2016ANNUAL REPORT AND ACCOUNTS

BHA vision and mission 4-5

Our year in summary 6-7

Chairman’s statement 8-9

Chief Executive’s foreword 10-11

Financial report 12-21

Strategic report 22-55

Equine welfare leadership 24-27

Sustainable industry funding 28-31

Keeping racing fair and clean 32-38

Growing British racing together 39-43

Competitive and compelling racing 44-46

Looking after our people 47-50

Professional workplace 51

World class racing 52-53

Financial responsibility 54-55

Directors' report and governance statement 56-67

Personnel 68 - 69

Key statistics 70-83

Financial statements 84-113

CONTENTS

4

BHAVISIONANDMISSION

TOGETHER,WE’REBUILDINGABRIGHTERFUTUREFOROURSPORT,OURHORSESANDOURPEOPLE

OURVISION

OURMISSION

Weareresponsibleforthegovernance,administrationandregulationofhorseracingandthewiderhorseracingindustryin

Britain.Wealsoleadonthedevelopmentandgrowthofoursport,andprioritisethehealthandwelfareofourparticipants.

WHATWEDO

Regulationandgovernance

Keeping racing fair and clean:Weaimtomaintainthe

integrityofBritishracingbysupportingparticipantsto

complywiththerulesanddealingappropriatelyand

effectivelywithrulebreaches

Delivering competitive and compelling racing:We

aimtoproduceafixturelistandraceprogrammethat

worksforhorsemenandracecoursesanddriveswider

engagementinoursport

Health,developmentandgrowthofoursport

Securing long-term, sustainable funding for our sport:

Weaimtorepresentandpromotethebestinterestsof

racingwithoneclearvoice

Working with others to grow our sport:Weaimto

makesureallparticipantgroupsbenefitfromgrowth

inoursport

Healthandwelfareofourhorsesandpeople

Leading on equine health and welfare:Weaimtoprioritise

thehealthandwelfareofourhorsesandsetstandardsto

ensuretheyreceivefirst-classcareandattention

Looking after our people:Weaimtoprioritisethe

wellbeinganddevelopmentofourpeopleandsupport

otherstomakeracingagreatplacetowork

Someoftheareaswe’reresponsibleforinclude:

Licensing

Regulatingracecoursesandparticipants

Fixturelistandraceplanning

Racingadministration

Handicapping

GuardianshipofthePatternandListedraceprogramme

Internationalliaison

Medicalservices

Leadershipofequinewelfare

Industrycareersmarketing,training,development

andwelfare

5

VISION AND MISSION

EQUINE WELFARE LEADERSHIP SUSTAINABLE IN

DU

STRY FU

ND

ING

WO

RLD

CLA

SS R

ACIN

G

FIN

ANCIAL RESPONSIBILITY

OUR OBJECTIVES

Integrity Accountable Credible Responsive

P

rogr

essiv

e

PR

OFESSIO

NAL W

ORKPLACE LOOKING AFTER OUR PEOPLE COMPETITIVE AND COMPELLING RACING G

ROWING BRITISH RACING TOGETHER

KEE

PIN

G RA

CIN

G FA

IR A

ND

CLE

AN

OURVALUES

Integrity:Weaimtodotherightthingtoupholdthe

BritishHorseracingAuthority’s(BHA)reputationfor

fairness,andtomaintainthetrustofourstakeholders.

Accountable:Weaimtotakepersonalresponsibilityforour

actionsandstrivetoimprovethehealthofBritishracing.

Credible:Weaimtobeopenandhonestaboutwhat

wedo,andtreateveryonefairlyandwithrespect.

Responsive:Weaimtostayin-tunewiththesport’s

diversestakeholderssothatwecaneffectivelymeet

agreedobjectivesandgoals.

Progressive:Weaimtopromoteaforward-thinking

andcollaborativeculturewhilerespectingthestrong

heritageofBritishracingasasportandanindustry.

6

90%Increase in testing of riders

compared to 2015 levels

92%Percentage of race entries made online

OURYEARINSUMMARY

Newapproachtomaximisebettingand

attendances,whilemeetingneedsof

participants,consumersandthemedia

£30-£40 millionEstimated additional annual income to be raised by new Levy

FixtureListstarlist £12million+Extra revenue raised through

voluntary payments of Authorised

Betting Partners

114%Growth in number of two-year-old

winners which ran again during

novice programme trial

💻

🏆

7

2016HIGHLIGHTS

4.7%Growthinraceswitheight-plus

runnerssince2014

Five-part series in the north with total

prize pool of £125,000

NorthernLights

639,000Visits to careersinracing.com

50%Forecast deficit 50 per cent better

than budget

12%Growth in prize money since 2014

to almost £138 million

MentalHealthCharter

BHA and Racing Welfare sign Mental

Health in Sport Charter

£4.6millionPlus 10 bonus payments to owners,

breeders, trainers, jockeys and

stable staff

NewEuropeanweight-for-age

scalewillcreatealevelplaying

fieldforallhorses

Weight-for-age

💻

8

CHAIRMAN’SSTATEMENT

2016sawfurtherrealprogressontheimplementationofracing’s

‘StrategyforGrowth’.

Asthisreporthighlights,wehaveseentheshootsofgrowth

inparticipation,includingownership,bettingandviewing

andotherkeymeasuressuchashorsesintrainingand

fieldsizes.Alotofthisprogresshasbeenmadepossibleby

racing’stripartitestructure,asinglegovernancestructure

thatenablestheBHA,racecoursesandhorsementocome

togetherandtakethebigdecisionsinthebestlong-term

interestsofoursport.Thenewapproachtogovernance

workedwellin2016–itssecondyearofoperation,butthere

isstillmuchtodotoensurethisgreatsportprospers.

Racingremainsahugeemployer,supportingmore

than85,000jobsindirectlyandseveralthousandsmall

businesses;itiscriticaltotheruraleconomyanddomestic

andinternationaltrade.Racingisalsoakeyplayerinhelping

othersportsintermsofthehelpwenowgivearound

integrity,regulation,drugsandothermatters.

Racing’simpactonUKplcandoursinglevoiceto

Governmentcombinedtoensurewemadeprogresson

thecriticallevyreplacement.Nowlawinthiscountry,

andclearedbyEurope,thenewlevywillmakeamassive

differenceforoursport,bringinginmuch-neededhundreds

ofmillionsofpoundsoverthenextfewyears.Theadditional

funds–whichracingwillcontrolthroughanewRacing

Authority–willbetargetedatthegrassrootsofoursport,

improvingcostrecoveryforowners,financialreturnsto

jockeys,trainers,breedersandstaff.Itwillalsocreateand

unlockfurthergrowthpotential.Theextramonieswillhelp

toimprovethementalandphysicalwellbeingofeveryone

whoworksinracing,andbuildmoreattractivecareers

andrecruitment,aswellassupportourcontinueddriveto

improveintegrity,regulationandequinewelfare.

Ownersarethelifebloodofoursport.Prizemoneyisakey

influencerinattractingandretainingowners,butwealso

knowfromourinsightworkthattheexperienceofbeing

anownerisveryimportanttoo.TheBHAhasplayedits

partduringtheyearinarangeofinitiatives,forinstance

embarkingonaprogrammethatwillcompletelytransform

theadministrationofracehorseownershipbysimplifying

andmakingitmorecustomer-friendly.TheBHAalsoran

asuccessfultrialtoprovidebusinessesandindividuals

withtheopportunitytoregistersilksintheirownbespoke

designs,includingcorporatecolours.Thiswillnowbe

extendedtoattractnewandwideraudiences.

Racingcouldnotfunctionwithoutthethousandsofstaffwho

careforourhorses.TheBHAmadeprogressduringtheyear,

alongsidetheNationalTrainersFederation,onleadingthe

industrytoaddressthechallengesofrecruiting,developing

andretainingsufficientnumbersofwell-trainedstaff.This

includedwideningtheaccesspointsintoourindustry;

promotingracingasacareer;providingarangeofflexible

traininganddevelopmentopportunitiesandensuringthat

workingconditionsandwelfaresupportencouragepeople

tostayinracing.Thereismuchmoretodoherebutweare

seeingprogresswithasignificantincreaseinthenumberof

people,includingyoungerpeople,joiningourindustryand

increasinglyregardingitasagoodcareerchoice.Racing

alsomadeprogressonitsdiversityagenda,withwomen

moreprominentacrossoursport,includingjockey

JosephineGordonwhowontheBritishflatracingChampion

Apprenticetitlein2016,becomingonlythethirdfemaleto

winthattitleafterHayleyTurnerandAmyRyan.TheBHA

BoardwasrestructuredinDecember2014,withfourofthe

12directorswomen,andaBoardwithamuchwiderdiversity

ofbackground,geographyandage.Butasanindustrywe

havemoretodo.

9

CHAIRMAN’S STATEMENT

TheBHAstillhasafullagendaintermsofissues

whereweneedtoworkwithWestminsterandothers.

Progresswasmadeduringtheyearonunderstanding

thepotentialimpactofBrexitonracing,inparticular

thefreemovementofhorses,ourfutureabilitytoattract

skilledstafffromtheEU(aswellasnon-EUcountries)

andtheeffectonthebreedingindustry.

Itisimportantthatracingandbettingcontinuetodevelop

strongrelationshipsandaswellasprovidingalevelplaying

field,thenewLevyandRacingAuthoritymeansthatracing

cannowseektooptimisethefixturelistforthebenefit

ofallparticipantsandstakeholders,includingbetting

operators.WithanewterrestrialbroadcasterinITV,there

ismuchcauseforoptimismaboutthegrowthprospectsfor

bothracingandbettingandtheBHAplayedaroleduring

theyearinbuildingstrongerrelationshipswithAuthorised

BettingPartnersandinsupportingITV’sinductionintoour

sportastheypreparedfortheirfirstlivebroadcast.

Integrityinsportreceivedagreatdealofattentionlast

year,withtheOlympics,FIFA,athletics,cyclingand

tennistonamebutafew,allfacingmajorchallenges,

includinginsomecases,majorcorruptionscandals.The

BHAreceivedsomecriticismfortheconsequencesof

apreviouserrorofjudgmentinnotdisclosingthepaid

workofoneofourDisciplinaryPanelmembers.This

impactedasmallnumberofcases,whichhave,and

arebeing,resolvedthroughafairprocess.Following

theappointmentofanewregulatoryboarddirector,Sir

PaulStephenson,theformerheadoftheMetropolitan

Policein2015,ourintegrityandregulatoryprocesses

wereassessedbyachallengepanelofexternalsports

andgamblingexperts.Followingthis,leadingcounsel,

ChristopherQuinlanQC,conductedareviewofour

quasi-judicialpanelsandprocesseswhichhefoundto

befairandlegallyrobust.TheBHABoardacceptedallof

MrQuinlan’srecommendationstoensurethattheBHA

continuestoevolveitsdisciplinaryprocessesinlinewith

globalbestpractice,andthatparticipantsandthepublic

cancontinuetohaveconfidenceinitsapproach.

Wecontinuetobuild,quietly,ourintelligenceand

investigativecapabilities,ourdrugtestingandresearch,our

diagnosticcapabilities,casemanagementandregulatory

effectiveness.Wecontinuetoleadinmanyareasacross

sport,andplayaleadroleinmanyareasofglobalimpact.

Asaregulatorwewillalwayshavebumps,butwenow

haveastrengthenedleadershipteamunderNickRust

andaBoardwhohaveenoughhumilitytoadmitwhenwe

getitwrongandwhopossessthecouragetoleadinkey

andoftencontroversialareas.

Followinganinheritedsubstantialdeficitfrom2012-14,the

BHAexecutiveteamaimtobreak-evenoverthemedium-

termandmadegoodprogressduringtheyear,delivering

abetter-than-expectedfinancialperformance,despite

incurringadditionalcosts.Thiswasachievedbydelivering

efficienciesandasaresultofanincreaseinincome

reflectingthesports'improvingfortunes.Duringtheyear,

theBHAalsosetathree-yearbudgettoprovidergreater

certaintyforracecoursesandhorsemenandtosimplify

financialplanningandforecastingfortheindustry.

TheBHAmadefurtherprogressonunderstandingand

mitigatingthekeyriskstoitsorganisationandtothesport

morewidely,asthetwoarecloselyintertwined.Forthefirst

timethisreportprovidesasummaryofourmainrisksand

howwearemanagingthem.

Racinghasmadegoodprogressfromhavinginplace

acleargrowthstrategy,stronggovernanceandstrong

leadershipbothwithintheBHAandacrossthesport.While

wemustneverbecomecomplacent,thereisgoodreason

tobepositiveaboutthefuturewithadditionalrevenues

nowsecuredfrom2018onwards.Thisrepresentsthe

start,ratherthantheend,ofajourneytowardslong-term,

sustainablegrowth.Iwouldliketothankallofthoseworking

inourgreatsportfortheparttheyplayfrombeforedawnto

afterduskandforyourcontinuedsupportinthefuture.

SteveHarman

Chairman

10

CHIEFEXECUTIVE’SFOREWORD

Wemadegoodprogressagainstanumberofourstrategic

objectivesduringtheyear,notleastinsecuringlong-term

sustainablefundingforoursport.

AsIwrite,thenewHorseraceBettingLevyhasjust

comeintoeffect,whichmeansthatallbetsaccepted

onBritishracingfromBritishcustomersnowgenerate

much-neededrevenueforoursport.This,togetherwith

thefactthatanumberofkeyindicatorsonthehealthof

racinghaverecentlyturnedpositive,notablyhorses-in-

training,ownershipandracecourseattendances,mean

thereisgoodreasontofeeloptimisticaboutthefuture

ofoursport.

IwouldliketosayabigthankyoutoallAuthorised

BettingPartners(ABPs)whoenteredintovoluntary

arrangementswithBritishracingoverthepastyear.

Aswellassecuringincomeofmorethan£12million,

theABPschemewasanimportantfactorinhelpingto

securesupportfromGovernmenttoreplacetheoutdated

Levyscheme.Nowthatwehavealevelplayingfield,we

lookforwardtoworkingcloselywithallbettingoperators

togrowoursportforourmutualbenefit.

AsaresultofaperceptionofbiasinourDisciplinary

Panel,twocaseshadtobereheard,whilewereviewed

asmallnumberofotherstoensurethattheoutcomes

couldbeconsideredsound.Thetotalcostofrehearings,

subsequentappeals,repaymentofcostsfromthe

originalhearingsandrelatedexternallegalcostsin

relationtothismatteramountedto£425,000in2016.

