TIDMNYR
NEWBURY RACECOURSE PLC
("the Racecourse" or "the Company")
18 September 2020
Interim Results for the six months ended 30 June 2020
Newbury Racecourse plc, the racing, entertainment and events business, today
announces its half year results for the six months ended 30 June 2020.
Financial and Business Update 2020
· 2020 trading has been severely impacted by the COVID-19 pandemic and the
Government nationwide lockdown since March.
· The Company was required to cease all of it's racing, hotel and
conference & events trading activities on 17th March. After holding three
racedays before the lockdown, racing subsequently resumed Behind Closed Doors
("BCD") on 11th June and three racedays were held BCD in the first half of the
year, bringing the total number of racedays for the reported period to six
(compared to eleven in 2019).
· The nursery business has remained open to support key workers throughout
lockdown, but with limited occupancy, until the Government advised that it was
safe for all children to return in early June.
· Total turnover in the six months to 30th June 2020 was down 68% compared
with the same period in 2019, to GBP2.45m (2019: GBP7.57m).
· Loss before interest, tax and exceptional items of GBP1.64m (2019: GBP0.30m
loss). Exceptional profit of GBP0.03m (2019: GBP0.05m loss).
· Consolidated group loss on ordinary activities before tax of GBP1.69m
(2019: GBP0.36m loss).
· In response to the COVID-19 pandemic, the business has taken specific
actions to protect it's financial position in both the short and long term.
These have included making use of the Government Coronavirus Job Retention
Scheme, completing a restructure and redundancy programme resulting in an 18%
reduction of the permanent headcount and agreeing a deferred repayment of the
final loan instalment to Compton Beauchamp Estates Limited.
Dominic Burke, Chairman of Newbury Racecourse plc commented:
"As mentioned in the 2019 Financial Statements announcement, the current
situation we now find ourselves in, due to the COVID-19 pandemic, is very
challenging and continually changing. We have implemented a number of positive
actions to mitigate against the revenue shortfall created by the forced closure
of trading activities since the March lockdown. Despite this we still expect to
suffer significant losses and a depletion of our cash resources through 2020
and into the future whilst we continue to be impacted by the pandemic. We
remain confident that the actions taken, some very difficult, will protect the
business.
Beyond this, the redevelopment still provides a first class venue that will
enable us to continue to host racing and other events of the highest quality in
the future. We retain facilities that remain well placed to meet the increasing
demands of our customers, from horsemen and racegoers, to conference and hotel
guests, nursery patrons and local residents as and when we are able to welcome
them back to the racecourse."
For further information please contact:
Newbury Racecourse plc Tel: 01635 40015
Julian Thick, Chief Executive
Harriet Collins, Marcomms & Sponsorship Director
Hudson Sandler Tel: 020 7796
4133
Charlie Jack
CHAIRMAN'S STATEMENT
2020 Trading
Following the suspension of horse racing in Britain on 17th March, and the
subsequent Government 'lockdown', the Company was forced to cease all of its
trading activities encompassing our racing, hotel and conference events, whilst
the children's nursery was only able to remain open for a very small number of
children of key workers. The consequence of these actions has had a material
negative impact on our trading and financial performance since that date.
Throughout the shutdown period the Newbury team continued to work closely with
all relevant parties and were ready to resume racing Behind Closed Doors
("BCD") on 11th June. To date we have now hosted 8 BCD racedays and have been
pleased to see many betting shops reopen allowing much needed Licenced Betting
Office and Media Rights revenue to resume.
The Rocking Horse Nursery reopened to a reduced number of children on 1st June
and has latterly returned to more normal operating levels achieving 75%
occupancy by the end of August. However, our other two businesses, The Lodge
Hotel and our Conference and Events business remain closed and based on the
current demand projections we are not expecting either of these to be able to
generate positive cashflows until 2021, at the earliest.
We are proud to be have played our part in helping the local West Berkshire
community at this difficult time, through our involvement supporting Age
Concern with Meals on Wheels, preparing and delivering hot food for elderly
people during the coronavirus crisis and also the NHS who we allowed to use,
free of charge, our facilities as a local testing centre.
As a consequence of the above, in the first six months of 2020, total turnover
has decreased by 68%, compared to the same period in 2019, to GBP2.45m (2019: GBP
7.57m). Overall operating losses to 30th June were GBP1.64m (2019: GBP0.30m loss).
