Ascot braced for more pain next year with full crowds not expected until 2022

Next year will be more "financially painful" than 2020 for Ascot, whose leadership does not expect attendances to return to pre-Covid levels until 2022.

Ascot's trading loss would have been more than £20 million this year without insurance, the furlough scheme and business rates relief and the course faces a "significant" pre-tax loss in 2021 without government support.

The stark impact of this year's crisis was laid bare on Wednesday when the course unveiled its financial results for 2019, which featured a rise in turnover and pre-tax profits.

More than 70 per cent of Ascot's revenues and around 50 per cent of profits come from raceday customers who were not able to attend for most of this year, including the royal meeting in June, which took place behind closed doors.

Ascot chief executive Guy Henderson told the Racing Post: "We end 2020 broadly break-even. That is with the support of the financial cushions of pandemic insurance, government furlough, business rates relief and also, frankly, the loyal support of all our sponsors and indeed owners for running their horses.

"2021 is going to be a year of rebuilding which will be more financially painful than 2020 overall, but we can see a pathway. We are very clear in our view and our messaging that it will be 2022 before we are back to full strength."

Henderson said Ascot's modelling predicted a "significant" pre-tax loss in 2021 and that the pandemic had set the business plan back by three years. He added: "We do not expect to see a full return of the public to 2019 levels until 2022."

The pain will be greater next year as the financial safety net available in 2020 is withdrawn. Henderson said: "Insurance for pandemic is not available next year for obvious reasons, the government furlough scheme continues for a while and we may take some benefit from that, and who knows what happens with business rates relief."

The government has offered around £40m in loans to racecourses suffering hardship due to the lack of spectators and Henderson said Ascot was waiting to see details of the scheme.

"It is a welcome development and when we know the terms of the support we will be looking very hard at how we can make use of that to rebuild our business more quickly," he added.

Henderson said the course had had to "rein back" its normal capital investment programme as well as reduce overheads. Prize-money had to be cut in 2020 but Henderson said they would look to rebuild it, starting next year.

He added: "It's too early to be specific on numbers. We definitely plan to increase it on 2020 levels. I committed to the industry that we will continue to pay the most prize-money that we can possibly afford.

"We are seeking to compete on the international stage of what is a global industry and we believe prize-money returns are business critical to our sustainable future.

"We also happen to believe that's pretty important for the sustainable future of British racing in terms of continuing to attract high-end investment. We will therefore be doing our absolute best."

Ascot chief executive Guy HendersonCredit: Edward Whitaker

Henderson has also written to patrons of the Royal Enclosure to warn them restrictions on attendance are expected to still be in place come June.

"It is too early to be specific about attendance numbers," he said. "Attendance numbers are going to be driven by the social distancing regime that is in existence at the time. I strongly believe that by the time we get to June there will be rules and the rules will be significantly different to what they are now.

"So the key message to our customers is uncertainty now, probably uncertainty in the first quarter, so they are going to be hearing from us slightly later than normal."

Ascot recorded a pre-tax profit of £7.3m in 2019, up from £6.1m the previous year. Turnover increased by six per cent to £96.8m due to a strong performance from fine dining, a full year's income from the Bet With Ascot operation and increased income from broadcast and media rights.

Investment in facilities was up by two-thirds to £9m, while net debt was reduced from £50.6m to £37.9m by the end of the year.

Henderson said: "For us the importance of dwelling on 2019 however briefly is paying tribute to everyone who worked so hard on developing and progressing the business over the last decade.

"That development and success really underpins the resilience of the business to absorb the punches that Covid-19 wants to throw at it and properly start the rebuild process next year."

Read more:

Chelmsford back behind closed doors after Covid spike puts track into Tier 3

Racing awaits further details on how £40m winter survival fund will be deployed

Scottish racecourses handed lifeline with £2 million government support package

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