RACECOURSE operator Arena Leisure has seen profits before tax and interest increase by 25% to £2m, according to interim results published today.
The company, which owns courses in Worcester and Wolverhampton along with five others across England, says the upbeat results come after absorbing £0.5m of one-off pre-opening costs of the new Lingfield Park Marriott Hotel and Country Club.
The results, for the six months up to June 30 this year, also reflect a £0.3m improvement in operating performance and a £0.6m increased contribution from news website At The Races, it said.
Other key points from the results are adjusted earnings per share up by 25% to 35p, from 28p in 2009, while basic unadjusted earnings per share were 28p compared with 33p in 2009.
Profit before tax was £0.2m lower at £0.9m, compared with £1.1m in 2009, and net bank borrowings at the end of June were £47.7m.
This has since been reduced significantly after the receipt last month of the second advance payment of £12.5m from SIS under the terms of the new media rights agreement, Arena said.
Current trading continues to reflect the trends experienced in the first half of the year and is in line with expectations, the statement added.
Arena chairman David Thorpe said: “This is a commendable performance from the group across a number of fronts.
“Arena has delivered improved operational performance with average attendance at our racecourses increasing year-on-year and there are encouraging initial signs that corporate hospitality business is beginning to pick up.
“The expected increase in income from international media rights through ATR has also helped to deliver an increase in operating profit for the period, albeit from nine fewer fixtures. We have also significantly reduced group net debt.
“Current trading remains in line with expectations and we made good progress on our estate strategy.
“Trading at the Lingfield Park Marriott Hotel and Country Club since its May opening is in line with our expectations and development plans at Folkestone continued to progress.”