Thisshouldberegardedasamaximumfigureforthe

additionalcostsincurredasaresultoftheperceptionof

biasissue,asitcannotbeassumedthatappealswould

nothaveotherwisetakenplaceandforwhichtheBHA,in

anyevent,wouldhaveincurredcosts.Iampleasedtosay

thatthroughactivemanagementofouroverallbudget,

wehavebeenabletooffsetthesecostsbymaking

savingsinotherareastoensuretheoverallresultwas

stillmorethan£200,000betterthanbudget.

IbelievetheBHAandthesportemergedstronger

followingareviewofourDisciplinaryPanelsand

proceduresbyChristopherQuinlanQC,whichconfirmed

ourcurrentsystemtobefairandlegallyrobust,but

maderecommendationstomoderniseourquasi-judicial

functionsandtoputthemattheforefrontofsports

regulation.MyBoardapprovedallofMrQuinlan’s24

recommendationsinfull,includingsomethathad

alreadybeenpublishedintheBHA’sIntegrityReview,

theresultsofwhichwefirstpublishedinMarch2016.

We’vemadegoodprogressinimplementingthe

recommendationsfromthesereviews,eachdesigned

toimproveoureffectivenessandmaintainconfidence

inourapproach.

Towardstheendoftheyear,wealsocompleteda

reorganisationofourregulatoryandintegrityteams

toensurethatourquasi-judicialfunctionsoperate

independentlyofourexecutivefunctions.Thiswas

designedtoreducetheriskofpotentialconflictsof

interestinfuture.

Wereaffirmedourcommitmenttoequinewelfarewith

theappointmentofanewexecutive-levelDirectorof

EquineHealthandWelfareandcontinuedtoprioritise

thewell-beinganddevelopmentofpeopleworking

inourindustry.Thisincludedworkingwithothersto

11

CHIEF EXECUTIVE’S FOREWORD

addresschallengesrelatingtotherecruitment,training,

developmentandretentionofracing’sworkforceby

developingamuchwiderrangeofentrypointsforpeople

potentiallycomingintooursport,promotingracingas

acareerandputtinginplacearangeofflexibletraining

anddevelopmentopportunities.Iwasdelightedthat

theBHAwasnamedGoverningBodyoftheYearat

theprestigiousUKCoachingAwardsforourcoaching

provisionin2016.

Wemadeanumberofimprovementsdesignedtogrow

racehorseownershipbyrecruitingnewownersand

retainingexistingones.Wemadesignificantprogressin

simplifyingtheadministrationofracehorseownership,

thefullbenefitsofwhichwillbefeltin2017.Wealso

introducedanewSyndicatesCodeofConductandmade

furtherprogressinliberalisingownershipcolours,

offeringmorechoicetonewandexistingowners.

Oneofourkeystrategicobjectivesistodeliver

competitiveandcompellingracingasitdrives

attendances,bettingandthereforerevenuesfor

oursport.Duringtheyear,weintroducedanumber

ofinnovativeinitiativesdesignedtoincreasefield

sizesincludingchangestothetwo-year-oldnovice

programmeandhandicappingconditionstoprovide

moreflexibilityandchoicetotrainersandownerstorun

theirhorsesinappropriateraces.Wealsoimplemented

anumberofrecommendationsarisingfromtheJump

RacingReview,includingthenewNorthernLightsrace

series,andestablisheda£750,000leadfixturefundto

reducethenumberofdayswithoutatleastonefixture

offering£50,000prizemoney.

WewonthesupportoftheEuropeanPatternCommitteeto

makechangestotheweight-for-agescale,andtoupgrade

theQatarGoodwoodCupandtheQueen’sVasetohelp

safeguardthefutureofthestayingthoroughbredbreed.

Wecontinuetostrivetodelivergoodvalue-for-money

asthesport’sgoverningbodyandourmedium-term

financialobjectiveistobreak-even.Weperformed

betterthanourforecastasaresultofhigherincome,

drivenbymoreownersandhorses-in-training,andby

makinganumberofefficiencysavings.Wehaveagreed

feechangesforthenextthreeyearstoprovidegreater

certaintyforhorsemenandracecourses,withincreases

limitedto2percentin2017and2.75percentinthe

followingtwoyearsprovidedinflationremainswithin

certainparameters.

Aswelookforwardto2017,thereisstillmuchweneed

todotosecurethehealthandgrowthofoursport,

butIremainveryoptimisticaboutthefuture.Iwould

liketoconcludebytakingtheopportunitytothankour

members,participants,andthemanystakeholderswho

areinterestedinandimpactedbywhatwedo,foryour

continuedsupport.Lastly,Iwishtothankourstafffor

theirhardworkduringtheyear.

NickRust

ChiefExecutive

12

OURAIMISTOBREAK-EVENOVERTHEMEDIUM-TERM

13

FINANCIAL REPORT

FINANCIALREPORT

Ourfinancialaimin2016wastoconsolidateourpositionandto

reduceourbudgeteddeficitthroughsoundfinancialmanagement

andgoodcostcontrol.

Weended2016withadeficitbeforetaxof£175,000

comparedtoaforecastdeficitof£349,000andasurplus

beforetaxof£160,000in2015.Weperformedbetter

thananticipateddespiteone-offincreasesincertain

costs,includingtheissuesarisingfromperceptionof

biaswiththeDisciplinaryPanel.

Theimprovementwaspartlytheresultofincreased

income,includingmoreentryhandlingfeesduetoarise

inthenumberofownersandhorses-in-training.Wealso

reducedourcostsbymakingsavingsandefficiencies

acrosstheorganisationanddeferringsomeplanned

activityto2017.Thesecostreductionsoffsetincreasesin

otherareas,mostnotablylegalandprofessionalcosts.

Atyear-endourcashpositionwasbroadlyinlinewith2015.

During2016,weredevelopedourinternalfinancial

reportingandasaresult,certainprioryearcomparisons

havebeenrestatedtoreflectthesechanges.Theoverall

resultfor2015wasunchanged.

Theheadlinenumbersbelowareshownbeforestatutory

adjustmentsforpensions.

HEADLINE NUMBERS FOR 2015 AND 2016

Surplus/(deficit)beforestatutoryadjustmentsandtax

Administrativecosts

Operatingsurplus/(deficit)

Interest

Income

£’000 £’000

31,85231,124

(32,046)

(194)

19

(30,991)

133

27

(175)160

2015 2016

14

TOTAL INCOME BEFORE STATUTORY ADJUSTMENTS

Totalincome**

Totalstatutoryincome

Owners*

Otherparticipants

Publications

Managementandpropertycharges

Other

Racecourses

£’000£’000 %£’000

20,625 3.6

8,287

662

540

535

518

4.1

0.5

(4.3)

(5.0)

(15.2)

724

326

3

(24)

(28)

(93)

31,526

31,852

2.9

2.3

901

728

64.7%Racecourses

26.0%Owners

2.1%Otherparticipants

1.7%Publications

5.5%Other

Incomeincreasedby2.3percentin2016

asaresultofincreasesintheunitprice

offeesandincreasedownershipand

horses-in-trainingactivity.

2015 Variance Variance2016

*Increasesdrivenbyhighernumberofhorsesintrainingandraceentries.Themajorityofownersfeesremainedunchangedin2016.

**Totalincomeisthefigureusedbymanagementtoassesstheperformanceofthebusinessandisthenumberpublishedinourbudgetguide.

***GreatBritishRacingInternationalistreatedasacostcentrewithintheBHA.Forstatutorypurposesthecostsandrevenuearerequiredtobeshowngross.

Fines

Industrytrainingincome

175

55

12.9

(38.9)

20

(35)

Internationalrunnerandpermanentimporttesting 129 6.68

GreatBritishRacingInternationalfunding*** 326 (34.7)(173)

19,901

7,961

659

564

563

611

30,625

31,124

155

90

121

499

15

FINANCIAL REPORT

INCOME EXPLAINED

Our income can be broken down as follows:

Incomefromracecoursesisderivedfromcharges

forregulation,integrityandgovernanceservices.

Incomeincreasedby3.6percentasaresultofa3per

centfeeriseandtheprogrammingof10additional

fixtures.Racecoursesreceivecentralfundingfrom

theHorseraceBettingLevyBoardtoassistthemin

fundingasignificantproportionofthesecosts.

Owners'feesconsistofregistrationsandentry

handlingfees.In2016,themajorityofowners’fees

remainedunchangedfrom2015aspartofawider

initiativetoincreaseownershipwithinthesport.

Fourdiscretionaryfeetypeswereincreasedto

providea3percentoverallincreaseinincome:

•Namereservationfees,wherehorsenamesare

reservedbutnotused,increasedby30percent

•ThecostofusingtheWeatherbyscallcentre

entryservicetomakeanentryincreasedby10

percentaspartofaninitiativetoencourage

participantstosubmitentriesonline

•Entryfeesforforeignraceswere

increasedto£75perentry

•Atwo-tiersystemwasintroducedforcolour

registrationswithownerswithahorsein

trainingreceivingadiscountedfee.

Other participantfeesincludeslicencesand

registrationsfromtrainers,jockeys,jockeyagents,

valets,stableemployeesandamateurriders.Italso

includesprizemoneyandridingfeesfromamateur

ridersparticipatinginracesagainstprofessionals.

Wegenerateincomefromthesaleofracing

publicationsandadvertising,includingtheRacing

CalendarandProgrammeBook.Incomefelldueto

ourpublicationsbeingshiftedonlineandaconsequent

reductionintheamountofadvertisingspacesold.

Wehavethreemainmanagement agreementswith

BritishHorseracingDatabaseLimited(BHD)forthe

managementoftheWeatherbysagreement;withGreat

BritishRacingLimited(GBR)fortheprovisionofoffice

spaceandfinance,ITandHRservices;andwithThe

Point-to-PointAuthorityfortheprovisionofregulatory

services.Inadditiontothepropertychargesincluded

withintheGBRmanagementagreement,theBHAalso

subletsspacetotheROA,RCAandBritishChampions

SeriesLimited.

Forstatutorypurposes,theincomeBHAreceives

forGBRI-relatedactivitiesisshownasincome,

eventhoughformanagementpurposesweoffset

thisincomeagainstGBRI’scostofoperation.

16

TOTAL COSTS BEFORE STATUTORY ADJUSTMENTS

Weatherbys

Samplingandresearch

Propertyandoverheads

Legalandprofessional

Communicationsandcorporateaffairs

Publicationandproductioncosts

Committeesandenquiries

Totalstaffcosts

£’000£’000 %£’000

16,37315,541 5.4

5,293

3,368

2,488

1,307

514

424

348

5,378

3,330

2,348

1,016

456

445

369

(1.6)

1.1

6.0

28.6

12.7

(4.7)

(5.7)

832

(85)

38

140

291

Projectspend 614731 (16.0)(117)

58

(21)

(21)

ITinfrastructureandnetworkcosts 175196 (10.7)(21)

BHDlicencefee 152159 (4.4)(7)

Industrycareersmarketing 172164 4.98

Horsemen’sGrouploanrepayment (75)(175) (57.1)100

Other 471394 19.577

GBRI* 422639 (34.0)(217)

Total** 32,04630,991 3.41,055

51.1%Totalstaffcosts

16.5%Weatherbys

10.5%Samplingandresearch

7.8%Propertyandoverheads

4.1%Legalandprofessional

1.9%ProjectSpend

1.6%Communicationsand

corporateaffairs

1.3%Publicationcosts

5.2%Other

2015 Variance Variance2016

*GBRItotalcostsamountedto£422,000,offsetby£326,000ofincomethatGBRIderivesfromothersources,makingthenetcosttotheBHA£96,000.

**Totalcostsaredifferenttothoseshowninthestatutoryaccountsduetostatutorypensionadjustmentswhichareexcludedformanagementpurposesandare

showninaseparatereconciliation.

17

FINANCIAL REPORT

Total staff costsincludethecostofallstaffandthe

BHABoard.Overall,costsroseby5.4percentduetoan

increasedheadcounttodeliverourstrategicobjectives,

andageneralinflationincreaseof2percent.

Weatherbysprovideadministrationservicesona

long-termcontractwhichexpiresin2020.These

costsfellby1.6percent(2.7percentinrealterms)

asaresultofimprovementsintheprocessesapplied

totheircallcentreandITactivitiesandsupport.

Equine sampling and researchisprovidedunder

anagreementwithLGCandthroughourfacilityat

theCentreforRacehorseStudiesinNewmarket.

Property and overheadsincreasedasaresultofhigher

rentonourLondonofficeandincreaseddepreciation

costsfollowingtwoyearsofsignificantcapitalexpenditure.

Legal and professionalincreasedasaresultof

complianceactivityandtherehearingofcertain

disciplinarycases.Inaddition,2016sawsignificant

costsincurredonbehalfofthewiderindustryto

deliverthereplacementtothecurrentLevysystem.

Project spendvarieseachyearandcoversintegrity,

equinescience,medical,andothercentralprojects

suchastheQuinlanReview,aswellasthecost

ofoperatingthePlus10bonusscheme.

Communications and corporate affairsisanimportant

activityofagoverningauthorityandincludescosts

associatedwithourgovernmentrelationsactivity,The

HorseComesFirstcampaign,whichisco-foundedwith

otherstakeholders,andracing’scommunityengagement

programmeRacingTogetherthroughRacingtoSchool.

Publication productioncostsrelatetotheRacing

CalendarandProgrammeBook.Wecontinuetoreview

howbesttopublishraceconditionsinformationthrough

thesepublicationsandtheRacingAdministrationwebsite.

Committee and enquirycostsincludethefees

payabletoDisciplinary,AppealBoardand

LicensingCommitteemembersandthecostof

accessingrecordingsfromthedigitalarchive.

WereceivedarepaymentfromThe Horsemen’s Groupof

£75,000.Abalanceof£250,000remainsoutstandingand

weexpectthisamounttobepaidoffinsubsequentyears.

GBRIcostsincludeallactivityundertakenby

GBRIinpromotingBritishracingtointernational

owners.BHA’sshareofthesecostsis£96,000.

COSTS BROKEN DOWN

18

PERSONNEL BREAKDOWN

Racedayoperationsandregulation(includingVeterinary)

Racingandoperations

Executive(includingExecutivesupport)

IndustrypeopleanddevelopmentandHR

GBRI

Legalandgovernance

Integrityandregulatoryoperations

2016 Variance2015Businessarea

94 3

47

37

12

9

3

1

4

2

2

(1)

1

-

97

51

39

14

8

Communicationsandcorporateaffairs 7 -7

4

1

Numberofstaff

Numberofstaff

Ourheadcountwas221at31December2016.Wealsoemploysessionalstaffduringtheyear,primarilyinintegrity

andregulatoryoperations,whoarenotincludedinthetablebelow.The2015numbershavebeenrestatedunderthe

newstructuresinplaceattheendof2016.

