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DJ Newbury Racecourse Plc Preliminary Results Statement

 
TIDMNYR 
 
15 May 2018 
 
                            NEWBURY RACECOURSE PLC 
 
                      ("the Racecourse" or "the Company") 
 
         Preliminary Results for the 12 months ended 31 December 2017 
 
Newbury Racecourse plc, the racing, entertainment and events business, today 
announces its preliminary results for the twelve months ended 31 December 2017. 
 
Financial Highlights 
 
·      Total turnover up 5% to GBP17.81m (2016 restated: GBP16.96m) 
 
·      30% growth in Rocking Horse Nursery revenues 
 
·      76% growth in hotel turnover 
 
·      9% growth in media revenues 
 
·      Profit before interest and exceptional items GBP0.49m 
 
·      Exceptional profits GBP0.29m (2016: GBP16.11m) in connection with the 
disposal of fixed assets 
 
·      Consolidated group profit on ordinary activities before tax GBP0.48m 
(2016: GBP16.29m) 
 
Operational Highlights 
 
·      Raceday attendances up 11% to 196,000 
 
·      Two successful Party in The Paddock events with Jess Glynne and Olly 
Murs, with overall attendances of more than 42,000 
 
·      Continued investment into prizemoney with a 4% like for like increase 
 
·      Launch of the Ladbrokes Winter Carnival, attendances of more than 25,000 
 
·      11% increase in Nursery occupancy levels 
 
Redevelopment Highlights 
 
·      Completion of the new Owners & Trainers facility and Eastern entrance 
 
·      Second phase encompassing the main parade ring and customer areas 
underway 
 
·      Ongoing improvements to infrastructure, lifts and IT across the site 
 
·      Refurbishment of the Berkshire stand underway 
 
·      Planning consent obtained for the redevelopment of the Pall Mall 
building 
 
·      Cash payments to the company of GBP3.15m from DWH residential sales during 
2017 
 
·      All Western area homes now sold. Almost 70% of the Central area 
apartments now sold. Eastern area construction well underway. 
 
Dominic Burke, Chairman of Newbury Racecourse plc commented: 
 
"2017 saw us making further steady progress against our long term strategic 
plans, with a 5% increase in turnover and improvements in trading performance 
across a number of areas of the business. 
 
We made excellent headway on the redevelopment of the racecourse, with the new 
Owners and Trainers facility and eastern entrance building opened during the 
year and good progress on the other heartspace works. We were also pleased to 
obtain planning permission in August for the redevelopment of the Pall Mall 
building, expected to be completed by the spring of 2019. The David Wilson 
Homes residential development continues to progress in line with our 
expectations, being now more than halfway completed and homes continue to sell 
well. 
 
 As our vision for the new Newbury Racecourse emerges for all to see, we are 
grateful for the continued support and patronage of all our customers, horsemen 
and sponsors during this exciting transformation and remain confident in the 
delivery of the long term business objectives". 
 
For further information please contact: 
 
Newbury Racecourse plc                                         Tel: 01635 40015 
 
Julian Thick, Chief Executive 
 
Harriet Collins, Interim Head of Communications 
 
Hudson Sandler                                                    Tel: 020 7796 
4133 
 
Charlie Jack 
 
Chairman's Statement 
 
2017 saw us making further steady progress against our long term strategy of 
redevelopment and growth. 
 
Financial Performance 
 
Total turnover grew by 5% to GBP17.81m in 2017. We have seen improvements in 
trading performance across a number of areas of the business, with like for 
like growth in racing revenues of 1%, another excellent year for the Rocking 
Horse Nursery with growth in revenues of 30% and revenue from The Lodge hotel 
operation increasing by 76% in its first full year of trading. The Conference 
and Events business had a more difficult trading year with turnover down 26%, 
in our view, a result of both wider market conditions and the inevitable short 
term impact of the construction works on the appearance of the venue. 
 
Profit before interest and exceptional items of GBP0.49m was inline with prior 
year (2016 restated; GBP0.49m). Exceptional profits in the year were GBP0.29m 
(2016: GBP16.11m), with a resulting full year profit after tax of GBP1.18m (2016 
restated: GBP13.60m). 
 
