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DJ Newbury Racecourse Plc Preliminary results

 
TIDMNYR 
 
3 May 2019 
 
                            NEWBURY RACECOURSE PLC 
 
                      ("the Racecourse" or "the Company") 
 
         Preliminary Results for the 12 months ended 31 December 2018 
 
Newbury Racecourse plc, the racing, entertainment and events business, today 
announces its preliminary results for the twelve months ended 31 December 2018. 
 
Financial Highlights 
 
  * Total turnover up 8% to GBP19.29m (2017: GBP17.81m) 
  * Conference & Events revenues increased by 22% 
  * 10% growth in Rocking Horse Nursery revenues 
  * 20% growth in hotel turnover 
  * Profit before interest, tax and exceptional items GBP0.84m (2017: GBP0.49m) 
  * Exceptional profits GBP0.92m (2017: GBP0.29m) 
  * Consolidated group profit on ordinary activities before tax GBP1.48m (2017: GBP 
    0.48m) 
 
Operational Highlights 
 
  * Raceday attendances of 173,000 (2017: 196,000) impacted by the two days 
    abandoned in March due to snow 
  * Two successful Party in The Paddock events with Craig David and Rudimental 
    DJ, with overall attendances of more than 33,000 
  * Continued investment into prizemoney with an 11% like for like increase 
  * Attendances of more than 23,000 across the two day Ladbrokes Winter 
    Carnival 
  * 32% increase in C&E event days 
  * 3% increase in Nursery occupancy levels 
  * 4% increase in The Lodge hotel occupancy levels 
 
Redevelopment Highlights 
 
  * Re-modelling of the main parade ring, improvements to the customer areas 
    behind the stands and new southern entrance building now completed 
  * Good progress on the phased refurbishment of the Berkshire Stand and 
    improvements to the wider infrastructure 
  * Cash payments to the Company of GBP3.25m from DWH residential sales during 
    2018 
  * David Wilson Homes residential development more than halfway through, with 
    c.930 homes out of the total 1,495 now built. 
 
Current Trading 
 
  * Positive start to trading in 2019, with particularly strong sales for Party 
    in the Paddock dates and Conference and Events 
  * Ongoing uncertainties around impact of FOBT on funding and media revenues, 
    in spite of this the Company has committed to maintain its total prizemoney 
    at GBP5m for 2019 
 
Dominic Burke, Chairman of Newbury Racecourse plc commented: 
 
"2018 was another progressive and busy year for Newbury Racecourse. A year 
which saw positive financial growth in a number of key areas of the business 
and a year in which we completed our redevelopment of the external heartspace 
areas of the racecourse. 
 
Our redevelopment has delivered a first class venue that not only provides us 
with a stage to continue to host racing of the highest quality, but also 
facilities which are well placed to meet the increasing demands of the modern 
day consumer, from horsemen and racegoers, to conference and hotel guests, 
nursery patrons and local residents. Enabling us to continue growing our well 
diversified business and maximise the returns from our investments." 
 
For further information please contact: 
 
Newbury Racecourse plc                                         Tel: 01635 40015 
 
Julian Thick, Chief Executive 
 
Harriet Collins, Marcomms & Sponsorship Director 
 
Hudson Sandler                                                    Tel: 020 7796 
4133 
 
Charlie Jack 
 
CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2018 
 
2018 was another progressive and busy year for Newbury Racecourse. A year which 
saw positive financial growth in a number of key areas of the business and a 
year in which we completed our redevelopment of the external heartspace areas 
of the racecourse. 
 
Financial Performance 
Total turnover grew by 8% to GBP19.29m in 2018. We have seen improvements in 
trading performance across a number of areas of the business, with like for 
like growth in racing revenues of 7%, another excellent year for the Rocking 
Horse Nursery with growth in revenues of 10% and revenue from The Lodge hotel 
operation increasing by 20%. We also saw good recovery in the Conference and 
Events business with turnover up 22%. 
 
Operating profits were GBP1.76m in year (2017: GBP0.78m), including exceptional 
profits of GBP0.92m (2017: GBP0.29m). Profit after tax was GBP1.79m (2017: GBP1.18m). 
 
Racing Highlights 
The action on the track in 2018 has once again been thrilling and of a very 
high quality, demonstrating our continued ability to attract the very best 
horses across both codes. Highlights early in the year included brilliant 
victories from both Altior and Native River on Betfair Super Saturday in 
February, with the former going on to win the Queen Mother Champion Chase and 
the latter winning the Cheltenham Gold Cup. 
 
The 2018 flat season got underway with Dubai Duty Free Spring Trials Weekend 
and some striking performances which highlighted Classic credentials, including 
Derby contender, The Young Rascal and Lah Ti Dah who went onto Group 1 success 
later in the season.  Another thrilling renewal of the Al Shaqab Lockinge, in 
May saw Rhododendron narrowly beat Lightning Spear to become the first filly to 
win the race since 2004 for Aidan O'Brien with over 11,000 racegoers attending 
the early summer showpiece. 
 
Our first Party in the Paddock event for 2018 took place in July at the 
Weatherbys Super Sprint meeting, with a sell?out crowd of 20,000 enjoying Craig 
David who performed after an excellent day's racing, which also saw the 
introduction of the new JLT Cup for stayers, attracting a strong 16 runner 
field in its inaugural year. Our second Party in the Paddock event for the year 
saw the popular DJ band, Rudimental perform after racing on Betfred Ladies Day 
in August. 
 
As we turned to the Jumps once more, Sizing Tennessee's hard?fought win in the 
second running of the Ladbrokes Trophy in early December, gave Colin Tizzard a 
one?two in the race with the two?day meeting seeing increased attendances year 
on year. This meeting continues to be a key priority for the business to grow 
and improve, both in stature and size. 
 
The Development 
The redevelopment of the racecourse continued throughout 2018 and the team, 
once again, did an outstanding job of delivering a full calendar of racing and 
events, in spite of the ongoing disruption. The re?modelling of the main parade 
ring and improvements to the customer areas behind the stands are now completed 
and we are delighted with the results and the positive feedback from patrons. 
The phased refurbishment of the Berkshire Stand and improvements to the wider 
infrastructure have continued and have significantly enhanced the visitor 
experience which will as a consequence help us to deliver improved financial 
returns in the future. 
 
Having obtained planning consent in 2017 for a full re?development of the Pall 
Mall building, the Board have revisited the strategy for this facility and the 
decision has been taken to proceed with a reduced scheme, encompassing the 
Royal Box building only. This scheme will both restore the Royal Box, being our 
most prestigious facility, to its former glory and will also provide enhanced 
access, viewing and public facilities. 
 