Total 210 11221

Theincreaseof11staffwasaresultof33appointments

and22leaversduringtheyear.

Integrity and regulatory operationsisourlargestteam

andisresponsibleforprovidingessentialracedayactivities

andintegrity-basedofficeteams.Theincreasedstaffarose

fromtherecommendationsoftheIntegrityReview.

Raceday operations and regulationisresponsiblefor

providingracedayveterinaryandstewardingfunctionsas

wellasheadofficedisciplinaryandcompliancefunctions.

Duringtheyear,anewpermanentroleofStewards’

Secretarywascreatedwhichreplacedtheprevious

sessionalroleofStewards’RoomAdministrator.There

wasnochangeincostduetotheadditionalstaffbeing

offsetbyotherchangesinstewarding.

DespiteanincreasedheadcountinRacing and operations,

savingswereprimarilyachievedbynotreplacing

staffleaversimmediately.Thisteam’sresponsibilities

includeracing,handicapping,finance,information

andcommunicationstechnology,projectofficeand

development.Thisbusinessareawasalsoresponsiblefor

ownershipadministrationimprovementswhichrequired

anincreaseinresource.

ExecutiveincludesourExecutiveDirectors,Boardand

theirsupportstaff.Thenetincreaseoftwostaffisa

resultoffournewExecutiverolesbeingcreated–a

ChiefOperatingOfficer,aDirectorofCommunications,

aDirectorofLegalandGovernanceandaDirector

ofIntegrityandRegulatoryOperations–offsetby

theDirectorofIntegrity,LegalandRiskandDirector

ofBusinessImprovementleavingtheBHAduring

theyear.TheDirectorofInternationalRacingand

RacingDevelopmentbecameapart-timepost,whilea

reorganisationin2017reducedtheExecutiveheadcount

byafurtherone.

Overall,theheadcountinIndustry people and

developmentand HRreducedbytheendof2016,

howevertherewereperiodsintheyearwhere

headcountwashigher.

19

FINANCIAL REPORT

SalaryBands

1.4% £0-£20k

53.8% £20k-£40k

27.6% £40k-£60k

10.9% £60k-£80k

1.8% £80k-£100k

4.5% £100k+

ADDITIONAL PEOPLE ANALYSIS

Female

Male

ThetablebelowshowsthegendersplitofallBHAstaffasat31December2016.

Baseduponactualstaffsalariesandtheirfulltimeequivalent(FTE)salary,theFTEsalaryandsalarybandsofstaffare

shownbelow.FTEassumesallstaffworkfull-timeandpro-ratestheirsalaryaccordingly.

Median

FTEbasis

£38,000

10% 20% 30% 40% 50% 60% 70% 80%

2016

0%

68%

32%

Legal and governance functionswereseparatedfrom

regulatoryfunctionsfollowingtheQuinlanReviewand

headcountwillincreaseasthisteamevolvesundera

newExecutiveDirector.

20

Ourfinancialtargetistobreak-eveninthemedium-term.

Werestructuredourfeesin2011followingchangesinoverallfundingfromtheHorseraceBettingLevyBoard.

2011feesarethereforeusedasabaseforcomparisonpurposes.Inflationiscalculatedasat1Januaryineachyear.

LONG-TERM PERFORMANCE AND TRENDS

FEE RISES VERSUS INFLATION

20.00%

2012 2013 2014 2015 20172016

15.00%

10.00%

5.00%

0.00%

2011

BHA SURPLUS AND DEFICIT (£'000)

500

0

(500)

(1000)

(1,500)

2017

Feesrises Inflation(RPI) Inflation(CPI)

441270

(1363)

160

2012 2013 2014 2015 2016

(51)(175)

21

FINANCIAL REPORT

RECONCILIATION TO STATUTORY NUMBERS

TAXATION

AdjustmentsinrespectofFRS102forpensions

Taxation

Surplus/(deficit)beforestatutoryadjustmentsandbeforetax

Surplusbeforetaxation

£’000

£’000

£’000

£’000

(175)

561

160

759

736

161

599

530

2015

2015

2016

2016

Whenpreparingstatutoryaccounts,wearerequired

tomakeanadjustmenttothewaywetreatpension

contributions.Totalstaffcosts,shownonpage16,

includesthecashcontributionspaidintothepension

scheme.Forstatutorypurposes,wereplacethese

contributionswithinterestandservicecostsas

prescribedunderFinancialReportingStandard102.

Thisensuresconsistencyacrossallcorporateaccounts

andimprovesourresultsfor2016by£736,000.Wehave

excludedtheseadjustmentsfromthefinancialanalysis

astheydistortthecostofouroperations.

Wearealsorequiredtoproduceconsolidatedstatutory

numberswhichincludetheoperationsofGBRandBHD.

Theanalysisandcommentaryaboveisbasedonthe

BHA’sactivityonly.

AstheBHAisconsideredacommercialentityforcorporationtax

purposes,wecontinuetotakeadvantageofResearchandDevelopment

taxcreditsforexpenditureincurredinveterinaryandmedicalresearch

andITdevelopment.Thesetaxcreditsresultedinincomeof£161,000

fromHMRevenueandCustoms.

Cashismadeupofoperatingcashandcashheldinseparateaccountsand

ring-fencedforspecificpurposesonbehalfoftheindustry.Operatingcash

reducedovertheyearduetoanoperatinglossandcapitalexpenditureoffset

bychangesinworkingcapital.

CASH

Statutorysurplusbeforetax 561759

£’000 £’000

2015 2016

Ring-fencedcash

Operatingcash

Totalcash

6,650

4,909

11,559

6,347

5,060

11,407

Surplusaftertaxation 7221,289

22

23

STRATEGIC REPORT

Equinewelfareleadership 24-27

Sustainableindustryfunding 28-31

Keepingracingfairandclean 32-38

GrowingBritishracingtogether 39-43

Competitiveandcompellingracing 44-46

Lookingafterourpeople 47-50

Professionalworkplace 51

Worldclassracing 52-53

Financialresponsibility 54-55

STRATEGICREPORT

24

Oursportisalreadyamongtheworld’sbestregulated

animalactivities,employingmorethan6,500

peopletoprovidefirst-classcareandattentionto

the14,000horsesintrainingatanyonetime.We

strivetocontinuetoimprovestandardsofcare.

Educationandresearchtobothpreventandimprove

themanagementofdiseaseandinjuryplayan

importantrole.In2016,Britishracing,through

theBHA,theHorseraceBettingLevyBoardand

RacingFoundation,investedmorethan£2.5

millioninveterinaryresearchandeducation.

Wecontinuetodemandhighstandardsofwelfarefrom

oursport’sparticipants,includingjockeysandtrainers.

Welicenseallpremiseswhereracehorsesaretrainedand

everyracecourse,settingstandardsfortheracingsurface

andallpartsofthecourseusedbyhorses.Notoneof

the1,483fixturesscheduledinBritainin2016couldhave

takenplaceunlessourwelfarestandardsweresatisfied.

Newappointments

Aspartofourcommitmenttoequinehealthand

welfare,JamieStier,ChiefRegulatoryOfficer,was

appointedasChairoftheInternationalFederationof

HorseracingAuthoritiesWelfareCommittee.Wealso

createdanewExecutive-levelroleofDirectorofEquine

HealthandWelfare.WesubsequentlyappointedDavid

SykesfromtheUnitedArabEmirates(UAE)wherehe

wasHeadVeterinaryOfficerfortheEmiratesRacing

AuthorityandtheUAEEquineQuarantineDepartment.

DavidtookuphisnewappointmentinMarch2017.

TheEquineHealthandWelfareDirector’spriorities

includeenhancingtheleadershipandcapabilityof

ourequinehealthandwelfarefunction,improving

thecapture,analysisandbenchmarkingofracehorse

welfareinformationandcontinuingtodevelopour

equinewelfarestrategy.Thisstrategywillencompass

thefulllife-cycleofhorsesbredforracing–notjust

theircareerasaracehorse–andwillincludewelfare

standardscoveringtheperiodpriortohorsesreaching

thetrackandoncetheircareershaveconcluded.

TheHorseComesFirstnationalraceday

Lastyear,wecoordinatedthefirst-evernationalThe

HorseComesFirstraceday,witheventsheldatNewbury,

Southwell,GreatYarmouthandChelmsfordCity.The

nationalracedaywasdesignedtoraiseawareness

amongfamiliesandracegoersofthefirst-classcare

giventoracehorsesduringandaftertheirracingcareers.

EQUINEWELFARELEADERSHIP

EquinehealthandwelfareisatoppriorityfortheBHA.Ourrole

istoidentify,planandleadactivitytoensurethatourhorsesenjoy

thehigheststandardsofcareandwelfarebefore,duringandafter

theirracingcareer.

DAVIDSYKES

25

STRATEGIC REPORT

Paddedhurdles

WeexpandedatrialoftheOneFitpaddedhurdleto

afurthertwocourses,withKelsoandExeterjoining

NewtonAbbot,Taunton,Bangor-on-DeeandUttoxeter

inusingtheenhancedhurdledesignwhichissaferfor

bothhorseandrider.Thetrialhasreceivedfunding

fromtheBritishHorseracingGrantScheme.

TheOneFitdesignisamodifiedhurdleframewith

acustomfittingclose-cellfoampadreplacingthe

traditionalbirch.Thehurdlewasdevelopedbythe

BHA’sSeniorInspectorofCourses,RichardLinley,

inconsultationwithrelevantindustrybodies.

OneFithurdlestatistics

FallratesinceJune2013:1.90percent(133

fallersfrom6,997runnersat174racemeetings)

Reductionof0.2percentinfallerscomparedto

10-yearaveragenumberoffallersacrossallhurdles

Representsareductionofabout40fewerfallers

onaverageeachyearassumingthehurdles

wererolledoutacrossallBritishcourses.

Note:datacorrectasofMay2017

Alifeafterracing

Anincreasingnumberofracehorsesgoontosuccessful

careersafterretiringfromthetrack.Britishracing's

officialcharityforthewelfareofhorses,Retraining

ofRacehorses(RoR)hasregisteredmorethan12,500

horsesasactiveinotherequestriandisciplines.

InconjunctionwithRoR,werepresentBritish

racingonasteeringgroupforthenewlyformed

InternationalForumfortheAftercareofRacehorses.

Thepurposeoftheforumistosharebestpractice

andeducationonthepost-racingcareandwelfare

ofracehorsesandtopromotethesuitabilityof

racehorsestootherequestriandisciplines.

KNIGHTPASSSHOWCASESARACEHORSE’SANATOMY

DURINGTHEPAINTEDHORSEDISPLAYATNEWBURY.

26

BRITISHRACINGHASADUTYOFCARETOITSHORSES

BritishRacingisamongtheworld'sbestregulatedanimalactivities.Thesportemploysmorethan6,000peopletoprovide

firstclasscareandattentionforthe14,000horsesintraining.Overall,that’sonepersonforeverytwoorthreehorses.

Ofapopulationestimated

tobearound1million,race-

horsesinBritainareamong

thehealthiestandbest

lookedafter2%(1in50)

ofhorsesinthecountry.

Lifeafterracing

Anincreasingnumberofracehorsesgoonto

successfulsecondcareersafterretiringfrom

thetrack.Britishracing'sofficialcharityforthe

welfareofhorses,RetrainingofRacehorses(RoR)

hasregisteredmorethan12,500horsesasactivein

otherequinedisciplinesoutsideofracing,including

Polo,Showing,DressageandEventing.

Sincetheyear2000,BritishRacinghas

invested£32millioninveterinaryresearch

andeducation.

27

STRATEGIC REPORT

ANDHASATRACKRECORDOFOPENNESSANDTRANSPARENCY

EquinefatalitiesinrecentyearsAnnualfatalityratesare

publishedclearlyontheBHA’s

website,britishhorseracing.com.

Withinthelast20years,theequinefatalityrateinBritishRacing

hasfallenbyone-thirdfrom0.3%to0.2%ofrunners.

0.28

%

1994

0.3%

0.2%

0.1%

0%

0.24

%

2010

0.19

%

2011

0.23

%

2012

0.22

%

2013

0.22

%

2014

0.18

%

2015

0.19

%

2016

0.28

%

1994

0.3%

0.2%

0.1%

0%

0.24

%

2010

0.19

%

2011

0.23

%

2012

0.22

%

2013

0.22

%

2014

0.18

%

2015

0.19

%

2016

0.28

%

1994

0.3%

0.2%

0.1%

0%

0.24

%

2010

0.19

%

2011

0.23

%

2012

0.22

%

2013

0.22

%

2014

0.18

%

2015

0.19

%

2016

0.28

%

1994

0.3%

0.2%

0.1%

0%

0.24

%

2010

0.19

%

2011

0.23

%

2012

0.22

%

2013

0.22

%

2014

0.18

%

2015

0.19

%

2016

AstudybyLiverpoolUniversityfoundthat62%of“traumaticinjuries”(rangingfromgrazestofractures)

sufferedbyasampleofleisureandcompetitionhorsesoccurredwhenturnedoutinthefield,

comparedtoonly13%duringriddenexercise.

TheBritishHorseSocietyestimatesover3,000roadaccidentsannuallyinvolvehorses.

28

Thisfollowedamajor,long-termcampaignledbythe

BHAonbehalfofthesport,includingmultiplemeetings

withMinistersandMPs,submissionstoconsultations

andnumerousWestminsterevents.

Thenewregulationsfinallycameintoeffecton25April

2017,followingclearancebytheEuropeanCommission

andbothHousesofParliament.Thenewscheme

extendstheHorseraceBettingLevy,inplacesince

1961,toensureallbettingoperatorspay10percent

oftheirprofitsonBritishracingbacktothesport.

ThenewLevyrecognisesthemutualinterestofthe

racingandbettingindustriesinasustainably-funded

racingindustrythroughafairreturnfromallbetting

activityonthesport.ThestatutoryLevyyieldis

anticipatedtobejust£48millionin2016-17,withthe

replacementnowexpectedtoraisebetween£85-£95

millionin2017-18.Theincreasedfundingwillprovide

criticalsupporttothesport’sgrassroots,thewiderhorse

andveterinarysector,upholdintegritystandardsand

supportthewelfareandtrainingofourparticipants.

CentraltomakingthenewLevyenvironmentasuccess,

willberacingandbettingworkingtogethertogrow

bettingonBritishracing.

TheGovernmenthasconfirmedasecondphaseof

changeswillbemadetotheadministrationoftheLevy

inearly2018,withtheLevyBoardtobeabolishedand

replacedbyaRacingAuthority.

