Arena Leisure enjoys better profits
RACECOURSE operator Arena Leisure has seen a 3% rise in pre-tax profits and an increase in full year revenue from £64.8m to £65.2m as punters bucked the recession and continued to visit race meetings.
The company, which operates seven courses around the UK including Wolverhampton, Doncaster and Worcester, said attendances rose and a decline in corporate hospitality bookings was offset by income from media rights, efficiency measures and improved catering profits.
In total, attendances at its courses, which also include Royal Windsor, Lingfield Park, Southwell and Folkestone, rose 2% on 2008 to 639,000, which was a better performance that the national figure which was static at 5.7 million.
Mark Elliott, Arena chief executive, said: “Arena has delivered another robust operational performance this year. We are proud of this achievement in what remains a challenging consumer market.
“2009 has clearly demonstrated our ability to realise further significant value from Arena’s assets, in addition to the core business of owning and operating a leading portfolio of racecourses.”
The media rights agreement with SIS strengthened Arena’s financial position and its has also agreed £55m of renewed banking facilities, on good commercial terms, with Lloyds Banking Group.
Meanwhile, ongoing developments were set to add value in the year ahead, added Mr Elliott.
“We are encouraged that the broad appeal of racing continues to underpin Arena’s resilient performance in spite of the continued unpredictable economic environment and we remain optimistic of another good year of development in 2010,” he added.
Arena said new planning consents and the subsequent development of leisure assets on its racecourses had seen Doncaster Racecourse fully redeveloped, while the Lingfield Park Marriott hotel and leisure project would be complete in the early part of 2010.
Other future projects for which it has planning permission include the Wolverhampton ‘racino’ and the Doncaster hotel and residential scheme.
The ‘racino’ scheme will involve a partial redevelopment of the site to incorporate a casino and an extension of the existing hotel from 56 bedrooms to 170. This scheme has planning consent but is dependent upon the grant of a small casino licence from Wolverhampton City Council, which was granted the right to award a licence in May 2008.
Since then, progress by central and local government in enacting the tender process for such licences has been slow.
“Recent indications are that a formal process could commence in 2010 for completion in 2011 or 2012. We remain keen to tender for the licence and to undertake this major development opportunity,” said Arena in its statement.
