Profit takes a fall as miners' derby late

Sep 30 2006 By Howard Walker, The Journal

The late running of this year's Northumberland Plate Festival has put a dent in Newcastle Racecourse owner Northern Racing's half-year results.

The meeting - the biggest event in the North-East's horseracing calendar - was rescheduled from its traditional June date to July.

Added to the late running of Northern Racing's other big fixture - the Summer National, which was also run in July - the rescheduling cost the company an estimated £500,000 in race day profit in the six months to June 30.

It meant turnover across Northern Racing's nine UK tracks and other operations fell from £15.03m last year to £14.16m in 2006 with operating profit down from £1.44m to £830,000.

However, the sale of surplus land at another of the company's courses, Fontwell Park, brought in £648,000 to group profit, thus ensuring overall pre-tax profits rose by a modest 3.2% to £940,000.

The Northumberland Plate and Summer National will feed into the second half results, but Northern Racing's first half also took a £500,000 hit from a series of race cancellations.

Bad weather meant 13 fixtures were abandoned between last January and June compared with just four abandonments during the same period in 2005.

Taking the two factors into consideration, Northern Racing estimates that like for like operating profit for the group would have been £1.7m compared with £1.4m last year.

Nonetheless, the company admitted it had experienced a "challenging" six months. Chairman Graham Stow said: "The first half of the year was challenging. Despite poor weather, increased abandonments and the effect on the results of the clash with the World Cup, the group has continued to grow its hospitality, sponsorship and event and venue hire income streams.

"Having now almost completed our busiest quarter, we anticipate being able to achieve our full year results in line with market expectations."

Northern Racing is now planning to improve its IT systems by installing a ticketing and property management system for its whole estate, which includes Sedgefield Racecourse.

It will also look to improve its 18-hole golf course at Newcastle's High Gosforth Park, including the addition of a driving range.

New restaurant and hospitality accommodation are also being added at the company's Bath and Fontwell racecourses.