SUSTAINABLEINDUSTRYFUNDING

During2016,wemadesignificantprogresstowardsthelong-

awaitedreformtothesport’scentralfundingmechanism,the

HorseraceBettingLevy,withtheGovernmentannouncingits

intentiontointroducenewregulationsbyApril2017.

AuthorisedBettingPartnerscheme

TheAuthorisedBettingPartner(ABP)scheme

fulfilleditskeyobjectiveofprovidingmorethan

£12millionofcritical,interimfundingtooursportin

2016-17aheadofthestatutoryextensionoftheLevy.

Eightoffshore,remotebettingoperatorsentered

intovoluntaryarrangementswithBritishracingin

2016undertheABPscheme.

ABPagreementseachspannedthree-yearterms

but,astheschemewasdesignedonlytoprovide

interimfundingtotheindustry,theagreements

wereduetocometoanendoncethenewLevy

systemwasimplemented.

TheyearsawanumberofABPsactivelyengage

andgrowtheirhorseracingproductthrough

theirpartnershipwiththeindustry.Majornew

racesponsorshipsweresecuredandthesport

repackagedsomeofitsassetswiththesupport

ofitsbettingpartners.

SeniorexecutivesofABPs,andlatertheir

customers,manyofwhomhadnevervisited

racingyardsbefore,wererewardedwithaseries

ofbehind-the-scenesvisits,inrecognitionofthe

commitmenttheyhadmadetothesport.

29

STRATEGIC REPORT

TheHorseraceBettors’Forum

TheHorseraceBettors’Forum(HBF)continuedto

provideanindependentvoiceforbettingcustomerson

Britishracingacrossarangeofissuesaffectingthem,

withtheBHAprovidingsecretariatsupportandoffering

theHBFdirectengagementwithourExecutiveteamat

itsquarterlymeetings.

IFHAconference

BHApeoplewereamongthespeakersatthe50th

ConferenceoftheInternationalFederationofHorseracing

AuthoritiesinParis,withourChiefExecutivespeaking

ontheABPschemeanditsimportanceinproviding

interimfundingtoracing.whileourChiefRegulatory

Officeraddressedtheaudienceonthecriticalsubject

oflifetimeequinewelfare.

OncoursetothenewLevy

Calendar March2014

Calendar June2014–March2015

Calendar February2015

Calendar March2015

Calendar March2016

Calendar January2017

Calendar March2017

Calendar April2017

Onlinegamblinglegislationpasses,enablingfutureLevy

reform,whileChancellorGeorgeOsbornecommitsto

extensionofLevytooffshoreoperatorsinbudget.

Governmentconsultationsheldonextension,reform

andreplacementofLevy.

DuringavisittotheNewmarketgallops,PrimeMinister

DavidCameron,said:“Britishracingisamassivesuccess

storyandIwantedtocomeandseeandhearaboutitfor

myself.Itisanindustryworthover£3billion,employs

wellover100,000peopleandit'sthemostpopularsport

afterfootballinourcountry.”

BudgetconfirmsGovernmentintenttoreplaceLevy.

GovernmentconfirmsApril2017introductionofnewLevy.

GovernmentannouncesnewLevywillbeintroducedat

arateof10percentofbookmakers’grossprofits.

NewLevylegislationapprovedbyUKParliament.

EuropeanCommissionapprovesnewschemeand

replacementLevycomesintoforceon25April.

30

BETTING ON BRITISH RACING

On-course 1.8%

Pool 4.2%

Retail 44.5%

£11billionEstimatedannualbettingactivityonBritishracing

Venue Percentageofbets

Remote 49.4%(online,telephone

andmobile)

31

STRATEGIC REPORT

In2016,£73.9millionwasreturnedtothesport

viatheLevyBoardandABPscheme.

HORSERACE BETTING LEVY

£48.9mPrizemoneyandbonusschemes

£73.9million

£2.9mRacecoursefixture

incentives

£16.4mRegulationand

integrityservices

£1.2mIndustrytraining

£1.8mVeterinaryscience

andeducation

£2.7mOther

(includespoint-to-point,breed

societiesandadministration)

Thisexpenditurebenefitsthosewhoworkdirectlyinthesport,aswellasthewiderhorsesector,thecommunitiesinwhichracingoperatesandtheruraleconomy.

32

Wewanttoencouragethehonestmajoritytodotheright

thingandtopreventthedishonestminorityfromgaining

anunfairadvantage,thusensuringalevelplayingfield

forallparticipants.

IntegrityReview

During2016,wepublishedthefindingsofanIntegrity

Reviewwhichconfirmedagoodlevelofintegrity

continuestoexistandisperceivedtoexistwithinBritish

horseracing.Thereviewalsoidentifiedaneedtoreview

ourdisciplinarystructureandtofurtherimprovesome

aspectsofoperationaldeliveryinordertomaintainand

increasetheeffectivenessofourintegrityfunction.

Integrity Review recommendations

implemented or commenced:

StakeholderIntegrityForumestablished

AppointmentofaRacedayIntegrityAnalyst

Improvedvisibilityofintegrityteamonracedays

AformalInvestigationCharterandguidancedeveloped

Revisedpenaltiesforminorbreaches

NewguidelinesontimeframesforDisciplinary

Paneldecisions

IntroductionofanewTacticalTaskingprocess

QuinlanReview

WeappointedChristopherQuinlanQC,anindependent

expertinthefieldofsportsregulationandgovernance,

toconductanindependentreviewofourDisciplinary

Panel,AppealBoardandLicensingCommittee.Mr

Quinlanfoundourcurrentdisciplinarysystemto

belegallyrobustandfairandmadeanumberof

recommendationstobringourapproachinlinewith

bestpracticeinsportsgovernanceandtoincrease

confidenceamongstparticipantsandstakeholders.

TheBHABoardacceptedallofMrQuinlan’s

recommendations,someofwhichendorse

thosemadeintheIntegrityReview.

KEEPINGRACINGFAIRANDCLEAN

Asthesport’sregulatorybody,ourresponsibilityistoensurethe

highestlevelsofintegrityinoursport.

TheQuinlanReport

Themainrecommendationsincluded:

CreatinganewroleofJudicialPanelChairmanwho

willbetheindependentheadoftheBHA’squasi-judicial

functionsandwillberesponsiblefortheDisciplinary

Panel,LicensingCommitteeandAppealBoard,and

theappointment,trainingandmentoringofmembers

MergingtheLicensingCommitteewiththeDisciplinary

Paneltoformasingledisciplinarygroupunder

theleadershipoftheJudicialPanelChairman

EnsuringthateachDisciplinaryPanelandLicensing

Committeehearingischairedbyalegally-qualified

member,intheinterestsoffairnesstoallparties

Preventingracedaystewardsfromservingon

theDisciplinaryPanelwhiletheyremainactive

ontheracecourse.Activeracedaystewardswill

continuetoserveontheAppealBoardandthe

LicensingCommitteeasthatdoesnotinvolvethem

adjudicatingonthedecisionsoffellowstewards

ExtendingtheremitoftheAppealBoardso

thatitcan,inexceptionalcases,offeradenovo

hearing(i.e.‘startafresh’witharehearing)when

consideringanappealagainstthedecisionofthe

DisciplinaryPanelortheLicensingCommittee.

IndependentJudicialPanelChairman

WeappointedHisHonourBrianBarker,CBEQCas

thefirstChairmanofourindependentjudicialpanel.

33

STRATEGIC REPORT

Wealsoreorganisedourregulatoryandintegrityteams

tomakeoperationalimprovementstoensureourjudicial

panelsoperateindependentlyofourexecutivefunctions,

therebyreducingtheriskofpotentialconflicts.

Asaresult,JamieStierwasappointedasChief

RegulatoryOfficerwithresponsibilityforallregulatory

andintegritymattersincludingequinehealthand

welfare,medical,disciplinary,compliance,integrity,

regulationandstewarding,creatingasingleregulatory

functiontoreplacethetwopreviousones.

BrantDunsheawasappointedDirectorofIntegrity

andRegulatoryOperationswithresponsibility

forourracedayandintegrityoperations.Brant

reportstotheChiefRegulatoryOfficerandis

responsibleforamajorpartofthatbrief.

CatherineBeloffwasappointedasDirectorofLegaland

Governancewithresponsibilityforalllegalandgovernance

mattersexceptthoserelatingtotheBHA’sprosecution

andcompliancefunctions.Thisroleisconcernedwith

generallegalandgovernancemattersandisdistinct

fromtheBHA'sregulatoryandprosecutorialarm.

Ruleamendments

Werevisedthewordingoftherulesandthepenalty

structuresassociatedwithcarelessandimproperriding,

andthechangescameintoeffectinMay.Theobjectiveof

theamendmentsistoprovideagreaterdeterrenttoriders

frommakingmanoeuvresthatmightimpactonthesafety

orfairnessofaracebycausinginterference,andtoreduce

thepunitiveimpactonridersforthemostminoroffences.

Stableinspections

Aspartofourintegrityfunction,wecarriedout519

stableinspectionsin2016.

Licensing

Duringtheyear,ouronlinelicensingsystemmoved

fullyonline,withallapplicationsundertaken

viatheRacingAdministrationwebsite.

Integrityandregulation

Atthebeginningof2016,wecommencedaprogramme

ofup-skillingcurrentstaffintheintegritydepartment

andhiringanewstaffmemberinordertobolsterour

resourcesandensurereal-timemonitoringofbetting

coverseverysingleraceinBritain.

Anti-doping

Ouranti-dopingregimewasrampedupover2016,

withlevelsofridertestingincreasingby90percent

on2015levels.

Ourequinestrategyisfocusedontestingtherighthorse,

attherighttime,fortherightsubstance.It’simportant

thatourapproachisrobust,unpredictableandincludes

afocusonkeyevents.

Overall,equinetesting,whichincludesraceday

(includingpre-andpost-race)andout-of-competition

testing(includinginternationalrunnerandpermanent

importtesting)increasedin2016.Furtherincreases

acrossalltestingplatformsareplannedfor2017.

L-R:JAMIESTIER,CATHERINEBELOFFANDBRANTDUNSHEA

34

Stewarding

In2016,weintroducedfourteamleaderstoimprove

theflowofinformationbetweenteammembersandto

enhancecommunicationbetweenstaff.

StipendiarySteward,WilliamHudson,wassenttoDubaion

asix-monthsecondmentfortrainingpurposesandtogain

exposuretohowotherracingjurisdictionsoperate.

Aspartofanongoingprocesstoimprovethereadability

andaccessibilityofstewards’reports,wealsochanged

thewayenquiriesarewrittenupandpublishedtobetter

showcasetheinformationcontainedwithineachreport.

Thewhip

Therulesandcontrolsthatwehaveinplace,alongwiththe

padded,energy-absorbingdesignofthewhip,aredesigned

toprotectthewelfareofourhorses.

In2016,therewasasignificantreductioninthe

numberofwhipoffencesinGroupandGrade1

races,fallingfrom22offencestoeight,orjust

1.06percentofallrunners.Acrossallraces,total

whipoffencesfellafurther13percentto452.

Re-measurementofflatcourses

In2016,weinitiatedaprojecttore-measuredistances

onallflatracecoursestoimprovetheaccuracyof

informationprovidedtoracegoers,puntersandthe

sport’sparticipantsintimeforthestartofthe2017

flatturfseason.Thisprojectwasundertakenfollowing

feedbackfromtheHorseraceBettorsForum.

35

STRATEGIC REPORT

PROFESSIONAL JOCKEYS

AMATEUR RIDERS

ALL RIDERS - PROFESSIONAL AND AMATEUR

Flatjockeys

A-Flatonly

2012

2012

2012

123

56

120

49

136

29

139

30

94

104

110

189

97

97

101

176

2013

2013

2013

2015 2016

2015 2016

2015 2016

129

51

122 120

55 47

137

28

126 114

55 63

95

94

106

173

93 92

107 97

100 97

217 207

2014

2014

2014

Apprenticejockeys

A-Jumponly

Jumpjockeys

A-Dualpurpose

Conditionaljockeys

CategoryA-Total

463 457467 441 424Total

151

340

131

307

137

310

156 148

373 354

CategoryB

Total

803 764777 814 778Total

TRAINERS

Flatonlylicences

2012

40 47

49 51

468

557

119

461

559

101

2013 2015 2016

41 47 42

52 52 58

465

558

112

452 442

551 542

90 87

2014

Jumponlylicences

Combinedlicences

Permitstotrain

Alllicensedtrainers

676 660670 585 629Total

Note:Thesefiguresarebasedontheaveragenumberofindividualslicensed/permittedbymonth,whichdifferslightlyfromthenumberoflicencesissued.

36

DISCIPLINARY PANEL CASES

*Anadditionaltwoweredisqualifiedandhavesincebeenquashed,andafurtherthreeareautomaticreciprocationsfromabroad.**Twoofwhomhavesincepaid.***Ofwhich10wereupheld,1part-upheldand4dismissed.Only1depositwasforfeited.

****Otherdisciplinarycasesincludescaseswhicharepoint-to-pointrelatedandobjectionstohorsequalification.

Note:During2016,theBHAbeganusinganewsystemforrecordingthemajorityofdatacapturedonraceday.Thisallowsustooutputmuchmoredataforstatisticalandanalyticalpurposes,aswellasbeingmoreintuitiveforuseonaraceday.Asaconsequence,thenumbersforthisyear'sannualreport,andforthosegoingforward,havebeen

calculateddifferentlytogiveamoreaccuraterepresentationofwhathasbeenhappeningontheracecoursesoverthepasttwoyears.

Note:Therunningandridingfigurewerereportedincorrectlyinthe2015annualreportandaccounts.Thecorrectfigureisshownabove.

Exclusionorderbythedisciplinaryofficer

Appealsfromracecourse***

Totalexclusions/disqualifications

Total

Exclusionfollowingdisciplinaryhearing

Referralsfromracecourse

Disqualificationfollowingdisciplinaryhearings*

Suspendedfollowingdisciplinaryhearing

Otherdisciplinarycases****

Appealboard

Disqualificationsfordebts/arrears**

Compliancecasesfromintegrity

STEWARDS' ENQUIRIES

Intereferences(inbreach) 764(532)

512(512)

180(50)

2016

632(455)

452(452)

143(26)

2015

INVESTIGATIONS

Intelligence

2016

3,496

99

87

2015

Investigationsopened

Investigationsclosed

Whip(inbreach)

Runningandriding(inbreach)

2015

5

26

26

96

3

37

5

0

7

2

13

26

2016

11

15

32

102

3

47

4

1

16

2

13

24

3,126

102

102

37

STRATEGIC REPORT

Total 1,348 2,561

2016Investigations

14%Bettingcorruption/Insideinformation

6%Allegationofcrime

21%Equinepositives

2%Jockeypositives

23%Equinewelfare/Veterinary

5%Licensing

28%Otherintegrityissues*

1%Jockeymobilephonebreaches

*Otherintegrityissuesincludesintegrityinterviews,suitabilityinterviews,misuseofbadgesandtickets,BritishHorseracingAuthorityGeneralInstructionsbreaches.

