TIDMNYR
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.
15 September 2021
NEWBURY RACECOURSE PLC
(the "Racecourse" or the "Company")
Interim results for the 6 months ended 30 June 2021
Newbury Racecourse plc, the racing, entertainment and events business, today
announces its half year results for the six months ended 30 June 2021.
2021 Financial and Business Update
· Statutory turnover increased by 72% to £5.37m (2020: £3.12m).
· Loss before interest, tax and exceptional items reduced to £0.38m (2020:
Loss of £1.64m)
· Consolidated group loss on ordinary activities before tax of £0.32m
(2020: Loss of £1.6m).
· Raceday attendances of 4,400 (2020: 10,900). Twelve meetings (two with a
paying attendance) compared with six (three with paying attendance) in 2020.
· In 2021 the Company has continued to be severely impacted by the
COVID-19 pandemic alongside the decision by the UK Government to implement
national lockdowns which subsequently placed restrictions on our business's
ability to operate normally.
· The Company has operated all its 2021 racing fixtures, with, for the
majority, the only income coming from our betting and media rights agreements.
The nursery is trading as normal and the conference & events business has
re-opened to a cautious market. The Hotel has remained closed since 17 March
last year.
· In June 2021, the Company announced a joint-venture partnership
agreement with Levy Restaurants (a division of Compass Group) to provide all
raceday, events, hotel and nursery catering. The Board is confident that this
relationship, which became effective from 1 June 2021, will provide the
racecourse with access to innovative technology solutions, new restaurant, bar
and food outlet concepts and improved commercial benefits for many years to
come.
· On 7 July 2021, the Company announced that it had signed an all media
rights agreement with Arena Leisure Racing Ltd & At The Races Ltd (Sky Sports
Racing) to replace the existing contract with Racecourse Media Group Ltd. This
existing agreement expires in respect of retail rights on 31 March 2023 and in
respect of all other rights on 31 December 2023. It is anticipated that the new
agreement will provide the Racecourse with both financial and strategic
benefits and will run until the end of 2028.
Outlook Update
· The UK Government's lifting of all legal restrictions on public life
from 19 July 2021 means the Company is now in a position to plan accordingly.
Paying attendance with unlimited crowds is now permitted, our raceday
hospitality businesses have reopened and our nursery remains fully open to all
children.
· Providing that no new restrictions are implemented then the outlook for
the remainder of the year looks positive, but we remain cautious of the fact
that the UK Government guidance could change this situation at any time. The
business continues to manage and mitigate the risks associated with COVID-19.
· The Company is confident that it has the resources to trade through
until receipt of the David Wilson Homes final payment which is due in March
2022, within its current banking facilities. The Board anticipates being in a
position to provide a further update on capital returns to shareholders and
future prize money when our 2021 results are announced in spring next year.
Dominic Burke, Chairman of Newbury Racecourse plc commented:
"Following the challenges that 2020 presented for both the horseracing industry
and our business it is pleasing to see that in 2021 we may finally have turned
a corner. Up to 30 June we welcomed a crowd to two of our racedays and have
subsequently been able to host a paying attendance, with certain elements of
restrictions, at a subsequent eight race meetings. Whilst we were able to
generate income during the behind closed doors meetings through our media and
betting rights agreements, we lost the significant benefit of being able to
generate key revenues through catering and hospitality but this will now be
possible. Likewise, our Conference & Events business relaunched following
suspension in March last year but unfortunately the Lodge Hotel remains closed
whilst we identify the most appropriate opportunity to relaunch. We have
continued to keep our Nursery business open during the year. During the period
when the site was partially closed in the early part of this year we are proud
to have provided support to the NHS by offering our facilities as a vaccination
centre.
The Step 4 final lifting of the UK Government's restrictions means that we are
now in a position to be able to plan ahead for the remainder of 2021 and
beyond. We hosted Olly Murs at our August Party in The Paddock and look forward
to welcoming another sizeable crowd in September for Rick Astley. Likewise, we
still have some exciting National Hunt meetings this year at the racecourse
including the Ladbrokes Winter Carnival in November.
