------------
Cash flows from investing activities
Interest received - 10
Loan repayments received 9 9
Purchase of fixed assets (1,737) (532)
Purchase of short term investments (2,000) -
Receipts from exceptional sale of fixed
assets 10,706 167
------------------------------------------- -------- ------------
Net cash inflow/(outflow) from investing
activities 6,968 (346)
------------------------------------------- -------- ------------
Cash flows from financing activities
Repayment of CBEL Loan (2,712) -
Repayment of bank loan (4,500) (1,500)
Interest paid (18) (83)
Dividends paid (3,000) -
------------------------------------------- -------- ------------
Net cash outflow from financing activities (10,230) (1,583)
------------------------------------------- -------- ------------
Net increase/(decrease) in cash in the
year (1,882) 480
------------------------------------------- -------- ------------
Cash as at 1 January 2022 6,009 5,529
Cash as at 31 December 2022 4,127 6,009
------------------------------------------- -------- ------------
Notes to the Financial Statements
Year ended 31 December 2022
1. GENERAL INFORMATION
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.
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 cash position during 2022 enabled the company to pay a GBP3m
dividend to shareholders and as at the balance sheet date was free
of debt. The Board has subsequently 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
sensitive to fluctuating revenue streams from ticket sales,
corporate hospitality, conference and event income, and has given
due consideration to the potential future impacts of COVID-19 on
attendances and the racing calendar. A system of regular reviews of
the forecasted business has been implemented to ensure all variable
costs are flexed to match anticipated revenues. In addition, a
number of race meetings have been insured for adverse weather
conditions (and other factors such as animal disease and national
mourning), reducing the levels of risk carried by the Group.
The Board has reviewed the cash flow and working capital
requirements in detail. Following this review, the Board has
concluded that it has reasonable expectation that the Group has
adequate resources in place to continue in operational existence
for the foreseeable future and has not identified a material
uncertainty in this regard. On this basis the going concern basis
has been adopted in preparing the financial statements.
2.4 Revenue recognition
Services rendered, raceday income including admissions, catering
arrangement & hospitality revenues, sponsorship and 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.
For purposes of improved transparency over revenue, all income
relating to prizemoney such as HBLB grants and Owner's entry
stakes are allocated as revenue rather than offsetting cost of
sales.
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.
Property receipts are recognised in accordance with the
substance of the transaction being that of an exceptional sale of
land to David Wilson Homes. 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, which is included in Other Debtors, 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.
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.
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 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.
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
Coronavirus Job Retention Scheme grants, provided by the
government, are accounted for under the performance model in line
with accounting standards, with these grants credited to the Profit
and Loss Account as other operating income in the month of the
corresponding payroll expense. The corresponding debtor is carried
on the balance sheet until the cash is received.
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.
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
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.
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.
David Wilson Homes
The fair value of the long-term David Wilson Homes debtor
balance is an estimate that is determined with reference to current
market conditions and to reflect the risks specific to the balance
due. Estimates include the current value of the land as determined
by the agreed parameters of the land sale agreement with David
Wilson Homes, together with the application of a suitable discount
rate based on management judgement.
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
GBP41.5 million. No indication of impairment has been identified in
2022 (2021: 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 2021.
4. EXCEPTIONAL ITEMS
Cost of Sales - Exceptional Items:
Cost of sales exceptional items relates to the GBP0.67m loss
(2021: GBPnil) incurred by the Great Christmas Carnival event.
Net Exceptional Items:
2022 2021
GBP'000 GBP'000
---------------------------------- -------- ------------
Loss on disposal of fixed assets (24) -
DWH debtor movement in fair value 31 154
---------------------------------- -------- ------------
Total 7 154
---------------------------------- -------- ------------
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 2022 of GBP74,000 (2021: loss of GBP883,000) by the
weighted average number of ordinary shares during the year of
3,348,326 (2021: 3,348,326).
NOTES
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31 December 2022
or 2021 but is derived from those accounts. Statutory accounts for
2021 have been delivered to the Registrar of Companies and those
for 2022 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 2022 and for the year ended 31 December 2021 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 9 May 2023
This information is provided by RNS, the news service of the
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END
NEXUPUQPAUPWPGB
(END) Dow Jones Newswires
May 10, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Newbury Racecourse (AQSE:NYR)
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Grafico Azioni Newbury Racecourse (AQSE:NYR)
Storico
Da Dic 2023 a Dic 2024
