TIDMNYR
RNS Number : 0692O
Newbury Racecourse PLC
08 June 2022
8(th) June 2022
NEWBURY RACECOURSE PLC
("Newbury Racecourse" or the "Company")
AGM Statement
At the Annual General Meeting to be held at Newbury Racecourse
today, the Chairman, Dominic Burke, will make the following
statement:
As stated in the latest Annual Report, following the challenges
presented since March 2020 I am delighted that both the horseracing
industry and our business has finally returned to normal activity.
In the early part of last year, we were only able to generate
income during the behind closed doors meetings through our media
and betting rights agreements and lost the significant benefit of
being able to generate key revenues through attendance, catering
and hospitality. However, since all Government restrictions were
lifted last July, we have been able to host an unrestricted paying
attendance at our racedays, which included two Party in the Paddock
concerts in August and September featuring Olly Murs and Rick
Astley respectively. Attendances were also encouraging in the
latter part of the year, with the Ladbrokes Winter Carnival crowds
in line with where they were in 2019. We were able to keep our
nursery business open throughout the year, but the hotel only
re-opened in January of this year. We have also made the decision
to cease pro-actively marketing our Conference & Events
business until we have confidence in the market.
As has always been our plan, we set ourselves ambitious targets
and a clear strategy to drive further growth in our business, but
the impact of the pandemic resulted in a significant financial loss
in 2020 and, despite returning a small profit in 2021, the effects
of lockdowns and restrictions has set the business back from its
original strategic investment plan. I am confident that the
difficult decisions and actions taken during 2020 meant that
ultimately, we were well placed to resume full trading activities
in 2021 once circumstances permitted in July, as mentioned. The
major investment we have made into our racecourse facilities and
infrastructure over recent years was to position Newbury Racecourse
for the future, in line with our strategic objective to be a
modern, leading racecourse, entertainment and events business. This
ambition remains unchanged.
Racing Highlights and Current Trading
The 2021 racing programme returned to its normal calendar
following the disruption in 2020, and despite no crowds in
attendance until 10th June we still welcomed over 105,000 racegoers
to the racecourse.
The action on the track was once again thrilling and of a very
high quality, demonstrating our continued ability to attract the
very best horses across both codes. Highlights early in the year
included wins in the Betfair Hurdle for Soaring Glory and for
Secret Investor in the Denman Chase.
The flat season got underway with Dubai Duty Free Spring Trials
Weekend providing victories for Al Aasy, Chindit and Alcohol Free,
who underlined that Fred Darling Stakes win with subsequent success
in the Coronation Stakes and Sussex Stakes. Following its
cancellation in 2020, the Al Shaqab Lockinge returned in May and
saw Palace Pier beat Lady Bowthorpe to the finish and secure
Frankie Dettori's fifth win in our early summer showpiece, now only
one win behind the late Lester Piggott's record.
Our first Party in the Paddock event at the racecourse in almost
two years took place in August at the BetVictor Hungerford meeting,
with a crowd of over 16,000 enjoying Olly Murs who performed after
an excellent day's racing, which saw Sacred win the day's feature
race. Our second Party in the Paddock in September saw the timeless
Rick Astley perform some 80's classics at the Dubai Duty Free
International Saturday where Wings of War was victorious in the
Mill Reef Stakes.
As we turned to the jumps once more, Cloudy Glen's win in the
Ladbrokes Trophy in late November, gave an emotional win for the
Trevor Hemming's estate following Cloth Cap's win a year earlier
and Trevor's sad passing in between.
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. Since
then the Lockinge Stakes was won in majestic fashion by Baaeed,
currently being recognised as the World's best miler since
Frankel.
The Redevelopment
The redevelopment since 2012 has provided Newbury with a
first-class venue so that we can continue to host racing of the
highest quality, as well as having facilities which are well placed
to meet the increasing demands of the modern-day consumer, from
horsemen and racegoers, to hotel guests, nursery patrons and local
residents. We strongly believe that the redevelopment will enable
us to continue to grow our already well diversified business
activities and maximise the returns from our investment.
The David Wilson Homes residential development continued
throughout 2021 after a short pause during 2020 and is now into its
final phase. The Central Area apartments are fully completed and
sold, with the Company now owning the freeholds of thirteen
apartment blocks. DWH is continuing with construction in the
Eastern Area of the site due for completion in 2026. Approximately
1,000 homes out of the planned total of c.1,500 are now built.
During the first half of 2021 we repaid GBP1.5m of the
previously fully drawn revolving credit facility to National
Westminster Bank plc as a result of our improved cash position and
outlook given the easing of restrictions at that time.
The final GBP10.7m receipt for the balance of the guaranteed
minimum land value under the 2012 DWH development agreement, was
received recently in March as per the contract. The Company does
not expect to receive any further payments from this agreement.
Subsequently this has enabled the business to settle the
outstanding GBP4.5m balance on the Nat West 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.
Outlook
Last year the Company signed two major strategic agreements.
Firstly, Levy Restaurants (part of the Compass Group) became our
Catering partner which took effect from 1 June last year. We have
seen some encouraging initial benefits of this partnership so look
forward to working with them for the next ten years and developing
this important segment of our operation. Secondly, all our media
rights will transfer to Arena Leisure Racing in two separate stages
starting with Betting Shop retail rights moving on 1 April 2023,
and all other rights moving to new arrangements from 1 January
2024. This will see all our racing broadcast on Sky Sports Racing
TV as well as a number of days on ITV which we are very excited
about. This new media rights contract will give improved exposure
to our racing and is backed by minimum financial guarantees that
give us great confidence about the future of this important revenue
stream.
As a result, I am pleased to announce that, subject to normal
trading conditions continuing and the Government review of the
Gambling Act not materially impacting betting related turnover on
our racing, the Company will be increasing its commitment to prize
money. We will commit to a minimum of 40% of our total media rights
income being directly invested into prize money from 2023 onwards.
It is anticipated that the full benefit of our new media rights
agreement will be received in the 2024 financial year. This policy
will then be reviewed three years from now.
Dividends
Given the completion of the David Wilson Homes transaction I am
pleased that we have been 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
a GBP3m special interim dividend distribution which has now been
paid.
For the 2023 trading year onwards, the Company will seek to
re-commence paying an annual dividend subject to its financial
performance.
For further information please contact:
Newbury Racecourse plc Tel: 01635 40015
Julian Thick, Chief Executive
Harriet Collins, Marcomms & Sponsorship Director
Allenby Capital Limited Tel: 0203 328 5656
Nick Naylor/Liz Kirchner (Corporate Finance)
Hudson Sandler Tel: 0207 796 4133
Charlie Jack
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END
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(END) Dow Jones Newswires
June 08, 2022 02:01 ET (06:01 GMT)
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