Losses after tax for the period were GBP1.68m (2019: GBP0.22m loss).
The results reported were mitigated by a number of actions taken to reduce
costs. In addition to carefully controlling discretionary spend and managing
establishment overheads, staff costs were also reduced substantially. This was
achieved through making use of the Government Coronavirus Job Retention Scheme,
voluntary salary sacrifices by senior management and employees as well as the
Non-Executive Directors waiving their remuneration.
During July the Company also took the difficult decision to enter into a
redundancy programme to reduce the headcount by 19 employees (18% of the
permanent headcount) in order to reduce further anticipated losses due to the
on-going pandemic.
Financing and Liquidity
During the first half we fully drew down the revolving credit facility provided
by National Westminster Bank plc in anticipation of our cash reserves being
depleted during a period of reduced income. Whilst it has not been necessary to
extend these bank facilities, we have agreed with the bank to remove the
existing covenants and replace them with a single measure, based on minimum
liquidity levels, tested through to April 2022, by which time we expect to
receive GBP10.9m (being the final amount in relation to the residential
development at the racecourse) from David Wilson Homes, a wholly owned
subsidiary of Barratt Developments plc.
We have also secured an extension for the final repayment of the loan to
Compton Beauchamp Estates Limited from November 2020 to April 2022, which
coincides with the date when we expect the final payment from David Wilson
Homes.
Outlook
Due to the uncertainty facing our trading activities, the outlook is very
challenging and unpredictable. Whilst the Rocking Horse Nursery now looks set
to return to pre-Covid levels by the end of the year, all other trading
activities continue to be impacted by the pandemic.
Racing BCD enables us to generate some revenues, but the company needs
spectators and hospitality to generate profits. The recent Government
announcement on 9th September curtailing pilot events with spectators brings
into question the previously anticipated return of crowds from 1st October 1st
and casts further uncertainty on our financial performance from racing
activities.
As a result of these uncertainties, as previously stated, it will be some time
until we can return to offering the levels of prize-money to which the industry
enjoyed pre-COVID. We are proud that we have achieved a near doubling of
Executive Contribution over the past 6 years to 31 December 2019 and are
committed to returning to providing substantial levels of prizemoney in the
future, but there inevitably needs to be a correction in the short to medium
term until the Company is able to return to profitability. Despite this, over
the 9 racedays planned for the remainder of 2020 we are committed to delivering
a total prize fund which will be 77% of the 2019 value.
The Board is confident that the Company has the financial resources to trade
through this difficult period. The financial impact of the cessation in racing
and the loss of racegoer attendance is substantial. In a normal year,
admissions, catering and hospitality raceday revenues represents c50% of the
Company's annual turnover. This will result in the business disappointingly
reporting a substantial loss for 2020 and into the future whilst we continue to
be impacted by the pandemic.
In conclusion, on behalf of the board, I would like to thank all the staff for
their continued hard work, resolve and commitment to the business during these
extraordinary challenging times.
DOMINIC J BURKE
Chairman
18 September 2020
CHIEF EXECUTIVE'S REPORT
Performance Review
Due to the impact of the COVID disruption we have experienced a 68% reduction
in group turnover to GBP2.45m (2019: GBP7.57m) in the first half of the year.
Following a weather related abandonment in February, all Racing and Conference
& Events activity ceased on 17th March, due to the Coronavirus pandemic,
resulting in a 72% decrease in overall trading revenues. Likewise the closure
of the Lodge has led to a 69% decrease in hotel revenues. The Nursery, however,
was able to remain open to support key workers children and reopened from 1st
June resulting in a 32% decrease in income, compared with last year.
As a consequence of these closures and disruption, mid-year operating losses
before exceptional items were GBP1.64m which were significantly higher than the
comparative period last year (2019: loss of GBP0.30m).
Exceptional items in the first six months of 2020 were a credit of GBP0.03m
(2019: charge of GBP0.05m) being the fair value movement on the David Wilson
Homes debtor, based upon the expected timing and value of future receipts.
The loss on ordinary activities after tax was GBP1.68m (2019: loss of GBP0.22m).