Following the completion of the major heartspace development works, the board 
instructed Savills to undertake a residual valuation of the land and major 
buildings. This valuation, which provided us with an estimate of the long?term 
residual value of the assets, together with a review of the useful economic 
lives of the major assets, was undertaken solely for the purpose of re? 
estimating the annual depreciation attributable to those assets and was not a 
full market valuation exercise. This has resulted in a reduction in the like 
for like annual depreciation charge of c. GBP0.59m, which is reflected in the 
profit and loss account. The board believes this fairly reflects the substance 
and long?term residual value of the assets which, as a result of the recent 
redevelopment of the racecourse and its facilities, will continue to provide 
significant future economic benefits to the business into the longer term. 
 
The David Wilson Homes residential development is now more than halfway 
through, with c.930 homes out of the total 1,495 now built. Demand for new 
homes on the site remains positive and sales are broadly in line with 
expectations. 
 
 
Outlook and Market Developments 
Trading prospects for 2019 look satisfactory to date. We are seeing very strong 
sales for our two confirmed Party in the Paddock events, Tom Jones in July and 
Madness in August. February's Betfair Saturday was regrettably abandoned as a 
result of the equine influenza outbreak but was an insured fixture so the 
financial loss was mitigated. Our Conference and Events business has had a 
positive first quarter with business on the books up significantly on the prior 
year and growth across a number of key markets. 
 
However, there are trading challenges to come, not least the now confirmed GBP2 
cap on stakes for Fixed Odds Betting Terminals ("FOBTs"), which has taken 
effect from April 2019. This is predicted to have a significant negative impact 
upon betting shop profitability and, as a result, there could be a material 
reduction in the number of betting shops.  The implications of such changes on 
the horse racing industry remain difficult to predict but it is very likely to 
have a material adverse impact on future contributions to prize money funding 
from the Horserace Betting Levy Board (HBLB) and the Company's revenues from 
media rights. 
 
We intend to maintain our total prizemoney for 2019, in spite of the expected 
decline in funding from the HBLB and lower expected revenues from our media 
rights. Like many other racecourses, we will need to manage carefully our 
future prizemoney commitments in light of these developments. 
 
As previously stated, given the additional investment in the racecourse and the 
current uncertainty around the financial impact of the FOBT situation, the 
Board have decided that any return to paying dividends or returning capital to 
shareholders is not now anticipated to occur before 2022 at the earliest, 

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May 03, 2019 02:00 ET (06:00 GMT)

DJ Newbury Racecourse Plc Preliminary results -2-

following repayment of the Compton Beauchamp Estates loan and the final 
longstop date in the residential property development contract between the 
Company and David Wilson Homes. 
 
Our redevelopment has delivered a first class venue so we can continue to host 
racing of the highest quality, as well as having facilities which are well 
placed to meet the increasing demands of the modern day consumer, from horsemen 
and racegoers, to conference and hotel guests, nursery patrons and local 
residents. Our redevelopment should enable us to continue growing our well? 
diversified business activities and maximise the returns from our investments. 
 
We were delighted to be named, once again, as one of the top racecourses in the 
UK by VisitEngland and, for the fourth consecutive year, to be awarded the 
Racecourse Association and VisitEngland Excellence Accolade for customer 
service. On behalf of the board, I would like to thank all the staff for their 
continued hard work and commitment. 
 
Our sincere thanks as ever to all sponsors, owners, trainers, stable staff, 
racegoers and all customers for their ongoing support and patronage. 
 
 
DOMINIC J BURKE 
Chairman 
 
2 May 2019 
 
STRATEGIC REPORT 
 
STRATEGY AND OBJECTIVES 
 
The Board's long?term strategy is to continue the profitable development of 
Newbury Racecourse as a leading racecourse, entertainment and events business, 
with racing at its core. Continued progress in line with this strategy has been 
made in 2018 
 
THE BUSINESS MODEL 
 
Newbury Racecourse PLC is the parent of a Group of companies which own Newbury 
Racecourse and engage in racing, hospitality and catering retail activities. 
In addition, the Group operates a conference and events business, a children's 
nursery and an on?site hotel.  Alongside its trading activities, the Group owns 
freehold property from which it receives annual income and also benefits from 
the sale of residential properties on the site, as part of its long?term 
development agreement with David Wilson Homes. 
 
PERFORMANCE REVIEW 
 
Consolidated Group profit before tax in the year ended 31 December 2018 was GBP 
1.48m (2017: GBP0.48m) which includes GBP0.92m of exceptional profits (2017: GBP0.29m 
exceptional profits). 
 
Turnover increased by 8% (GBP1.49m) to GBP19.29m (2017: GBP17.81m). Overall racing 
revenues, excluding the impact of capital credits claimed, grew by 5% (GBP0.67m). 
Despite 2 abandonments in the year (2017: no abandonments) like for like growth 
in racing revenues was GBP0.86m (7%). Conference and Events revenues increased by 
22% (GBP0.19m) on prior year. The Rocking Horse Nursery revenues showed growth of 
10% (GBP0.13m) on 2017. The Lodge revenues increased by 20% (GBP0.17m) year on 
year. 
 
Total costs increased by 7% to GBP18.45m (2017: GBP17.32m). A review of the 
residual values and useful economic lives of land and buildings resulted in a GBP 
0.59m reduction in the annual depreciation estimate charged to the profit and 
loss account. 
 
Exceptional profits during 2018 were GBP0.92m (2017: GBP0.29m) being the reduction 
of a provision in connection with a contingent liability, net of the cost of 
writing off the carrying value of the old Pall Mall building and the movement 
in the fair value of the DWH debtor. 
 
Operating profit before interest was GBP1.76m (2017: GBP0.78m). 
 
The tax credit of GBP0.31m (2017: credit GBP0.71m) relates to the movement in 
deferred tax during the period. 
 
Profit after tax was GBP1.79m (2017: GBP1.18m). 
 
The decrease in cash reserves of GBP2.89m in the period (2017: GBP7.84m decrease) 
includes GBP3.25m of cash receipts from DWH in respect of properties sold in the 
period and is net of GBP6.01m of capital expenditure and tax instalment payments 
of GBP0.08m. 
 
Racing 
 
The accounts include a total of 30 days racing (2017: 29) comprising 11 days 
National Hunt racing (2017: 11) and 19 days flat racing (2017: 18). 
 
As ever the racecourse hosted a full and high-quality racing programme during 
2018, although two days in March were unfortunately abandoned due to snow 
(2017: no meetings abandoned). 
 
Overall raceday attendances in 2018 decreased by 12% to 173,000 (2017: 
196,000), primarily as a result of the two abandonments in early March and 
reduced attendances at Ladies Day in August which had delivered a sell?out 
crowd for Olly Murs the previous year. 
 
