Newbury Racecourse PLC (LON:NYR) said it is confident that it has the financial resources to trade through this current year, even if further national or regional lockdown restrictions are put in place in response to concerns over COVID-19 variants.
“The difficult actions taken during 2020 have put the company in a strong position to recover quickly once the economy fully opens up and people return to normal life,” Chairman Dominic Burke said ahead of the company’s annual general meeting.
“The impact of the financial losses for the 2020 year and for the first half of 2021 remain substantial, but for how much longer remains uncertain. The company will hopefully be able to provide further guidance on future financial performance when the interim financial results are reported in the Autumn,” he said.
The company said its trading prospects for the year remain dependent on the timescales for the easing of lockdown restrictions and any constraints on capacity once it is allowed to have crowds back at the racecourse.
“We are seeing encouraging sales for our two confirmed Party in the Paddock events, Olly Murs in August and Rick Astley in September but it’s evident that the public are currently being cautious before committing to attending any events where the future restrictions are not known.
“To date we have relied on the income generated from our Betting and Media Rights to support the business whilst other revenues are being severely impacted and whilst our hospitality businesses remain closed, the Nursery remains open to all children.”
“We remain optimistic that the vaccination rollout programme and the management of COVID-19 cases mean that the roadmap timeline will enable us to proceed with our plans as outlined, so that we can look forward to the summer flat season and through to the autumn jumps season with crowds and full hospitality,” Burke said.