Annual report and financial statements

The directors present their strategic report on the company for the year ended 31 December 2025.

Ascot Racecourse Limited (the “company”) is the principal operating company of the Ascot Authority (Holdings) Limited ("AAHL") group, leasing and owning assets necessary to run racing at Ascot, holding all intellectual property assets and entering into associated contracts relating to the practice, protection, development and exploitation of the Ascot and Royal Ascot brands. It uses these assets to run all racecourse operations at Ascot.

The AAHL group monitors performance as a whole and a complete review of the business and future prospects of the company is included in the Directors’ Report of the ultimate parent company’s financial statements, Ascot Authority (Holdings) Limited, company registered no: 04274507.

There were 26 racedays (18 flat, 8 jumps) in 2025, including QIPCO British Champions Day which Ascot hosts on behalf of British Champions’ Series Limited. All of the 26 scheduled racedays took place as planned (2024: One of the 26 was abandoned due to frozen ground). Attendance increased by 3.7% to 532,956 (2024: 513,869). 14 of the 38 (2024: 13 of 36) British Group One Flat races were held at Ascot between June and October, of which five (2024: four) were on QIPCO British Champions Day. Three of the 38 (2024: two of 39) British Grade One Jumps races were held at Ascot in January, February and December.

Turnover increased from £109.5m in 2024 to £114.8m in 2025. Royal Ascot 2025 had an attendance of 286,541 (2024: 273,526). Profit before taxation was £16.8m (2024: profit before taxation of £13.9m) and profit after tax for the financial year was £12.4m (2024: profit after taxation of £11.2m). Profit increased during the year mainly due to the positive performance of Royal Ascot.

At the year end the company had net assets of £4.0m (2024: £-8.4m net liabilities).

Capital expenditure projects during the year included continual upgrades and improvements to the Grandstand and wider site, as well as essential projects, committed projects and those involving statutory obligations. In addition to capital expenditure the Planned Preventative Maintenance (PPM) programme continued, resulting in £2.1m (2024: £1.6m) of expenditure which was expensed to the profit and loss account.

The board is committed to a policy of developing the business across a number of income streams and activities. The business is focussed on investing in customer experience, facilities and racing.

Turnover and profit before tax are the key financial performance indicators used by the directors to monitor the performance of the business. Quality of racing, attendance and customer experience are the key non-financial indicators used by management. Performance on these KPIs is described in the review of business above.

Ascot Authority (Holdings) Limited presents a Streamlined Energy and Carbon Reporting (SECR) disclosure for the group, including the company, for the year ended 31 December 2025. The company is committed to ensuring that, as far as is reasonably practical, any detrimental effects of its activities upon the environment are minimised. No waste goes to landfill, all horse waste is composted and reused on site and mains water is rarely used to irrigate the course. As much waste as possible is recycled, including glass, wood, carpet, food and paper.

The principal risks and uncertainties facing the company are:

The directors regularly review these risks and take mitigating actions when appropriate.

The Companies (Miscellaneous Reporting) Regulations 2018 require directors to explain how they considered the interests of key stakeholders and the broader matters set out in section 172(1) (a) to (f) of the Companies Act 2006 (‘s172’) when performing their duty to promote the success of the company under s172. This includes considering the interests of other stakeholders which will have an impact on the long-term success of the company. This s172 statement explains how the directors:

The s172 statement focuses on matters of strategic importance to Ascot, and the level of information disclosed is consistent with the size and the complexity of the business.

General confirmation of Directors’ duties

Ascot’s board has a clear framework for determining the matters within its remit and has approved terms of reference for the matters delegated to its committees. Certain financial and strategic thresholds have been determined to identify matters requiring board consideration and approval. When making decisions, each director ensures that he/she acts in the way they consider, in good faith, would most likely promote the success of the company. Based on Ascot’s purpose under the Ascot Authority Act 1913, to further and promote the welfare and prosperity of the Ascot races, the strategy set by the board is intended to concentrate on four themes: values, assets and infrastructure, customers and communities.

The directors recognise that Ascot employees are fundamental and core to the business and the delivery of its strategic ambitions. The directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible, from ensuring that Ascot remains a responsible employer, to pay and benefits, health and safety and the workplace environment.

Delivering Ascot’s strategy requires strong mutually beneficial relationships with suppliers, customers, horsemen, the wider racing industry and other stakeholders. Ascot seeks the promotion and application of certain principles with its suppliers and uses these principles as an important factor in the decision to enter into or remain in such relationships. The company continuously assesses the priorities related to its customers and partners, seeking feedback on its racedays and events and using the feedback to develop future strategy.