However, the Board remains fully aware that the effects of the pandemic and its
potential impact could remain with us for some while to come, so we are
prepared for this and have proven that we can adapt the business accordingly.
The impact of the financial operating losses from 2020 and the first half of
2021 remain substantial.
Recently we have signed two major strategic agreements, with Levy Restaurants
becoming our Catering partner with effect from 1 June 2021 and all our media
rights transferring to Arena Leisure Racing (Sky Sports Racing) in two separate
stages starting with retail rights from 1 April 2023 followed by all other
rights from 1 January 2024. We anticipate that both of these changes will
influence our ability to improve the financial performance of the Company. I
also remain confident that the redevelopment of the racecourse has provided us
with an exceptional venue which, following a particularly challenging 18
months, will continue to enable us to host racing and other events of the
highest quality in the future.
Unfortunately, I end this update on a very sad note. Long-standing supporter of
Newbury Racecourse and former Chairman, Christopher Spence, has sadly passed
away this week aged 84. Christopher was a special man and great friend to many
at Newbury and within the horseracing industry. He will be sadly missed. Our
thoughts go out to everyone who knew him and to his family at this difficult
time."
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
CHAIRMAN'S STATEMENT
2021 Trading
The Company was initially forced to cease all of its trading activities in
March 2020 but has subsequently adapted to changes in restrictions during the
different lockdown stages through to mid-2021. After a year of behind closed
doors racing, and with the exception of a restricted raceday in December, our
first meeting with a limited paying crowd in attendance took place on 10 June
2021. In the first half of 2021 we held a total of 12 racedays with only two
being able to host a paying public attendance and both with limited
hospitality. Licenced Betting Shops, which when fully operational are an
important factor in our income generation, have also been closed in various
forms and only became fully open with no restrictions from 17 May 2021.
Whilst the Rocking Horse Nursery has remained opened throughout this year, our
Conference and Events business only re-opened during April when restriction
easing permitted whereas The Lodge Hotel remains closed and we continue to
monitor the market to identify the most appropriate time to relaunch.
In the meantime, we are proud to have played our part in helping the local West
Berkshire community at this difficult time by allowing the NHS use of our
facilities as a local vaccine centre from January. During the period of
occupation they administered 66,500 COVID-19 vaccinations.
In the first six months of 2021, total turnover has increased by 72%, compared
to the same period in 2020, to £5.37m (2020: £3.12m). Overall operating losses
to 30 June 2021 were £0.38m (2020: loss of £1.64m). Losses after tax for the
period were £0.06m (2020: loss of £1.6m). There were 12 racedays in the first
half of 2021 compared with six in 2020.
These results were mitigated by a number of actions to manage overheads. Last
year the Company undertook the difficult decision to reduce headcount by 30%,
which has helped to control fixed overheads, whilst we have also carefully
managed establishment and discretionary costs. The Company has made limited use
of the Government Coronavirus Job Retention Scheme in 2021, has accepted the
Business Rates discount but made no other use of any direct Government support
package.
Financing and Liquidity
During the first half of 2021 we repaid £1.5m of the previously fully drawn
revolving credit facility to National Westminster Bank plc ("NWB") as a result
of our improved cash position and outlook given the easing of restrictions on
the business. During 2020 we agreed with NWB to replace the covenants in place
with a single measure, based on minimum liquidity levels, which continue to be
tested through to April 2022, by which time we expect to receive £10.7m (being
the final payment in relation to the residential development at the racecourse)
from David Wilson Homes, a wholly owned subsidiary of Barratt Developments plc.
The final repayment of the loan to Compton Beauchamp Estates Limited remains
set for April 2022.