Racing Highlights 
 
The action on the track in 2017 has, as ever, been high quality, demonstrating 
our continued ability to attract the very best horses. Highlights included 
Altior's and Native River's wins on Betfair Super Saturday in February, which 
continues to be an important stepping stone for many ahead of the Festival, 
with the former going on to win the Arkle and the latter finishing third in the 
Gold Cup. 
 
The 2017 flat season saw some spectacular performances, including Barney Roy 
winning the JLT Greenham Stakes, subsequently going on to finish a close second 
in the 2,000 Guineas and Ribchester's victory in the Group 1 Al Shaqab Lockinge 
Stakes in May, confirming himself as one of the leading milers in Europe. 
 
At the Weatherbys Super Sprint meeting in July we hosted Jess Glynne, who 
performed after an excellent day's racing attended by some 18,000 people and 
was the first of our music nights. Our second Party in the Paddock event for 
2017 on Betfred Ladies Day in August, saw pop sensation Olly Murs take to the 
stage in front of a sell out crowd of 24,000, our largest raceday attendance in 
five years. 
 
As we turned to the jumps once more, Total Recall's thrilling and hard fought 
win in the inaugural running of the Ladbroke's Trophy in early December, saw 
the first Irish trained winner of this race since 1980. The two-day Ladbrokes 
Winter Carnival meeting, heralded the start of our exciting new partnership 
with Ladbrokes and attracted attendances of over 25,000 across the two days. 
With GBP700,000 in prizemoney on offer, this is a meeting for which we have big 
aspirations in the future. 
 
The Development 
 
The exciting redevelopment of our own "heartspace" continued apace throughout 
2017. The new saddling boxes and pre-parade ring were completed in time for the 
Dubai Duty Free Spring Trials weekend in April, attended once again by Her 
Majesty The Queen. The new Eastern Entrance was completed in July and has 
hugely improved the arrival experience for racegoers and visitors. We were also 
delighted to complete and open our new Owners' Club in October, providing a 
state of the art facility for owners and trainers, as well as a superb 
conference, events and wedding space. 
 
The next phase of heartspace works which includes re-modelling the main parade 
ring and improvements to the customer areas behind the stands, commenced in 
late 2017 and is due to be completed by the end of 2018. The refurbishment of 
the Berkshire Stand and improvements to the wider infrastructure continue and 
our customers are starting to see the benefits of these works which will 
enhance the visitor experience for all, whilst generating improved financial 
returns for the wider business in the longer term. 
 
In August we were granted planning consent for the upgrading of the Pall Mall 
stand, a much needed investment in this aged building which occupies a prime 
location opposite the winning post and will, when completed, provide some of 
the most prestigious hospitality space on the racecourse. The total cost of 
this project is an estimated GBP5.17m, taking our total projected redevelopment 
investment to an estimated GBP21.0m. 
 
The David Wilson Homes residential development is now more than halfway 
through, with c.870 homes out of the total 1,480 now built. Demand for new 
homes on the site remains strong and sales are in line with expectations. 
 
Outlook and market developments 
 
Trading prospects for 2018 look positive to date and the board remains 
confident in the delivery of the long term business objectives. 
 
The Board has committed to Phase 2 of the racecourse infrastructure 
development, being the refurbishment of the Berkshire Stand and Pall Mall 
building, in the long term interests of shareholders, as we need to enhance 
facilities for both racing and the wider customer experience in order to 
deliver those long term business objectives for growth in revenue and profits. 
 
The Department for Digital, Culture, Media and Sport is consulting with the 
bookmaking industry, Local Authorities, charities and other interested parties 
about new rules for Fixed Odds Betting Terminals "FOBTs" (which make a 
significant contribution to profits for the UK's bookmakers), together with 
social responsibility measures in relation to online gaming and gaming 
machines. Depending on the outcome of this consultation, and in particular the 
maximum stake for FOBTs, it is possible that the bookmaking industry may suffer 
a material reduction in profitability and there could be a material reduction 
in betting shops.  The implications of such changes on the horse racing 
industry are difficult to predict at this stage, but could adversely affect 
sponsorship from bookmakers, prize money from the Horserace Levy Betting Board 
and revenues from media rights.   The Government is due to report on the 
consultation and make final proposals later in 2018. 
 