Racing
The racecourse has hosted 6 racedays to 30th June 2020, 3 of which were Behind
Closed Doors ("BCD") during June. This compares to 11 staged during the same
period in 2019.
Total media related revenues of GBP0.96m, were down 56% on the same period in
2019, due to the reduction in the volume of racedays due to COVID and the
initial BCD racedays taking place before Licensed Betting Offices were able to
reopen.
We are grateful to have received continued significant support from all of our
sponsors for the racedays that we were able to host in the first half of the
year, with particular thanks to Betfair, Mansionbet, Greatwood and West
Berkshire Mencap for their ongoing support.
Catering, Hospitality and Conference & Events
Conference & Events which had a record year in 2019, started 2020 well, with
strong sales on the books. Unfortunately, the COVID shutdown lead to the
cancellation of much of this business in the key trading period and
consequently revenues up to 30th June 2020 were GBP0.15m compared with GBP0.66m in
2019, resulting in an operating loss of GBP0.11m (2019: profit GBP0.10m).
With both racing and Conference & Events significantly reduced, the related
revenues from our catering business in the first six months of 2020 were GBP
0.31m, a decrease of 79% on 2019.
The Lodge
Prior to the lockdown our 36-bedroom onsite hotel was delivering good growth in
occupancy levels and average room rates. However revenues of GBP0.13m in the
first six months of 2020 were down 69% on the same period in 2019, resulting in
an operating loss of GBP0.04m (2019: profit GBP0.07m).
Rocking Horse Nursery
The Rocking Horse Nursery has also been impacted, although being able to reopen
in June has mitigated some of the loss of the revenues. Revenues in the first
six months of 2020 were GBP0.51m, down 32% on the comparative period in 2019 with
an occupancy of 50%, compared with 83% in the same period last year. This
business unit reported an operating profit of GBP0.17m (2019: profit GBP0.29m).
The Development
The major development of the racecourse heartspace was largely completed last
year, with the works on the Annual Members facilities including an upgrade of
the Carnarvon Room in the Berkshire Stand and the creation of a new dedicated
members facility in the Hampshire Stand both completed. The restoration and
refurbishment of the Royal Box, including new racing integrity (camera)
positions and enhanced public facilities on the ground floor, has been
completed during 2020 at the estimated cost of GBP2.5m. All of this sets us up
well to bounce back when crowds are able to return.
The David Wilson Homes (DWH) residential development continues to progress with
the Central Area apartments now fully completed and 100% sold and construction
is continuing in the Eastern Area. Approximately 1,000 homes out of the total
c.1,500 are now built. The final date for the balance of the guaranteed minimum
land value to be paid by DWH is April 2022 and as at 30 June 2020 the balance
outstanding was GBP10.9m.
JULIAN THICK
Chief Executive
18 September 2020
Consolidated Profit and Loss Account
Six months ended 30 June 2020
Note Unaudited Unaudited
6 months 30/ 6 months
06/20 30/06/19
GBP'000 GBP'000
Turnover 8 2,453 7,573
Cost of sales (3,117) (6,525)
Gross loss / profit 8 (664) 1,048
Administrative expenses (971) (1,348)
Operating loss before (1,635) (300)
exceptional items
Exceptional Items 9 34 (46)
Loss before interest and tax (1,601) (346)
Interest receivable and similar 2 4
income
Interest payable and similar (86) (21)
charges
Loss before taxation (1,685) (363)
Tax credit 10 9 142
Loss after taxation (1,676) (221)
Loss per share (basic and (50.1p) (6.6p)
diluted) (Note 9)
All amounts derive from continuing operations
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2020
Unaudited Unaudited
6 months 6 months
30/06/20 30/06/20
GBP'000 GBP'000
Total comprehensive loss for (1,685) (221)
the period
Consolidated Balance Sheet
Six months ended 30 June 2020
Unaudited
6 months Audited
30/06/20 12 months
Note GBP'000 31/12/19
GBP'000
Fixed assets
Tangible assets 12 41,171 40,218
Investments 117 117
Investment properties 13 1,500 1,500
42,788 41,835
Current assets
Stocks 223 272
Debtors: amounts falling due after more than 13,607 13,384
one year
Debtors: amounts falling due within one year 4,020 4,655
Cash at bank and in hand 4,140 1,269
