Racecourse revenue and attendances fall, while joint MD stands down tomorrow (Friday)
In it’s preliminary results for 2013 the Racecourse says that turnover for the trading business decreased by £0.2m from £11.8m in 2012 to £11.6m in 2013 - a drop of 1.8 per cent.
The trading business also witnessed a loss before tax of £0.7m, however, this was less than the £1.4m loss in 2012.
Racing revenues took a tumble by around one per cent on the previous year, while overall raceday attendances fell by 18 per cent - from 225,000 people in 2012 to 185,000 in 2013.
The company said it primarily attributes this drop to a reduced number of Party in the Paddock events, both of which ‘suffered from disappointing attendances.’
There was better news for the Hennessy Heritage Festival, which pulled in more than 28,000 punters over the three day event and represented a 12 per cent increase on 2012.
Meanwhile, new media rights have delivered a £0.5m increase in media income and prize money has increased by five per cent, with conference and events revenues increasing by 14 per cent.
The overall operating loss on ordinary activities was £0.5m, before interest and exceptional items, compared to a £2m loss in 2012.
This figure includes the costs of restructuring the board from two managing directors to one chief executive - at a cost of £0.4m.
Joint managing director Sarah Hordern, who served as finance director for five years prior to her role as joint MD, will see her last day at the course tomorrow (Friday) after the venue announced her resignation earlier this year.
The reshuffle will see the Racecourse’s group financial controller, Claire Spencer, appointed as finance director.
Mrs Hordern’s resignation follows the standing down of joint managing director Stephen Higgins in December last year, eight days after Julian Thick was announced as the venue’s new chief executive.
Chairman of Newbury Racecourse, Dominic Burke, thanked Mrs Hordern for her significant contribution to the Racecourse over the past 15 years.
He said: “We are extremely grateful for the key role she has played in ensuring the successful management of the company, especially its vital property redevelopment and recent resolving of the shareholder base, which ensure its long term future. We wish her every success for the future.”
Mrs Hordern was responsible for overseeing the construction of 1,500 homes in partnership with David Wilson Homes.
The company said that fifty homes in the Western Area have now been occupied, while newly created trackside apartments were attracting high demand.
However, the property business suffered an operating loss of £52,000 - compared to £279,000 in 2012 - which the Racecourse said reflected the costs of managing its ongoing partnership with the developers.
The Rocking Horse Nursery also suffered a revenue decline of eight per cent and operating profits fell by 18 per cent because of increased competition in the local market.
Revenue from golfing activities on the course ceased after management was handed over to Newbury and Crookham Gold Club in June last year.
Mr Burke, said: “We have made good progress during the year with the David Wilson Homes partnership underpinning our future.
“However, we have an important phase ahead as we consider areas of key investment that will support our long-term strategy of developing the racecourse as a leading racing, events and entertainment business.
"Nevertheless, we are confident that we have the right team and approach to deliver this successfully”.