Record crowds for Arena Leisure

The operator of Doncaster Racecourse added its takeover by the Reuben brothers is due to complete by the end of the month, after shareholders backed the deal worth more than £160m.

Average attendance at Arena’s 352 fixtures increased by 7.8 per cent to 1,941 in 2011, with the total number of hospitality guests increasing 14 per cent on a year earlier to 51,500.

Chairman David Thorpe said: “Racing generally has made progress in broadening its appeal and attracting new customers to racecourses.

“However, the financial side of the industry remains constrained and this has significantly impacted Arena’s 2011 performance.”

Pre-tax profits increased by almost 15 per cent to £4.2m, although revenues were down by £2.5m to £61.5m after a further reduction in the amounts received by the industry from the statutory Levy on bookmakers. Arena’s share fell £7.3m to £10.4m.

Of this, £5.5m was paid out in prize money, a £4.9m reduction on a year earlier that prompted Arena to inject a further £500,000 into its prize fund in order to stem a recent decline in field sizes.

Mr Thorpe said he expects progress on finding a “long-term solution” to Levy issues. He added: “The current Levy arrangement provides more certainty in the coming year, albeit at a level that is only slightly above that for 2011.”

Total attendees at the group’s seven racecourses were up to 683,000 from 634,000 a year earlier. Arena said it beat the UK racing industry’s average attendance growth of one per cent and total attendance increase of 6.6 per cent to 6.2m guests.

Chief executive Mark Elliott said it was “another year of progress” in spite of the “difficult trading environment and ongoing Levy challenges”.

Arena’s racecourses include Windsor, Lingfield Park, Southwell, Wolverhampton, Folkestone and Worcester and accounted for 24 per cent of UK racing fixtures during the year.

It has scheduled 345 fixtures for the year.

Mr Thorpe said improvements in the quality of product, service and customer experience, together with better sales and marketing, helped Arena outperform the industry.

Its in-house catering “exceeds expectations of racegoers”, it said, adding “innovation increases the appeal of racing, for example through themed events and music concerts”.

Arena said new media rights contract with SIS for the provision of live racing into betting shops, as well as a major contract for catering services at two Olympic and Paralympic venues, have also boosted its prospects.

It expects the Games contracts at Eton Dorney and Greenwich Park to net profits of up to £1m.

“It is our intention to build on this with further third party contracts at external venues and events,” said Mr Elliott.

At Doncaster Racecourse, Arena said it is “now establishing itself as a major venue for trade shows and exhibitions”.

Net debt fell by £9.3m to £30.5m.

Arena is on the brink of being taken over by Aldersgate Investments, a company owned by business tycoons David and Simon Reuben. Subject to regulatory and court approval, Arena expects the takeover will be completed on March 30. It was approved by shareholders earlier this month.

In line with the terms of the takeover, it will not pay a final dividend.

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