21,990 19,580
Creditors: amounts falling due within one year (8,375) (5,884)
Net current assets 13,615 13,696
Total assets less current liabilities 56,403 55,531
Creditors: amounts falling due after more than (2,607) -
one year
Provisions for liabilities
Provisions (3,552) (3,561)
Pension liability 15 (978) (1,019)
Net assets 49,266 50,951
Capital grants
Deferred capital grants 61 70
Capital and reserves
Called up share capital 14 335 335
Share premium account 10,202 10,202
Revaluation reserve 75 75
Equity reserve 143 143
Profit and loss account surplus 38,450 40,126
Shareholders' funds 49,205 50,881
Net assets 49,266 50,951
The unaudited half year financial statements of Newbury Racecourse PLC, company
registration 00080774, were approved by the Board of Directors on 16 September
2020 and signed on its behalf by:
D J Burke (Chairman)
J M Thick (Chief Executive)
Consolidated Statement of Changes in Equity
At 30 June 2020
GROUP Capital Profit
Share Share redemption Revaluation and loss
Capital GBP Premium Reserve reserve GBP account GBP Total
'000 GBP'000 GBP'000 '000 '000 GBP'000
At 1 January 2019 335 10,202 143 75 39,830 50,585
Loss for the period to 30 - - - - (221) (221)
June 2019
Other comprehensive income - - - - - -
At 30 June 2019 335 10,202 143 75 39,609 50,364
GROUP Share Share Capital Revaluation Profit Total
Capital GBP Premium redemption reserve GBP and loss GBP'000
'000 GBP'000 Reserve '000 account GBP
GBP'000 '000
At 1 January 2020 335 10,202 143 75 40,126 50,881
Loss for the period to 30 - - - - (1,676) (1,676)
June 2020
Other comprehensive income - - - - - -
At 30 June 2020 335 10,202 143 75 38,450 49,205
Consolidated Cash Flow Statement
Six months ended 30 June 2020
Unaudited Unaudited
6 months 30 6 months 30
/06/20 /06/19
GBP000 GBP000
Cash flows from operating activities
Profit for the financial period (1,676) (221)
Adjustments for:
Exceptional items (34) 46
Amortisation of capital grants (9) (9)
Depreciation charges 602 514
Interest paid 86 21
Interest received (2) (4)
Tax credit (9) (142)
Decrease/(Increase) in stocks 49 (47)
Decrease in debtors 338 879
(Decrease)/increase in creditors (398) 790
Corporation tax paid - -
Other associated property receipts 53 12
Pension funding deficit payments (55) (100)
Net cash generated from operating activities
(1,055) 1,739
Cash flows from investing activities
Receipts from David Wilson Homes 84 655
Purchase of fixed assets (1,621) (1,187)
Interest received 2 4
Net cash from investing activities (1,535) (528)
Cash flows from financing activities
Receipt of new bank loan 5,500 -
Interest paid (39) (5)
Net cash used in financing activities 5,461 (5)
Net increase in cash and cash equivalents 2,871 1,206
1,269 2,223
Cash and cash equivalents at beginning of period
Cash and cash equivalents at the end of period 4,140 3,429
Cash and cash equivalents at the end of period comprise:
4,140 3,429
Cash at bank and in hand
4,140 3,429
Advantage has been taken of the exemption under FRS102 not to disclose the
individual cash flow statements of the company and of its subsidiaries.
Notes to the Interim Financial Statements
Six months ended 30 June 2020
1. BASIS OF PREPARATION
Newbury Racecourse PLC (the "Company") is a public company incorporated,
domiciled and registered in England in the UK. The registered number is
00080774 and the registered address is The Racecourse, Newbury, Berkshire, RG14
7NZ.
These Group and parent company financial statements were prepared in accordance
with Financial Reporting Standard 102 The Financial Reporting Standard
applicable in the UK and Republic of Ireland ("FRS 102").
These interim financial statements do not include all of the notes and
disclosures required to comply with FRS102, as they have been prepared in
accordance with the content, recognition and measurement principles for interim
financial reports, Financial Reporting Standard 104 (FRS 104).
The abridged results for the six months ended 30 June 2020 do not constitute
statutory accounts within the meaning of S434 of the Companies Act 2006. The
auditor's report on the accounts of Newbury Racecourse plc for the 12 months to
31 December 2019 was unqualified, did not draw attention to any matters by way
of emphasis and did not contain any statement under S498 (2) or (3) of the
Companies Act 2006 and has been delivered to the Registrar of Companies.
