Newbury losses soar after drop in catering

Newbury Racecourse has posted a huge jump in operating losses despite record attendances last year.

The course fell victim to the recession as its new in-house catering business began the year by boosting revenues but petered out later in the year after conference and events catering dropped.

Chairman Sir David Sieff said that, with the downturn continuing to affect all areas of the business in the current year, Newbury was pushing further into developing as an all-round leisure and events business.

It has recently opened a golf course and is planning more race meetings linked to pop concerts. These "party in the paddock" events boost attendance at the race meeting and give added revenues from the concert. This year Madness, Simply Red and Björn Again will perform.

Once again there is no dividend and Newbury is still working on its plans for a major housing development, hotel and other leisure facilities on the racecourse site. Planning permission is likely to take time with development starting in Autumn 2010 at the earliest.

Planning costs have now been taken on by developer David Wilson Homes who handed over £1.5 million. Without that Newbury's pre-tax loss of £96,000 would have been much larger. Revenues rose from £7.5 million to £11 million.