May marked the fourth year of Al Shaqab's sponsorship of Lockinge Day, 
Newbury's richest race meeting, which was attended by c.11,000 racegoers. This 
meeting continues to be the flagship event in our flat racing calendar and the 
action on the track once again featured a string of outstanding performances. 
 
Our cornerstone jump meeting, The Ladbrokes Winter Carnival, at the beginning 
of December, marked the second year of our five year partnership with 
Ladbrokes. We and the sponsors were pleased to once again see strong 
attendances across the two day meeting of more than 23,000. 
 
We continued to make further investment in our prize money, with an 11% (GBP 
0.23m) like for like increase in our contributions. 
 
 
We are grateful to have received continued significant support from all of our 
sponsors, with particular thanks to Al Shaqab Racing, bet365, Betfair, Dubai 
Duty Free and Ladbrokes for their investment in 2018. 
 
We hosted two successful music events in 2018 with Craig David in July and 
Rudimental DJ in August attracting total attendances in excess of 33,000. 
 
We are proud of our long association with the Dubai International Arabian Races 
Committee and we were, once again, delighted to host its flagship UK race 
meeting here in July. 
 
Media revenues increased by c. GBP0.95m (26%), to GBP4.59m for the twelve months to 
31 December 2018, representing c.24% of the Group's overall turnover and 
reflecting the continued strong performance in streaming and overseas 
activities of Racecourse Media Group, together with increased LBO income from 
the new agreement signed in April 2018. 
 
Conference and Events 
 
Conference and Events revenues increased by 22% (GBP0.19m) versus 2017, to GBP1.06m 
as a result of an 32% increase in event days. 
 
Our restructured Conference & Events sales team have been and continue to be 
focused entirely on growing this part of our business, through proactive 
selling and relationship building within key sectors and with a number of 
agents. Despite the ongoing challenges of the redevelopment, we have seen a 
good level of recovery and we remain confident that with the redeveloped 
facilities the Conference and Events business performance will continue to 
improve. 
 
Catering, Hospitality and Retail 
 
Our catering, hospitality and retail business saw overall year on year growth 
in revenues of GBP0.12m. Raceday catering revenues were c.6% up on 2017 on a like 
for like basis, with conference catering revenues up c.18% as a result of the 
improved Conference & Events business in the year. 
 
The Rocking Horse Nursery 
 
We are pleased to report another year of strong trading performance at the 
Rocking Horse Nursery with turnover increasing by 10% to GBP1.43m and gross 
operating profits of GBP0.49m, an improvement of 18% on 2017. This has been 
driven by an average occupancy increase of 3% over the course of the year. 
 
The Lodge 
 
Turnover for The Lodge, our on?site hotel, increased by 20% year on year to GBP 
0.71m, driven by an average occupancy increase of 4%. Gross operating profits 
were GBP0.1m (2017 GBP0.1m). 
 
The Redevelopment 
 
The development of the racecourse heartspace continued throughout 2018, with 
the re?modelled parade ring, betting and retail pods, Southern Entrance and 
other landscaping works all completed at a total cost of GBP5.42m. 
 
The enhancement of IT infrastructure across the site, has resulted in improved 
business technology resilience and capacity, together with an improved customer 
experience. The refurbishment of the Berkshire Stand and a programme of lift 
upgrades across the site, continues.  These works are focused on enhancing the 
experience for all of our customers, whilst generating improved financial 
returns for the wider business in the longer term. 
 
The Board have revisited the strategy for the former Pall Mall building and a 
decision made to proceed with a reduced scheme, encompassing the Royal Box 
building only at an estimated cost of GBP2.5m. The revised scheme removes the 
aged Pall Mall building which was reaching the end of its useful life and 
refurbishes the historic Royal Box building, including wholly improved 
accessibility and extended public conveniences. 
 
The residential development continues to progress well, with the Central Area 
now completed and more than 90% sold and the Eastern Area construction well 
underway. DWH are now more than half way through the total build programme, 
with c. 930 homes out of the total 1,495, now built. Cash receipts from DWH 
from the sale of properties in 2018 were GBP3.25m, which was in accordance with 
our expectations. 
 
The operational challenges, that the redevelopment inevitably presented during 
2018, were proactively managed by the racecourse team alongside our development 
partners, minimising as far as possible disruption to our customers and 
neighbours. 
 
KEY PERFORMANCE INDICATORS 
 
The Group uses raceday attendance and trading operating profit as the primary 
performance indicators. Total attendance was 173,000 (2017: 196,000). Operating 
profit is shown within the profit and loss account on page 17. 
 
PRINCIPAL RISKS AND UNCERTAINTIES 
 
Cashflow Risk 
 
The main cash flow risks are the vulnerability of race meetings to abandonment 
due to adverse weather conditions and fluctuating attendances particularly for 
the Party in the Paddock events, together with the possibility of delayed 
property receipts from David Wilson Homes.  The practice of covering the 
racetrack to protect it from frost and investment in improved drainage, as well 
as insuring key racedays, largely mitigates the raceday risk.  Regular review 
of variable conferencing costs reduces the impact of a decline in conference 

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May 03, 2019 02:00 ET (06:00 GMT)

DJ Newbury Racecourse Plc Preliminary results -3-

sales. The timing and amount of receipts from David Wilson Homes is dependent 
upon the rate of sales of residential plots. The risk of delayed receipts is 
mitigated to some extent by the long stop dates in the sale agreement, in 
respect of the minimum guaranteed land value. Short term cash flow risk is 
mitigated by regular review of the expected timing of receipts and by ensuring 
that the Group has committed facilities in place in order to manage its working 
capital and investment requirements. 
 
Credit Risk 
 
The Group's principal financial assets are trade and other receivables.  The 
Group's credit risk is primarily attributable to its trade receivables.  The 
amounts in the balance sheet are net of allowances for doubtful receivables. 
Payment is required in advance for ticket, hospitality, sponsorship, and 
conference and event sales, reducing the risk of bad debt. The David Wilson 
Homes debtor is backed by a parent Company guarantee from Barratt Homes Plc. 
 
 
Liquidity Risk 
 
In order to maintain liquidity to ensure that sufficient funds are available 
for both ongoing operations and the property redevelopment, the Group uses a 
mixture of long?term and short?term debt finance which is secured on the 
property assets of the Group.  The Board regularly review the facilities 
available to the Group to ensure that there is sufficient working capital 
available. 
 
Price Risk 
 
The Group operates within the leisure sector and regularly benchmarks its 
prices to ensure that it remains competitive. 
 
