Racecourse revenue takes a tumble

The group’s turnover for its underlying trading business decreased by six per cent to 11.8 million, from £12.5 million in 2011.
Despite more people attending raceday events - 225,000 in 2012, up from 222,000 the year before - and seeing a three per cent increase to racing revenues, conference and events revenues fell by 15 per cent, which the company said reflects the difficult economic environment.
Turnover in this area was also down because of the decision to not stage a stand-alone concert for Newbury LIVE owing to a lack of suitable available acts, resulting in a loss of £970,000.
However, the racecourse saw a 10 per cent increase in prize money to £3.5 milion, which was supported by a 10 per cent increase in sponsorship income, with a further 15 per cent increase in public catering sales due to a combination of Party in the Paddock events and the refurbished Berkshire Stand.
The operating loss was ofset by the completion of the property agreement with David Wilson homes to build 1,500 new houses on the site over the next 10 years, which will also see the construction of a new bridge, car park and racing facility upgrades.
The land sale to David WIlson Homes resulted in a £10 million profit from fixed assets, leading to a pre-tax profit of 7.9 million, against a loss of £370,000 in 2011.
Chairman of The Racecourse Newbury, Dominic Burke, said: “I am confident that our strategy of building a profitable year-round leisure and events business with racing at its core will be enhanced through this re-development, thereby enabling us to provide shareholders with long term returns."
However, the Rocking Horse Nursery, based at the site, witnessed a seven per cent growth in profits to £237,000 but profits for the golf course suffered owing to last year’s poor weather, falling by 94.8 per cent to £2,000 from £39,000.
The company said in its report that it would retain nine holes in the centre of the racecourse which would be managed by a specialist operator.