TIDMARE

RNS Number : 4583Z

Arena Leisure PLC

14 January 2011

ARENA LEISURE PLC

POST-CLOSE TRADING UPDATE

Arena Leisure Plc ('Arena' or 'the Group'), the UK's leading operator of horseracing fixtures that owns and operates seven racecourses in the UK comprising Doncaster, Royal Windsor, Lingfield Park, Southwell, Wolverhampton, Folkestone and Worcester,today announces a trading update for the year ended 31 December 2010 (the 'period').

The Group's racecourses staged a total of 352 fixtures in the year to 31 December 2010 (2009: 370). Average attendance for the full year increased by an industry-leading 4.4% to 1,803 (2009: 1,727), with a total attendance of 633,000 (2009: 639,000). The previously reported year-on-year trend of 15% growth in hospitality attendance continued through to the end of the period.

During the last five weeks of 2010, as a result of the severe weather conditions, seven scheduled race meetings were abandoned (2009: one) bringing the total number of weather-related abandonments for the year to 18 (2009: eight). In December, Arena's three all-weather tracks staged six additional meetings at short notice, which made a positive contribution to Group profit but less than would have been the case had the scheduled fixtures gone ahead as planned. Given the exceptional timing and severity of the weather, December's total attendance was 14 000 fewer than in 2009, due to both abandonments and generally reduced turnout at staged fixtures. As a result of both this and weather-related increases in certain operating costs, Group profits will be GBP0.3m-GBP0.4m lower than management expectations, had normal trading conditions prevailed. A GBP0.1m gain on the year end revaluation of interest rate derivative contracts will partially mitigate this shortfall.

In our November statement we highlighted Levy funding cuts resulting from an anticipated reduced Levy yield in 2011 of GBP60m and the referral of the 2011/12 Levy to Government for determination. This determination process is ongoing, with the independent members of the Levy Board having recommended a Levy yield target of GBP75m to GBP80m. A settlement at this higher level is likely to result in increased prize money levels later in the year. We expect the process to conclude during the first quarter of 2011.

The outlook for 2011 remains unchanged from our last update in November 2010 and is based on 353 scheduled fixtures.

14 January 2011

 
 Enquiries: 
 Arena Leisure Plc               Tel: 020 7632 2080 
 Mark Elliott, Chief Executive 
 Tony Harris, Finance Director 
 
 College Hill                    Tel: 020 7457 2020 
 Justine Warren 
 Matthew Smallwood

Forward-looking statements

This report may contain certain statements about the future outlook for Arena. Although Arena believes its expectations are based on reasonable assumptions, any statements about future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

www.arenaleisureplc.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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