Racecourse Group Profits Continue To Grow Under New Ownership

Thu, Jan 24, 2008

NORTHERN Racing Limited has today (24 JANUARY) announced increased profits for the calendar year to 31 December 2007.

EBITDA from Group operations was £6.2m (2006: £5.8m), an increase of 6.9%.

Like-for-like admission income rose 8.6% on 2006.

Hospitality sales were £0.4m ahead of the previous year and the group served 8,486 more guests during 2007.

The contribution from events and venue hire rose to £1.4m, an increase on 2006 of 8.6%.

The nine-strong racecourse group, which was de-listed from AIM during the year after being acquired by the Reuben Brothers, is focussing on its core skill of growing its key income lines and importantly the fast emerging event and venue hire business. This strategy makes the Group less vulnerable to the vicissitudes of the British climate.

Tony Kelly, previously Group Finance Director and, since 1 January 2008, Group Managing Director, said: "2007 was an encouraging year, with earnings rising both on racing days and in our developing events and conferences business. Using our venues for a growing number of non-racing events helps to underpin our core horse racing business.

"Although we did not lose any major racing fixtures during the year, the weather did impact upon us - as it did the entire horse racing industry - with the loss of 13 race meetings. However, income from race day admissions and hospitality grew once again, demonstrating the continuing attraction of the sport of horse racing to the public."

The Board of Northern Racing Limited said: "We are very encouraged that the business continued its development by increasing earnings in a competitive market, and we are delighted with the progress made since the acquisition last spring. We look forward to further successes during 2008."

*In April 2007, the Reuben Brothers acquired Northern Racing PLC, the publicly listed racecourse company, in a deal worth £90 million.

Northern Racing owns nine racecourses - Bath, Brighton, Chepstow, Fontwell Park, Great Yarmouth, Hereford, Newcastle, Sedgefield and Uttoxeter - and accounts for approximately 14% of all fixtures run in England, Scotland and Wales.

ENDS 340 words

Author:  Northern Racing

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