ANTI-DOPING

Breathaliser(positives)

Human 20162015

2,080(1)1,016(1)

436(2)295(3)

37(0)

8(0)

34(1)

3(0)

Urine(positives)

RacingSchoolurinetests(positives)

Testsundertakeninconnectionwithreinstatementoflicences(positives)

38

Total

1,490

10,160

1,846

10,536

Numberofraces

20162015

10,03510,041

89,61688,078

235(1)195(0)

8,455(20)8,475(14)

0.24%0.17%

Numberofrunners

Analysedpre-race(positives)

Analysedpost-race(positives)

%Adverseanalyticalfindings(post-race)

Out-of-competitiontesting(includingyardvisits,internationalrunners,importsandauctions)*

Equine

*Therewerenoadverseanalyticalfindingsrelatingtoout-of-competitiontestingin2016and2015.

39

STRATEGIC REPORT

Forthefirsttimesince2007,wesawanincrease

inthenumberofracehorseowners,primarily

throughthegrowthofsyndicateownership(up

fourpercentsince2013).Whilethisrepresents

awelcomeupliftafteradecadeofdecline,alot

moreremainstobedoneifwearetobroadenand

increasetheappealofracehorseownership.

In2016,welaunchedanumberofprojectsto

encouragethegrowthofownershipandimprovethe

experienceofowners,althoughthemostwide-reaching

changesaresetbeintroducedinautumn2017.

Reformingownershipadministration

Tobetterreflectthewayinwhichpeopleownhorses

todayandsimplifyadministration,wereducedthe

numberofownershiptypes.Thismadethechoiceof

ownershipmoresimpleandintuitive,andwillhelpto

ensurethewayinwhichwehandletheadministrationof

horsesisbettersuitedtotherequirementsofowners.

Oncefullydeveloped,theRacingAdministration

websitewillenableownerstomaintaintheir

ownershipsonline–fromsettingupanewownership

toregisteringsponsorships,authoritytoactandcolours.

Thenewsystemwillstreamlineandsimplifyownership

registration,removetheneedtosubmitmostpaper

formsandprovideownerswithfreeandeasyaccessto

informationabouttheirhorses,theraceprogramme,

andentriesanddeclarations.Theabovechangeswill

allowustoreducecostsassociatedwithownership

during2017,includingtheremovalofandrationalisation

ofcertainfeestoreduceowners’overallcharges.

Owners’coloursliberalisation

Welaunchedaninitiativetoliberaliseowners’

colours.Followinganauctionofnever-before-

seensilks,weundertookatrialallowingownersto

designtheirownbespokecoloursandsubsequently

approvedninesetsofcolours(picturedoverleaf).

Withsupportfromowners,andcompanieslooking

toseetheircorporatecoloursontheracecourse,

wemadethetrialpermanent,withproceedsto

beusedtosupportfurtherownershipinitiatives

includingenhancingthestandardselectionofcolours

toensureallracehorseownerscanbenefit.

GROWINGBRITISHRACINGTOGETHER

Oneofourkeyareasoffocusin2016wascontinuingtocreate

conditionstosupportthegrowthofownership.

40

Syndicates

Topromotetransparencyandensurethatexistingand

prospectivesyndicateownersarebetterprotected,

weintroducedaSyndicateCodeofConduct.TheCode

ofConductisnotintendedtobeprescriptive,but

seekstoensurethatanybodyjoiningasyndicatefully

understandsthebasisonwhichthatsyndicateoperates.

Racehorseowners’survey

InMay,wesupportedtheRacehorseOwnersAssociation

tocarryoutthelargesteversurveyofracehorseowners

inconjunctionwithsportsdatainsightspecialistsTwo

Circles.Thesurveyresultsdeliveredrichinsightintothe

motives,experiencesandattitudesofmorethan2,200

pastandpresentracehorseownersandarebeingusedto

shapeinitiativestorecruitandretainracehorseowners.

Growthinbetting

Oneofracing'sgrowthtargetsistogrowbetting

participation5percentby2018.Eightoffshorebetting

operatorssigneduptoBritishracing'sAuthorised

BettingScheme,boostingawarenessofthesport,

whiletheBHAimplementedanumberofinitiatives

toincreasetheattractivenessofracingasabetting

product,includingincreasingfieldsizes,improvingthe

fixturelist,forexample,theadditionofSaturdayevening

fixtures,aswellasworkingwiththeHorseraceBettors

Forum.GamblingCommissionfiguresshowthatbetting

onracinggrew2percentinthetwoyearssince2014.

#thisfillycan

Weundertookanextensivereviewoftheraceprogramme

forfilliestobetterunderstandtheprofileoffilliesin

training,theraceopportunitiesavailabletothemand

theirabilitytocompetewithcoltsoverthelastdecade.

Highlightsofthereviewincluded:onceratedabove75,

theaveragefillyearnsmoreprizemoneyeachseason

thantheaveragecolt;andabout700flatracesare

programmedexclusivelyforfillieseachyear,growthof

40percentcomparedto10yearsago.Afterconcluding

thereview,workingwiththeThoroughbredBreeders’

Association,welaunchedthe#thisfillycancampaign

topositivelyinfluencepeople’sperceptionoffillies.

41

STRATEGIC REPORT

GBR’saimsaretobroadenracing’spopularityand,

indoingso,helpincreaseengagementwithand

participationinthesport.

2016Highlights

Promoting the stars of the sport

Makingthehorsesandjockeyswhoarethestarsof

thesportmorefamousisakeyareaofactivityandin

2016includedcelebratinganewStobartChampion

JumpJockeyforthefirsttimeintwodecadeswhen

RichardJohnsonreceivedanewly-madetrophyto

honourhisachievements.Ontheflat,theStobart

ChampionFlatJockeys’titlewentdowntothewire

withformerjumpjockeyJimCrowleypippingthe

2015Champion,SilvestreDeSousa,whilstJosephine

GordonclaimedtheApprenticetitle.Otheractivity

includedteamingupwithex-EnglandplayerMichael

OwentopromotethejockeysduringtheEuro2016

Championships,makingsurethatFrankieDettori’s

3000thwinnerandthe20thanniversaryofhis

MagnificentSevenwerepromotedtothemedia;

celebratingBrianToomey’sreturntoraceriding

andSirAPMcCoy’sbrushwiththelawinaspecial

Carpoolkaraoke.

GREATBRITISHRACING

GreatBritishRacing(GBR)isthecentralpromotionaland

marketingbodyforBritishhorseracing.Itiscontrolledvia

anequalshareholdingbetweentheHorsemen’sGroupand

theRacecourseAssociationand,afterdirectcosts,hasanet

operatingbudgetofabout£1.5million.

42

Racing’s biggest events

Racing’scrownjeweleventsgiveussomeofthebest

opportunitiestoreachawideraudienceandin2016we

usedheadcamvideofromManyClouds’2015Grand

Nationalvictorytohelpshowhowtowinthefamous

racewhichhadoveramillionviews.Likewise,abluffer’s

guidetotheGrandNationalreceived200,000views.We

alsoensuredthatracingplayeditspartincelebrating

HerMajestyTheQueen’s90thbirthdaythroughaspecial

birthdaymessagecreatedbyracefansatEpsomDowns

racecourse,aRoyalShetlandponyraceandaracecourse

exhibitionchartingtheQueen’slifelongloveofthesport.

British Champions Series

BritishChampionsSeriescomprises35ofthemost

prestigiousflatraces,runacross26racedaysandat10

ofBritain’smostfamousracecourses.Kickingoffatthe

QIPCO2,000Guineas,theSeriesconcludesatQIPCO

BritishChampionsDayatAscotandin2016wasBritain’s

richesteverracedaywith£4.3millioninprizemoneyon

offer.ThefinalewastheonlyracedayinEuropetohost

twooftheworld’stop10races–theQueenElizabethII

Stakes(sponsoredbyQIPCO)andtheQIPCOChampion

Stakes,wonbyEurope’stop-ratedracehorse,Almanzor.

Promoting the thrill of ownership

Oneofourobjectivesistohelptopromotethethrillof

ownershipand,inparticular,sharedownership.Assuch,

wecreatedinthepaddock.co.uktohelppeoplelooking

togetinvolvedinasyndicateorracingclubforthefirst

timefindanoptiontosuitthem.Thesite,whichallows

ausertosearchbylocation,budgetandcode,isalsoa

freeresourcefortheindustry,allowingsyndicatesand

racingclubstobelistedforfree.

#Notkidding

Engagingayoungergenerationofracingfansiskey

togrowingthesportandtherecentfindingsfrom

Insight=Growthsuggeststhatthisisanareawhichracing

canmakemoreof.In2016,GBRworkedwithracecourses

andtheRCAtodevelopanationalcampaigntotargeta

wideraudiencetoBritishracing’sUnder18sGoFreepolicy.

ThecampaignranoverthesummerholidayfromJulyto

Septemberandwasreceivedpositivelybyallracecourses.

Thecampaignhadover7.2millionimpressionsonline,which

resultedin25,000visitorstothehubhostedontheGBR

websites.Thisupsurgeinactivitysaw1,500trackedlink

clicksouttoracecourseticketingportalsacrossthecountry;

whiletheshortpromotionalanimationalsogarneredover

halfamillionviewsthroughoutthesummer.

ABIRTHDAYMESSAGEFORHERMAJESTYTHEQUEENATEPSOMDOWNSRACECOURSE

43

STRATEGIC REPORT

Digital

ThesocialmediapagesforboththeBritishChampions

SeriesandGreatBritishRacinghaveseenremarkable

amountsofgrowthandengagementinthelastyear.The

BritishChampionsSeriesFacebookpageisnowoneof

thelargestequestrianpagesintheworld,withnearly

280,000fans.

TheGreatBritishRacingsocialmediapageshavealso

seenhighlyencouraginglevelsofprogress;Facebook

againshowedacceleratedlevelsofgrowthuptoa

presentfanbaseofjustover144,000.

Whenallcombinedthetotalnumberofsocialmediafans

connectedacrossbothbrandscomestomorethan660,000.

Consumer insight

GBRcontinuestoworkwiththeRCAinleadingtheground-

breakingInsight=Growthinitiative,whichisthebiggestever

collaborationbetweenallBritishracecoursesoncustomer

data.Thisinsight-ledapproachisinformingracecourses

nationwidehowtoretainexisting,andwinnewcustomers,

andischangingapproachestomarketingactivity.

HOWTOWINTHEGRANDNATIONAL

STOBARTCHAMPIONJUMPJOCKEY,

RICHARDJOHNSON

#NOTKIDDING

44

Weintroducedthe£750,000LeadFixtureFundfor2017.

Thisinvolveddivertingfundsfromotherallocationsto

racecoursesandofferinganincentivetoencourage

atleastonefixtureof£50,000totakeplaceeveryday.

Thisinitiativecontributedtoareductioninthenumber

ofdayswithouta£50,000cardfrom104to65.

Wealsocontinuedtofocusonfieldsizesacross

theracingcalendar,withtheaimofstriking

abalancebetweenexpansionofthefixture

listandincreasingrevenuestothesport.

Additionally,wealsobeganasignificantconsultation

withstakeholdersintothefutureallocationofprize

moneyfundingbytheRacingAuthorityandthe

processesweusetocompilethefixturelist.

The review aims to:

Maximisefuturerevenuesforthesport

Incentiviseownership

Supportthedeliveryofcompetitiveand

compellingracing

Encouragecustomerstoengagewiththesport.

Holisticraceplanning

Weconcludedaprojectonthedevelopmentofamore

holisticapproachtoraceplanningdesignedtoimprove

andmoderniseraceprogrammestobenefithorsemen,

racecourses,andthewiderindustry.AsofApril2017,

raceprogrammeshavebeenproducedviaaprocess

agreedbyindustryrepresentativesonthisprojectteam.

Attheheartoftherecommendationsistheproductionofa

moreco-ordinatedraceprogramme,supportedbyagreater

depthofdata,increasedanalysisandadditionalfeedback

fromtrainers.Thebenefitofdeliveringtheseimprovements

includesananticipatedreductioninraceclashesand

gaps,betteruseoftheavailablehorsepopulationand

improvementsinfieldsizes–allconsistentwiththe

deliveryofmorecompetitiveandcompellingracing.

Raceseries

ThesuccessofthenewChallengerseries,coveredinmore

detailopposite,alongsiderecommendationsfromthe

2015JumpRacingReviewtoprovideanorthern-based

seriesofraces,ledtotheunveilingofthe‘NorthernLights’

series.Theaimofthisseriesistoprovideanincentive

toownandtrainhorsesandstimulateinvestmentin

thegrassrootsofthesportinthisregion.Theseries

comprisesfiveseriesaimedathorsesratedupto120,to

beprogrammedattracksfromDoncasternorthwards,

culminatinginfive£25,000finalstoberunonNorthern

LightsFinalsDayatCarlisleinDecember2017.

COMPETITIVEANDCOMPELLINGRACING

Ourfocusondeliveringcompetitiveandcompellingracing

continuedin2016,amajorpartofwhichwasproducinga

fixturelistthatworksforhorsemenandracecoursesanddrives

engagementwithoursport.

45

STRATEGIC REPORT

Challengerseries

ThesecondrunningoftheChallengerseriesconcluded

onEasterSaturdayatHaydockParkin2017.The

series,whichaimstoprovidemid-tierhorseswitha

highlyvaluablespringtarget,spanned85qualifiers

acrosssixcategories,allowinghorsesratedupto135

(130formares)toqualifyforFinalsDay.Eachofthe

sixfinalswererunforatotalprizefundof£50,000.

The2016/17seriessawthefirstrunningofthe

Mares’Chasecategory,anothercomponentof

theongoingenhancementstotheJumpMares’

programme.Weweredelightedtoseethefinal

attractacompetitivefieldof12andthequalifiers

performstronglythroughouttheseason.

Finalsdaysawatotalof78runnersacrossthe

sixfinalsatanaveragefieldsizeof13.

Juvenilehurdlesaddedtoprogramme

Thedeclineinthenumberofhorsestransferring

fromflattojumpsinrecentyearspromptedus

toaddfourhigh-value,introductoryhurdleraces

forhorseswhichhavenotpreviouslyruninmore

thanonehurdlerace.Theinitiativeaimstocreate

apathwayforhorseswhocouldbeintroducedinto

jumpracingfollowingonfromtheirflatcareersand

offersanenhancementtothecurrentprogramme

byofferingearly,meaningfultargetstocomplement

theexistingblack-typeopportunitiesavailable.