Outlook
Following the UK Government's lifting of all legal restrictions from 19 July
2021, the Company is now in a position to plan accordingly for the remainder of
this year and beyond. Paying attendance with unlimited crowds is now permitted,
our raceday hospitality businesses have reopened and our nursery continues to
operate normally. However, the Lodge Hotel remains closed whilst we regularly
monitor the market for the appropriate time to relaunch. Licenced Betting Shops
are now able to fully open back to pre-COVID levels. Despite the easing of
restrictions the Company responsibly ensures that a safe environment for
racegoers and other attendees to our site is maintained.
We hosted Olly Murs at our August Party in The Paddock and look forward to
welcoming another sizeable crowd in September for Rick Astley. Likewise, we
still have some exciting National Hunt meetings this year at the racecourse
including the Ladbrokes Winter Carnival in November and December's Challow
Hurdle. However, the Board remains fully aware that the effects of the pandemic
and its potential impact could remain with us for some while to come, so we are
prepared for this and have proved during the past 18 months that we can adapt
the business accordingly.
Recently we have signed two major strategic agreements. Firstly, Levy
Restaurants have become our Catering partner with effect from 1 June 2021 and
we look forward to working with them and developing this important segment of
the business. Secondly, all our media rights will transfer to Arena Leisure
Racing (broadcast on Sky Sports Racing) in two separate stages starting with
retail rights from 1 April 2023, with all other rights from 1 January 2024. We
anticipate that both of these changes will influence our ability to improve the
financial performance of the company. The Board anticipates being in a position
to provide a further update on capital returns to shareholders and future prize
money when our 2021 results are announced in spring next year.
The impact of the financial losses from 2020 and the first half of 2021 remains
substantial. The Board remains confident that the Company has the financial
resources in place to trade through the period until the loans are due for
repayment which coincides with the final receipt from David Wilson Homes in
spring 2022.
On behalf of the Board, I would like to thank all the staff for their continued
hard work, resolve and commitment to the business during this extraordinary and
challenging period.
DOMINIC J BURKE
Chairman
15 September 2021
CHIEF EXECUTIVE'S REPORT
Performance Review
Due to the UK Government's restrictions affecting our ability to operate as
normal since spring 2020, the business remains substantially behind 2019
levels. However, in the first half of 2021 we have experienced a 72% increase
in group turnover to £5.37m (2020: £3.12m) compared to last year, which also
demonstrates the significant impact that the initial lockdown had during the
early part of 2020 once all trading was ceased on 17th March.
Revenues across all our businesses were higher than 2020 but that in no way
represents a positive position for the business compared with expectations
under normal circumstances. Racing with a paying crowd resumed on 10 June 2021,
which along with Licenced Betting Shops fully re-opening, has resulted in
revenue being up 44% on 2020. Our Conference & Events business re-opened on 12
April 2021 with income down 22% and the Nursery has seen a 56% increase in
income compared with the same period last year.
Despite these revenue improvements, the Company is reporting mid-year operating
losses before exceptional items of £0.38m (2020: loss of £1.64m).
Exceptional items in the first six months of 2021 were a credit of £0.06m
(2020: credit of £0.03m) being the fair value movement on the David Wilson
Homes debtor, based upon the expected timing and value of future receipts.
The loss on ordinary activities after interest and tax was £0.06m (2020: loss £
1.6m).
Racing
The racecourse has hosted 12 racedays to 30th June 2021, ten of which were
Behind Closed Doors ("BCD"). This compares to six staged during the same period
in 2020, of which three were BCD.
Total media related revenues of £2.12m, were up 120% on the same period in
2020, as a direct consequence of the higher number of racedays being hosted.
We are grateful for the continued and significant support from all of our
sponsors for the racedays that we were able to host in the first half of the
year, with particular thanks to Al Shaqab, Dubai Duty Free, Betfair,
Mansionbet, Greatwood and West Berkshire Mencap for their ongoing support.
Catering, Hospitality and Conference & Events
Conference & Events started well in 2020 until the March COVID shutdown
resulted in the cancellation of much of this business in a key trading period.
2021 has seen the opposite with the business re-opening in April following
almost a year of enforced closure. Consequently, revenues up to 30 June 2021
were £0.12m compared with £0.5m in 2020, resulting in an operating loss of £
0.03m (2020: loss £0.26m).
