Turnover up but profits down at Arena Racing Company in 2022 according to latest accounts

Turnover was up in 2022 across the operations which form Arena Racing Company (Arc) but profits fell according to accounts lodged with Companies House this week.

Arc, which was formed by the merger of Arena Leisure and Northern Racing by billionaire businessmen the Reuben Brothers in 2012, does not file its results as a single entity. However, companies representing the Arena and Northern sides of the business do.

At Arena Racing Corporation, the holding company for Doncaster, Lingfield, Windsor and Wolverhampton among others, along with Arc's greyhound operations, turnover increased to £197.6 million in 2022 from £150.4m.

Turnover at NR Acquisitions Topco, the holding company for courses including Chepstow, Newcastle and Uttoxeter, increased by 21 per cent to £66.7m.

Operating profit fell at both operations during the year, to £550,000 from £6.5m for the Arena side of the business and to £3.3m from £6.9m for the Northern side.

Both sets of accounts said that 2022 had started strongly. The review of the business in Arena Racing Corporation's accounts added: "The year was to be one of recovery from Covid-19, with the return of spectators and on course events for the full year."

However, it added: "The conflict in Ukraine has had a large impact on food and fuel prices forcing the UK CPI [consumer price index] rate to double and reach 10.5 per cent by the end of 2022.

"Further, the increased cost of living has put pressure on UK leisure spending habits."

However, once interest payments were taken into account, Arena recorded a loss before tax of £25.3m compared to a loss of £15.8m in 2021. The equivalent figure for the former Northern Racing operation was a loss before tax of £5m compared to a loss of £1.2m in 2021.

Both sets of accounts noted interest payments charged on loans from related companies under the control of the Reuben Brothers.

The two operations' immediate parent company is Racing Holdings Limited, registered in the British Virgin Islands, as is the ultimate parent company Omaha Business Holdings.

The annual accounts for individual racecourses within Arc have also been lodged with Companies House.

At Doncaster, turnover in 2022 increased to £24.1m from £20.4m in 2021. However, operating profit fell from £315,289 in 2021 to an operating loss of £3.48m.

The review of the business said there had been a "material impact on both turnover and operating loss" due to the disruption caused to the St Leger meeting following the death of the Queen.

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