Allweather

Aheadoftheconstructionofanorthernall-weather

racecourseatNewcastle,itwasestimatedthatan

all-weatherracecourseinthenorthwouldactivate

intheregionof900additionalrunsthroughthe

core,all-weatherseason.Theseadditionalrunners

provideduswiththecapacitytomeetanobjective

ofensuringthatanall-weatherfixturewasstaged

everySaturdayeveningfromSeptemberuntil

March.Theestimatewasclosetothemark,with

anadditional934runnerssupportingyear-on-year

averagefieldsizeincreasesofaround0.5ofarunner

perrace,despitetheincreasednumberofraces.

Fieldsizes

Anaverageincreaseof0.15ofarunnerforallflat

racesand0.18ofarunnerforalljumpraceswas

recordedin2016.Whilethisisnotinsignificant

growth,itstillleavesuswithworktodotorestore

averagefieldsizesto2012levels.Wewillcontinueto

workoninitiativestodriveownershipandmaximise

useoftheavailablehorsepopulationin2017.

WILLOUGHBYHEDGE,PILOTEDBYWAYNEHUTCHINSON,WINNINGCHALLENGER

SERIESQUALIFIER,THEALANBROOKEHANDICAPCHASE,ATSANDOWN

46

Adaptingthetwo-year-oldnoviceprogrammeBetweenAprilandJune2016,weconverted193

maidenracesand13noviceracesfromtheprevious

yearto22maidenracesand186noviceraces.In

2017,theconversionofthemajorityofmaidensto

noviceswillcontinueuntiltheendoftheyear.

Analysisshowsthatfieldsizeshavebeen

healthyasaconsequenceand,incontrastto

previousseasons,connectionshaveelectedto

takeonwinninghorsesinnoviceraces.

Thetrialachievedthefollowing:

2015 2016

Previous2yowinnersrunning 35 75

Previous2yowinnerswinning 8 20

Averagefieldsizeinnoviceraces

2015: 5.08 | 2016:7.84

Proportionofnoviceraceswithfewerthansixrunners

2015: 62% | 2016: 15%

Proportionofracesachievingeightormorerunners

2015: 15% | 2016: 53%

Averagefieldsizesfornoviceandmaidenraces

duringtheperiodofthetrialwas8.05,compared

to8.33in2015.Overall,acrossalltwo-year-old

races,fieldsizesweremarginallydown,butthe

programmechangeresultedinmorecompetitive

racingacrossthetwo-year-oldprogrammeand

betteruseoftheavailablehorsepopulation.

APLUS10£10,000CHEQUEISHANDEDOUTATNEWMARKETROWLEYMILERACECOURSE

Raceprogramming

Weannouncedachangetoentrycriteriaforhandicap

racestoenablehorsesrateduptotwopoundshigher

thantheallocatedratingsbandtobeenteredinto

themajorityofhandicapsatClass3andbelow.

Thechangehasbeenimplementedasaresultofa

recommendationfromourJumpRacingReview,but

willbeappliedtohandicapsonbothflatandjumps.The

changehasaffordedincreasedflexibilitytotrainersby

allowinghorsestorun,whowouldpreviouslyhavebeen

abovetheratingbandincertainhandicapraces–despite

beingonlymarginallyoutsideofthehandicaprange.

Plus10

ThePlus10ownersandbreedersincentiveschemepassed

amajormilestoneattheendof2016,whenitpaidout£8

millionworthofadditionalprizemoney.Theschemehas

beenoperationalsince2015,whenthefirstbonuseswere

offeredonBritishandIrishracecourses,andsincethat

time800ownersandbreedershavecollectedabonus.

47

STRATEGIC REPORT

Inpartnershipwithstakeholdersfromacrossour

sport,wecontinuedworktowidentheaccesspoints

intoourindustry,tobetterpromoteracingasacareer,

providearangeofflexibletraininganddevelopment

opportunitiesandtoensurethatworkingconditionsand

welfaresupportencouragepeopletostayinracing.

In 2016, we developed, piloted and supported a

number of initiatives. As a result of which:

Morethan280newentrantsundertook

foundationtraining,andmorethan1,200people

participatedintrainingattheracingschools

Morethan200racingstaffparticipated

innewregionaltraininginitiatives

2,057racing-relatedqualificationswereachieved

396stablestaffwereinvolvedinhealth-related

TackroomTalks

Newfundingwassecuredforentryroutesintoracing.

Careersmarketingandrecruitment

During2016,ourcareersinracingteamtravelledaround

thecountrytopromotethemanycareeropportunities

availabletoyoungpeople.Thisincludedastandatthe

BBCCountryfileLiveeventandattendanceatcareersfairs

andequineindustryeventsthroughouttheyear.Theyalso

visited16equinecollegestoconductcareerslectures,which

werethenfollowedupbytheRacingtoSchoolteamwho

conductedyardand/orracecoursevisitsforthestudents.

Theteamalsodistributedage-appropriatecareers

marketingmaterials,includingvideocontent,across

theyear,includinginpartnershipwiththeRacing

toSchoolteamandtheirriderprogrammes,which

aretargetedatponyclubsandequinecolleges.

Animportantresourcefortheindustry,thefree

jobsite,careersinracing,experiencedasignificant

hikeintraffic,with639,000hitsin2016.Aspartofa

drivetoincreasecontentonthewebsite,aseriesof

videostitled#Horsehowtowaspublished.Thevideos

showcasetheskillsandexpertiseofracinggrooms.

The#Horsehowtoserieswasextremelypopular,

beingviewed66,000timesacrossthecareersinracing

socialmediaplatforms.Wealsoredevelopedthe

websiteacrosstheyear,relaunchingitinMay2017.

Thecareersinracing.combrandsponsoredCharles

OwenSeriesforPonyRacingAuthority,fencesat

BadmintonHorseTrials,thePonyClubChampionships

andBritishEventingjumpingandstyleclassesat12

equestriancentres,inordertoincreaseawareness

andmessagingamongsttheequestriansector.

LOOKINGAFTEROURPEOPLE

Wecontinuetoprioritisethewell-beinganddevelopmentofour

peopleandtoworkwithotherstoaddresschallengesrelatingtothe

recruitment,training,developmentandretentionofracing’sworkforce.

THECAREERSINRACINGSTANDAT

THESKILLSLONDONCAREERSEVENT.

48

Traininganddevelopment

WelaunchedtheEmployer-LedTrainingProgramme,a

pilotprogrammedevelopedwiththeNationalTrainers

Federation,withsupportfromtheNationalAssociation

ofStableStaff,enablingnewrecruitsovertheageof

19toentertheindustrybylearningon-the-jobwitha

racehorsetrainer.Amaximumof£2,500wasavailable

foreachtrainee.

ApilotprogrammewithWrittleCollegesawskilled

equinestudentsfromtheuniversityreceiveaseriesof

lessonsfromBritishRacingSchool(BRS)instructorson

theirowncollegehorses.StudentsalsoattendedBRS

foraweekofintensiveinstruction,beforeafinalweek

placementinNewmarketracingyards.

Participantwelfare

Wecarriedoutanextensivereviewintoparticipant

insurancewhichresultedinaproposalforaracing

specifichealthcarescheme.Feasibilityofthescheme

willbeexploredfurtherin2017withtherolloutof

anationaloccupationalhealthservicefollowingthe

successfulpilotofRacefitinNewmarket.

Weconductedaconsultationaroundsafeguarding

practicesinthesportandarecurrentlyworking

withindustrystakeholderstocreateanoverarching

policyandguidance.

JockeyMatters

Conditionaljockeysattendingour7lbClaimingJockeys

SeminarwatchedafilmfromtheJockeyMattersseries,

whichfocusedonnutritionmanagement,andexamined

howdietandexercisefitintothedailyroutineofjockeys.

WatchtheJockeyMattersfilmatwww.jets-uk.org

GoverningBodyoftheYear

WewerenamedGoverningBodyoftheYearat

theprestigiousUKCoachingAwardsforour

coachingprovisionin2016whilejockeycoachRodi

GreenewasalsoshortlistedforthePerformance

DevelopmentCoachoftheYearattheawards.

2016GODOLPHINSTUDANDSTABLESTAFF

EMPLOYEEOFTHEYEAR,GEMMAHOGG

GodolphinStudandStableStaffAwards

Theseawardsrecognisethehardworkand

dedicationofracing’sstudandstablestaff,

withoutwhomtherewouldbenoracing.In

February,Godolphin,theRacingPostandtheBHA

crownedGemmaHoggEmployeeoftheYear.

Gemmawasawardedwiththeperpetual

GodolphintrophybypresenterClareBaldingand

specialguestpresenterSirAnthonyMcCoyat

aneventhostedbytheBHAandinpartnership

withtheRacingPost.Shewasalsopresented

withachequefor£40,000,ofwhich£20,000will

besharedamongstthestaffattheOakwood

StablesinMiddleham,NorthYorkshire.

Thewinners:

DAVIDNICHOLSON

NEWCOMERAWARD

LauraWinstanley(Sir

MichaelStoute)

LEADERSHIPAWARD

GemmaHogg(Micky

Hammond)

RIDER/GROOMAWARD

AlysonDeniel

(RichardFahey)

STUDSTAFFAWARD

StuartThom(Lofts

HallStud)

DEDICATIONTO

RACINGAWARD

ClaireGoodenough

(WilliamHaggas)

RORYMACDONALD

COMMUNITYAWARD

LisaDelany(Jockeys

Employment

TrainingScheme)

RORSPECIAL

RECOGNITIONAWARD

JoannaMason

–Liverpool

GEMMAHOGGEMPLOYEEOFTHEYEAR

49

STRATEGIC REPORT

Retiredjockeys,majorhealthstudy

ThankstoaRacingFoundationgrantofmore

than£220,000,athree-yearcollaborativeventure

betweenOxfordUniversityandtheracingindustrygot

underwaystudyingtheshortandlong-termhealth

consequencesofprofessionalhorseracing.Thefirst

partofthestudyislookingatinjuriessustained

byprofessionaljockeysduringtheircareers.The

ultimateaimoftheprojectistoimprovethehealth

andwelfareofjockeysandstablestaffwhorideout.

Enhancedconcussionmanagementprotocols

Weenhancedourconcussionmanagementprotocols

toensureridersarebetterprotectedandprevented

fromridingwhileundertheinfluenceofaconcussive

injury.Theenhancementswereimplementedacross

thefullconcussionmanagementprocess,from

baselinecognitivetesting,tracksidediagnosisand

care,throughtopost-injuryfollow-up,assessment

andtreatmentandreturn-to-ridingclearance.

WealsoannouncedenhancementstoourHelmetBounty

Scheme,inconjunctionwiththeBritishEquestrianTrade

Association(BETA)whichprovidesjockeyswhoare

concussedduringaracewitharetailvoucherthatcanbe

redeemedtowardsthecostofreplacingtheirdamagedhat.

Jockeys'cardiacstudy

InMay,weannouncedthelaunchoftheJockeys’Cardiac

StudywithLiverpoolJohnMooresUniversitytoresearch

theimpactrapidweightreductionthroughdehydration

canhaveoncardiacfunctioninactivejockeys.

MentalHealthChartersigned

TogetherwithRacingWelfare,webecamesignatoriesto

theMentalHealthCharterforSportandRecreation.The

Chartersetsouthowsportcanuseitscollectivepowerto

tacklementalill-healthandthestigmathatsurroundsit.

50

RacingtoSchool

RacingtoSchoolhasforthepast15years

deliveredfree,nationwideeducationandcareers-

focussedprogrammesatracecourses,studsand

trainers’yards.Todaythecharity’sworkreaches

morethan12,000youngpeopleeachyear.

Initiativesin2016include:

Under Starters Orders

InJune,152studentsand120parentsandteachers

fromlocalprimaryschoolsattendedtheAdnamsJuly

RacecoursefortheculminationoftheUnderStarters

OrdersPrimarySchoolEducationProgramme.The

programmewasinitiallycommissionedbyNewmarket

Racecoursesin2015,workingwithTheNational

HorseracingmuseumandRacingtoSchool,todevelop

threedaysofeducationalactivitiesspecificallydesigned

forprimaryschools.Theprogrammehassince

beendeliveredtomorethan300Year5students.

Newmarket Academy Godolphin Beacon project

RacingtoSchool,supportedbyGodolphin,designedand

launchedafive-yearprogrammeinpartnershipwiththe

NewmarketAcademy.Theprojectwillprovidebespoke

supportfor800studentsacrossallyeargroups,ranging

fromlearningdaysinthelocalcommunityandwithin

localindustries,topersonalisedcareerguidance.

RacingTogether

InSeptember,theeducationcharityRacingtoSchool

tookontheobjectivesandleadershipofRacing

Together–theumbrellabrandforBritishracing’s

communityengagementprogramme.TheRacing

Togetheralliancecapturestheactivityofcharitable

andcommercialbodiesoperatingacrossandoutside

thesport,whoareabletousetheassetsandnetworks

withinracingtohelpbeneficiariesinthecommunity.

RacingTogetherwasformedin2014toencourage

andhighlighttheconsiderableworkbeingdone

byracinginitscommunities.Developingvaluable

partnershipsforthesportlocallyandnationally

hasbeenoneofthekeysuccessesofRacing

Together,whichtheBHAleduntilAutumn2016.

Initiativesin2016include:

Donationof500hoursofvolunteerservice

aroundthecountryonnationalemployee

volunteeringday:Give&GainDay

WorkingalongsidecommunitycharityActive

CommunitiesNetwork,whichbroughtagroup

ofstudentsfromaSouthLondonschoolforan

educationalandcareers-basedvisittoLingfield

Park,aspartofaprogrammetoencourageyoung

peopletoconsideropportunitiesintheindustry

SportingMemoriesPartnership,whichbrought

togetherretiredjockeys,trainers,stablestaff,

farriersandsaddlersforthefirstmeetingofthe

SportingMemoriesRacingReminiscenceGroup

atMaltoninSeptember.SportingMemoriesisan

organisationwhichconnectsgenerationstocombat

theeffectsofdementia,depressionandloneliness

AspartoftheRacingTogetherCommunity

EngagementProgrammeatAintree,twostudents

recentlycompletedworkexperienceatAintree,

andagroupof25childrenfromtheConwy

CommunityRidingCentreweregivenabehind-the-

sceneslookatAintreeaspartofacoursetour

SupportingaPrince’sTrustinitiativeandhosteda

groupofyoungpeopleatNottinghamRacecourse

wheretheyweretakenbehind-the-sceneswith

atourofthecourseandweighingroomand

talksfromracedaystaffabouttheirroles.