Our Catering business transferred to a joint venture partnership with Levy
Restaurants on 1 June 2021 which will result in the Company receiving royalty
income from the shared arrangement rather than reporting the full income and
costs. Prior to that date there was minimal trading whilst the business
remained closed, although we have continued with the outdoor pop-up Pub concept
that we introduced last year in order to generate income within restriction
guidelines.
The Lodge
Our 36 bedroom onsite hotel has remained closed to the public since March 2020.
Now that UK Government restrictions have been lifted on accommodation stays we
continue to monitor the market for the most appropriate opportunity to re-open
and relaunch this business, which was previously delivering good growth in
occupancy levels and average room rates.
Rocking Horse Nursery
The Rocking Horse Nursery has traded at normal levels throughout 2021,
returning to those experienced in 2019. Revenues in the first six months of
2021 were £0.8m, up 56% on the comparative period in 2020. This business unit
reported an operating profit of £0.31m (2020: loss of £0.17m).
The Development
The 2020 restoration and refurbishment of the Royal Box completed the final
stage of the racecourse heartspace redevelopment. Under the circumstances all
other investment projects remain on hold until the trading and cash position of
the business permits.
The David Wilson Homes ("DWH") residential development continues to progress
with the Central Area apartments now fully completed and sold, with the Company
now owning the freeholds of a further ten apartment blocks. DWH is continuing
with construction in the Eastern Area of the site. Approximately 1,000 homes
out of the planned total of c.1,500 are now built. The final date for the
balance of the guaranteed minimum land value due from DWH is March 2022 and as
at 30 June 2021 the balance outstanding was £10.8m.
JULIAN THICK
Chief Executive
15 September 2021
Consolidated Profit and Loss Account
Six months ended 30 June 2021
Note Unaudited Restated*
6 months 30/06/ Unaudited
21 6 months
£'000 30/06/20
£'000
Turnover 7 5,365 3,124
Cost of sales (4,662) (4,103)
Gross (loss) / profit 7 703 (979)
Administrative expenses (1,152) (1,150)
Other operating income 8 66 494
Operating loss before exceptional items (383) (1,635)
Exceptional Items 9 62 34
Loss before interest and tax (321) (1,601)
Interest receivable and similar income 85 85
Interest payable and similar charges (100) (86)
Loss before taxation (336) (1,602)
Tax credit 10 280 9
Loss after taxation (56) (1,593)
Loss per share (basic and diluted) (See Note (1.67p) (47.6p)
11)
All amounts derived from continuing operations
*Refer to Note 16.
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2021
Unaudited Restated*
6 months Unaudited
30/06/21 6 months
£'000 30/06/20
£'000
Total comprehensive loss for the period (56) (1,593)
*Refer to Note 16.
Consolidated Balance Sheet
As at 30 June 2021
Unaudited
30/06/21 Audited
£'000 31/12/20
Note £'000
Fixed assets
Tangible assets 12 41,213 41,549
Investments 117 117
41,330 41,666
Current assets
Stocks 27 177
Debtors: amounts falling due after more than one 3,675 14,046
year
Debtors: amounts falling due within one year 15,006 4,130
Cash at bank and in hand 4,932 5,529
23,640 23,882
Creditors: amounts falling due within one year (10,434) (2,304)
Net current assets 13,206 21,578
Total assets less current liabilities 54,536 63,244
Creditors: amounts falling due after more than - (8,611)
one year
Provisions for liabilities
Provisions (4,178) (4,169)
Pension liability 14 (1,497) (1,538)
Net assets 48,861 48,926
Capital grants
Deferred capital grants 43 52
Capital and reserves
Called up share capital 13 335 335
Share premium account 10,202 10,202
Revaluation reserve 75 75
Equity reserve 143 143
Profit and loss account surplus 38,063 38,119
Shareholders' funds 48,818 48,874
Net assets 48,861 48,926
The unaudited half year financial statements of Newbury Racecourse PLC, company
registration 00080774, were approved by the Board of Directors on 15 September
