Information  X 
Enter a valid email address

Newbury Racecourse Plc (NYR)

  Print      Mail a friend

Friday 07 June, 2013

Newbury Racecourse Plc

AGM Statement


7th June AGM 2013

                            NEWBURY RACECOURSE PLC                             

                      ("the Racecourse" or "the Company")                      

                                 AGM Statement                                 

At the Annual General Meeting to be held in Newbury today, the Chairman,
Dominic Burke, will make the following statement:

"As you will have read in the 2012 Report and Accounts, 2012 was a year of well
attended high quality racing, with Frankel's winning appearance in the JLT
Lockinge Stakes and the victory of Bobs Worth in the Hennessy Gold Cup
representing the racing highlights. The completion of the property development
agreement with David Wilson Homes and the buy-back of the 29.9% shareholding in
the Company held by Guinness Peat Group plc were major milestones for the
company during 2012. These events, made 2012 a positive and progressive year
for your company."

Current trading

The trading environment during 2013 remains challenging, typified by short lead
times for all business divisions, and a competitive live music environment.

We were pleased that our Betfair Super Saturday meeting in February was staged
uninterrupted for the first time for three years, and are delighted to have
signed a new long term sponsorship agreement with Hennessy for our flagship
race, The Hennessy Gold Cup, later in the year. In addition, a new long term
agreement with Bet 365 will help strengthen the jump racing programme.

The conference and events business has had a more positive period of trading
with turnover up year on year for the 5 months to May. The Racecourse hosted
major events for Boots, VISA and Nationwide Building Society; all large scale
events for which the racecourses facilities are ideal.

We are continuing to work with other racecourses and the Horseman's Group on
prize money agreements to underpin our on-going commitment to a high quality
race programme.

We look forward to both Rita Ora and Meat Loaf continuing the excellent
reputation of the Party in the Paddock season, and will continue to consider
acts to widen the appeal of your racecourse.

The residential development is progressing well with the upgraded entrance at
Stroud Green, together with the initial phase of housing and the marketing
suite, setting the benchmark for the quality of both the housing and racecourse
enhancement works. The housing sales launch in April went well and David Wilson
Homes are pleased with the volume and value of house reservations to date. The
level of interest in the trackside apartments, which will be launched this
autumn, is also encouraging.

Reserved matters planning permission was received for the redevelopment of the
racecourse facilities in April and your Board continues to review the
investment opportunities with a view to providing details of the developments
at the time of the interim results. It is anticipated that these works will
start in 2014 with completion at the end of 2015 in conjunction with the
opening of the bridge over the railway. The refurbishment of the stables will
be undertaken this summer, while the new nursery and stable staff accommodation
will be constructed during 2014.

Your Board has undertaken a detailed cost review in light of the on-going
operational and commercial challenges and a number of steps have been put in
place to deliver cost savings in the second half with the full impact being
seen in 2014. The increases in media income arising from the new Turf TV
contract from 1 April 2013, together with the cost review, will underpin the
business while the trading and operational environments remain challenging. We
are confident that the delivery of the enhanced racecourse will enable us to
create a long term profitable business, with racing at its core, which rewards
shareholders. The DWH contract secures future cash flows underpinning our
confidence for the longer term.

a d v e r t i s e m e n t