51

STRATEGIC REPORT

In2016,wedevelopedanewmissionandvision

andsetofvalues.During2016weembedded

ourvaluesintomanyprocessesacrossthe

organisation,includingrecruitment,inductionand

performancemanagementprocesses.Wealso

createdaleadershipteamtoimprovetheflowof

communicationandtoempowerourpeopletomake

decisionsandprovidefeedbacktotheexecutive.

Wealsocommittedtoupskillingourstaffand

haveconductedanumberofprofessional

developmentdaysforallstaff.

SteveGibson,HeadofITandBusiness

Improvement,andMattMancini,Retention

DevelopmentManager,successfullycompleted

thefirstyearoftheThoroughbredHorseracing

IndustryMBA.Launchedin2015,thetwo-year

courseatLiverpoolUniversityhasbeenspecially

designedforpeoplewhowanttotakeupasenior

administrativeorleadershiprolewithinracing.

WeestablishedaGoGreenandGiveBackSteering

Group,todriveenvironmentalandsocialactivities

andstagedanumberofcharitableeventsduring

theyear,raisingmoneyforSportsRelief,Macmillan

CancersupportandSavetheChildren.

PROFESSIONALWORKPLACE

Weremaincommittedtosupportingthecreationand

maintenanceofafriendly,productiveandprofessional

workplaceandanengagedworkforce.

52

Weight-For-Agescalealterations

InSeptember,wepublishedanextensivebodyof

work,ledbyHeadofHandicapping,PhilSmith,

whichcomparedthestrikerateforthree-year-olds

againstolderhorsesoveraperiodofsixyears.

Thisrevealedthatundertheexistingscale,three-

year-oldshadahigherstrikeratethanolderhorses,

particularlynoticeablefromJulyonwardsandover

longerdistance,providingthemwithanunintended

andunfairadvantageoverolderhorses.

Asaresult,weamendedthescalefromthesecondhalf

ofJuneonwardsandover10furlongsandabove,with

adjustmentsrangingfromasmallreductionof1lbat

10,11and12furlongs,toamaximumdecreaseof3lb

overlongerdistanceswheretheadvantageafforded

tothree-year-oldswasshowntobethemostacute.

Stayers

In2016,aBHA-ledconsultation,focussingonhowto

future-proofthedevelopmentofthestayinghorse,

gatheredviewsfromacross-sectionofbreeders,owners,

trainers,racingmanagers,racecourses,bloodstockagents,

salescompaniesandmedia.Theaimoftheprojectisto

introduceanumberofchangestotheprogramme,both

intheshort-termandoverthenextthreetofiveyears.

HavingobtainedthefullsupportoftheEuropean

PatternCommittee,weannouncedanumberof

amendmentstotheblacktypeprogrammeacross

Europefor2017,includinganupgradeoftheQatar

GoodwoodCuptoGroup1andtheQueen’sVaseto

Group2(whilereducingitsdistanceto14furlongs).

Bothofthesechangesshouldprovideamoreappealing

targetforagreaternumberofqualityyounghorses.

Fillies’blacktypeprogramme

Weagreedplans,throughtheFlatPatternCommittee,to

improvetheblacktypeprogrammeforfilliesoverthenext

threetofiveyears.Thiscommencedwiththecreationof

twonewfillies’Listedracesin2016tofillexcessivegapsin

theprogramme,oneover10furlongsatBathinMayand

anotherover14furlongsatAyrinOctober,togetherwitha

furthertwoagreedfor2017(over7furlongsatMusselburgh

inJuneandover5½furlongsattheAyrWesternmeetingin

September).Inaddition,theEPCapprovedourapplication

toupgradethePrincessRoyalStakesover12furlongs

atNewmarket’sCambridgeshiremeetingtoGroup3.

JumpPatternupgrades

Racingisanaspirationalsportandit’simportantwehave

theracesinplacewhichinfluencecampaignsandprovide

incentivestoracehorsesinBritain.Duringtheyear,we

upgradedanumberofPatternandListedracesforthe

2016/17jumpseason,includingtheNationalHuntSteeple

ChaseChallengeCupwhichwasaGrade2contestin2017.

Atotaloffourraceswereupgraded,withtheJump

PatternCommitteeagreeingthattheracesnotonly

qualifiedonratings,butwereeachfelttoaddaworthwhile

dimensiontotheprogrammeofPatternandListedraces.

WORLDCLASSRACING

Britainishometothebestqualityracingintheworldandto

remainsoitisvitalwecontinuetoreviewourPatternandListed

raceprogrammeandmaintainstrictqualitycontrolmeasures.

53

STRATEGIC REPORT

NewlookPatternCommittees

WeannouncednewmembershipoftheFlat

PatternandJumpPatternCommitteestobetter

reflectthesport’snewtripartitestructure.

ThepurposeofthesetwoCommitteesistoadviseand

makerecommendationstotheBHABoardonmatters

relatingtomaintainingandimprovingtheprogramme

ofPatternandListedraces.Theoverarchingpriorityof

bothCommitteeswillalwaysbetoencouragequality

racingandtheprogressionofhorsesbytestingthebest

animalsoverarangeofdistancesthroughouttheseason.

JumpPatternCommittee:

AdrianGrazebrook(Chairman),AnthonyBromley,

DavidCleary,EdArkell,LucindaRussell,Paul

Nicholls,PhilipHobbs,RichardAston,Richard

Norris,RuthQuinn,SamHoskins,SteveMellish

FlatPatternCommittee:

AdrianGrazebrook(Chairman),AndrewBalding,

JulianRichmond-Watson,LydiaHislop,NickSmith,

NicholasWrigley,PhilipFreedman,PhilippaCooper,

RuthQuinn,SimonCrisford,WilliamHaggas

Mares’ListedChases

Weaddedfournewmares'ListedChasestothe

programme,furtherboostinganareawhichhas

beensubjecttoanumberofenhancementsinrecent

years,andprovidingfurtherincentivestoownand

trainjumpingmares.Theracesarealsodesignedto

complementthetwoListedChasesformareswhich

wereaddedtotheprogrammelastseasonatCarlisle

andHuntingdon,togetherwiththeChaseatDoncaster

whichwasintroducedforthe2014/15season.

UPGRADED RACES:

Approximate Previous New

Name Venue date Distance status Distance

NationalHuntSteeple

ChaseChallengeCup CheltenhamFestival Mid-March 4m Listed Grade2

NeptuneInvestment

ManagementNovicesHurdle Cheltenham NewYear 2m5f Class3 Listed

Sandown–

Thebet365SelectHurdle seasonfinale EndofApril 2m5½f Listed Grade2

TheBritishStallionsFuture

ChampionsEBFNationalHunt

Novices’Hurdlerace PerthFestival MidApril 3m Class2 Listed

LIZZIEKELLYABOARDCOOSTARSIVOLA

RETURNSAFTERWINNINGTHEUPGRADED

LISTEDNEPTUNEINVESTMENTMANAGEMENT

NOVICESHURDLEATCHELTENHAMONNEW

YEAR’SDAY.

54

FINANCIALRESPONSIBILITY

Financialresponsibilitymeansmanagingcostseffectivelyand

takingappropriatestepstoensurethatincomekeepspacewith

costssothatwecanbreak-evenoverthemedium-termand

maintainanappropriatelevelofcashreserves.

Akeypartofthisstrategywastodeveloparollingthree-yearbusinessplanandbudget,details

ofwhichwepublishedinDecember2016.Theheadlinenumbersareshownbelow.

2019

Budget

£'000

2017

Budget

£'000

2018

Budget

£'000

Surplus/(deficit)

Cashsurplus/(deficit)

Totalexpenditure (32,678) (33,355)(33,004)

177

(433)

516

516

43

(37)

Totalincome 32,855 33,87133,047

Non-cashadjustments (610) -(80)

55

STRATEGIC REPORT

Managingourincome

Todeliverplannedactivity,feeincreasesof2per

centfor2017and2.75percentfor2018and2019

wereagreedwithhorsemenandtheracecourses.

The2018and2019feeriseswillbereviewed

againsttheconsumerpriceindexplus0.75per

centandthehigherofthetwometricsapplied.

Wealsohavearesponsibilitytoseekoutnew

incomeopportunitiesintheformofbusiness

partnershipsandnewcommercialarrangements.

Deliveringvalueformoney

Withmorethan80percentofourbudgetbeingfixed

costs,thescopeformakingsignificantsavingsislimited

intheshort-termbutopportunitiesdoexistinthe

longer-termtodeliversavings.Wecontinuetoreview

ourmajorsuppliercontractstoensuretheydelivervalue

formoney,withtheaimofcreatingefficiencieswherever

possiblewithoutimpactingouroverallservicedelivery.

Thereviewofsomeareashasalreadybegunandsavings,

inrealandnominalterms,weredeliveredin2016.

Intheshort-termwewilllookatdelivering

efficienciesinthewayweworkinternally

andhowourbusinessprocessesusedcanbe

improvedwiththeuseofnewtechnology.

Appropriatereservesmanagement

OurAuditCommitteerecentlyreviewedits

policyanddecidedthatweshouldmaintaina

minimumlevelof£3millionincashreserves.

Ourlong-termliabilityoverourpensionscheme

alsowarrantsmention.Wetookoverthisscheme

asprincipalemployerfromTheJockeyClubin2007

andsincehavetakensteps–boththroughchanging

theaccrualsbasisandalsothroughclosingthe

definedbenefitelementoftheschemeinDecember

2015–tomanagethescheme’sliabilities.

Unfortunately,duetounfavourablemarketconditions

whichareimpactingallpensionschemes,manyof

thehistoricliabilitiestakenoverfromTheJockey

Clubwillhaveincreasedandmeanthatatthenext

valuationattheendof2017,theschemedeficit

islikelytoriseandourcurrentcontributionsof

£1.158millionwillneedtobereviewedandarevised

scheduleagreedwiththetrusteesofthescheme.

Wecurrentlybenefitfromathird-partyguaranteefrom

theHorseraceBettingLevyBoard(HBLB)tothepension

schemeand,inapost-HBLBenvironment,wewillseek

third-partysupportfromtheRacingAuthority.Asthis

guaranteeexpiresin2024,wewillneedtoconsider

boththetransferofthisguaranteetotheRacing

Authorityandapossibleextension.Ouraimistorepair

thishistoricdeficitoverthelonger-terminanaffordable

mannerforthesport,thusensuringwedonotneed

toincreasefeesabovethelevelssetoutabove.

Openandtransparentreporting

Wehavetakenstepsoverthelast12monthsto

developourexternalfinancialreporting–including

acomprehensivefinancialreviewsectionincluded

withinthisannualreport.

During2016,weproducedafinancialperformanceupdate

showingourforecastresultscomparedtoourbudget.

Effectivepeopleandprocesses

Thereareclearlydefinedreportingprocessesinplace

forboththeBoardandExecutive,whoareultimately

responsibleforapprovingthebudgeteachyearand

foragreeinganysignificantitemsofexpenditure.

Thisrigorousapproachtoregularfinancialreporting

andcontinualforecastingensuresappropriate

managementfromafinancialperspective.

Therearefiveareasunderlyingourfinancialresponsibility.

56

ITISOURRESPONSIBILITYTOGOVERNTHESPORTANDWEAIMTODOSOINANINCLUSIVEMANNER

57

DIRECTORS’ REPORT AND GOVERNANCE STATEMENT

DIRECTORS’REPORTANDGOVERNANCESTATEMENT

Itisourresponsibilitytogovernthesportandweaimtodoso

inaninclusivemannerandtomakekeystrategicdecisions

workinginpartnershipwithTheHorsemen’sGroupandthe

RacecourseAssociationthroughtheMembers’Agreement.

Boardroleandcomposition

TheBoardisresponsibleforensuringthatwecomply

withourroleandresponsibilitiesonbehalfofBritish

racing.ThemainroleoftheBoardistoprovide

strategicleadershipandsetthestrategicdirection,

assistingtheExecutiveDirectorsindelivering

ourninestrategicobjectives,actingasacritical

soundingboardfortheExecutiveandconstructively

challengingtheExecutiveontheirrecommendations.

TheBoardalsomonitorsandevaluatesprogress

andisaccountableforfinaloutcomes.

TheBoardiscomprisedoftheChairman,theChief

Executive,aSeniorIndependentDirector,two

IndependentRegulatoryDirectors,twoMember-

NominatedDirectorsandfiveIndependentNon-

ExecutiveDirectors.AllDirectorshavebeenselected

becauseoftheirexperienceandknowledge.Therewere

nochangestotheBoard’scompositionduring2016.

The Board is responsible for the following:

Approvalofthefixturelist

Approvalofourthree-yearbusinessplanandbudget

Majoritemsofcapitalandoperatingexpenditure

Materialcontracts

Racecourselicences

Administrationandapprovaloftherulesofracing

Oversightoftheriskregister

58

Role TermExpires MeetingAttendance

SteveHarman Chairman 30/6/19 8/8

NickRust ChiefExecutive N/A–Exofficio 8/8

AndrewMerriam IndependentRegulatory 17/9/18 7/8

SirPaulStephenson IndependentRegulatory 28/6/18 8/8

AthollDuncan SeniorIndependent 30/11/17 8/8

JulieHarrington Non-Executive 30/11/17 8/8

NöelHarwerth Non-Executive 30/11/17 8/8

JoeSaumarezSmith Non-Executive 30/11/17 8/8

LauraWhyte Non-Executive 30/11/17 8/8

EamonnWilmott Non-Executive 30/11/17 8/8

RupertArnold MemberNominated 31/12/18 8/8

VivienCurrie MemberNominated 31/12/18 7/8

MeetingAttendance

AndrewMerriam(Chairman) 2/2

AthollDuncan(appointedNovember2016) 0/1

JohnSanderson 2/2

PhilipFreedman 2/2

DIRECTORS

GOVERNANCE COMMITTEES

TheBoardmeetseighttimesperyearandtheattendancerecordisshownbelow.Aspartofitsleadershiprole,

fourofthesemeetingswereheldinregionallocationstoallowlocalowners,trainers,otherhorsemenand

racecourseexecutivestomeetwiththeBoard.

TheBoardhasthreeprincipalcommitteesrelatingtogovernance.

AuditCommittee

TheAuditCommitteeismadeupoffourmembers,twoindependentBoarddirectors(ofwhichoneisChairman)and

twonominatedmembersfromtheRacecoursesandHorsemen.