Ascot, through its “Ascot Racecourse Supports” initiative, assists selected local and equine charities. Local charities, community groups and businesses benefit each year via financial contributions, exposure on Ascot’s national and international platform and complimentary tickets for use as raffle/auction prizes.

The board periodically reviews and approves clear frameworks, such as its Modern Slavery Statement, to ensure that its high standards are maintained both within Ascot and the business relationships it maintains. This, complemented by the ways the board is informed and monitors compliance with relevant governance standards, helps ensure that Ascot acts in a way that promotes high standards of business conduct.

Culture

The board recognises that it has an important role in assessing and monitoring that the desired culture is embedded in the values, attitudes and behaviours of the business, including in its activities and stakeholder relationships. The board has established the ‘Ascot Way’ values, recognising a rich heritage and a dedication to delivering the very best racing experience.

Stakeholder engagement (including employee engagement)

The board recognises the important role Ascot has to play in the community and is deeply committed to collaboration and engagement with its stakeholders. This commitment is at the heart of Ascot’s strategic ambitions. The board strongly believes that Ascot achieves success by working together with its customers, communities, business partners, horsemen, the wider racing industry and other stakeholders.

Principal decisions

Principal decisions taken by the board are defined as those decisions in 2025 that are of a strategic nature and that are significant to key stakeholder groups.

On behalf of the Board

The directors present their report, together with the audited financial statements, on the company for the year ended 31 December 2025.

The profit for the financial year is £12.4m (2024: £11.2m profit). The directors do not recommend the payment of a dividend for the year ended 31 December 2025 (2024: £nil).

The company meets its day-to-day working capital requirements through its bank facilities. Ascot Authority (Holdings) Limited has provided the company with an undertaking that for at least 12 months from the date of approval of these financial statements it will continue to make available such funds as are needed by the company. This will enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment. The company’s forecasts and projections show that the company should be able to operate within the level of its current facilities for at least 12 months from the date of the signing of the financial statements.

After making appropriate enquiries, and considering the uncertainties described above, and determining the ability to settle liabilities as they fall due, including the repayment of the bank loan if required, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider it is appropriate to adopt the going concern basis in preparing the financial statements.

Royal Ascot (run over five days in June) normally has the highest attendance of all UK race meetings and the company remains confident of the continued success of this key race meeting and of the business.

Consistent with the Ascot Authority’s purpose, the company is committed to investment in future prize money and the racecourse facilities in order to retain its status as one of the world’s premier sporting venues, and to continue to attract racegoers and leading horses, trainers and jockeys from both the UK and the rest of the world.

Ascot’s facilities are host to a number of non-raceday events, including conferences, meetings, weddings, dinners and exhibitions.

The company plans to maintain a focus on building raceday sales income and on developing non-raceday conference and events revenues as a source of future growth.

The directors of the company who held office during the year and up to the date of the signing of the financial statements,

unless otherwise stated, were as follows:

As permitted by the Articles of Association, the Directors have the benefit of an indemnity provided by Ascot Authority (Holdings) Limited for directors and officers of group companies which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force

The company has interest bearing liabilities principally to its ultimate parent company, Ascot Authority (Holdings) Limited. Ascot Authority (Holdings) Limited has a policy of maintaining the majority of its debt at a fixed rate where possible to ensure certainty of future cash flows due to interest payable and charges subsidiaries interest on financing balances at 0.5% above the rate paid to the external lender. The company has some credit risk which it mitigates through robust credit control procedures. The directors also undertake regular reviews of a comprehensive risk register which deals with a number of financial and non-financial risks faced by the business.

Ascot Authority (Holdings) Limited presents a Streamlined Energy and Carbon Reporting (SECR) disclosure for the group, including the company, for the year ended 31 December 2025.

The directors consider it important to foster the company’s business relationships with suppliers, customers, horsemen and the wider racing industry, and others. The principal decisions taken by the company during the financial year are listed in the Section (172) Statement in the Strategic Report, including the long-term consequences of the decisions and the accommodations/mitigations considered in reaching those decisions.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law).

Under company law, directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:

The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.

