The directors present their strategic report of the company and the group for the year ended 31 December 2025.
The group’s result in 2025 was a profit for the financial year of £1,046k (2024 £931k). A significant factor is the mandatory FRS 102 adjustment of £452k profit (2024 £276k) that detracts attention from the underlying business but highlights the volatility of the stock market in which we hold listed investments. The Capital Grants decreased £120k (2024 decreased £69k). Our key performance indicator excludes the FRS adjustment and adds the capital grants movement making £474k profit for 2025 (£585k profit for 2024).
Subsidiary company, Leicester Racecourse Co., Ltd (“LRC”)
29 fixtures were scheduled for 2025 (the same as in 2024). 2 fixtures and 2 races were abandoned due to bad weather in 2025 (4 fixtures in 2024). 184 races were run (165 in 2024).
The record-breaking wet weather of 2023 and 2024 continued to the end of January 2025 when 2 fixtures were abandoned. The pendulum then swung the other way as the next 9 months nearly reached LRC’s driest record. So, the start of the jump season in November lost 2 steeplechases as the ground was too firm to race. LRC invested in renewing and extending its track drainage and widened part of the track in the first year of phased track improvements.
The 2 extra racedays and 19 extra races in the year helped improve the raceday income for the year.
LRC’s media rights income continued to modestly grow due to the media rights partner’s prudent strategy despite being under pressure from the general decline of betting turnover in the horse racing industry. Raceday attendances and income from racegoers were very marginally better in 2025. Non-raceday results were good. Inflationary pressures continued to increase many costs, although costs in 2025 included an expensive refurbishment of the hospitality washrooms. Overall, it was another tough trading year.
No Capital Credits were claimed in 2025 or in 2024.
Despite disappointing financial results for the year, the cashflow and balance sheet remain strong.
Associated company, Wetherby Steeplechase Committee Ltd (“Wetherby”)
Wetherby contributed a £70k profit to our Shareholders’ funds (2024 a loss of £31k) and £8k decrease in Capital Grants (2024 increase of £26k). The group’s total return from Wetherby, an increase of £72k, was an average result, up from last year’s worst result of £5k. In their year to 30 September 2025, 1 of the scheduled 18 fixtures was abandoned for bad weather (in 2024, 4 of the 18 fixtures were abandoned). Racing 3 more days greatly helped to improve the profits.
Holding company (“LRH”)
Although not a new record, 2025 was a good profit for LRH. Rental income continued to grow largely due to our golf tenant continuing to grow its business. The depreciation charges have been lower since the Kube’s 10th anniversary last year. Returns from investments remain good, but are skewed by timing differences for dividend payment dates. Comments on the revaluations under FRS 102 are in the first paragraph above.
Group
It has been another challenging year for the racing industry. The FRS adjustment and good profits in LRH hide average results in Wetherby and the continued poor racing results in LRC.
The Directors feel that we shall continue to experience difficult issues from racing industry problems and the UK’s weak economic state. However, we are well positioned to cope with these headwinds with a robust operating plan supported by a healthy cashflow and a strong balance sheet.
The group's activities expose it to a variety of risks.
The principal risk is the generation of income streams. This is largely managed by funding via the HBLB and contracts for media rights. The group has TV rights contracts that run to 31 March 2028, following renewals agreed in 2021.
The directors consider that the group is financially well placed by having no external debt.
Continual efforts are being made to maximise both raceday and non-raceday income, and to control expenditure.
On behalf of the board
The directors present their report and financial statements of the company and the group for the year ended 31 December 2025.
The results for the year are set out on page 10.
A dividend of £2.60/share totalling £136,258 was paid in 2025 (2024: £2.60/share totalling £136,258). In accordance with FRS 102 section 32 "Events after the balance sheet date", the company no longer provides for dividends proposed but not approved by the balance sheet date. The directors expect to propose a dividend which will be subject to the approval of the shareholders at the AGM.
Details of the proposed dividend are contained in the Chairman's statement to shareholders and will be circulated with the relevant papers for the AGM.
The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.
The group uses financial instruments, which include cash resources and listed investments. The main risks arising from the group's financial instruments are price, liquidity and cash flow risk. The directors regularly review and agree policies for the mitigation of these risks.
