8th May 2006 07:01
Arena Leisure PLC08 May 2006 Arena Leisure Plc ('Arena') Annual General Meeting Statement At Arena's Annual General Meeting to be held this afternoon, the Chairman ofArena, Roger Withers, will make the following statement: "2005 was another successful year for Arena, with strong performances from bothour racecourse division and our media rights company, At The Races ('ATR'). Theresults achieved in 2005 - turnover up 9.4% to £40.7m, profit from operations up30.0% to £6.7m and the dividend up 50% to 0.45 pence per share - confirm theenormous operating improvements that have been accomplished. "2006 has begun well with an increase in average racecourse attendances in thistraditionally quieter period of the year in terms of crowd numbers; the foursummer months of May to August being the busiest. As noted in the 2005 Reportand Accounts, the fee received in 2005 from the management of DoncasterRacecourse has been replaced in 2006 by costs during its redevelopment and thereis also a reduction of eight fixtures hosted on behalf of Ascot Racecourse.Overall, our performance means that we are performing in line with marketexpectations. "Progress continues to be made in the development of new or expanded revenuestreams on our racecourses. The redevelopment at Doncaster Racecourse includesthe construction of a state-of-the-art grandstand and conference and exhibitioncentre, a new on-site stables complex and other improved racing facilities,which will transform the racecourse, providing facilities worthy of the world'soldest classic horserace - the St Leger - and making Doncaster Racecourse aworld class leisure and racing venue. Demolition of the grandstand is nowslightly ahead of schedule and the redeveloped racecourse remains on schedule tore-open in time for the St Leger festival in September 2007. "Lingfield Park Racecourse submitted an outline planning application in March todemolish two redundant stands and to replace them with a new integrated leisurebuilding that will incorporate improved racing administration and entertainingfacilities, a greatly improved leisure club with a pool, a new 120-bedroom hoteland a new replacement golf clubhouse. The redevelopment also involves theremoval of numerous smaller buildings from around the racecourse and so willallow the return of a sizeable area of currently developed land back to GreenBelt. We will continue to work closely with all local stakeholders to helpensure that this exciting development has the best possible chance of success. "We have continued to refine plans to incorporate a casino and hotel expansionat our Wolverhampton Racecourse. Although a great deal of consultation is stillrequired, we are hopeful of being in a position to submit a planning applicationbefore the end of this summer. We note that Wolverhampton City Council recentlysubmitted an application to the Casino Advisory Panel for one of the eight new"large" casino licences. The location of a casino on a racecourse would create aunique product in the UK, whilst also helping a city that faces a number ofregeneration challenges. "Current indications are that the Government will now extend the life of theLevy beyond 2009. This is an action that Arena welcomes and supports,particularly if this is combined with a modernisation of the Levy fundsdistribution mechanism i.e. hypothecation, where the distribution reflects wherethis money has been earned. In the view of Arena, hypothecation equates to adistribution mechanism that is fair, equitable and reflects commercial reality. "In March, ATR settled its legal claim for rebates from those racecourses thatwere party to the original attheraces media rights agreement for £1m, with eachside picking up their own legal costs and the racecourses dropping their £213mcounter-claim. Although settlement was for a sum below that which we believedwas due, I am pleased that, in the end, an amicable settlement was reached andthat the racing industry is now able to move forward more united than it hasbeen for many years and with ATR playing an important part in this future.Operationally, ATR has started 2006 very well, building further on the successesachieved in 2005. The recent agreement in principle between the RacecourseAssociation and Racecourse Owners Association should lead to 48-hourdeclarations for all flat racing from 1 July 2006, enabling ATR to expand intonew international markets. This, together with the reopening of Ascot Racecourseand, in particular, the staging of Royal Ascot in June will provide ATR with animportant further boost both internationally and in the UK. "Arena is committed to maintaining a progressive dividend policy as part of anequitable way of rewarding shareholders. The proposed final dividend for 2005 is0.2p per share, giving a total dividend of 0.45p per share - an increase of 50%year-on-year. This dividend is covered approximately 2.8 times by the 2005earnings of 1.24p per share. The Board has determined that, based upon theopportunities that lie ahead for Arena, it is prudent to maintain this level ofcover for the foreseeable future. "As I announced in my statement in the 2005 Annual Report and Accounts, I willretire from the Board at the end of this meeting following five years on theBoard, during which I have been Chairman for over four years. I will hand overthe role of Chairman to Raymond Mould who joined the Board in November 2005 andhas an outstanding track record in the UK corporate world, particularly in theproperty development industry. I am extremely privileged to have been Chairmanthrough a period of such progress for Arena and to leave it facing a brightfuture. "I am confident that Arena is well placed to capitalise on the exciting valueenhancing opportunities in front of it and to continue to deliver a growingprofit stream for its shareholders. With the new team now in place on Arena'sBoard, and with further strengthening still to occur, I am satisfied that Arenais in very safe hands as it faces the opportunities and challenges that lieahead." For further information please contact: Arena Leisure Plc: Raymond Mould Chairman Tel: 020-7495-2277Mark Elliott Chief Executive Tel: 020-7495-2277 E-mail: [email protected] Bell Pottinger Corporate & Financial:David Rydell/Zoe Sanders Tel: 020-7861-3232 www.arenaleisureplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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