Ascot Racecourse has said it does not expect crowds to return to pre-COVID levels before 2022, and in releasing its 2019 financial results on Wednesday painted a bleak financial picture for the next two years in the absence of continued government support.
“Overall, in terms of our long-term financial flight path, we forecast that the Covid-19 pandemic will have set the business plan back at least three years,” said Guy Henderson, chief executive officer of Ascot Racecourse.
Ascot returned a net profit of £7.3-million last year and a rise in turnover and reduced its net debt to £37.9-million, which is ahead of schedule, while making further investment and capital expenditure in racecourse facilities. Looking at 2020 and ahead into 2021, however, Henderson said things would have been extremely bleak this year without the significant government support the racecourse received.
“In 2020 the impact of the pandemic has been significant but mitigated by cushions such as the Government Furlough Scheme, Business Rates Relief and pandemic insurance for racing without crowds,” he said. “That picture adversely changes in 2021 and the business has had to take the appropriate steps to reduce its fixed and variable costs.
“Without our pandemic insurance and the Government support of furlough and business rates relief, our 2020 trading loss would be over £20m. The year will only be overall cash positive due to that support and a very significant reduction in our capital investment programme. 2021 will be much more challenging without such support. Our modelling currently projects a significant figure pre-tax loss in 2021. Whilst the business is robust and remains in sound financial health, the journey back to normality will be gradual and determined by the phasing of public allowed to the races.”
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