The racing industry continues to be unsettled by a combination of Government action and inaction. The 2025 Budget hit UK bookmakers. This disrupted the business of our media rights customers and may impact future revenue streams. There continues to be uncertainty over the Gambling Act reform, especially how affordability checks will be carried out. It is estimated that at least 15% of all UK horse racing betting turnover has moved to the black market (i.e. with non-UK unregulated bookies). This results in the “double whammy” of reduced Levy revenue and reduced media rights income to the horse racing industry. Since the FOBT regulations changed on 1 April 2019 (when the Government reduced the maximum bet on FOBTs from £100 to £2) about 40% of the UK’s LBOs (licenced betting offices) have closed. These issues have had a significant impact on betting and consequentially our media rights income from bookmakers.
BHA appointed a new Chairman, Lord Charles Allen in 2025. He tried to change the governance structure and include a commercial remit. However, these changes were not agreed and Lord Allen resigned in March 2026. The search for a new Chairman will recommence in 2026.
The RCA’s Chief Executive, David Armstrong, stepped down at the end of 2025 after 7 years. Alex Eade will be the next CEO in 2026. In addition, Sir Philip Davies will join the RCA Board as a Non-Executive Director in 2026.
The weather is, of course, outside our control but is highly influential to an outdoor sport. Although we hope for fewer extremes and no new records in 2026, LRC continues to plan improvements to its tracks, particularly for drainage. In late Summer LRC is planning its second improvements phase.
Issues from geopolitical problems continue. Just as the UK economy seemed poised for modest recovery and lower interest rates, the USA and Israel war against Iran has caused new volatility into world markets. The UK now faces renewed inflationary pressures, driven by higher energy costs, and probably delayed interest rate cuts with even possibly interest rate increases.
LRC is currently significantly upgrading its Owners and Trainers facilities that will open on 14 July 2026. It is planned to be amongst the best facilities for a small independent course.
In 2026 we start negotiating the renewal of our media rights contract (that currently runs to 2028) that is of fundamental importance to our future income.
LRC will continue to add value to events, in particular on its premium racedays. The highest profile raceday in 2026 will be the Ladies Day on Saturday 4 July. In addition to racing there will be live music headlined by Heather Small with a DJ set and support from Go West.
Wetherby is forecasting a good strong year.
Despite many challenges the directors believe that the group is in a satisfactory position, both financially and contractually, to ensure the continuing health of the business. The directors are confident with the continued strength of the group due to prudent management of its operations supported by healthy cashflow and reserves.
Newby Castleman LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Leicester Racecourse Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance sheet, Company Balance sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement, Notes to the Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
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.
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 group's and the parent 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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
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 auditor's 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.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the group and company.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
obtaining an understanding of the legal and regulatory framework applicable to the group and company by considering the nature of the industry in which the group and company operates and enquiring of management; and
identifying the key laws and regulations considered to have a direct impact on the financial statements including the UK Companies Act 2006, UK Generally Accepted Accounting Practice and UK tax legislation. Other regulations identified which were not considered to have a direct impact on the financial statements but which were considered central to the ability of the group and company to operate were the BHA General Instructions; and
assessing how the group and company is complying with the applicable legal and regulatory framework by making further enquiries of management and observing the group and company's control environment regarding compliance with regulations and fraud prevention; and
assessing the susceptibility of the group and company’s financial statements to material misstatement, including how fraud might occur, by considering the effectiveness of the group and company’s accounting systems and controls and how these were monitored by management. Where the risk of material misstatement was considered to be higher in certain areas, further audit procedures were designed to address this increased risk; and
discussing amongst the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud.
Our procedures to respond to risks identified included the following:
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
enquiry of group and company staff responsible for compliance to identify any instances of non-compliance with laws and regulations; and
reviewing supporting documentation confirming compliance with specific laws and regulations considered central to the ability of the group and company to operate; and
enquiry of management, those charged with governance and other relevant parties around actual and potential litigation claims; and
reviewing supporting documentation regarding actual and potential litigation claims; and
reviewing minutes of meetings of those charged with governance; and
performing audit work over revenue recognition including analytical procedures and substantive tests of detail of a sample of revenue transactions; and
performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
communicating identified laws and regulations and potential fraud risks to all engagement team members and assessing whether there are any indications of fraud or non-compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in a Report of the Auditor's and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The notes on pages 16-30 form part of these financial statements.
The notes on pages 16-30 form part of these financial statements.
The notes on pages 16-30 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £897,389 (2024 - £863,636 profit).