In the case of each director in office at the date the directors' report is approved:

On behalf of the Board

Independent auditors’ report to the members of Ascot Racecourse Limited

Report on the audit of the financial statements

Opinion

We have audited the financial statements, included within the Annual report and financial statements (the "Annual Report"), which comprise:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Strategic report and Directors' report, we also considered whether the disclosures required by the Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

Strategic report and Directors' report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors' report for the year ended 31 December 2025 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and Directors' report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of Directors' responsibilities in respect of the financial statements, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and the Companies Act 2006, and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting of inappropriate journal entries to manipulate financial results. Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

Sam Taylor (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

Reading

19 May 2026

All results derive from continuing operations.

The company has no other comprehensive income or expense other than the results above, and therefore no separate statement of total comprehensive income has been presented.

The notes on pages 13 to 23 are an integral part of these financial statements.

The financial statements on pages 10 to 23 were approved by the board of directors and were signed on its behalf by:

Registered no: 04320977

Date: 19 May 2026

Ascot Racecourse Limited (‘the company’) is a private company limited by shares and is incorporated in the United Kingdom. The address of its registered office is Ascot Racecourse, Ascot, Berkshire, England SL5 7JX and the financial statements are available at this address.

The financial statements of Ascot Racecourse Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”) and the Companies Act 2006.

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.

These financial statements are prepared on a going concern basis under the historical cost convention.

b) Going Concern

These financial statements have been prepared on a going concern basis, which assumes that the company will be able to meet its obligations as and when they fall due for the foreseeable future.

The company meets its day-to-day working capital requirements through its bank facilities. Ascot Authority (Holdings) Limited has provided the company with an undertaking that for at least 12 months from the date of approval of these financial statements it will continue to make available such funds as are needed by the company. The group’s forecasts and projections show that the company should be able to operate within the level of its current facilities for at least 12 months from the date of the signing of the financial statements

After making appropriate enquiries, and considering the uncertainties described above, and determining the ability to settle liabilities as they fall due, including the repayment of the bank loan if required, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The company operates under a lease granted from Ascot Racecourse Estates Limited. On 20 April 2023 a new lease was agreed with Ascot Racecourse Estates Limited on the same terms as the previous lease and over a period coterminous with Ascot Racecourse Estates Limited’s lease from Ascot Authority, to 2045

After making appropriate enquiries and considering the uncertainties described above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider it is appropriate to adopt the going concern basis in preparing the financial statements.

c) Exemptions for qualifying entities under FRS102

As permitted by FRS 102 paragraphs 1.11 and 1.12, having previously obtained shareholder approval to do so, the company has made use of the exemptions from:

The company is a wholly owned subsidiary of Ascot Authority (Holdings) Limited. It is included in the consolidated financial statements of Ascot Authority (Holdings) Limited which are publicly available. These financial statements are the company’s separate financial statements.

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes, from operating and managing the racecourse and its facilities. Admissions and hospitality income are recognised on the day of the event to which they relate. Annual membership, box rental and sponsorship income are spread over the term to which they relate. Differences between cash received and income recognised are included within deferred income or accrued income as appropriate. The company’s turnover includes all sales of catering made directly by the company (fine dining and box catering) and by Sodexo, the main catering agent (retail food and drink) together with commission received from other third party caterers. Turnover includes Horserace Betting Levy Board revenue grants – see paragraph (k).

If government grants are received, they are treated under the accrual model, FRS 102 paragraph 24.5d, where the grant is recognised as other operating income on a systematic basis over the periods in which the related costs, for which the grant is intended to compensate, are recognised.

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives, as follows:

If there is an indication that the residual value or useful life of an intangible asset has changed, the amortisation of that asset is revised prospectively to reflect the new expectations. Intangible assets in course of construction are stated at cost. These assets are not amortised until they are available for use.

Tangible fixed assets are stated at the cost of purchase or construction less accumulated depreciation and impairment losses. Borrowing costs are not capitalised within the value of fixed assets.

Depreciation is calculated so as to write off the cost of tangible fixed assets, less their estimated residual values, on a straight line basis over the expected useful economic lives of the assets concerned (or the length of the site lease where shorter), as follows:

Assets in course of construction are stated at cost. These assets are not depreciated until they are available for use. No depreciation is charged on freehold land.

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

At each reporting date non-financial assets, such as intangible and tangible fixed assets, are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount and an impairment loss is recognised immediately in the profit and loss account.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate, but not in excess of the amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised. A reversal of an impairment loss is recognised in the profit and loss account.