The dividend policy of the company, and the potential for larger returns of 
capital to our shareholders, are reviewed by the Board from time to time. Given 
the additional investment by the company in Phase 2 and the current uncertainty 
around the impact of the government review on FOBTs, the Board have decided 
that any return to paying dividends or returning capital to shareholders must 
be deferred until completion of the racecourse development and the final 
payment is received from David Wilson Homes. Therefore it is not anticipated 
that any dividend or return of capital to shareholders, if made, will now occur 
before 2022 at the earliest, following repayment of the Compton Beauchamp 

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May 15, 2018 02:00 ET (06:00 GMT)

DJ Newbury Racecourse Plc Preliminary Results -2-

Estates loan and the final longstop date in the residential property 
development contract between the company and David Wilson Homes. 
 
Our vision for the new Newbury Racecourse is now emerging for all to see. A 
racecourse and a business which will be well placed to meet the demands of the 
modern day consumer, whilst continuing to invest in and stage racing of the 
highest quality. 
 
We were delighted to once again be named as one of the top 12 racecourses in 
the UK by VisitEngland and, for the third 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 customers for their ongoing support and patronage. 
 
DOMINIC J BURKE 
 
Chairman 
 
14 May 2018 
 
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 2017. 
 
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, an on-site hotel and estate management services.  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 2017 was GBP 
0.48m (2016 restated: GBP16.29m) which includes GBP0.29m of exceptional profits 
(2016: GBP16.11m exceptional profits). 
 
Turnover increased by 5% (GBP0.85m) to GBP17.81m (2016 restated: GBP16.96m). The 
Rocking Horse Nursery revenues showed growth of 30% (GBP0.30m) on 2016. The Lodge 
revenues increased by 76% (GBP0.27m) year on year, 2017 being the first full year 
of operation. Overall racing revenues grew by 4% (GBP0.57m), with no abandonments 
in the year (2016: 3 abandonments) like for like growth in racing revenues was 
GBP0.13m (1%). Conference and Events revenues decreased by 26% (GBP0.31m) on prior 
year. 
 
Total costs increased by 5% to GBP17.32m (2016: GBP16.47m). 
 
Profit before interest and exceptional items was in line with prior year at GBP 
0.49m (2016 restated: GBP0.49m). 
 
Exceptional profits during 2017 were GBP0.29m (2016: GBP16.11m) relating to the 
part release of a provision for costs associated with the exceptional land sale 
(GBP0.66m) and net of the movement in fair value of the DWH debtor (GBP0.37m). 
 
The tax credit of GBP0.71m (2016 restated: charge GBP2.69m) includes a deferred tax 
movement in respect of capital credits claimed in the year. 
 
Profit after tax was GBP1.18m (2016 restated: GBP13.60m). 
 
The decrease in cash reserves of GBP7.84m in the period (2016: GBP4.0m increase) 
includes GBP3.15m of cash receipts from DWH in respect of properties sold in the 
period, and is net of GBP7.91m of capital expenditure and tax instalment payments 
of GBP0.93m. 
 
Racing 
 
The accounts include a total of 29 days racing (2016: 29) comprising 11 days 
National Hunt racing (2016: 11) and 18 days flat racing (2016: 18). 
 
As ever the racecourse hosted a full and high quality racing programme during 
2017 with no abandonments (2016: 3 meetings abandoned). 
 
Overall raceday attendances in 2017 increased by 11% to 196,000 (2016: 
177,000). We saw increased attendances at a number of our fixtures, in 
particular Party in the Paddock with Olly Murs in August which delivered a sell 
out crowd of 24,000. 
 
May marked the third year of Al Shaqab's sponsorship of Lockinge Day, Newbury's 
richest race meeting, which was attended by over 12,000 racegoers. This meeting 
has established itself as 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, at the beginning of December, celebrated the 
start of our new five year partnership with Ladbrokes and featured the 
inaugural running of the Ladbrokes Trophy (formerly the Hennessy Gold Cup). We 
were delighted with attendances across the two day meeting of more than 25,000. 
 
We continued to make further investment in our prizemoney, with a 4% (GBP0.16m) 
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, Betfred, 
Dubai Duty Free and Ladbrokes for their investment in 2017. 
 
We hosted two successful music events in 2017 with Jess Glynne in July and Olly 
Murs in August attracting total attendances in excess of 42,000. 
 
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. GBP0.31m (9%), to GBP3.64m for the twelve months to 
31 December 2017, representing c.20% of the Group's overall turnover and 
reflecting the continued growth in streaming and overseas activities of 
Racecourse Media Group. 
 
