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Company registration number: 00223275

Taunton Racecourse Company Limited

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2024

 

Taunton Racecourse Company Limited

Contents

Chairman's Statement

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

Taunton Racecourse Company Limited

Chairman's Statement for the Year Ended 31 May 2024

2024 has been another successful year for the company, not only financially but also in terms of competitive racing and continued development of the facilities through reinvestment.

The year has seen the completion of the syndicate room which will enable us to improve our offering for the ever increasing number of syndicates which enable more individuals to enjoy being an owner. The room will also provide a very good commercial opportunity for functions on non-race days.

The other major project has been around irrigation and the installation of two new bore holes and an additional irrigator which will enable us to water 365 days a year and at a greater volume. The impact
of this will be to ensure that we do not lose fixtures through dry ground in the autumn and early spring. Your board views this as an important future proofing for racing at Taunton.

Our financial position continues to be strong and group pre tax profits, which include the return from Orchard Restaurant Limited our wholly owned subsidiary are 328K for the year. However, caution is always needed as on a like for like basis after allowing for one off items the result is actually slightly down on the previous two years and racing revenues in particular are under continual pressure. We aim to maintain an appropriate level of cash reserves which will be used for future improvements to the facilities and to ensure that we are in a position to maintain prize money at the levels which attract good fields and maintain our reputation with owners and trainers. Orchard Restaurant continues to perform well in terms of commercial income from non-racing activities and the board are always alert to the need to consider other commercial opportunities to use the excellent facilities.

I also wish to record our appreciation and thanks to our staff who are a vital part of our success and who always go above and beyond when dealing with members, guests and other commercial partners Finally, I have to sadly record the death of one of our long serving board colleagues, Chris Dunn. Chris and his family before him have been and remain among the strongest supporters of racing at Taunton and the company generally. His input and contribution will be greatly missed, although we are delighted that his widow Heather will maintain the family tradition by serving as a vice president.

During the year we welcomed Guy Henderson to our board who brings with him valuable experience from Wincanton and Ascot racecourses.

In summary, the board feel that we are well positioned in all respects to deal with the challenges which lie ahead both in general business terms, but also the various issues around racing in general.


David Griffin

19 September 2024

 

 

Taunton Racecourse Company Limited

(Registration number: 00223275)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

2,708,470

2,647,165

Investment property

5

295,000

290,000

Investments

6

2

2

Other financial assets

7

18,930

36,186

 

3,022,402

2,973,353

Current assets

 

Debtors

8

315,490

583,348

Cash at bank and in hand

 

614,659

237,997

 

930,149

821,345

Creditors: Amounts falling due within one year

9

(442,052)

(318,813)

Net current assets

 

488,097

502,532

Total assets less current liabilities

 

3,510,499

3,475,885

Grant account

10

(1,549,831)

(1,629,142)

Provisions for liabilities

 

Deferred tax liabilities

 

(130,928)

(98,562)

Net assets

 

1,829,740

1,748,181

Capital and reserves

 

Called up share capital

4,000

4,000

Share premium reserve

1,503

1,503

Capital redemption reserve

167

167

Fair value reserve

 

118,220

118,220

Profit and loss account

1,705,850

1,624,291

Total equity

 

1,829,740

1,748,181

 

Taunton Racecourse Company Limited

(Registration number: 00223275)
Balance Sheet as at 31 May 2024

For the financial year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 20 September 2024 and signed on its behalf by:
 


D H Griffin
Chairman

   
 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Orchard Portman
Shoreditch
Taunton
Somerset
TA3 7BL

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts..

Turnover recognition

Turnover represents amounts receivable by the company for the supply of media rights, the receipt of revenue incentives and the provision of goods or services to race-goers and other parties. Turnover is shown net of VAT.

