Chester profits up despite 'highly significant challenges' but landscape remains tough

Chester Race Company rose to a number of "highly significant challenges" last year to post profits exceeding expectations, according to its latest set of accounts.

However, in common with reports from other racecourses, rising costs and weaker consumer demand is continuing to affect the group, which also includes Bangor-on-Dee and Musselburgh.

Nevertheless, chief executive Louise Stewart said measures the company had in place should put it in a strong position when economic conditions improved.

In his opening statement to the 2023 accounts, chairman Ian O'Doherty said: "I'm pleased to report that the group has risen to a number of highly significant challenges in the year and delivered great racing, excellent events, and very strong financial results."

Profit before tax of £1.8 million in 2023 compared with £600,000 the previous year exceeded the board's start-of-year expectations. Turnover of £37.6m was £3m higher than in 2022.

O'Doherty said consumer demand had been highly volatile across the group and although attendances had been broadly in line with 2022, the path had not been smooth.

Attendances at Chester's flagship May meeting were below 2022 and hospitality sales had not recovered to pre-pandemic levels. However, hospitality and attendances were described as being very strong at other fixtures over the summer, with some crowds as much as 40 per cent higher than in 2022. 

Bangor held 11 out of 14 scheduled fixtures but total attendance was ten per cent above 2022, while more than 60,000 people attended Musselburgh during the year, a level not seen since 2017

O'Doherty added: "There is little doubt that weakened consumer demand is having a negative impact on our financial performance. This may not resolve itself quickly, but in the meantime the group's strategy is to continue to deliver an exceptional experience, ensuring that when demand returns to normal the group will be positioned to benefit."

The accounts also set out concerns about inflationary pressures, which had been realised during the year through rising utility costs, national living wage increases, and food and drink price rises.

The company said an efficiency drive had reduced use of gas and electricity, while wage increases had meant they had been able to attract more casual staff and reduce reliance on more expensive agency staff.

"Excellent results" from Chester and Bangor-on-Dee's media rights partner Sky Sports Racing also improved performance "significantly" in that area.

The accounts said the challenges experienced in 2023 had been expected to continue into this year, with utility costs, national living wage and increases in prize-money costs believed to be "reducing profitability significantly".

Louise Stewart: "I think it's tough for people out there"

Speaking after the accounts were lodged with Companies House, Stewart described this year as having been "good, but not anywhere near what we would want".

She added: "We've been delivering great guest experiences, probably better than we ever have. We've surveyed our guests and they have really responded well to it, but it's still a really volatile economy. Our guests are still being careful with their money.

"It's very difficult to tempt people who are worried about paying their mortgage or fuel bills or food bills, trying to encourage them to use any discretionary income on a day out. It's tough and I think it's tough for people out there.

"The costs of putting on a raceday are going up at the same time and it's squeezing everybody."

However, Stewart said the wider sport had to find positives, adding: "When things recover – and we have to believe they will recover – we have improved our product and our cost management to such an extent that we will see the upside."

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