Conference and Events 
 
Conference and Events revenues fell back by 26% (GBP0.31m) versus 2016, to GBP0.86m 
as a result of an 18% decrease in event days and a 9% decrease in average 
spend. 
 
The reasons for this, we believe, are ongoing uncertainty in the market, 
personnel changes within the sales team and the short term impact of the 
development works on the appearance of the venue. As previously stated, growing 
this area of our business will be challenging during our ongoing redevelopment, 
but we remain confident that as the redeveloped racecourse facilities come on 
stream over the next year or so, the Conference and Events business performance 
will improve. 
 
Our restructured Conference & Events sales team is focused entirely on growing 
this part of our business, through proactive selling and relationship building 
within key sectors and with a number of agents. 
 
Catering, Hospitality and Retail 
 
Our catering, hospitality and retail business saw overall year on year growth 
in revenues of GBP0.14m, although this was largely attributable to there being no 
abandonments in the year. Raceday catering revenues were c.2% up on 2016 on a 
like for like basis, however conference catering revenues were down c.20% as a 
result of the reduced 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 30% to GBP1.30m and gross 
operating profits of GBP0.42m, an improvement of 61% on 2016. This has been 
driven by an average occupancy increase of 11% over the course of the year. 
 
The Lodge 
 
Turnover for The Lodge, our on-site 36 bedroom hotel, increased by 76% year on 
year to GBP0.59m, in what was its first full year of trading. 
 
The Lodge continues to be used as stable staff accommodation for racing and was 
recently shortlisted in the RCA Showcase Awards Operational Excellence 
category. Outside of its raceday use, it is proving to be a valuable addition 
to our portfolio of assets, as both a standalone hotel and in enhancing our 
Conference & Events offer. 
 
The Redevelopment 
 
The development of the racecourse heartspace progressed in line with our plans 
during 2017, with the new saddling boxes and pre-parade ring completed in 
April, the new Eastern Entrance building completed in July and the new Owners' 
Club completed in October. 
 
Project costs for phase one of the heartspace development of GBP7.63m were in 
line with budget. 
 
The next phase of works which focuses on the main parade ring and improvements 
to the customer areas behind the stands has now commenced and is due to be 
completed by the end of 2018, at an anticipated cost of GBP5.42m. 
 
In addition the refurbishment of the Berkshire Stand and improvements to 
infrastructure across the site, in particular lifts and IT, are all underway. 
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. 
 
We successfully obtained planning permission in August for the redevelopment of 
the Pall Mall stand which will see this building transformed into premium 
hospitality space, fit for the modern consumer. These works are expected to be 
completed by the spring of 2019 at a total estimated cost of GBP5.2m. 
 
The residential development continues to progress well, with the Central and 
Eastern Area construction programmes in line with schedule. DWH are now 
approximately half way through the ten year build programme, with all of the 
major infrastructure works completed and c. 870 homes out of the total 1,480, 
now built. Cash receipts from DWH from the sale of properties in 2017 were GBP 
3.15m, which was in accordance with our expectations. 
 
The operational challenges, that the redevelopment inevitably presents, 
continue to be proactively managed by the racecourse team alongside our 
development partners, minimising as far as possible disruption to our customers 
and neighbours, to whom we are grateful for their continued support and 
patience. 
 
KEY PERFORMANCE INDICATORS 
 
The Group uses raceday attendance and trading operating profit as the primary 
performance indicators. Total attendance was 196,000 (2016: 177,000). Operating 
profit is shown within the profit and loss account on page 16. 
 
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 

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DJ Newbury Racecourse Plc Preliminary Results -3-

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 
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.  The 
extent of this review reflects the current economic climate 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 have been 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 currently has committed credit facilities 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 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. 
CORPORATE AND SOCIAL RESPONSIBILITY 
 
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 2017 is 2% (2016: 3%) of the 
amounts invoiced by suppliers during the year.  This percentage, expressed as a 
proportion of the number of days in the year, is 6 days (2016: 11 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 GBP2,360 to 
national charities (2016: GBP6,560). 
 
