Newbury Racecourse issues profit warning as racing ban hits

Newbury Racecourse issued a profits warning on Monday, forecasting a a significant financial impact from the current ban on horse racing, especially if it was extended beyond April 30 due to the Covid-19 pandemic.

The famous racetrack said it saw a “substantial negative impact on trading and financial performance over coming months and therefore for full year”.

In addition to this, revenues from its other business activities were likely to also be materially impacted, including conference and events, The Lodge hotel and the Rocking Horse Nursery.

“Whilst the evolving situation remains uncertain, the board is evaluating a number of possible actions to balance the conservation of cash with the long term needs of the business,” Newbury said, adding that it was in talks with lenders to ensure that financial obligations can “continue to be met throughout any prolonged period of disruption”.

In addition, it still expected still expected to receive an £11m payment from David Wilson Homes by April 2022 agreed for residential development sites. The payment was guaranteed by Barratt Developments.