2. SIGNIFICANT ACCOUNTING POLICIES
The Interim Financial Statements have been prepared in accordance with the
accounting policies adopted in the Group's most recent annual financial
statements for the year ended 31 December 2019.
3. ESTIMATES
When preparing the Interim Financial Statements, management undertakes a number
of judgements, estimates and assumptions about recognition and measurement of
assets, liabilities, income and expenses. The actual results may differ from
the judgements, estimates and assumptions made by management, and will seldom
equal the estimated results.
The judgements, estimates and assumptions applied in the Interim Financial
Statements, including the key sources of estimation uncertainty, were the same
as those applied in the Group's last annual financial statements for the year
ended 31 December 2019. The only exceptions are the estimate of income tax
liabilities which is determined in the Interim Financial Statements using the
estimated average annual effective income tax rate applied to the pre-tax
income of the interim period.
4. GOING CONCERN
The Board has undertaken a full and thorough review of the Group's cash flow
forecasts and associated risks and sensitivities, over the next twelve months
and through to the David Wilson Homes longstop receipt date in April 2022. The
extent of this review reflects the current economic climate, particularly
COVID-19, as well as specific financial circumstances of the Group.
Base Case Scenario
The Board reviews the cash flow and working capital requirements in detail on a
frequent basis, whilst under the current COVID-19 circumstances the regularity
of this scrutiny has increased. Key trading assumptions made within the cash
flow projections base case scenario include:
* Racing taking place behind closed doors for the remainder of the 2020 flat
season with capped attendance for the National Hunt racing season through to
Spring 2021. Further capping is anticipated, but at a higher level, for the
2021 flat season, whilst we expect racing and crowds to return to their normal
levels during the Summer. Newbury has already held three race days in June and
will hold an additional three in July and two in August this year, all behind
closed doors.
* The three planned 2020 Party in the Paddock concerts will not take place and
one during 2021 is expected to be lost.
* Licenced Betting Offices have already re-opened on 15th June but will provide
lower revenue streams than planned for the remainder of this year and into
2021.
* The Hotel and Conference & Events businesses will not generate any further
revenue during 2020 and both areas will expect to trade at break-even in 2021.
* Following its provision for key workers only, the Nursery was able to re-open
on 1st June at a lower capacity. However, the business has been able to charge
a proportion of fees to allow others to retain their places. Within our
scenario, full operation will return from 1st September 2020, on a phased
basis, with full levels of profitability returning from the start of 2021.
Alongside these trading businesses the following additional actions have been
taken:
* Since the March lockdown, overheads have been reduced to the minimum required
to keep the respective sites functioning whilst all facilities, except the
Nursery, remained closed.
* Newbury has taken advantage of the Government's Coronavirus Job Retention
Scheme and furloughed two thirds of permanent salaried employees from late
March as well as obtaining business rate relief through to March 2021.
* Many of those staff who have been retained to work agreed to accept voluntary
pay cuts through to the end of September 2020.
* A restructuring of the organisation was implemented during July which will
reduce the on-going overhead costs substantially and allow the business to flex
the workforce as, and when, the trading position improves.
* Agreement has been confirmed with NatWest Bank on the waiving of existing
financial covenants relating to the fully drawn GBP6m credit facility, and
instead replacing them with a single minimum liquidity level covenant of GBP
600,000.
* The final loan payment due to Compton Beauchamp Estates in November 2020 has
been deferred until April 2022. The final minimum land payment of GBP10.9m due
from David Wilson Homes (and guaranteed by Barratt Developments plc) is
expected to be received by April 2022.
* Progression of the disposal of previously targeted non-core assets has
continued.
* 2020 Capex has been restricted to only that already committed plus a
contingency allowance. 2021 Capex reduced to GBP250,000 (currently uncommitted).
All non-essential expenditure has been ceased.
Severe but plausible downside Scenario
The impact of COVID-19 is constantly being assessed and the situation (along
with Government support) is subject to continual change. This makes it very
difficult to assess with any certainty how the situation will evolve. However,
the easing of the Government's lockdown has meant that the racing and
hospitality businesses as well as our nursery operations have been able to plan
accordingly. Whilst the board is confident that the assumptions used in the
base case are reasonable, mitigating plans have been developed should there be
any substantially adverse change to the anticipated liquidity over the period.
