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Newbury Racecourse PLC on Wednesday said its pretax profit decreased last year despite a 17% revenue increase, but reported a ‘strong underlying business performance’ and intends to declare annual dividends in future.
The Berkshire, England-located sporting and events venue said pretax profit fell in 2022 to £126,000 from £179,000 in 2021. Revenue increased by 17% to £17.4 million from 14.8 million.
Newbury Racecourse committed £5.2 million in total prize money last year, up 64% from £4.7 million in 2021. The company said administrative expenses were reduced by 3.9% to £2.6 million from £2.7 million. Total cost of sales increased 22% to 14.8 million from 12.1 million and included an exceptional cost of £674,000.
The company said the underlying racecourse business performed in line with expectations, except for its Great Christmas Carnival event that was launched in September with Underbelly Ltd. The event resulted in a material loss due to low attendance. Newbury Racecourse said it has now reached agreement with Underbelly and its share of the loss is lower than expected at £670,000.
Newbury Racecourse did not declare an annual dividend for 2022, unchanged from 2021, but said it intends to declare one this year. A special interim dividend of 89.6 pence per share was paid in June of last year.
Newbury Racecourse hopes to recommence activities in conferencing and events following the creation of an upgraded site for the Great Christmas Carnival. Its prize money commitment increased 17% to £6.1 million. At least 40% of its total media income will be invested into prize money, providing the UK government review of the Gambling Act does not materially impact revenue.
Chair Dominic Burke 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...Despite [the Great Christmas Carnival], our reported 2022 profit before tax was similar to 2021, demonstrating a strong underlying business performance.’
Shares in Newbury Racecourse were flat at 775.00p on Aquis Stock Exchange in London on Wednesday.
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