By order of the Board 
 
JULIAN THICK 
 
Chief Executive 
 
14 May 2018 
 
* 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 for 31 December 2017 
 
We would like to thank our leading sponsors for their significant support in 
2017 
 
Al Shaqab 
 
Bet365 
 
Betfair 
 
Betfred 
 
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 
 
Ballymacoll Stud 
 
Bathwick Tyres 
 
Berry Bros & Rudd 
 
Big Group Insight 
 
BJP Insurance Brokers 
 
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 
 
Dreweatts & Bloomsbury Auctions 
 
Equine Productions 
 
Event Bar Management 
 
Fuller Smith & Turner PLC 
 
Goffs UK 
 
Greatwood 
 
Grundon 
 
Haynes Hanson & Clark 
 
HBLB 
 
Heatherwold Stud 
 
Highclere Thoroughbred Racing 
 
Hot to Trot Racing Club 
 
Johnsons Stalbridge Linen Services 
 
KKA 
 
Laurent Perrier 
 
Matthew Fedrick Farrier 
 
Mirage Signs 
 
Mobile Pimm's Bars 
 
Montpellier Domestic Appliances 
 
Newbury BID 
 
Oakley Coachbuilders 
 
Parkway Shopping 
 
Pertemps Group 
 
Peter O'Sullevan Charitable Trust 
 
Powersolve Electronics 
 
Premier Food Courts 
 
Pump Technology Ltd 
 
Rayner Bosch Car Services 
 
Relyon Cleaning Services 
 
R & M Electrical 
 
Smith & Williamson 
 
Snows Peugeot 
 
South Downs Water 
 
St.James's Place Wealth Management 
 
Starlight 
 
Team Archie 
 
Thatcham Butchers 
 
The Kennet Centre 
 
The Pheasant Inn 
 
Upham Brewery 
 
Wedgewood Estates 
 
West Berkshire Mencap 
 
West Berkshire Racing Club 
 
Worshipful Company of Distillers 
 
Zenergi 
 
There were also 7 races sponsored for birthdays, retirement or in memoriam. 
 
Consolidated Profit and Loss Account 
 
Year ended 31 December 2017 
 
                                                              Note     2017 Restated1 
                                                                      GBP'000      2016 
                                                                                GBP'000 
 
Turnover                                                             17,806    16,960 
 
Cost of sales                                                      (14,662)  (13,475) 
 
Gross profit                                                          3,144     3,485 
 
Administrative expenses                                             (2,655)   (2,994) 
 
Profit before interest and exceptional items                            489       491 
 
Exceptional Items 
 
Profit on disposal of fixed assets                               3      290    19,561 
 
Impairment of fixed assets                                       3        -   (3,449) 
 
Profit before interest                                                  779    16,603 
 
Interest receivable and similar income                                    6        31 
 
Interest payable and similar charges                                  (307)     (344) 
 
Profit before taxation                                                  478    16,290 
 
Tax credit/(charge)                                                     705   (2,691) 
 
Profit after taxation                                                 1,183    13,599 
 
Profit per share (basic and diluted) (Note 4)                         35.3p    406.1p 
 
All amounts derive from continuing operations 
 
Consolidated Statement of comprehensive income 
 
Year ended 31 December 2017 
 
                                                                           2017 Restated 
                                                                          GBP'000     2016 
                                                                                   GBP'000 
 
Profit for the financial                                                  1,183   13,599 
year 
 
Actuarial gain/(loss) relating to                                           115    (820) 
pension scheme 
 

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DJ Newbury Racecourse Plc Preliminary Results -4-

Deferred tax on actuarial                                                  (22)      164 
(loss)/gain 
 
Total recognised profit in                                                1,276   12,943 
the year 
 
 
 
Consolidated Balance Sheet 
 
As at 31 December 2017 
 
                                                                          2017 
                                                                         GBP'000 Restated 
                                                                                    [2] 
                                                                                   2016 
                                                                                  GBP'000 
 
Fixed assets 
 
Tangible assets                                                         33,560   27,126 
 
Investments                                                                117      117 
 
Investment properties                                                    1,112    1,112 
 
                                                                        34,789   28,355 
 
Current assets 
 
Stocks                                                                     203      225 
 
Debtors 
 
-     due within one year                                               11,993    7,287 
 
-     due after more than one year                                      14,072   19,999 
 
Cash at bank and in hand                                                 2,649    8,783 
 
Cash investment                                                          2,458    4,163 
 
                                                                        31,375   40,457 
 
Creditors: amounts falling due within one year                         (5,965)  (3,469) 
 
Net current assets                                                      25,410   36,988 
 
Total assets less current liabilities                                   60,199   65,343 
 
