Record attendances boost Arena’s profits.

Racecourse operator Arena Leisure said record attendances led to a 14.6 per cent increase in pre-tax profit last year.

The operator of Doncaster Racecourse said pre-tax profit rose to £4.2m in the year to end-December while revenue was down £2.5m to £61.5m after a £7.3m reduction in the levy it receives from bookmakers’ profits.

Arena reported record attendances at the group’s racecourses of 683,000, up 7.8 per cent on the previous year.

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Average attendance per fixture also increased by 7.8 per cent to a record 1,941, while hospitality attendance increased by 14 per cent to 51,500.

Meanwhile, the company confirmed that its £167m takeover by Aldersgate Investments is expected to complete by the end of the month, subject to approval by the courts and the Office of Fair Trading.

Arena said the offer, which values the company at 44.25p per share, was the best shareholders could expect in the current climate.

Earnings per share increased by 12.7 per cent to 1.15p, however, in accordance with the terms of the offer, no final dividend is proposed

Net borrowings reduced by £9.3m to £30.5m at year-end.

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The group has also concluded a five-year media rights agreement with SIS, which is expected to provide an estimated annual uplift in income of £10m.

It is also contracted to provide catering services to two Olympic and Paralympic venues in 2012, with an estimated net profit contribution of £0.5m to £1m.

Chief executive Mark Elliott: “This has been another year of progress in which the group has continued its track record of operational outperformance in spite of the difficult trading environment and ongoing Levy challenges. Arena continues to demonstrate industry-leading growth with record attendances at its racecourses and growth in both hospitality and catering revenue.

“Looking ahead, 2012 sees the commencement of our five year media rights agreement with SIS which significantly enhances the Group’s income. We intend to maximise the opportunity provided by our catering service contract at the Olympic and Paralympic Games and to extend our in-house catering services to other third party venues and events.

“The offer from Aldersgate Investments represents a fair and reasonable opportunity for shareholders to realise value that would not otherwise be available in the current market.”