Cost Risk 
 
The Group has had a historically stable cost base.  The key risks are 
unforeseen maintenance liabilities, movement in utility costs and additional 
regulatory costs for the racing business.  A programme of regular maintenance 
is in place to manage the risk of failure in the infrastructure, while utility 
contracts are professionally managed. The Group is a member of the Racecourse 
Association, a trade association which actively seeks to manage increases in 
regulatory risk. 
 
Interest Rate Risk 
 
The Group manages its exposure to interest rates through an appropriate mixture 
of interest rate caps and swaps, where necessary. 
 
GOING CONCERN 
 
The Board has undertaken a full and thorough review of the Group's forecasts 
and associated risks and sensitivities, over the next twelve months and the 
forseeable future thereafter. The extent of this review reflects the current 
economic climate, including Brexit, as well as specific financial circumstances 
of the Group. 
 
The Board identified 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 are insured for adverse weather conditions, reducing the 
levels of risk carried by the Group. 
 
The Board has reviewed the cash flow and working capital requirements in 
detail.  The Group has updated it's committed credit facilities, which are in 
place through to March 2022. 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 the going concern basis has been adopted in preparing 
the financial statements. 
Employee Consultation 
The Group places considerable value on the involvement of its employees and has 
continued to keep them informed on matters affecting them as employees and on 
the various factors affecting the performance of the Group and the Company. 
This is achieved through formal and informal meetings, and distribution of the 
annual financial statements.  Employee representatives are consulted regularly 
on a wide range of matters affecting their current and future interests. 
 
Policy on Payments to Suppliers 
Although no specific code is followed, it is the Group's and Company's policy, 
unless otherwise agreed with suppliers, to pay suppliers within 30 days of the 
receipt of an invoice, subject to satisfactory performance by the supplier. 
The amount owed to trade creditors at 31 December 2018 is 3% (2017: 2%) of the 
amounts invoiced by suppliers during the year.  This percentage, expressed as a 
proportion of the number of days in the year, is 10 days (2017: 6 days). 
 
Disabled Employees 
Applications for employment by disabled persons are always fully considered, 
bearing in mind the abilities of the applicant concerned.  In the event of 
members of staff becoming disabled every effort is made to ensure that their 
employment with the Group continues and the appropriate training is arranged. 
It is the policy of the Group and the Company that the training, career 
development and promotion of disabled persons should, as far as possible, be 
identical to that of other employees. 
 
Charitable Donations 
During the year the Group made charitable contributions totalling GBP3,560 to 
national charities (2017: GBP2,360). 
 
This report was approved by the board and signed on its behalf by: 
 
 
J M Thick 
Chief Executive 
 
2 May 2019 
 
* References to "like for like" reflect year on year performance adjusted for 
the impact of any abandoned racedays, by excluding the affected racedays in 
both the current and comparative year, to allow for a fair comparison of 
underlying trading performance in the strategic review commentary. 
 
 
 
 
 
 
 SPONSORS IN THE YEAR TO 31 DECEMBER 2018 
 
We would like to thank our leading sponsors for their significant support in 
2018 
 
Al Shaqab 
bet365 
Betfair 
Betway 
Be Wiser Insurance 
British European Breeders Fund 
Dubai Duty Free 
JLT 
Ladbrokes 
Thoroughbred Breeders' Association 
Weatherbys 
Worthington's 
 
We also received much appreciated support from the following sponsors; 
 
Agetur UK 
 
AJC Premier 
 
Alder Ridge Vineyard 
 
Alexander Advertising 
 
Betfred 
 
Big Group Insight 
 
BJP Insurance Brokers 
 
British Horse Society 
 
Byerley Stud 
 
Carter Jonas 
 
Christopher Smith Associates LLP 
 
Coln Valley Stud 
 
Comax 
 
Compton Beauchamp Estates Ltd 
 
Conundrum Consulting Ltd 
 
Crossland Employment Solicitors 
 
CSP 
 
Dawnus 
 
Denford Stud 
 
Doom Bar 
 
Donnington Grove Vets 
 
Dream Lodges 
 
Dreweatts & Bloomsbury Auctions 
 
Enotria 
 
Equine Productions 
 
Event Bar Management 
 
Fuller Smith & Turner PLC 
 
Gigaclear 
 
Goffs UK 
 
Greatwood 
 
Grundon 
 
Haynes Hanson & Clark 
 
Heatherwold Stud 
 
Hot to Trot Racing Club 
 
Indzine 
 
Irish Thoroughbred Marketing 
Johnsons Stalbridge Linen Services 
KKA 
Ladyswood Stud 
 
There were also 7 races sponsored for birthdays, retirement or in memoriam. 
 
Laurent Perrier 
Matthew Fedrick Farrier 
 
Mirage Signs 
 
Mobile Pimm's Bars 
 
Newbury BID 
 
Oakley Coachbuilders 
 
Parkway Shopping 
 
Pertemps Group 
 
Peter O'Sullevan Charitable Trust 
 
Powersolve Electronics 
 
Premier Food Courts 
 
Prodec Networks 
 
Pump Technology Ltd 
 
Qolcom 
Racegoers Club 
 
Racing Welfare 
 
Rayner Bosch Car Service 
 
Relyon Cleaning Services 
 
R & M Electrical 
 
Ross Brooke Chartered Accountants 
 
Sportsguide 
 
Solario Racing 
 
South Downs Water 
 
St.James's Place Wealth Management 
 
Starlight 
 
Team Archie 
 
Thatcham Butchers 
 
TKP Surfacing 
 
T T Tents 
 
West Berkshire Brewery 
 
West Berkshire Mencap 
 
West Berkshire Racing Club 
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT 
 
YEAR ENDED 31 DECEMBER 2018 
 
                                                               2018       2017 
 
Note                                                           GBP000       GBP000 
 
                                                               19,295     17,806 
Turnover 
 
                                                               (15,478)   (14,662) 
Cost of sales 
 
 
Gross profit                                                   3,817      3,144 
 
                                                               (2,974)    (2,655) 
Administrative expenses 
 
                                                         4     915        290 
Net exceptional items 
 
 
Operating profit                                               1,758      779 
 
                                                               12         6 
Interest receivable and similar income 
 
                                                               (287)      (307) 
Interest payable and similar expenses 
 
 
Profit before tax                                              1,483      478 
 
                                                               309        705 
Tax on profit 
 
 
Profit after tax                                               1,792      1,183 
 
 
 
Profit per share (basic and diluted) (Note 5)         53.5p           35.3p 
 
All amounts derive from continuing operations 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
YEAR ENDED 31 DECEMBER 2018 
 
                                                                 2018       2017 
 
                                                                 GBP000       GBP000 
 
                                                                 1,792      1,183 
 
Profit for the financial year 
 
Other comprehensive income 
 
                                                                 418        115 
Remeasurement of the net defined benefit schemes 
 
                                                                 (71)       (22) 
Deferred tax on actuarial (loss) 
 
