Final Results
March 06 2003 - 2:01AM
UK Regulatory
RNS Number:3580I
Chepstow Racecourse PLC
06 March 2003
THE CHEPSTOW RACECOURSE PLC
6 MARCH 2003
THE CHEPSTOW RACECOURSE PLC ("Chepstow" or the "Company")
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2002
CHAIRMAN'S STATEMENT
Last year I expressed my confidence for the future, and I am now pleased to
report a successful year of improved results for the twelve month period to 31st
December 2002. I would like to record my thanks to the management and staff for
their valued contribution.
The year 2002 saw the onset of significant change in the way the racing industry
is funded.
In May the Company entered into an agreement with Bookmakers' Afternoon
Greyhound Services ("BAGS") to broadcast live horse racing from Chepstow to
Licensed Betting Offices. This agreement runs until 31st December 2004. The
future funding element of the industry administered by the Horserace Betting
Levy Board is currently undergoing a review. Your Board expects the outcome of
this review to reward those racecourses that adopt a commercial attitude, to
meet the demands of racing's customers. Chepstow is committed to this approach
to support any changes that materialise following the expected publications of
findings from the Office of Fair Trading ("OFT"). We expect that the outcome
will provide increased choice for our customers, namely Owners & Trainers,
racegoers and bookmakers.
We continue to participate on the key industry forums and Board of the
Racecourse Association which are becoming ever more important at a time of
unprecedented change. I am confident that Chepstow is well positioned to offer a
meaningful contribution to assist in the re-shaping of the racing industry.
Race Meetings
During the year, 22 race meetings were held with 3 cancelled due to adverse
weather. In 2001 we managed to stage 15 meetings only. This reduced programme
was largely as a consequence of the foot and mouth outbreak.
I am delighted to report like for like growth in paying attendance at Chepstow
of 19% for 2002. I am also pleased to tell you that the Coral Welsh National in
December was a success and a modern day attendance record of 10,500 was
achieved.
Results
Profit before tax for the period under review increased by 76.5% to #655,000
(2001 #371,000). Earnings per share is reported at 8.0 pence (2001 4.1 pence -
restated to adjust for bonus issue of shares on 4th January 2002). The results
include a nine-month contribution from BAGS and a full year contribution from
the attheraces media contract.
During the period the sum of #724,000 (2002 -#380,000) was transferred to HBLB
Capital Credits which arose from the conversion of Chepstow's Basic Daily Rate
allocation. This amount has been utilised in part funding the further
expenditure on the second phase of redevelopment amounting to #1,693,000 this
year.
Redevelopment
Phase one of the redevelopment has been successfully completed which includes
the new Paddock, Tattersalls turnstiles entrance, new Weighing Room and Owners &
Trainers Bar. These new facilities were all in use from May 2002.
Much positive feedback has been received from all customer groups. In
particular many racegoers have praised the greater spectacle allowed by easier
viewing of the 'theatre' of the Parade Ring and winners presentations.
The redevelopment of the Members' Stand is well underway and is on target for
first use in April 2003. This will provide a new Club and Members' Bar, Tote
Credit facilities and ten new corporate boxes. I am pleased to report that the
majority of these boxes have been pre-sold on three-year licences.
Management and Staff
In May 2002 your Board approved a new commercial structure which included the
appointment of three commercial manager positions and one new recruit to support
them. Clear individual sales targets and objectives have been agreed with each
commercial manager including a bonus scheme linked to personal achievement and
the delivery of a premier customer service.
Targets for increasing paying attendance, race sponsorship, corporate
hospitality and corporate box sales have been set by Steve Clare, who was
appointed a Director of Chepstow Races Limited in December 2002 having held the
post of General Manager since February 2001.
Dividend
Your Board is recommending a final dividend of 1.1 pence per ordinary share held
(2002: 1.0 pence) representing an increase of 10% over the previous payment.
Outlook
Your Board continues to make substantial investment in racecourse facilities
both to take advantage of Chepstow's strong position as The Capital Racecourse
of Wales, the UK horseracing industry and to compete in the increasingly
competitive leisure industry.