The largest components of turnover are admission income, income from the suppply of race day media rights, income from sponsors and revenue incentives received from the Horserace Betting Levy Board (HBLB), all recognised when the related race meeting has taken place; it also includes non-race day media rights, recognised when contractually due. Turnover includes club membership income, recognised on a time-apportioned basis across the period to which it relates.

Other operating income comprises lettings and rental income, recognised when it relates to an event that has taken place or where contractually due; it also includes the amortisation of capital grants, recognised at the same rate at which related assets are being depreciated, other government grants, recognised as related costs are included, and management charges receivable, recognised when due.

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2024

Government grants

Revenue grants in the form of racing incentives are received from the Horserace Betting Levy Board (HBLB) and accounted for as turnover.

Under the HBLB's capital credit scheme, racecourses can elect to claim capital grants as an alternative to revenue grants. Capital grants receivable under this scheme are recognised as a debtor and as deferred income (by a credit to the grant account). When a capital grant is approved and paid by the HBLB, the debtor is reduced and credits are made to the profit and loss account to amortise the related grant by equal instalments which match the period over which the relevant fixed assets are depreciated.

Other government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors or deferred income within the balance sheet.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of tangible assets

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land

Not depreciated

Stands and buildings

2 - 5% straight line basis

Course improvements

5% straight line basis

Machinery, fittings and equipment

15% straight line basis

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2024

Motor vehicles

25% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate. Fair values are determined periodically by an external valuer, and confirmed annually by the directors. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the profit or loss, and equivalent transfer is made between the fair value reserve and profit and loss reserve. Income earned from investment property is recognised in Other operating income when receivable.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 13 (2023 - 13).

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2024

4

Tangible assets

Freehold land
£

Stands and buildings
 £

Course improvements
 £

Machinery, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 June 2023

421,071

3,348,953

811,780

393,608

112,818

5,088,230

Additions

-

147,372

17,015

249

25,350

189,986

At 31 May 2024

421,071

3,496,325

828,795

393,857

138,168

5,278,216

Depreciation

At 1 June 2023

-

1,435,077

549,576

354,656

101,756

2,441,065

Charge for the year

-

77,698

22,610

18,347

10,026

128,681

At 31 May 2024

-

1,512,775

572,186

373,003

111,782

2,569,746

Carrying amount

At 31 May 2024

421,071

1,983,550

256,609

20,854

26,386

2,708,470

At 31 May 2023

421,071

1,913,876

262,204

38,952

11,062

2,647,165

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2024

5

Investment properties

2024
 £

At 1 June 2023

290,000

Additions

5,000

At 31 May 2024

295,000

The investment properties class of fixed assets was valued at £295,000 by the directors, who are internal to the company.

There has been no valuation of investment property by an independent valuer.

6

Investments

2024
£

2023
£

Investments in subsidiaries

2

2

Subsidiaries

£

Cost or valuation

At 1 June 2023

2

Provision

Carrying amount

At 31 May 2024

2

At 31 May 2023

2

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2024

7

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 June 2023

18,930

18,930

At 31 May 2024

18,930

18,930

Impairment

Carrying amount

At 31 May 2024

18,930

18,930

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2024

8

Debtors

Current

2024
£

2023
£

Trade debtors

168,618

557,314

Prepayments

45,428

25,434

Other debtors

101,444

600

 

315,490

583,348

Details of non-current trade and other debtors

£84,987 (2023 -£185,260) of Trade debtors is classified as non current. These amounts represent capital grants receivable from the Horserace Betting Levy Board, which will be paid at their discretion. An equivalent deferred income creditor is recognised within the Grant account.

9

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Trade creditors

 

9,173

65,603

Amounts owed to group undertakings and undertakings in which the company has a participating interest

199,355

21,563

Taxation and social security

 

100,758

45,753

Other creditors

 

132,766

185,894

 

442,052

318,813

10

Grant account

Grant account
£

At 1 June 2023

1,629,142

Amortisation released to profit for the year

(79,311)

At 31 May 2024

1,549,831