 
Other comprehensive income for the year                          347        93 
 
 
Total comprehensive income for the year                          2,139      1,276 
 
 
 
 
 
 
CONSOLIDATED BALANCE SHEET 
 
AS AT 31 DECEMBER 2018 
 
C 
 
                                                            2018                     2017 
 
                                                            GBP000                     GBP000 
 
 
Fixed assets 
 

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DJ Newbury Racecourse Plc Preliminary results -4-

Tangible assets                                              38,490                 33,560 
 
Investments                                                  117                    117 
 
Investment property                                          1,112                  1,112 
 
 
                                                             39,719                 34,789 
 
 
Current assets 
 
Stocks                                          250                     203 
 
Debtors (amounts falling due after              20,079                  26,065 
more than one year GBP13,403 (2017: GBP 
14,072)) 
 
Cash at bank and in hand                        2,223                   5,107 
 
 
                                                22,552                  31,375 
 
Creditors: amounts falling due within           (5,110)                 (5,965) 
one year 
 
Net current assets 
                                                             17,442                 25,410 
 
 
Total assets less current liabilities                        57,161                 60,199 
 
                                                             (2,471)                (4,746) 
Creditors: amounts falling due after 
more than one year 
 
 
Provisions for liabilities 
 
Provisions                                                   (3,270)                (5,774) 
 
Pension liability                                            (747)                  (1,127) 
 
Net assets 
                                                             50,673                 48,552 
 
 
Capital grants 
 
Deferred capital grants                                      88                     106 
 
Capital and reserves 
 
Called up share capital                                     335                         335 
 
Share premium                                               10,202                      10,202 
 
Revaluation reserve                                         75                          75 
 
Capital redemption reserve                                  143                         143 
 
Profit and loss account                                     39,830                      37,691 
 
 
Shareholders' funds                                         50,585                      48,446 
 
 
                                                            50,673                      48,552 
 
 
The financial statements of Newbury Racecourse PLC, Company registration 
00080774, were approved by the Board of Directors on 02 May 2019 and were 
signed on its behalf by: 
 
D J BURKE (Chairman)                                                      J M 
THICK (Chief Executive) 
 
The Racecourse 
 
Newbury, Berkshire 
 
RG14 7NZ 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
YEAR ENDED 31 DECEMBER 2018 
 
                         Called up   Share    Capital     Revaluation  Profit and  Total 
                         share       premium  redemption  reserve      loss        equity 
                         capital     account  reserve                  account 
 
                         GBP000        GBP000     GBP000        GBP000         GBP000        GBP000 
 
                         335         10,202   143         75           37,691      48,446 
At 1 January 2018 
 
                         -           -        -           -            1,792       1,792 
Profit for the year 
 
                         -           -        -           -            347         347 
Other comprehensive 
income 
 
 
                         335         10,202   143         75           39,830      50,585 
At 31 December 2018 
 
                         Called up Share premium    Capital     Revaluation  Profit and  Total equity 
                         share     account          redemption  reserve      loss 
                         capital                    reserve                  account 
 
YEAR ENDED 31 DECEMBER 
2017 
 
 
 
 
                         GBP000      GBP000             GBP000        GBP000         GBP000        GBP000 
 
                         335       10,202           143         75           36,415      47,170 
At 1 January 2017 
 
                         -         -                -           -            1,183       1,183 
Profit for the year 
 
                         -         -                -           -            93          93 
Other comprehensive 
income 
 
 
                         335       10,202           143         75           37,691      48,446 
At 31 December 2017 
 
 
 
 
 
 
 
 
 
CONSOLIDATED CASH FLOW STATEMENT 
 
YEAR ENDED 31 DECEMBER 2018 
 
                                                     2018       2017 
 
                                                     GBP000       GBP000 
 
 
Cash flows from operating activities 
 
Profit for the financial year                        1,792      1,183 
 
 
Adjustments for: 
 
Exceptional items                                    (915)      (291) 
 
Amortisation of capital grants                       (18)       (17) 
 
Depreciation charges                                 905        1,187 
 
Interest paid                                        287        308 
 
Interest received                                    (12)       (6) 
 
Tax credit                                           (309)      (704) 
 
(Increase)/decrease in stocks                        (47)       21 
 
Decrease/(increase) in debtors                       2,374      (1,467) 
 
(Decrease)/increase in creditors                     (440)      645 
 
Corporation tax paid                                 (78)       (927) 
 
Other associated property receipts                   40         - 
 
Net cash generated from operating activities 
                                                     3,579      (68) 
 
Cash flows from investing activities 
 
Receipts from exceptional sale of fixed assets       3,252      3,146 
 
Purchase of fixed assets                             (6,011)    (7,914) 
 
Sale of tangible fixed assets                        -          16 
 
Other associated property costs                      (647)      (2,935) 
 
Interest received                                    12         6 
 
 
Net cash from investing activities                   (3,394)    (7,681) 
 
 
Cash flows from financing activities 
 
Repayment of CBEL loan                               (3,000)    - 
 
British Championship loan repayment                  11         - 
 
Loan finance issued                                  (69)       (78) 
 
Interest paid                                        (11)       (13) 
 
 
Net cash used in financing activities                (3,069)    (91) 
 
 
Net (decrease) in cash and cash equivalents          (2,884)    (7,840) 
 
                                                     5,107      12,947 
Cash and cash equivalents at beginning of year 
 
 
Cash and cash equivalents at the end of year         2,223      5,107 
 
 
Cash and cash equivalents at the end of year 
comprise: 
 
                                                     2,223      5,107 
Cash at bank and in hand 
 
 
                                                     2,223      5,107 
 
NOTES TO THE FINANCIAL STATEMENTS 
 
YEAR ENDED 31 DECEMBER 2018 
 
1.    GENERAL INFORMATION 
 
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. 
 
2.    ACCOUNTING POLICIES 
 
     2.1 Basis of preparation of financial statements 
 
The Group and company financial statements have been prepared under the 
historical cost convention unless otherwise specified within these accounting 
policies and in accordance with Financial Reporting Standard 102, the Financial 
Reporting Standard applicable in the UK and the Republic of Ireland and the 
Companies Act 2006. 
 
The Company has taken advantage of the exemption allowed under section 408 of 
the Companies Act 2006 and has not presented its own Profit and Loss Account in 
these financial statements. 
 