The commercially focussed management team is firmly committed to achieving
higher levels of service and winning new customers.
I look forward to the future with increased confidence for another successful
year.
Sir Stanley Clarke CBE, DL Hon.D.Univ
PRELIMINARY CONSOLIDATED PROFIT STATEMENT
for the year ended 31 December 2002
Note 2002 2001
# #
TURNOVER 1 3,353,619 2,502,836
Cost of sales (2,836,464) (2,028,827)
GROSS PROFIT 517,155 474,009
Administrative expenses (584,878) (543,389)
Other operating income 723,660 379,710
OPERATING PROFIT 655,937 310,330
Profit on sale of investment - 79,190
Interest (1,228) (18,510)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 654,709 371,010
Taxation (18,675) (46,010)
PROFIT FOR THE FINANCIAL YEAR 636,034 325,000
Proposed ordinary dividend 2 (87,210) (79,282)
RETAINED PROFIT FOR THE FINANCIAL YEAR 3 548,824 245,718
Earnings per share 4 8.0p 4.1p
PRELIMINARY CONSOLIDATED NET ASSETS STATEMENT
at 31 December 2002
2002 2002
# #
FIXED ASSETS 6,143,793 4,563,367
CURRENT ASSETS 821,324 448,233
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (1,210,924) (598,302)
NET CURRENT LIABILITIES (389,600) (150,069)
TOTAL ASSETS LESS CURRENT LIABILITIES 5,754,193 4,413,298
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (1,512,083) (722,312)
PROVISIONS FOR LIABILITIES AND CHARGES (16,100) (13,800)
NET ASSETS 4,226,010 3,677,186
PRELIMINARY CONSOLIDATED CASH FLOW STATEMENT
at 31 December 2002
2002 2001
# #
NET CASH INFLOW FROM OPERATING ACTIVITIES 433,670 162,107
NET CASH OUTFLOW FROM RETURNS ON INVESTMENT AND SERVICING OF FINANCE (1,228) (18,510)
TAXATION (PAID)/RECOVERED (27,261) 45,528
NET CASH OUTFLOW FOR CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT (1,253,920) (359,441)
EQUITY DIVIDENDS PAID (79,282) (79,282)
NET CASH OUTFLOW BEFORE FINANCING (928,021) (249,598)
FINANCING 830,868 647,304
(DECREASE)/INCREASE IN CASH BALANCES (97,153) 397,706
NOTES TO THE PRELIMINARY ANNOUNCEMENT
1 Turnover and profit relate entirely to continuing operations.
The group has no recognised gains and losses other than those included in
the profit statement.
2 The directors propose a dividend 1.1 pence (2001: 1.0 pence) net per share.
The dividend will be paid on 6 June 2003 to shareholders on the register on
9 May 2003.
3 The retained profit for the financial year is #548,824 (2001: #245,718). A
transfer to other reserves of #723,660 (2001: #397,710) has been made in
accordance with accounting policies.
4 Earnings per share is calculated on earnings of #636,034 (2001: #325,000)
and on 7,928,208 shares, being the number of shares in issue following the
bonus issue of shares.
5 The Annual General Meeting will be held on 16 April 2003 at The Racecourse,
Chepstow, Monmouthshire.
6 The financial information set out above does not constitute
the company's statutory accounts for the years ended 31 December 2002 or
2001. The financial information for 2001 is derived from the statutory
accounts for 2001 which have been delivered to the Registrar of Companies.
The auditors have reported on the 2001 accounts; their report was
unqualified and did not contain a statement under Section 237 (2) or (3) of
the Companies Act 1985. The statutory accounts for 2002 will be finalised
on the basis of the financial information presented by the directors in
this preliminary announcement and will be delivered to the Registrar of
Companies following the company's Annual General Meeting.
Copies of the full statutory accounts will be dispatched to Shareholders in
due course. Further copies will be available from the registered office of
the Company.
The Racecourse, Chepstow, Monmouthshire, NP16 6BE
Enquires: Sir Stanley Clarke CBE 01283 711233
ENDS
This information is provided by RNS
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