Creditors: amounts falling due after more than one year                (4,746)  (7,505) 
 
Provisions for liabilities                                             (5,774)  (9,345) 
 
Net assets before pension deficit                                       49,679   48,493 
 
Pension deficit                                                        (1,127)  (1,200) 
 
Net assets after pension deficit,                                       48,552   47,293 
before deferred capital grants 
 
Capital grants 
 
Deferred capital grants                                                    106      123 
 
Capital and reserves 
 
Called up share capital                                                    335      335 
 
Share premium account                                                   10,202   10,202 
 
Revaluation reserve                                                         75       75 
 
Equity reserve                                                             143      143 
 
Profit and loss account surplus                                         37,691   36,415 
 
Shareholders' funds                                                     48,446   47,170 
 
Net assets                                                              48,552   47,293 
 
 
The financial statements of Newbury Racecourse PLC, Company registration 
00080774, were approved by the Board of Directors on 14 May 2018 and 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 
 
At 31 December 2017 
 
GROUP                           Share   Share    Capital Revaluation   Profit  Total 
                              Capital Premium redemption   reserve GBP and loss  GBP'000 
                                GBP'000   GBP'000    Reserve        '000  account 
                                                   GBP'000                GBP'000 
 
At 1 January 2016                 335  10,202        143          75   20,671 31,426 
 
Prior year adjustment (see          -       -          -           -    2,801  2,801 
note 5) 
 
At 1 January 2016 restated        335  10,202        143          75   23,472 34,227 
 
Profit for the financial year       -       -          -           -   13,599 13,599 
- restated 
 
Other comprehensive income          -       -          -           -    (656)  (656) 
 
At 31 December 2016 restated      335  10,202        143          75   36,415 47,170 
 
 
 
GROUP                           Share   Share    Capital Revaluation   Profit   Total 
                              Capital Premium redemption   reserve GBP and loss   GBP'000 
                                GBP'000   GBP'000    Reserve        '000  account 
                                                   GBP'000                GBP'000 
 
At 1 January 2017 restated        335  10,202        143          75   36,415  47,170 
 
Profit for the financial year       -       -          -           -    1,183   1,183 
 
Other comprehensive income          -       -          -           -       93      93 
 
At 31 December 2017               335  10,202        143          75   37,691  48,446 
 
Consolidated Cash Flow Statement 
 
Year ended 31 December 2017 
 
                                                                      2017 GBP    2016 
                                                                        '000   GBP'000 
 
Net cash outflow from operating                                         (82) (1,980) 
activities 
 
Cash flows from investing activities 
 
Interest received and other investment                                     6      31 
income 
 
Payments to acquire tangible fixed                                   (7,912) (3,287) 
assets/investments 
 
Receipts from exceptional sale of fixed                                3,146   9,269 
assets 
 
Other associated property costs                                      (2,935)       - 
 
Sale of fixed assets                                                      16      18 
 
Net cash (outflow)/inflow from                                       (7,679)   6,031 
investing activities 
 
Net cash inflow before financing                                     (7,761)   4,051 
 
Financing activities 
 
Loan finance issued*                                                    (78)    (16) 
 
Arrangement fees paid                                              -            (30) 
 
Net cash outflow from financing                                         (78)    (46) 
 
(Decrease)/increase in cash in the                                   (7,839)   4,005 
year 
 
Cash as at 1 January                                                  12,946   8,941 
Cash as at 31 December                                                 5,107  12,946 
 
*Loan to Britbet Racing LLP, formation of a new betting consortium. 
 
Advantage has been taken of the exemption under FRS102 not to disclose the 
individual cash flow statements of the company and its subsidiaries. 
 
Notes to the Financial Statements 
 
Year ended 31 December 2017 
 
1.    ACCOUNTING POLICIES 
 
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"). 
 
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; 
 
·      No separate parent company Cash Flow Statement with related notes is 
included. 
 
The presentation currency of these financial statements is sterling.  All 
amounts in the financial statements have been rounded to the nearest GBP1,000. 
 
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 2. 
 
Accounting convention 
 
The financial statements are prepared under the historical cost convention, as 
modified by the revaluation of freehold land. 
 
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 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. 
 
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 revolving 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 in place to continue in 
operational existence for the foreseeable future and on that basis the going 

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concern basis has been adopted in preparing the financial statements. 
 
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. 
 
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. 
 