The parent company is included in the consolidated financial statements and is 
considered to be a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The 
following exemptions available under FRS 102 in respect of certain disclosures 
for the parent company financial statements have been applied: 
* The reconciliation of the number of shares outstanding from the beginning to 
the end of the period has not been included a second time; and 
* No separate parent company Cash Flow Statement with related notes is included 
 
The accounting policies set out below have, unless otherwise stated, been 
applied consistently to all periods presented in these financial statements. 
Judgements made by the directors, in the application of these accounting 
policies that have significant effect on the financial statements and estimates 
with a significant risk of material adjustment in the next year are discussed 
in note 3. 
 
     2.2 Basis of consolidation 
 
The consolidated financial statements incorporate the financial statements of 
the Company and its subsidiaries Newbury Racecourse Enterprises Limited and 
Newbury Racecourse Management Limited. 
 
     2.3 Going concern 
 
The Board has undertaken a full and thorough review of the Group's forecasts 
and associated risks and sensitivities.  The extent of this review reflects the 
current economic climate, including Brexit, as well as the specific financial 
circumstances of the Group. 
 
The Board identified 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. 
 

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The Board has reviewed the cash flow and working capital requirements in 
detail. At the balance sheet date, the Company has adequate cash reserves, 
together with updated revolving credit facilities which are in place through to 
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. 
 
     2.4 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, ground rents received from residents, 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. 
 
Property receipts 
 
Property receipts are recognised in accordance with the substance 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. 
 
     2.5 Investment property 
 
Investment in properties are freehold interests which are held to earn rental 
income. Investment properties are recognised at fair value. 
 
     2.6 Other investments 
 
Investments in subsidiaries are measured at cost less accumulated impairment. 
 
Investments in unlisted Group shares, whose market value can be reliably 
determined, are remeasured to market value at each balance sheet date. Gains 
and losses on remeasurement are recognised in the Consolidated Profit and Loss 
Account for the period. Where market value cannot be reliably determined, such 
investments are stated at historic cost less impairment. 
 
     2.7 Investment income 
 
Dividends and other investment income receivable are included in the Profit and 
Loss Account inclusive of withholding tax but exclusive of other taxes. 
 
     2.8 Lease assets receivable 
 
Lease assets receivable relates to freeholds that the Group has acquired, or 
has the option to acquire, from David Wilson Homes. The freeholds concerned 
relate to residential apartment buildings constructed as part of the overall 
residential development. Individual apartments in the development were sold by 
David Wilson Homes to purchasers under long?term leases, typically of 125 
years. Under the terms of their long?term leases, lessors are required to pay 
'ground rent' to the freehold owner for the duration of their lease. As the 
majority of the risks and rewards, for much of the life of the property, lie 
with the lessor, the Group does not recognise a fixed asset in relation to the 
freehold.  Since the Group's principal interest in the freehold is limited to 
the expected future cashflows arising from the ground rent, the Group's cost of 
investment represents the cost to acquire the future ground rent cashflows. 
 
These are initially recognised at fair value which is calculated based on the 
net present value of future cashflows arising from the ground rents receivable 
over the lease term. This also represents the market value of the freehold 
agreed with David Wilson Homes. These amounts are included in the balance sheet 
as debtors less than and greater than one year. Ground rent receipts relating 
to the period, are applied against the net receivable balance. The leases 
receivables are monitored for indications of impairment by comparing the net 
present value of future rentals receivable to the carrying value of the lease 
receivable. Where there is a shortfall in the present value of the future 
rentals receivable, an impairment of the carrying value of the lease receivable 
is recognised. 
 
     2.9 Tangible fixed assets 
 
Tangible fixed assets are stated at cost or valuation, net of depreciation and 
any provision for impairment. 
 
Land is not depreciated. Depreciation on other assets is charged so as to 
allocate the cost of assets less their residual value over their estimated 
useful lives, using the straight?line method. 
 
Depreciation is provided on the following basis: 
 
               Freehold buildings and   - 2%       ? 5% straight line 
               outdoor fixtures 
 
               Tractors and motor       - 5%       ? 10% straight line 
               vehicles 
 
               Fixtures and fittings    - 2%       ? 25% straight line 
               and equipment 
 
The assets' residual values, useful lives and depreciation methods are 
reviewed, and adjusted prospectively if appropriate, or if there is an 
indication of a significant change since the last reporting date (see note 3). 
 
Gains and losses on disposals are determined by comparing the proceeds with the 
carrying amount and are recognised in the Consolidated Profit and Loss Account. 
 
     2.10 Impairment of assets 
 
Financial assets (including trade and other debtors) 
A financial asset not carried at fair value through profit or loss is assessed 
at each reporting date to determine whether there is objective evidence that it 
is impaired. A financial asset is impaired if objective evidence indicates that 
a loss event has occurred after the initial recognition of the asset, and that 
the loss event had a negative effect on the estimated future cash flows of that 
asset that can be estimated reliably. 
 
An impairment loss in respect of a financial asset measured at amortised cost 
is calculated as the difference between its carrying amount and the present 
value of the estimated future cash flows discounted at the asset's original 
effective interest rate. For financial instruments measured at cost less 
impairment an impairment is calculated as the difference between its carrying 
amount and the best estimate of the amount that the Company would receive for 
the asset if it were to be sold at the reporting date. Interest on the impaired 
asset continues to be recognised through the unwinding of the discount. 
Impairment losses are recognised in profit or loss. When a subsequent event 
causes the amount of impairment loss to decrease, the decrease in impairment 
loss is reversed through profit or loss. 
 
Non?financial assets 
The carrying amounts of the entity's non?financial assets are reviewed at each 
reporting date to determine whether there is any indication of impairment. If 
any such indication exists, then the asset's recoverable amount is estimated. 
The recoverable amount of an asset or cash?generating unit is the greater of 
its value in use and its fair value less costs to sell. In assessing value in 
use, the estimated future cash flows are discounted to their present value 
using a pre?tax discount rate that reflects current market assessments of the 
time value of money and the risks specific to the asset. For the purpose of 
impairment testing, assets that cannot be tested individually are grouped 
together into the smallest group of assets that generates cash inflows from 
continuing use that are largely independent of the cash inflows of other assets 
or groups of assets (the "cash?generating unit"). 
 
An impairment loss is recognised if the carrying amount of an asset or its CGU 
exceeds its estimated recoverable amount. Impairment losses are recognised in 
profit or loss. Impairment losses recognised in respect of CGUs are allocated 
first to reduce the carrying amount of any goodwill allocated to the units, and 
then to reduce the carrying amounts of the other assets in the unit (group of 
units) on a pro rata basis. 
 
Impairment losses recognised in prior periods are assessed at each reporting 
date for any indications that the loss has decreased or no longer exists. An 
impairment loss is reversed only to the extent that the asset's carrying amount 
does not exceed the carrying amount that would have been determined, net of 
depreciation or amortisation, if no impairment loss had been recognised. 
 