Stock, including bloodstock, is stated at the lower of cost and net realisable value.

The Horserace Betting Levy Board (HBLB) provides funding to racecourses which is used to support racing activities. Grants are earned from racing on a fixture-by-fixture basis. Racecourses may elect to waive the income in favour of a transfer to a capital credits account to be used, at the HBLB’s discretion, against expenditure on HBLB approved capital projects.

Grants taken as revenue grants are recognised within turnover when the race meeting to which they relate is held.

Grants waived in favour of capital credits are accounted for when drawn, using the accruals method, as a deferred credit that is released to the profit and loss account, matched against the depreciation over the expected useful economic lives of the assets to which they relate.

Costs in respect of operating leases are charged to the profit and loss account on a straight line basis over the lease term. The company has no finance leases or hire purchase agreements.

m) Taxation

Taxation expense for the year comprises current and deferred tax recognised in the reporting year, reflected in the profit and loss account.

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the year or prior years using tax rates and laws that have been enacted or substantively enacted by the year end. The directors periodically evaluate positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. They establish provisions where appropriate on the basis of the amounts expected to be paid to the tax authorities.

Deferred tax, which arises from timing differences between taxable profits and total comprehensive income as stated in the financial statements, is recognised on all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Current or deferred tax assets and liabilities are not discounted.

The company provides a range of benefits to employees including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans. Short term benefits, including holiday pay and similar non-monetary benefits, are recognised as an expense in the year in which the service is rendered.

The company operates defined contribution pension plans for its employees, under which the company pays fixed contributions into a separate entity. Once contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. The assets of the plans are held separately from the company in independently administered personal pension funds.

The company operates a number of annual bonus plans for employees and a long term incentive scheme in respect of some of the directors. An expense is recognised in the profit and loss account where the company has a legal or constructive obligation to make payments under the plans as a result of past events.

Termination benefits are employee benefits payable as a result of either the company’s decision to terminate an employee’s employment before the normal retirement date or an employee’s decision to accept voluntary redundancy in exchange for those benefits, in accordance with FRS 102 paragraph 28.1(d). The company recognises such payments as a liability and an expense only when the company is demonstrably committed either to terminate the employment of an employee or group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy under FRS 102 paragraph 28.34.

The company has chosen to adopt Sections 11 and 12 of FRS102 in respect of financial instruments. Basic financial instruments, including trade and other receivables and payables, bank loans and cash and bank balances are recognised at transaction price less transaction costs. Such assets are subsequently carried at amortised cost using the effective interest method.

The company is exempt under the terms of FRS102 paragraph 33.1 from disclosing related party transactions with entities that are part of Ascot Authority (Holdings) Limited group.

The company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transaction on the company financial statements.

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. There are no critical accounting judgements, estimates and assumptions that are likely to affect the current or future financial years.

The turnover is attributable to the principal activities of the company and is derived wholly within the United Kingdom. Turnover is derived from only one class of business.

Revenue grants received from the Horserace Betting Levy Board (HBLB) and included within turnover were £4.5m (2024: £4.4m). No capital grant (2024: £nil) was received from the HBLB.

The directors have agreed with the company's auditors that the auditor's liability to damages for breach of duty in relation to the audit of the company's financial statements for the year to 31 December 2025 should be limited to the greater of £5.0m or five times the auditor's fees, and that in any event the auditor's liability for damages should be limited to that part of any loss suffered by the company as is just and equitable having regard to the extent to which the auditor, the company and any third parties are responsible for the loss in question. The shareholders waived the need for approval of this limited liability agreement, as required by the Companies Act 2006, by a resolution dated 24 September 2024.

The employment costs disclosed above take into account amounts recharged by Ascot Racecourse Limited to Ascot Authority (Holdings) Limited, Ascot Racecourse Betting & Gaming Limited, Ascot Racecourse Estates Limited and Ascot Racecourse Estates (Property Developments) Limited to reflect the services provided by the executive directors to these companies and a management charge to reflect the service of other staff to these group companies.

Employees

The average monthly number of persons (including directors) employed by the company during the year was:

Directors

The directors' emoluments were as follows:

Post-employment benefits accrued to five directors (2024: five) under money purchase arrangements. Four directors are accruing long-term incentive scheme benefits (2024: four). Compensation for loss of office of £nil (2024: £144k) is included within aggregate emoluments.

Highest paid directors' emoluments

Post-employment benefits of £44k (2024: £nil) were accrued by the highest paid director under money purchase or defined benefit pension arrangements.

