Directors at Newcastle Racecourse said they are optimistic for the future following a return to horseracing in front of crowds, having seen turnover tumble 36% in the pandemic.
Newcastle Racecourse, which is owned by the Reuben Brothers-owned business Arena Racing Company, was forced to close temporarily during the first year of the Coronavirus outbreak when the national lockdown led to all horse racing grinding to a halt for a number of weeks across the UK and beyond.
As a result, the Gosforth Park racecourse hosted just 21 meetings during the year, latest accounts show, compared to 64 the previous year.
Read more : go here for more North East business news
Accounts have now been published by the company which show turnover fell by 36% from £16.845m to £12.352m as a result. Operating profit fell from £1.29m to £317,880, and total comprehensive income for the year fell from £1.36m to £232,531.
The firm, which has more than 50 permanent employees, took advantage of Government support and claimed £591,717 in furlough grants.
In a report accompanying the accounts, the firm said: “Turnover for the year ended 31 December 2020 was £12,352,142 (2019: £16,845,225). The decrease was a result of the Covid-19 pandemic in March 2020, which has caused a significant impact on the UK and global economy.
“The company has made use of all applicable Covid-19 government support schemes during the year, in particular the coronavirus job retention scheme. As a result of the impact the pandemic had on operations during the reporting period, there has been a reduction in both working capital and cash with a closing balance of £187,747.
“Investment in fixed assets has been minimised during the year with all other expenditure closely monitored.
“The company’s principal revenue streams are dependent on British horseracing fixtures being staged. Racing was suspended for a period approaching two and a half months and whilst racing resumed on June 1 2020 this remained behind closed doors at the Newcastle Racecourse.
“As a result, the company’s revenue streams have been profoundly impacted by the temporary cessation of racing and continued to be affected by the ongoing prohibition of on-course spectators. “However, the lifting of restrictions has since seen the return of people in their capacity as spectators and guests, which will be seen in the performance of the 2021 financial year.
“As a result of the impact Covid-19 had on the results of the company, the directors are satisfied with the results for the year and are optimistic for the future.”