2021 and signed on its behalf by:
D J Burke (Chairman)
J M Thick
(Chief Executive)
Consolidated Statement of Changes in Equity
At 30 June 2021
GROUP Share Share Capital Revaluation Profit and Total
Capital £ Premium redemption reserve £ loss account £'000
'000 £'000 Reserve '000 £'000
£'000
At 1 January 335 10,202 143 75 40,640 51,395
2020
Loss for the - - - - (1,593) (1,593)
period to 30
June 2020
Other - - - - - -
comprehensive
income
At 30 June 2020 335 10,202 143 75 39,047 49,802
GROUP Share Share Capital Revaluation Profit and Total
Capital £ Premium redemption reserve £ loss account £'000
'000 £'000 Reserve '000 £'000
£'000
At 1 January 335 10,202 143 75 38,119 48,874
2021
Loss for the - - - - (56) (56)
period to 30
June 2021
Other - - - - - -
comprehensive
income
At 30 June 2021 335 10,202 143 75 38,063 48,818
Consolidated Cash Flow Statement
Six months ended 30 June 2021
Unaudited Restated
6 months 30/06/21 Unaudited
6 months 30/06/20
£000 £000
Cash flows from operating activities
Loss for the financial period (56) (1,593)
Adjustments for:
Exceptional items (62) (34)
Amortisation of capital grants (9) (9)
Depreciation charges 625 602
Interest paid 100 86
Interest received (85) (85)
Tax credit (280) (9)
Decrease in stocks 151 49
(Increase)/decrease in debtors (190) 338
Increase/(decrease) in creditors 989 (398)
Corporation tax paid - -
Other associated property receipts 7 53
Pension funding deficit payments (55) (55)
Net cash generated from operating activities
1,135 (1,055)
Cash flows from investing activities
Receipts from David Wilson Homes 112 84
Purchase of fixed assets (299) (1,621)
Interest received - 2
Net cash from investing activities (187) (1,535)
Cash flows from financing activities
Repayment of bank loan (1,500) 5,500
Interest paid (45) (39)
Net cash used in financing activities (1,545) 5,461
Net (Decrease)/increase in cash and cash (597) 2,871
equivalents
5,529 1,269
Cash and cash equivalents at beginning of
period
Cash and cash equivalents at the end of 4,932 4,140
period
Cash and cash equivalents at the end of
period comprise:
4,932 4,140
Cash at bank and in hand
4,932 4,140
Advantage has been taken of the exemption under FRS102 not to disclose the
individual cash flow statements of the company and of its subsidiaries.
Notes to the Interim Financial Statements
Six months ended 30 June 2021
1. BASIS OF PREPARATION
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.
These Group and parent company financial statements were prepared in accordance
with Financial Reporting Standard 102 The Financial Reporting Standard
applicable in the UK and Republic of Ireland ("FRS 102").
These interim financial statements do not include all of the notes and
disclosures required to comply with FRS102, as they have been prepared in
accordance with the content, recognition and measurement principles for interim
financial reports, Financial Reporting Standard 104 (FRS 104).
The abridged results for the six months ended 30 June 2021 do not constitute
statutory accounts within the meaning of S434 of the Companies Act 2006. The
auditor's report on the accounts of Newbury Racecourse plc for the 12 months to
31 December 2020 was unqualified, did not draw attention to any matters by way
of emphasis and did not contain any statement under S498 (2) or (3) of the
Companies Act 2006 and has been delivered to the Registrar of Companies.
2. SIGNIFICANT ACCOUNTING POLICIES
The Interim Financial Statements have been prepared in accordance with the
accounting policies adopted in the Group's most recent annual financial
statements for the year ended 31 December 2020 and those expected to be applied
for the year ending 31 December 2021.
3. ESTIMATES
When preparing the Interim Financial Statements, management undertakes a number
of judgements, estimates and assumptions about recognition and measurement of
assets, liabilities, income and expenses. The actual results may differ from
the judgements, estimates and assumptions made by management, and will seldom
equal the estimated results.