     2.11 Stocks 
 
Stocks are valued at the lower of cost and net realisable value.  Provision is 
made for obsolete, slow moving or defective items where appropriate. 
 
     2.12 Repairs and renewals 
 
Expenditure on repairs and renewals and costs of temporary facilities during 
construction works are written off against profits in the year in which they 
are incurred. 
 
     2.13 Non-recognised financial information 
 
The profit and loss account includes measures which are not accounting measures 
under UK GAPP which are used to access the financial performance of the 
business. These measures which are termed 'non?GAPP' include reference to 
EBITDA within the Strategic Report. 
 
     2.14 Cash and cash investments 
 
Cash is represented by cash in hand and deposits with financial institutions 
repayable without penalty on notice of not more than 24 hours. 
 
Cash which is held on deposits that are not accessible with less than 24 hours' 
notice, is deemed to not be liquid and is therefore classified as cash 
investments on the balance sheet. 
 
     2.15 Provisions for liabilities 
 
Provisions are made where an event has taken place that gives the Group a legal 
or constructive obligation that probably requires settlement by a transfer of 
economic benefit, and a reliable estimate can be made of the amount of the 
obligation. 
 
Provisions are charged as an expense to the Consolidated Profit and Loss 

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Account in the year that the Group becomes aware of the obligation, and are 
measured at the best estimate at the Balance Sheet date of the expenditure 
required to settle the obligation, taking into account relevant risks and 
uncertainties. 
 
When payments are eventually made, they are charged to the provision carried in 
the Balance Sheet. 
 
     2.16 Dividends 
 
Where dividends are declared, appropriately authorised (and hence no longer at 
the discretion of the Group) after the balance sheet date but before the 
relevant financial statements are authorised for issue, dividends are not 
recognised as a liability at the balance sheet date because they do not meet 
the criteria of a present obligation in FRS102. 
 
     2.17 Current and deferred taxation 
 
The tax expense for the year comprises current and deferred tax. Tax is 
recognised in the Consolidated Profit and Loss Account, except that a charge 
attributable to an item of income and expense recognised as other comprehensive 
income or to an item recognised directly in equity is also recognised in other 
comprehensive income or directly in equity respectively. 
 
The current income tax charge is calculated on the basis of tax rates and laws 
that have been enacted or substantively enacted by the balance sheet date in 
the countries where the Company and the Group operate and generate income. 
 
Deferred tax is provided on timing differences which arise from the inclusion 
of income and expenses in tax assessments in periods different from those in 
which they are recognised in the financial statements. The following timing 
differences are not provided for: differences between accumulated depreciation 
and tax allowances for the cost of a fixed asset if and when all conditions for 
retaining the tax allowances have been met; and differences relating to 
investments in subsidiaries, to the extent that it is not probable that they 
will reverse in the foreseeable future and the reporting entity is able to 
control the reversal of the timing difference.  Deferred tax is not recognised 
on permanent differences arising because certain types of income or expense are 
non?taxable or are disallowable for tax or because certain tax charges or 
allowances are greater or smaller than the corresponding income or expense. 
 
Deferred tax is provided in respect of the additional tax that will be paid or 
avoided on differences between the amount at which an asset (other than 
goodwill) or liability is recognised in a business combination and the 
corresponding amount that can be deducted or assessed for tax.  Goodwill is 
adjusted by the amount of such deferred tax. 
Deferred tax is measured at the tax rate that is expected to apply to the 
reversal of the related difference, using tax rates enacted or substantively 
enacted at the balance sheet date. For non?depreciable assets that are measured 
using the revaluation model, or investment property that is measured at fair 
value, deferred tax is provided at the rates and allowances applicable to the 
sale of the asset/property. Deferred tax balances are not discounted. 
 
Unrelieved tax losses and other deferred tax assets are recognised only to the 
extent that is it probable that they will be recovered against the reversal of 
deferred tax liabilities or other future taxable profits. 
 
     2.18 Grants 
 
Capital grants 
Capital grants received, apart from HBLB grants, are accounted for as deferred 
grants on the Balance Sheet and credited to the Profit and Loss Account over 
the estimated economic lives of the asset to which they relate. Capital grants 
are in deferred capital grants on the Balance Sheet as the associated works 
have been performed and it is not in any way repayable. 
 
Horserace Betting Levy Board (HBLB) grants 
The HBLB provides funding to racecourses which is used to support racing 
activities. HBLB grants are accounted for under the performance model in line 
with standard industry practice. HBLB grants are credited to the Profit and 
Loss Account as revenue in the month of the raceday, the corresponding debtor 
is carried on the Balance Sheet until the cash is received. 
 
     2.19 Pensions 
 
Defined contribution plans and other long-term employee benefits 
A defined contribution plan is a post?employment benefit plan under which the 
company pays fixed contributions into a separate entity and will have no legal 
or constructive obligation to pay further amounts. Obligations for 
contributions to defined contribution pension plans are recognised as an 
expense in the profit and loss account in the periods during which services are 
rendered by employees. 
 
Defined benefit plans 
A defined benefit plan is a post?employment benefit plan other than a defined 
contribution plan. The entity's net obligation in respect of defined benefit 
plans is calculated by estimating the amount of future benefit that employees 
have earned in return for their service in the current and prior periods; that 
benefit is discounted to determine its present value. The fair value of any 
plan assets is deducted.  The entity determines the net interest expense 
(income) on the net defined benefit liability (asset) for the period by 
applying the discount rate as determined at the beginning of the annual period 
to the net defined benefit liability (asset) taking account of changes arising 
as a result of contributions and benefit payments. 
 
The discount rate is the yield at the balance sheet date on AA credit rated 
bonds denominated in the currency of, and having maturity dates approximating 
to the terms of the entity's obligations.  A valuation is performed annually by 
a qualified actuary using the projected unit credit method.  The entity 
recognises net defined benefit plan assets to the extent that it is able to 
recover the surplus either through reduced contributions in the future or 
through refunds from the plan. 
 
Changes in the net defined benefit liability arising from employee service 
rendered during the period, net interest on net defined benefit liability, and 
the cost of plan introductions, benefit changes, curtailments and settlements 
during the period are recognised in profit or loss. 
 
Remeasurement of the net defined benefit liability/asset is recognised in other 
comprehensive income in the period in which it occurs. 
 
     2.20 Borrowing costs 
 
Interest bearing bank loans and overdrafts are recorded at the proceeds 
received, net of direct issue costs.  Finance charges, including premiums 
payable on settlement or redemption and direct issue costs are accounted for on 
an accrual basis in the profit and loss account using the effective interest 
method and are added to the carrying amount of the instrument to the extent 
that they are not settled in the period which they arise. 
 
