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Home » Inflation Eats Into Newcastle Racecourse Profits Amid Recovery

Inflation Eats Into Newcastle Racecourse Profits Amid Recovery

Rising fuel and commodity prices have impacted profits at Newcastle Racecourse despite a bumper year of turnover.

New accounts filed for the company behind the racecourse show crowds at 60 events throughout 2022 helped to deliver turnover of more than £20m, up from £15.2m the year previously. Bosses said the relaxation of Covid restrictions meant the venue had been able to host spectators for the full year compared with just six months of events the year before.

But operating profits fell from £573,555 to £478,069 as directors at High Gosforth Park Limited said the war in Ukraine’s influence on global prices of commodities was responsible. Nevertheless, director Mark Spincer said he was optimistic about the future.

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During the year Newcastle Racecourse hosted thousands during Plate Day – its biggest day in the racing calendar – as well as a Winter Wonderland event in November that featured fairground rides, an ice rink, food and drink stalls and a Santa’s grotto. The venue also saw a summer performance staged by pop act Rag ‘n’ Bone Man.

Writing in a report accompanying the accounts, Mr Spincer said: “The group’s principal revenue streams are dependent on British horseracing fixtures being staged. The year was to be one of recovery from Covid-19, with the return of spectators and on course events for the full year.

“The year started strongly. However, the conflict in Ukraine has had a large impact on food and fuel prices forcing the UK CPI rate to double and reach 10.5% by the end of 2022. Further, the increased cost of living has put pressure on UK leisure spending habits upon which the company relies.

“Investment in fixed assets during the year was restricted to essential works, committed projects and the fulfilment of regulatory obligations. All other expenditure was closely monitored. The company made use of additional funding from group companies during the year and this is reflected in the increase in amounts due to group companies at the year end The directors are satisfied with the results for the year and are optimistic for the future.”

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