The judgements, estimates and assumptions applied in the Interim Financial
Statements, including the key sources of estimation uncertainty, were the same
as those applied in the Group's last annual financial statements for the year
ended 31 December 2020. The only exceptions are the estimate of income tax
liabilities which is determined in the Interim Financial Statements using the
estimated average annual effective income tax rate applied to the pre-tax
income of the interim period.
4. 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 19th July 2021 easing of lockdown
guidance from the Government as well as specific financial circumstances of the
Group.
The Board reviews the cash flow and working capital requirements in detail on a
frequent basis, whilst during the past eighteen months under the current COVID
19 circumstances the regularity of this scrutiny has increased
The Board also identifies that the Group's cash flow forecasts are sensitive to
fluctuating revenue streams from ticket sales, corporate hospitality,
conference and event income and the timing of receipts and payments in respect
of the property redevelopment. A system of regular reviews of forecast business
and expected property receipts 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, reducing the levels
of risk carried by the Group.
At the balance sheet date, the Company has adequate cash reserves, together
with banking facilities which are in place through to the end of March 2022 to
support trading requirements and committed loan repayments and covenants.
Following this review the Board has concluded that it has a reasonable
expectation that the Group has adequate resources and banking facilities in
place to continue in operational existence for the foreseeable future and on
that basis the going concern basis has been adopted in preparing the financial
statements.
5. REVENUE RECOGNITION
Services rendered, raceday income including admissions, catering revenues,
sponsorship and licence fee income is recognised on the relevant raceday.
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.
Sale of goods revenue is recognised for the sale of food and liquor when the
transaction occurs.
6. PROPERTY RECEIPTS
Property receipts are recognised in accordance with the nature of the
transaction being that of an exceptional sale of land. 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 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.
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
a. The condensed set of financial statements has been prepared in accordance
with FRS 104 'Interim Financial Reporting' giving a true and fair value of the
assets, liabilities, financial position and profit or loss of the undertakings
included in the consolidation as a whole as required by DTR 4.2.4R.
a. The interim report includes a fair review of the information required by
DTR 4.2.7R (indication of important events during the first six months and
description of principal risks and uncertainties for the remaining six months
of the year); and
a. The interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and changes
therein).
By order of the Board,
J M Thick M Leigh
Chief Executive Finance Director
15 September 2021 15 September 2021
7. SEGMENTAL ANALYSIS
30 June 2021 Turnover Gross Operating (Loss)/profit (Loss)/profit *Net
£'000 Profit/ before exceptional items before tax £ Assets
(Loss) £'000 '000 £'000
£'000
Trading 4,527 368 (655) (670) 31,610
Nursery 800 314 314 314 2,637
Lodge 8 (9) (9) (9) 1,543
Property 30 30 (33) 29 13,071
Total 5,365 703 (383) (336) 48,861
30 June 2020 Turnover Gross Operating (Loss)/profit (Loss)/profit *Net
- restated £'000 Profit/ before exceptional items before tax £ Assets
(Loss) £'000 '000 £'000
£'000
Trading 2,458 (1,141) (1,787) (1,793) 33,139
Nursery 514 170 170 170 2,674
Lodge 125 (35) (35) (35) 1,363
Property 27 27 17 56 12,687
Total 3,124 (979) (1,635) (1,602) 49,863
* Net assets represents fixed assets less deferred income and term loans for
property, nursery and lodge; all working capital is included within the
'Trading' segment.
8. OTHER OPERATING INCOME
6 months
6 months 30/06/20
30/06/21 £'000
£'000
Other Operating Income 66 494
Total 66 494
Other operating income is attributable to government grants received from the
Coronavirus Job Retention Scheme.
9. EXCEPTIONAL ITEMS
6 months
6 months 30/06/20
30/06/21 £'000
£'000
DWH debtor movement in fair value 62 39
Loss on sale of fixed assets - (5)
Total 62 34
In accordance with the audited financial statements, accounting transactions
related to the DWH agreement are considered outside the ordinary course of
business.