This severe but plausible downside scenario considers the potential of a
'second spike' of COVID-19. Under this scenario racing would remain behind
closed doors for the remainder of 2020, with no crowds possible until the start
of next year. If LBO's are required to close under specific circumstances, such
as regionally, then we have modelled that this income reduces to c60% of
current forecasts through to the end of 2020. We have also considered that the
nursery will revert back to supporting key workers only for a period of 3
months. In addition to this, the sale of the previously identified non-core
asset has also been removed from the downside scenario.
In the unlikely scenario that these events do all occur, additional mitigation
plans have been put in place and will be implemented, if required, in order to
ensure that sufficient headroom for liquidity and covenant can continue to be
achieved.
These include:
* A further substantial reduction to 2020 and 2021 Capex to exclude all but
committed Capex.
* Bonuses & LTIP payments being deferred until the cash position is deemed
sufficient.
* Further salary and management structure contingencies being executed
including the extension of voluntary wage reductions by the senior management
team throughout 2021.
* A reduction to prize money and food & beverage facilities provided on race
days (once resumption takes effect).
Other mitigation measures are possible but have not been included in the severe
but plausible downside scenario.
The Company has the ability to draw on funding options provided by the racing
industry and would accelerate the evaluation of a number of material non-core
assets for potential disposal. If a second spike does occur, then it is
assumed that the Government will extend financial support to businesses.
The Group has committed credit facilities, which are in place as an effective
bridging facility through to April 2022, and the Board has concluded that it
has a reasonable expectation that the Group and parent company has adequate
resources, banking facilities and arrangements in place to continue in
operational existence for the foreseeable future and therefore the going
concern basis has been adopted in preparing the financial statements.
Nonetheless, as at the date of this report, the possible impact of COVID-19
provides a level of uncertainty as the situation for the racing industry and
our other businesses continually changes. The Board continues to monitor this
routinely and to develop detailed forecasts in response to the changing
environment and through reviews of mitigation and contingency plans.
5. REVENUE RECOGNITION
Services rendered, raceday income including admissions, catering revenues,
sponsorship and licence fee income is recognised on the relevant raceday.
Annual membership income and box rental is recognised over the period to which
they relate.
Other income streams are also recognised over the period to which they relate,
for example, conference income is recognised on the day of the conference, the
Lodge hotel income is recognised over the duration of the guests stay and
nursery income is recognised as the child attends the nursery.
Sale of goods revenue is recognised for the sale of food and liquor when the
transaction occurs.
6. PROPERTY RECEIPTS
Property receipts are recognised in accordance with the nature of the
transaction being that of an exceptional sale of land. The minimum guaranteed
sum, as set out in the agreement with David Wilson Homes, is recognised at the
point of sale. In accordance with FRS102, at each reporting date, the sum
receivable is re-estimated based upon currently projected land value with the
difference between this value and the discounted net present value recorded in
the profit and loss account.
7. NON FRS FINANCIAL INFORMATION
The consolidated profit and loss account includes measures which are not
accounting measures under UK GAAP which are used to access the financial
performance of the business. These measures which are termed 'non-GAAP' include
reference to EBITDA within the Strategic Report.
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
(a) The condensed set of financial statements has been prepared in accordance
with FRS 104 'Interim Financial Reporting' giving a true and fair value of the
assets, liabilities, financial position and profit or loss of the undertakings
included in the consolidation as a whole as required by DTR 4.2.4R.
(b) The interim report includes a fair review of the information required by
DTR 4.2.7R (indication of important events during the first six months and
description of principal risks and uncertainties for the remaining six months
of the year); and
(c) The interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and changes
therein).