     2.21 Financial instruments 
 
Trade and other debtors / creditors 
Trade and other debtors are recognised initially at transaction price plus 
attributable transaction costs. Trade and other creditors are recognised 
initially at transaction price plus attributable transaction costs. Subsequent 
to initial recognition they are measured at amortised cost using the effective 
interest method, less any impairment losses in the case of trade debtors.  If 
the arrangement constitutes a financing transaction, for example if payment is 
deferred beyond normal business terms, then it is measured at the present value 
of future payments discounted at a market rate of instrument for a similar debt 
instrument. 
 
Interest?bearing borrowings classified as basic financial instruments 
Interest?bearing borrowings are recognised initially at the present value of 
future payments discounted at a market rate of interest. Subsequent to initial 
recognition, interest?bearing borrowings are stated at amortised cost using the 
effective interest method, less any impairment losses. 
 
Fair value measurement 
Assets and liabilities that are measured at fair value are classified by level 
of fair value hierarchy as follows: 
 
Level 1 - quoted prices (unadjusted) in active markets for identical assets or 
liabilities. 
Level 2 - inputs other than quoted prices included within level 1 that are 
observable for the asset or liability, either directly or indirectly. 
Level 3 - inputs for the asset or liability that are not based on observable 
market data. 
 
     2.22 Exceptional items 
 
Directors exercise their judgement in classification of certain items as 
exceptional and outside the Group's underlying results. The determination of 
whether items should be separately disclosed as an exceptional item or other 
adjustment requires judgement on its materiality, nature and incidence. 
Accounting transactions related to the DWH agreement are considered outside the 
ordinary course of business, see note 5 for further detail. 
 
 
3.   JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION 
     UNCERTAINTY 
 
In the application of the Group's accounting policies, which are described in 
note 2, the directors are required to make judgements, estimates and 
assumptions about the carrying amounts of assets and liabilities that are not 
readily apparent from other sources. The estimates and associated assumptions 
are based on historical experience and other factors that are considered to be 
relevant. Actual results may differ from these estimates. The estimates and 
underlying assumptions are reviewed on an ongoing basis. Revisions to 
accounting estimates are recognised in the period in which the estimate is 
revised if the revision affects only that period, or in the period of the 
revision and future periods if the revision affects both current and future 
periods. 
 
Critical judgements in applying the Group's accounting policies 
The following are the critical judgements, apart from those involving 
estimations (which are dealt with separately below), that the directors have 
made in the process of applying the Group's accounting policies and that have 
the most significant effect on the amounts recognised in the financial 
statements; 
 

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Capitalisation of design fees and expenditure in connection with the ongoing 
development works, which during the year ended 31 December 2018 amounted to GBP 
0.4m (2017: GBP0.5m). The total carrying value of capitalised design fees at 31 
December 2018 is GBP1.5m. In the directors' view these costs are directly 
attributable to the development of a long term fixed asset which will provide 
future economic benefits in excess of its carrying value. 
 
Estimation techniques 
Significant estimation techniques include: 
 
David Wilson Homes 
The fair value of the long?term David Wilson Homes debtor balance is determined 
with reference to current market conditions and to reflect the risks specific 
to the balance due. Estimates include the current value of the land as 
determined by the agreed parameters of the land sale agreement with David 
Wilson Homes, together with the application of a suitable discount rate. 
 
Impairment of assets 
Determining whether assets are impaired requires an estimation of the value in 
use of the cash?generating units to which assets have been allocated. The value 
in use calculation requires the entity to estimate the future cash flows 
expected to arise from the cash?generating unit and a suitable discount rate in 
order to calculate present value. The carrying amount of tangible fixed assets 
and investment property at the Balance Sheet date was GBP39.6 million. No 
impairment loss was recognised in 2018 as there was no further indication of 
impairment required (2017:  no impairment loss). 
 
 
 
Residual values and useful economic lives 
The Group's tangible fixed assets are reviewed, whenever there is a relevant 
change in circumstances or after relevant review, in order to assess whether 
the residual values and useful economic lives continue to be appropriate for 
calculating depreciation in the period. The reassessment of residual values and 
useful economic lives led to a reduction in depreciation of approximately GBP 
0.59m in the period. 
 
 
4.   EXCEPTIONAL ITEMS 
 
                                                                2018       2017 
 
                                                                GBP000       GBP000 
 
                                                                (2)        347 
 
     Net book value of asset disposal 
 
                                                                904        308 
     Other associated items 
 
                                                                13         (365) 
     DWH debtor movement in fair value 
 
 
                                                                915        290 
 
 
 
     Other associated items are attributable to the reduction of a provision in 
     connection with ongoing obligations related to the sale of land and 
     redevelopment of the racecourse, net of the cost of writing off the carrying 
     value of the Pall Mall building. 
 
     In accordance with note 2, accounting transactions related to the DWH 
     agreement are considered outside the ordinary course of business. 
 
 
 
 
 
5.   PROFIT PER SHARE 
 
Basic and diluted profit per share is calculated by dividing the profit 
attributable to ordinary shareholders for the year ended 31 December 2018 of GBP 
1,792,000 (2017: GBP1,183,000) by the weighted average number of ordinary shares 
during the year of 3,348,326 (2017: 3,348,326). 
 
 
 
NOTES 
 
The financial information set out above does not constitute the company's 
statutory accounts for the years ended 31 December 2018 or 2017, but is derived 
from those accounts. Statutory accounts for 2017 have been delivered to the 
Registrar of Companies and those for 2018 will be delivered following the 
company's annual general meeting. The auditors have reported on those accounts; 
their reports were unqualified, did not draw attention to any matters by way of 
emphasis without qualifying their report and did not contain statements under 
s498(2) or (3) Companies Act 2006. 
 
The information included in this announcement is taken from the audited 
financial statements which are expected to be dispatched to the members shortly 
and will be available at www.newburyracecourse.co.uk. 
 
This announcement is based on the Company's financial statements, which are 
prepared in accordance with United Kingdom Generally Accepted Accounting 
Practice (United Kingdom Accounting Standards and applicable law), including 
FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of 
Irelandand with those parts of the Companies Act 2006 that are applicable to 
companies reporting under UK GAAP. 
 
Neither an audit nor a review provides assurance on the maintenance and 
integrity of the website, including controls used to achieve this, and in 
particular whether any changes may have occurred to the financial information 
since first published.  These matters are the responsibility of the directors 
but no control procedures can provide absolute assurance in this area. 
 
Legislation in the United Kingdom governing the preparation and dissemination 
of financial information differs from legislation in other jurisdictions. 
 
This preliminary statement was approved by the Board of Directors on 2 May 2019 
 
 
 
END 
 

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