Arena Leisure’s profits race ahead
DONCASTER racecourse operator Arena Leisure today said its profits before tax and interest increased by 25% to £2m over its half year.
The company, which owns courses in Worcester and Wolverhampton along with five others across England, said the upbeat results came after it absorbed £500,000 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 £300,000 improvement in operating performance and a £600,000 increased contribution from news website At The Races, Arena said.
Other key points from the results were 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 £200,000 lower at £900,000, compared with £1.1m in 2009, and net bank borrowings at the end of June were £47.7m.
Borrowings have since been reduced significantly after last month’s receipt 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.”