Investment property 
 
Investment in properties are freehold interests which are held to earn rental 
income. Investment properties are recognised at fair value. 
 
Notes to the Financial Statements (continued) 
 
Year ended 31 December 2017 
 
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. 
 
Other investments 
 
Other investments in the balance sheet comprise of investments in equity and 
subsidiaries. Equity investments are recognised at fair value unless they 
cannot be reliably measured. Investments in subsidiaries are recognised at cost 
less impairment. 
 
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. 
 
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. 
 
Tangible fixed assets 
 
Tangible fixed assets are stated at cost or valuation, net of depreciation and 
any provision for impairment. Depreciation is not provided on freehold land. 
On other assets it is provided on cost or re-valued amounts over the estimated 
lives of the assets as below:- 
 
Freehold land and buildings and outdoor fixtures 
 
·      1% - 5% straight line 
 
Fixtures and fittings and equipment 
 
·      5% - 25% straight line 
 
Tractors and motor vehicles 
 
·      5% - 20% straight line 
 
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. 
 
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. 
 
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. 
 
Notes to the Financial Statements (continued) 
 
Year ended 31 December 2017 
 
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. 
 
Cash investments 
 
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. 
 
Non recognised financial information 
 
The consolidated 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. 
 
Company only result for the year 
 
As permitted by Section 408(3) of the Companies Act 2006, the profit and loss 
account of Newbury Racecourse Plc is not presented as part of the consolidated 
accounts. 
 
Tax 
 
Tax on the profit or loss for the year comprises current and deferred tax. Tax 
is recognised in the profit and loss account except to the extent that it 
relates to items recognised directly in equity or other comprehensive income, 
in which case it is recognised directly in equity or other comprehensive 
income. 
 
Current tax is the expected tax payable or receivable on the taxable income or 
loss for the year, using tax rates enacted or substantively enacted at the 
balance sheet date, and any adjustment to tax payable in respect of previous 
years. 
 
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 

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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. 
 
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. 
 
Notes to the Financial Statements (continued) 
 
Year ended 31 December 2017 
 
Horserace Betting Levy Board (HBLB) grants 
 
HBLB grants are accounted for under the performance model in line with standard 
industry practice. HBLB capital grants are credited to the P&L as revenue in 
the month of the raceday, the corresponding debtor is carried on the balance 
sheet until the cash is received. 
 
Employee benefits 
 
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. 
 
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. 
 
Financial instruments 
 
Trade and other debtors / creditors 
 
Trade and other debtors are recognised initially at transaction price less 
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. 
 
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 4 for further detail. 
 
Notes to the Financial Statements (continued) 
 
Year ended 31 December 2017 
 
2.    CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY 
 
In the application of the Group's accounting policies, which are described in 
note 1, 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; 
 
Capitalisation of design fees and expenditure in connection with the ongoing 
development works, which during the year ended 31 December 2017 amounted to GBP 
0.5m (2016: GBP2.5m). The total carrying value of capitalised design fees at 31 
December 2017 is GBP0.58m. 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; 
 
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. 
 
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 assets at the balance 
sheet date was GBP34.7 million. No impairment loss was recognised in 2017 as 
there was no further indication of impairment (2016: impairment loss of GBP 
3.45m). 
 
Notes to the Financial Statements (continued) 
 
Year ended 31 December 2017 
 
3.    EXCEPTIONAL ITEMS 
 
                                                                  2017 Restated 
                                                                 GBP'000        * 
                                                                           2016 
                                                                          GBP'000 
 
Proceeds from Sale of Fixed Asset                                    -   26,973 
 
Net book value of asset disposal                                   347  (3,567) 
 

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Other associated items                                             308  (3,114) 
 
DWH debtor movement in fair value                                (365)    (731) 
 
Property transactions/profit on                                    290   19,561 
disposal of fixed assets 
 
Impairment                                                           -  (3,449) 
 
Total                                                              290   16,112 
 
 
In accordance with note 1, accounting transactions related to the DWH agreement 
are considered outside the ordinary course of business. 
No impairment loss was recognised in 2017 as there was no further indication of 
impairment. 
The net book value of assets disposed is the disposal of assets in 2017 
associated with the internal redevelopment works, net of the recovery of 
related costs. Other associated items are attributable to the unwinding of the 
property provisions in connection with the land sale. 
*(restated - see note 5) 
 
4.    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 2017 of 
GBP1,183,000 (2016: GBP13,599,000 (restated - see note 5)) by the weighted 
average number of ordinary shares during the year of 3,348,326 (2016: 
3,348,326). 
 