10. TAXATION
The tax has been computed in accordance with FRS 104 Interim Financial
Reporting. This requires the company to apply the estimated annual effective
tax rate to the loss for the interim period and recognise a tax credit only to
the extent that the resulting tax asset is more likely than not to reverse.
11. PROFIT PER SHARE
Basic and diluted loss per share of 1.7p (2020: 47.6p) is calculated by
dividing the loss attributable to ordinary shareholders for the period ended 30
June 2021 of £56,000 (2020 restated: loss £1,593,000) by the weighted average
number of ordinary shares during the period of 3,348,326 (2020: 3,348,326).
12. TANGIBLE FIXED ASSETS
GROUP Freehold Fixtures Tractors and motor Total
property and vehicles £'000
£'000 fittings £'000
£'000
Cost or valuation
As at 1 January 2021 53,795 9,497 313 63,605
Additions 9 280 289
Disposals - - -
At 30 June 2021 53,804 9,777 313 63,894
Depreciation
At 1 January 2021 16,777 5,120 159 22,056
Charge for year 342 272 11 625
Disposals - - - -
At 30 June 2021 17,119 5,392 170 22,680
Net book value at 30 36,685 4,385 143 41,213
June 2021
Net book value at 31 37,018 4,377 154 41,549
December 2020
In 1959 a revaluation of part of the freehold land at £117,864 gave rise to an
excess of £75,486 over its cost and this sum is included in the total value of
this asset. The excess on revaluation is credited to the Revaluation Reserve.
The net book value of freehold land and buildings (and excluding outdoor
fixtures) determined by the historical cost convention is £36,609,000 (2019: £
36,350,000).
In 2018 the board revisited the residual values and useful economic lives of
the land enhancements and major buildings on the site. Savills were instructed
to provide an estimate of the residual values and these were applied in re
estimating the depreciation charge for those assets. There was no further
change in the residual values or useful economic lives during 2021.
13. SHARE CAPITAL
30/06/21 30/06/20
£'000 £'000
Authorised
Ordinary shares of 10p each 600 600
Total 600 600
30/06/21 30/06/20
£'000 £'000
Allotted and fully paid
Ordinary shares of 10p each 335 335
Total 335 335
14. RETIREMENT BENEFIT OBLIGATIONS
The defined benefit obligation at 30 June 2021 has been determined with
reference to the figures recorded at 31 December 2020, which were calculated in
accordance with FRS102 s.28, as in the Directors' opinion there have not been
any significant fluctuations in the key assumptions. The movement in the
defined benefit deficit relates to the top-up payment made during the period
ended 30 June 2021 of £0.05m, net of interest charges accrued.
15. RELATED PARTY TRANSACTIONS
There are no significant changes to the nature and treatment of related party
transactions for the period to those reported in the 2020 Annual Report and
Accounts.
16. EXPLANATION OF PRIOR YEAR ADJUSTMENTS
As at 31 December 2020 the group restated comparative financial information in
order to bring the accounting treatment of the leasehold asset receivable in
line with the requirements of FRS 102.
In 2012, under the terms of the David Wilson Homes land sale agreement, part of
the consideration arising from David Wilson Homes was an option to purchase, at
a substantial discount to market value, the interest in the ground rents of the
new residential apartment buildings. This had been recognised in the financial
statements as a lease receivable of £3.56m for the present value of all
expected future rentals is recognised at 31 December 2016, with any ground
rents received being netted off against the debtor.
On further consideration, the accounting of the present value of the lease
receivable has been updated to reflect the length of the leasehold period of
125 years, and to split out the value of the exercised freehold option that has
been purchased, to be held as freehold property.
The impact on 2020 profit for the period to 30 June 2020 is to increase the
profit by £0.08m, which is the amount applicable to the effective interest on
the unwinding of the discount applied to lease receivable.
END
(END) Dow Jones Newswires
September 15, 2021 02:00 ET (06:00 GMT)
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