The notes on pages 16-30 form part of these financial statements.
The notes on pages 16-30 form part of these financial statements.
The notes on pages 16-30 form part of these financial statements.
Leicester Racecourse Holdings Limited is a group, registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.
These financial statements have been prepared in accordance with Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated statement of total comprehensive income and balance sheet include the financial statements of the company and its subsidiary made up to 31 December 2025 and the financial statements of its associate made up to 30 September 2025. Intra-group sales and profits are eliminated fully on consolidation.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.
Turnover represents income receivable (excluding VAT) on performance of the principal activities of the company of operating and managing racecourses, their facilities and media rights and is recognised in the period to which it relates. Rental from property assets and investment income is recognised on an accruals basis, net of VAT. Turnover is recognised only when it is probable that the company will receive the previously agreed upon payment and that this amount can be measured reliably.
No depreciation is provided in respect of freehold land.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the Statement of Comprehensive Income.
Investments in subsidiaries are initially measured at cost and subsequently measured as cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the Statement of Comprehensive Income.
Interests in associates are accounted under the equity method and initially recognised at cost and subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate. These amounts are taken from the audited financial statements of the undertaking concerned for the year ended 30 September 2025. Any capital grants receivable not included on the associate's audited balance sheet have the group's share accounted for in the consolidation in line with the group's accounting policy. Goodwill is the difference between the amount paid on the acquisition of a business and the aggregate fair value of its separate net assets. Goodwill is amortised through the statement of total comprehensive income over the directors' estimate of its economic life of 10 years.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Listed fixed asset investments are initially measured at transaction price including transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in the Statement of Comprehensive Income.
Unlisted fixed asset investments are stated at cost less provision for diminution in value.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies are initially recognised at transaction price.
Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price.
The tax expense represents the sum of the tax currently payable, adjustments in respect of prior periods, and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
The group operates a defined contribution retirement benefit plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense when they are due. The assets of the plan are held separately from the group in independently administered funds.
The directors can elect to claim capital grants, known as Capital Credits, as an alternative to turnover from the HBLB. Grants are accounted for on a received and receivable basis. Grants received to fund capital expenditure are amortised to the profit and loss account over the expected useful life of the assets they are funding. Capital grants are on the balance sheet as the associated works have been performed and they are not repayable.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Part of the group's income from its media rights partner is calculated after the end of the financial year. The group uses its media rights partner's best estimates, although these can vary with time.
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The annual amortisation charge for capital grants directly reflects the depreciation charge of such assets. See note 15 for the carrying amount of the property, fixtures, fittings and equipment, and note 3.7 for the useful economic lives for each class of assets.
As described in note 16 to the financial statements, investment properties are stated at fair value based on the valuation performed by the directors. The directors have used observable market prices adjusted as necessary for any difference in the location or condition of the specific asset. Due to the inherent nature of investment property valuations, there is degree of judgement involved in the investment property valuation at 31 December 2025.
The turnover and profit before taxation are attributable to the principal activities of the group.
All turnover arises in the UK.
The directors have taken the decision to take £nil (2024: £nil) of the grants from the HBLB as capital grants to fund further developments.
The average number of employees during the year was as follows:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.
The investment properties have been valued by the directors on a fair value basis as required by FRS 102. Certain investment property have been valued by reference to either similar property sold in the immediate area or to property of a similar nature currently on the market. One item of investment property has been valued on the basis of the discounted future cashflows arising from the expected lease rentals. On a historical cost basis these properties would have been included at an original cost of £211,162 (2024: £192,133).
The group of the company's investments at the Balance Sheet date in the share capital of companies include the following:
The above balances relate to the carrying amounts at the reporting date of financial instruments measured at fair value through the profit and loss. Financial instruments measured at amortised cost are not included.
It is not sensible to estimate the movement in deferred tax for the following period, as the most significant element is calculation of the FRS 102 adjustment for the revaluation of listed investments. A reasonable estimate for future values of the listed investments is not a sensible exercise.
There is a single class of Ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. Each share is entitled to one vote in any circumstances.
Share premium account represents amounts paid in excess of share cost price.
The fair value reserve comprises fair value gains on investment property less the deferred tax on those gains.
Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.
Contributions totalling £5,109 (2024 - £4,979) were due at the balance sheet date.
Minimum lease receipts fall due as follows:
Operating lease receipts represent rentals receivable to the group and company for its land and buildings.