 
 
 
 
 
Notes to the Financial Statements 
 
Year ended 31 December 2017 
 
5.    EXPLANATION OF PRIOR YEAR ADJUSTMENTS 
 
The Group has restated comparative financial information in in order to bring 
the accounting of certain accounting treatments in line with the requirements 
of FRS 102.  The areas affected are set out below: 
 
Investment property: 
 
The Group's interest in freehold property which is held for the purposes of 
generating rental returns and potential capital appreciation has been 
reclassified as Investment Property from Tangible Fixed Assets. This 
reclassification has reduced Tangible Fixed Assets in the Consolidated Group 
Balance Sheet at 31 December 2016 by GBP1.11m and increased Investment Property 
fixed assets by the same value. The carrying value of the property was already 
held at approximately market value (being the directors' assessment of market 
value) and consequently no adjustment to the carrying value was required. 
 
Lease assets receivable: 
 
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. Under the requirements of FRS102, the 
financial statements have been restated to recognise the option to purchase the 
ground rent receivables on the balance sheet and an additional gain on disposal 
of GBP3.36m arising in 2012. 
 
On exercise, the option is derecognised and a lease receivable for the present 
value of all expected future rentals is recognised. The effect on the financial 
statements is to increase debtors by GBP3.56m at 31 December 2016 (GBP0.10m due 
less than one year, GBP3.46m due in more than one year), to increase the deferred 
tax liability by GBP0.63m, to reduce fixed asset investments by GBP0.16m (being the 
option exercise price previously recognised as a fixed asset investment), to 
reduce profit for the year ended 31 December 2016 by GBP0.03m (being the ground 
rents received in the year) and to increase profit and loss reserves by GBP2.76m 
at 31 December 2016. 
 
Deferred Tax: 
 
The Group had previously offset deferred tax assets against its liabilities, 
FRS102 requires deferred tax assets and liabilities to be disclosed separately 
in the balance sheet. As at 31 December 2016 provisions for liabilities have 
increased by GBP0.03m, pension deficit has increased by GBP0.22m and debtors due 
within one year have increased by GBP0.25m. The application of the amendment has 
had no material impact on the disclosures or on the amounts recognised in the 
consolidated financial statements. 
 
Accounting treatment of finance charges: 
 
The Group previously presented fair value movements of the David Wilson Homes 
debtor partly through Profit on disposal of fixed assets and partly through 
Investment Income. The fair value movements are now recognised through a single 
line item, "Property transactions/profit on disposal" Investment Income has 
been reduced by GBP0.33m for the year ended 31 December 2016 and Profit on 
disposal of fixed assets has been increased by GBP0.33m for the year ended 31 
December 2016. Movements in the fair value of the David Wilson Homes debtor are 
shown separately as an exceptional item given the nature of the transaction. 
 
RECONCILIATION OF EQUITY 
 
                                                   Group 
 
                                                    At 1       At 31 
                                                 January    December 
                                                    2016        2016 
                                                   GBP'000       GBP'000 
 
Equity reported prior to restatement              31,426      33,652 
 
Prior period adjustments: 
 
1 Recognition of fair value of lease               3,438       3,397 
asset receivable 
 
2 Recognition of the deferred tax                  (637)       (634) 
liability in respect of the above 
 
Equity reported after restatement                 34,227      36,415 
 
RECONCILIATION OF PROFIT FOR YEAR ENDED 31 DECEMBER 2016 
 
                                                          2016 
                                                         GBP'000 
 
 Profit for the financial period previously             12,981 
reported 
 
1 Reversal of lease asset receivable rents                (33) 
recognised during the period 
 
2 Movement in deferred tax in respect of lease             (5) 
assets receivable 
 
Profit for the financial period after                   12,943 
restatement 
 
Notes 
 
The financial information set out above does not constitute the company's 
statutory accounts for the years ended 31 December 2017 or 2016, but is derived 
from those accounts. Statutory accounts for 2016 have been delivered to the 
Registrar of Companies and those for 2017 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 14 May 
2018. 
 
[1] See page 17 for details of prior year adjustments 
 
[2] See page 17 for details of prior year adjustments 
 
 
 
END 
 

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