Pre-tax profits rise from £4.4m to £5.1m |   Prudent balance sheet management - net debt reduced by £9.8m |  £1.2m p.a. increase in prize money

 Ascot Racecourse has announced its financial results for the 12 months ending December 31, 2016. | Ascot Authority (Holdings) Limited (AAHL) reported a pre-tax profit of £5.1 million.

 - Turnover up 6.7% due to strong performance from both Royal Ascot and Ascot Racedays and increased media rights income;

 - Prize money increased to £12.4m (2015 £11.2m). Total prize money at Royal Ascot was £6.5m and every day was worth at least £1m. These figures exclude QIPCO British Champions Day, an industry joint venture day;

 - Investment in customer experience, including two new facilities; the Lawn Club and the Villiers Club;

 - Profits boosted by a successful Royal Ascot in 2016, with the meeting's ticket income up by 10%;

 - Strong cash generation resulted in earnings before interest, tax, depreciation & amortisation (EBITDA) of £19.0m;

 - The bank loan was restructured during the year. The repayment profile was amended to provide greater liquidity for the business;

 - Net debt at 31 December 2016 was £71.8m (2015: £81.6m);

 - Continued major capital expenditure with the completion of new unsaddling area, enhancements to owners and trainers' facilities and office renovations;

 - 2017 trading to date in line with management expectations - Royal Ascot, with a new enclosure in the middle of the course - The Village Enclosure - set for another strong renewal;

 - As announced in April, AscotBet, Ascot Racecourse's pool betting operation, will launch in 2018.

 

Guy Henderson, Chief Executive at Ascot, said:  "2016 was another year of solid financial performance and operational improvement. The current year has developed in line with management expectations and we are well set for the Royal Meeting.

 "We are all excited about the opening of the new Village Enclosure, the first new enclosure since the Five Shilling Stand was opened in 1908, continuing our strategy of increasing choice and reducing crowd density in other enclosures.

 "The continuing growth in our international appeal is pleasing.  In 2017, we particularly look forward to Royal Ascot being broadcast live across the US on NBC for 5 hours every day.

 "I would like to thank our official partners, QIPCO and Gigaset, and all our official and raceday sponsors for their continued and valued support and all the staff of Ascot Racecourse, full time and raceday, for all their efforts to deliver for our customers.  Together, they enable the racecourse to be able to maintain and increase prize money, to continue to invest £5m a year in maintaining and improving our facilities and to continue to repay our debt ahead of schedule."

 

Financial summary

 

 

2016
£'000

 

2015
£'000

Turnover

80,081

75,068

Cost of sales

(47,656)

(44,488)

Gross profit

32,425

30,580

Administrative expenses

(22,877)

(21,312)

Other operating income

357

341

Group operating profit

9,905

9,609

Group share of operating profit of associate

209

100

Interest receivable and similar income

111

86

Interest payable and similar charges

(5,120)

(5,407)

Profit on ordinary activities before taxation

5,105

4,388

                                                                                                                               

Highlights

 

- Turnover up 6.7% due to strong performance from both Royal Ascot and Ascot Racedays and increased media rights income;

 

- Prize money increased to £12.4m (2015 £11.2m). Total prize money at Royal Ascot was £6.5m and every day was worth at least £1m. These figures exclude QIPCO British Champions Day, an industry joint venture day;

 

- Investment in customer experience, including two new facilities; the Lawn Club and the Villiers Club;

 

- Profits boosted by a successful Royal Ascot in 2016, with the meeting's ticket income up by 10%;

 

- Strong cash generation resulted in earnings before interest, tax, depreciation & amortisation (EBITDA) of £19.0m;

 

- The bank loan was restructured during the year. The repayment profile was amended to provide greater liquidity for the business;

 

- Net debt at 31 December 2016 was £71.8m (2015: £81.6m);

 

- Continued major capital expenditure with the completion of new unsaddling area, enhancements to owners and trainers' facilities and office renovations;

 

- 2017 trading to date in line with management expectations - Royal Ascot, with a new enclosure in the middle of the course - The Village Enclosure - set for another strong renewal;

 

- As announced in April, AscotBet, Ascot Racecourse's pool betting operation, will launch in 2018.

 

Guy Henderson, Chief Executive at Ascot, said:

"2016 was another year of solid financial performance and operational improvement. The current year has developed in line with management expectations and we are well set for the Royal Meeting.

 

"We are all excited about the opening of the new Village Enclosure, the first new enclosure since the Five Shilling Stand was opened in 1908, continuing our strategy of increasing choice and reducing crowd density in other enclosures.

 

"The continuing growth in our international appeal is pleasing.  In 2017, we particularly look forward to Royal Ascot being broadcast live across the US on NBC for 5 hours every day.

 

"I would like to thank our official partners, QIPCO and Gigaset, and all our official and raceday sponsors for their continued and valued support and all the staff of Ascot Racecourse, full time and raceday, for all their efforts to deliver for our customers.  Together, they enable the racecourse to be able to maintain and increase prize money, to continue to invest £5m a year in maintaining and improving our facilities and to continue to repay our debt ahead of schedule."