Compensation for loss of office of £nil (2024: £144k) is included within aggregate emoluments.

b) Reconciliation of tax charge/(income)

Tax assessed for the year is higher (2024: lower) than the standard rate of corporation tax in the United Kingdom for the year ended 31 December 2025 of 25.0% (2024: 25.0%). The differences are explained below:

Amortisation of intangible fixed assets is included in administrative expenses.

At 31 December 2025 the company had a 28.2% (2024: 28.2%) equity investment in British Champions’ Series Limited (BCS), an initiative to create an attractive narrative for the elite UK flat races and to promote and run QIPCO British Champions Day (QBCD) as a finale to the flat racing season held at Ascot in October. The registered office of British Champions’ Series Limited is Ascot Racecourse, High Street, Ascot, England, SL5 7JX.

The share of the net profit for the year was as follows:

The company’s share of net assets of BCS, recognised within investments was as follows:

Loans to associate

Ascot Racecourse Limited, along with the other BCS shareholders, provided significant debt funding to finance the operations of BCS (including the QBCD prize fund) over its start-up phase. These loans were unsecured and repayable out of BCS surplus funds and were fully repaid by 31 December 2024.

The net book value of loans to BCS is as follows:

Repayment of the loans commenced in 2016 and all have been repaid in full. The company is not committed to any further loans to BCS.

The company owns five racehorses (2024: five), which it races for the enjoyment of members of its proprietary club, The Royal Ascot Racing Club.

Amounts owed from group undertakings are in respect of non-instalment debts which are unsecured and repayable by 2045. Interest is charged at 0.5% (2024: 0.5%) above the rate paid by Ascot Authority (Holdings) Limited to the external lender.

Amounts owed to group undertakings, which have been repaid in the year, are in respect of non-instalment debts which are unsecured and repayable by 2045. Interest is charged at 0.5% (2024: 0.5%) above the rate paid by Ascot Authority (Holdings) Limited to the external lender.

The company has unrelieved tax losses from trading. Unrelieved tax losses at 31 December 2025 amount to £nil (2024: £nil).

Movements on capital grants received from the Horserace Betting Levy Board and capital contributions from other sources are as follows:

Under the terms of agreements with the other third parties, reducing amounts of those contributions are repayable should the contracts with the third parties for the supply of services be terminated. At 31 December 2025, the amount repayable in such circumstances was £nil (2024: £nil).

Called-up share capital - represents the nominal value of shares that have been issued.

Share premium account - includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Profit and loss account - includes all current and prior year retained profits and losses.

Movements in the above reserves are shown in the Statement of changes in equity.

At 31 December the company had total commitments under non-cancellable operating leases of assets for each of the following years:

On 20 April 2023 a new lease was agreed with Ascot Racecourse Estates Limited on the same terms as the previous lease and over a period coterminous with Ascot Racecourse Estates Limited’s lease from Ascot Authority, to 2045.

Transactions and balances with related parties are as follows:

British Champions’ Series Limited (BCS) is an associate undertaking and Ascot Racecourse hosts QIPCO British Champions Day (QBCD) for BCS. Ascot Racecourse Limited collects income and incurs expenditure for QBCD, which it passes over to BCS. This income and expenditure is not included above. The sales and debtors relate to a hosting and management fee and boxes and restaurants that BCS book at Ascot Racecourse.

Ascot Racecourse Limited, along with the other BCS shareholders, has provided debt funding to finance the operations of BCS (including the British Champions Day prize fund). These loans have been repaid in full.

The company’s other related party transactions were with wholly owned subsidiaries and so have not been disclosed.

The immediate parent undertaking is Ascot Authority (Holdings) Limited. Copies of the consolidated financial statements of Ascot Authority (Holdings) Limited are available from its registered office: The Company Secretary, Ascot Racecourse, Ascot, Berkshire SL5 7JX.

Sir Francis Brooke Bt., H M C Morley and Lady Celina Carter are non-beneficial Trustees of the Ascot Authority, a body which owns the entire share capital of Ascot Authority (Holdings) Limited. The Ascot Authority is therefore the ultimate parent undertaking of the company and the above Trustees are therefore the ultimate controlling parties. The Ascot Authority is the parent of the only group including the company. The Ascot Authority is not required to prepare consolidated financial statements, its principal place of business is Ascot Racecourse, Ascot, Berkshire SL5 7JX.