By order of the Board,
J M Thick M Leigh
Chief Executive Finance Director
18 September 2020 18 September 2020
8. SEGMENTAL ANALYSIS
30 June 2020 Profit/(loss)
Before
interest and
Gross exceptional Profit/
Turnover profit items (loss) *Net
GBP'000 GBP'000 GBP'000 before tax Assets
GBP'000 GBP'000
Trading 1,788 (826) (1,787) (1,876) 32,030
Nursery 514 170 170 170 2,674
Lodge 124 (35) (35) (35) 1,363
Property 27 27 17 56 13,190
Total 2,453 (664) (1,635) (1,685) 49,257
30 June 2019 Profit/(loss)
Before
interest and
exceptional Profit/
Turnover Gross items (loss) *Net
GBP'000 profit GBP'000 before tax Assets
GBP'000 GBP'000 GBP'000
Trading 6,397 671 (633) (650) 31,496
Nursery 754 285 285 285 2,700
Lodge 402 72 72 72 1,140
Property 20 20 (24) (70) 15,107
Total 7,573 1,048 (300) (363) 50,443
* Net assets represents fixed assets less deferred income and term loans for
property, nursery and lodge; all working capital is included within the
'Trading' segment.
9. EXCEPTIONAL ITEMS
2020 2019
GBP'000 GBP'000
DWH debtor movement in 39 (46)
fair value
Loss on sale of fixed (5)
assets
Total 34 (46)
In accordance with the audited financial statements, accounting transactions
related to the DWH agreement are considered outside the ordinary course of
business.
10. TAXATION
The tax has been computed in accordance with FRS 104 Interim Financial
Reporting. This requires the company to apply the estimated annual effective
tax rate to the loss for the interim period and recognise a tax credit only to
the extent that the resulting tax asset is more likely than not to reverse.
11. PROFIT PER SHARE
Basic and diluted loss per share of 50.1p is calculated by dividing the loss
attributable to ordinary shareholders for the period ended 30 June 2020 of GBP
1,676,000 (2019: loss GBP221,000) by the weighted average number of ordinary
shares during the period of 3,348,326 (2019: 3,348,326).
12. TANGIBLE FIXED ASSETS
GROUP Fixtures Tractors
Freehold and and motor
property fittings vehicles Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost or valuation
As at 1 January 2020 51,654 9,139 288 61,081
Additions 1,232 305 1,562
Disposals - (7) (7)
As 30 June 2020 52,886 9,437 313 62,636
Depreciation
At 1 January 2020 16,137 4,588 138 20,863
Charge for year 323 269 11 603
Disposals - (1) - (1)
At 30 June 2020 16,460 4,856 149 21,465
Net book value at 30 June 2020 36,426 4,581 164 41,171
Net book value at 31 December 35,517 4,551 150 40,218
2019
In 1959 a revaluation of part of the freehold land at GBP117,864 gave rise to an
excess of GBP75,486 over its cost and this sum is included in the total value of
this asset. The excess on revaluation is credited to the Revaluation Reserve.
The net book value of freehold land and buildings (and excluding outdoor
fixtures) determined by the historical cost convention is GBP36,350,000 (2019: GBP
35,043,000).
In 2018 the board revisited the residual values and useful economic lives of
the land enhancements and major buildings on the site. Savills were instructed
to provide an estimate of the residual values and these were applied in re
estimating the depreciation charge for those assets. There was no further
change in the residual values or useful economic lives during 2019.
13. INVESTMENT PROPERTY
GROUP
2020 2019
GBP'000 GBP'000
At 30 June 2020 1,500 1,112
At 31 December 2019 1,500 1,112
Investment in property relates to freehold interests owned by the Group for the
purpose of generating rental returns and is held at fair value. As at 30 June
2020, no further assessment of fair value had been undertaken.
14. SHARE CAPITAL
2020 2019
GBP'000 GBP'000
Authorised
Ordinary shares of 10p each 600 600
Total 600 600
2020 2019
GBP'000 GBP'000
Allotted and fully paid
Ordinary shares of 10p each 335 335
Total 335 335
15. RETIREMENT BENEFIT OBLIGATIONS
The defined benefit obligation at 30 June 2020 has been determined with
reference to the figures recorded at 31 December 2019, which were calculated in
accordance with FRS102 s.28, as in the Directors' opinion there have not been
any significant fluctuations in the key assumptions. The movement in the
defined benefit deficit relates to the top-up payment made during the period
ended 30 June 2019 of GBP0.05m, net of interest charges accrued.
16. RELATED PARTY TRANSACTIONS
There are no significant changes to the nature and treatment of related party
transactions for the period to those reported in the 2019 Annual Report and
Accounts.
END
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