Newbury reveals Covid-19 impact as turnover falls 68 per cent in 12 months

There was no escaping the significant impact of an unprecedented year as Newbury reported a 68 per cent decrease in turnover compared to the same period last year when announcing its half-year results for the six months ending June 30.

Among the meetings lost in the first half of the year due to the coronavirus pandemic that halted racing from March 18 to May 31 was Newbury's flagship Flat meeting featuring the Group 1 Lockinge Stakes, and the track reported turnover to June 30 to have fallen to £2.45 million compared to £7.57m during the same period 12 months earlier.

Overall operating losses in the same period totalled £1.64m in contrast to a £300,000 loss in 2019, while losses after tax were £1.68m compared to a £220,000 loss the previous year.

As well as feeling the impact of lost fixtures, the course was also forced to cease operations at the track's hotel and halt all conferences and events.

Mitigating the impact of the coronavirus pandemic, Newbury made use of the government's job retention scheme as well as staff making voluntary salary sacrifices. Non-executive directors also waived their remuneration.

In July, Newbury made 19 members of its permanent staff redundant, which the track's chairman Dominic Burke said was to "reduce further anticipated losses due to the ongoing pandemic".

Burke said prize-money at the course will continue to be impacted for the rest of the year, with Newbury's remaining 2020 fixtures set to offer a total prize fund which will be 77 per cent of the 2019 value.

"The current situation we now find ourselves in, due to the Covid-19 pandemic, is very challenging and continually changing," said Burke. "We have implemented a number of positive actions to mitigate against the revenue shortfall created by the forced closure of trading activities since the March lockdown.

Newbury chairman Dominic Burke: 'Situation very challenging and continually changing'

"Despite this we still expect to suffer significant losses and a depletion of our cash resources through 2020 and into the future whilst we continue to be impacted by the pandemic."

Despite the considerable headwinds, Burke said the board at Newbury were "confident that the company has the financial resources to trade through this difficult period" but that a prolonged period without paying customers would have an obvious impact, with an estimated 50 per cent of the company's annual turnover coming from raceday revenues such as admissions, catering and hospitality.

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