TheAuditCommitteemeetstwiceperyear,oncepre-auditinNovemberandoncepost-auditinApril.Theexternal

auditors,KPMGLLP,andrelevantBHAstaffalsoattendbothmeetings.

59

DIRECTORS’ REPORT AND GOVERNANCE STATEMENT

MeetingAttendance

LauraWhyte(Chairman) 3/3

AndrewMerriam 2/3

JoeSaumarezSmith 3/3

SirPaulStephenson 2/3

SteveHarman(Chairman)

MaggieCarver

AthollDuncan

NicholasCooper

RemunerationCommittee

TheRemunerationCommitteeismadeupoffourindependent,Non-ExecutiveBoarddirectors.

NominationsCommittee

TheNominationsCommitteeismadeupoftwoindependentBoarddirectors(ofwhichoneisChairman)andtwo

nominatedmembersfromtheRacecoursesandHorsemen.TheNominationsCommitteedidnotmeetin2016.

Main responsibilities of the committee include:

MonitoringtheintegrityofthefinancialstatementsoftheCompany

ReviewingtheCompany’sand/orexternalauditor'sassessmentofinternalfinancialcontrolsandriskmanagementsystems

ReviewingtheadequacyandsecurityoftheCompany’sarrangementsforitsemployeestoraiseconcerns,

inconfidence,aboutpossiblewrongdoinginfinancialreporting

Overseeingtherelationshipwiththeexternalauditor

Reviewingandapprovingtheexternalauditplan,thelevelofnon-auditfeesincurredandtheriskareasand

riskregisterofthecompany

Reviewingandmonitoringtheexternalauditor’sindependenceandeffectiveness.

Main responsibilities of the committee include:

DeterminingandagreeingwiththeBoardthepolicyfortheremunerationofkeypersonnel

WithinthetermsoftheagreedpolicyandinconsultationwiththeChairmanand/orChiefExecutiveasappropriate,

determiningthetotalindividualremunerationpackageofkeypersonnel.

Main responsibilities of the committee include:

IdentifyingandnominatingcandidatestofillanyvacancyofChairman,ChiefExecutive,orIndependentNon-

ExecutiveBoardDirector

Evaluatingthebalanceofskills,knowledge,diversityandexperienceontheBoardandpreparingadescriptionof

theroleandcapabilitiesrequiredforaparticularappointment

PerformanceevaluationoftheIndependentNon-ExecutiveDirectors

Successionplanningfortheaboveroles.

60

OtherCommittees

TheBHAMembers’AgreementsignedinNovember2015alsocreatedtwowiderindustrycommittees,the

Members’CommitteeandtheExecutiveCommittee,whichcompriserepresentativesoftheBHAanditsmembers.

Thesecommitteesenablethesporttoactinaunifiedmannerwiththemajorstakeholdersmakingstrategicdecisions

forthelong-termbenefitoftheindustry.

ORGANISATIONAL RISKS

Effectivelyidentifyingandunderstandingrisksandadoptingrelevantcontrolstomitigateagainsttheserisksis

fundamentaltoallowingus,andincertaincasesthewidersport,toachieveourstrategicobjectives.TheExecutive

aretaskedwithidentifyingrisksandthesearereportedtotheChiefOperatingOfficer,whoalongwiththeSenior

IndependentDirector,AthollDuncan,isresponsibleforensuringtherisksareproperlymonitoredandaddressed.

Manyoftherisksidentifiedaspartofthisprocessarewiderindustryriskswhichwouldimpactracecourses,owners

andthesportshouldtheymaterialise.Theseincluderisksrelatedtofunding,diseaseandequineandhumanwelfare.

TherisksbelowareanextractofawiderriskregisterandareprimarilyrisksrelatedtotheBHA.

Risk Mitigation/controls Riskowner Riskprofile

Proceduralissuesinfuture

regulatorycasesleading

topotentialfinancial

consequences.

FailuretoensuretheBHA

recruits,developsandretains

therighttalenttodeliverthe

agreedstrategy.

Abreachofcybersecurity

withintheBHA.

TheBHA'sgoingconcern

issignificantlyerodedby

increasingspendorreduced

incomeleadingtocontraction

inactivitiesundertakenon

behalfofthesport.

Weareimplementingall

recommendationsfromthe

QuinlanReportandIntegrity

Review.

Anumberofkeyappointments

havebeenmadeoverthepast

sixmonths.Thereisalsoan

ongoingsuccessionplanning

projectandactionplanto

developtalentacrossall

levelsofthebusiness.

Wehaveinvestedinnew

hardwaretoenhancenetwork

securityandserversto

increasedisasterrecovery

capability.Securitydevices

aremonitoredforthreats.

Three-yearbusinessplanand

budget(2017-19)agreedwith

stakeholderswhichdelivers

asmallsurplusoverthe

period.Forecastsupdatedon

amonthlybasis.

ChiefRegulatoryOfficer

DirectorofPeopleand

Development

ChiefOperatingOfficer

ChiefOperatingOfficer

⬇

⬅➡

⬆

⬅➡

61

DIRECTORS’ REPORT AND GOVERNANCE STATEMENT

Risk Mitigation/controls Riskowner Riskprofile

CODE FOR SPORTS GOVERNANCE

Inlate2016,UKSportandSportEnglandpublishedacodeforsportsgovernanceforallsportsbodiesoperatinginthe

UKwhichreceivepublicfunding.WhiletheBHAdoesnotreceivepublicfundingandisthereforeexemptfromthecode,

weintendtoreviewthecodeandadoptTier3,whichisthehighesttierofrequiredcomplianceaimedatorganisations

receivingmorethan£1millionperannuminfunding,aswellasanyotherrecommendedbestpracticerequirements.

Whileweexpectourgovernancestructurestoalreadyfollowmostofthecode,ourreviewwilllookatareaswherewe

canmakeoperationalimprovements.Weexpectthisreviewtobecompletedduring2017.

Agreementofanappropriate

andaffordabledeficit

repairplanforthepension

schemepresentsafinancial

sustainabilityrisktocash

reserves.

Ongoingdiscussionwith

thetrusteestoprovidean

affordable,long-termsolution

tothepensionscheme,which

couldincludeadditionalthird-

partysupport.

GroupFinancialController

⬅➡

62

SteveHarman

Chairman

Appointed:July2013

Experience:From1980onwards,Steveworked

forRoyalDutchShellinpositionsacrossEurope,

AsiaandtheAmericas.HisrolesincludedCEOof

ShellMarine,CEOofPennzoilandVicePresidentof

RoyalDutchShell.Hehasextensiveexperienceof

dealingwithmultiplestakeholdersandgovernment

organisations,andhassatonvariouscorporate

boardswhileholdingavarietyofExecutiveandNon-

ExecutivepositionsintheUK,AmericaandAsia.

Other roles:ADirectorandTrusteeofHelpforHeroes,a

MemberofDurhamUniversityCouncil,aNon-Executive

withtwoprivateequityfirms,andasupporterand

mentortoanumberofsmallbusinessstart-ups.

Committee membership:NominationsCommittee

(Chairman),Members’Committee(Chairman)

NickRust

Chief Executive

January2015

Experience:Over27yearsofexperienceinthebetting

andgamingindustry.ManagingDirector,Retail,for

LadbrokesPlcwithoversightofaround2,500betting

shopsand13,000staff.AlsoheldseniorrolesatBskyB

includingasManagingDirectorofSkyBet,andatGala

CoralincludingasManagingDirector,RemoteGambling

andCoralRetail.Hehasextensiveexperienceinindustry

andcorporateaffairs,havingmanagedkeyrelationships

withGovernmentandregulators.Oversawestablishment

ofBritishracing'stripartitestructurethroughthe

Members'Agreement,anindustry-widestrategyfor

growthandreplacementofthehorseracebettingLevy

andhasexcellentrelationshipsacrossBritishracing.

Other roles:Non-ExecutiveDirectorofYorkTheatreRoyal

Committee membership:Executive

Committee(Chairman)

AndrewMerriam

Independent Non-Executive Director

Appointed:September2012

Experience:QualifiedCharteredAccountant

withmorethan30years’experienceinfinancial

servicesandbankingand10yearsrunningthe

BradfordsGroup,theleadingprivately-owned

supplierofbuildingmaterialsintheUK.

Other roles:StewardofTheJockeyClub.Chairmanof

JockeyClubEstates.Chairman/Directorwithanumber

ofothercompanies,includingaDirectorofFakenham

Racecourse.TrusteeofRacingtoSchool,Retraining

ofRacehorsesandtheBritishRacingSchool.

Committee membership:AuditCommittee(Chairman),

RemunerationCommittee,RulesCommittee

(Chairman),memberoftheStewardingCommittee.

SirPaulStephenson

Independent Regulatory Director

Appointed:July2015

Experience:Ahighlydistinguishedcareerasa

policeofficer,holdingseniorcommandpositions

inMerseyside,LancashireandLondon.Inhisroles

withtheMetropolitanPoliceService–whereas

Commissionerhewasthemostseniorofficerinthe

UK–headvisedgovernmentsonissuesranging

fromcounterterrorismtoseriousorganisedcrime

andnationalpoliceimprovements,withafocuson

modern,transparentandcollaborativepolicing.

Other roles:TrusteeofCrimestoppersUK

Committee membership:RemunerationCommittee

BOARD MEMBERS

63

DIRECTORS’ REPORT AND GOVERNANCE STATEMENT

AthollDuncan

Senior Independent Director

Appointed:December2014

Experience:AnexperiencedNon-ExecutiveDirector

insportsorganisations,spent25yearswiththeBBC,

asajournalistandTVnewsandsportsproducer,

beforebecomingHeadofNewsandCurrentAffairs

fortheBBCinScotland.FouryearsasDirector

ofCorporateAffairswithScottishWater.Sitson

numerousadvisoryboards,hasworkedwiththe

Governmentonvariousbusinessissuesandhasgood

knowledgeofsportsadministrationandgovernance.

Other roles:ExecutiveDirectorofInstituteof

CharteredAccountantsofScotland,BoardDirector

ofHibernianFootballClubCommunityFoundation.

Committee membership:AuditCommittee,

NominationsCommittee

JulieHarrington

Independent Non-Executive Director

December2014

Experience: Considerableknowledgeandexperience

inhorseracingasaresultofhereight-yearcareer

withNorthernRacingincludingrolesasGroup

OperationsDirectorandManagingDirectorof

UttoxeterRacecourse.AlsoRegionalMarketing

DirectoratWhitbreadInns,RetailSectorDirectorat

BritishAirways,StGeorge'sParkManagingDirector

andrecentlyappointedCEOofBritishCycling.

Other roles:OperationsDirectoracrossTheFA'ssites

inBurton-upon-TrentandatWembleyStadium.

Committee membership:None

NöelHarwerth

Independent Non-Executive Director

Appointed:December2014

Experience:Aqualifiedsolicitor.Previousroles

includeChiefOperatingOfficerofCitibank

InternationalandtheChiefTaxOfficerof

Citigroup,Dun&BradstreetCorporationand

KennecottCopperCorporation.Alsopreviouslya

GovernmentappointeeontheBoardoftheTote.

Other roles:ChairoftheUKExportFinanceBoard,

andaNon-ExecutiveDirectoronanumberofhigh

profilefinancialservicesorganisations,including

StandardLifeplcandLondonMetalExchange.

Committee membership:None

JoeSaumarezSmith

Independent Non-Executive Director

Appointed:December2014

Experience:Forthepast15yearsadvisedandworked

closelywithlotteries,governments,investmentbanks

andoperatingcompaniesonstrategy,operational

restructuring,financeandmergerandacquisition.

Co-foundedBedeGamingLtd,aprovideroftechnology

totheonlinecasinoandbingoindustries,andoneof

thefastestgrowingcompaniesinthenorth-east.

Other roles:CEOofSportsGamingLimited,aLondon-

basedmanagementconsultancytothegamingindustry.

Committee membership:RemunerationCommittee

64

RupertArnold

Member Nominated Director

Appointed:January2015

Experience:AdirectorofTheHorsemen'sGroup

andRacingtoSchool.Earlierinhiscareer,after

employmentasassistanttrainertoJeremyHindley,

JohnWinterandPaulCole,Rupertheldatrainer’s

licenceforsixyears,traininginUpperLambourn.

Other roles:ChiefExecutiveoftheNationalTrainers

Federation,therepresentativebodyforlicensed

racehorsetrainersinGreatBritain,since2000.

Committee membership:Members’Committee

VivienCurrie

Member Nominated Director

Appointed:January2016

Experience:QualifyingasaCharteredAccountantwith

Ernst&Young,VivienworkedinLondon,Australia

andGlasgow,includingaperiodadvisingtechnology

start-ups,beforejoiningtelecomsbusinessDamovo

whereasDirectorofStrategyshewasresponsible

fortheintegrationofthegroup’s18countries’sales

forcesbeforebecomingheadofGlobalSalesand

Solutions.Previouslyalsopart-ownerandChief

ExecutiveofLivingstonFootballClub,havingbought

theclubandtakenitoutofadministration.

Other roles:ChiefExecutiveofHamiltonPark

Racecourse,amemberoftheDevelopment

BoardoftheMarieCurieHospiceinGlasgow

andViceChairmanoftheRCA.

Committee membership:None

LauraWhyte

Independent Non-Executive Director

Appointed:December2014

Experience:PartoftheJohnLewisManagementBoard

for10years,mostrecentlyintheroleofHumanResources

Director.OtherrolesatJohnLewisincludedDivisional

Registrar;aboardrolewiththeaimofdeliveringanobjective,

independentviewandprovidingassurancethatemployees

wereappropriatelysupported,thattheirviewswerereflected

indecision-makingandthatgovernancewithinJohnLewis

wascorrectlyexercised.LauraalsoworkedwiththeBritish

EquineFederationasaNon-ExecutiveDirectorandChair

oftheirRemunerationCommitteefrom2013to2016.

Other roles:ConsiderableNon-ExecutiveDirector

experienceincludingtheDefencePeopleandTrainingBoard

withintheMinistryofDefence,aboardmemberofCapital

andRegionalplcwhereshealsoChairstheResponsible

BusinessCommittee,andaTrusteeofWomeninRetail.

Pro-bonoactivitiesincludeadvisingtheEbonyHorseClub.

Committee membership:Remuneration

Committee(Chairman)

EamonnWilmott

Independent Non-Executive Director

Appointed:December2014

Experience:Ahighlysuccessfulentrepreneur,

witharecordofconsiderablesuccessinBritain

andtheUS.PreviousrolesincludeChairmanof

theThoroughbredOwner&BreederMagazineand

co-founderofTotalPerformanceDataLimited.His

earlycareerwasasaleaderinthedevelopment

oftheinternet.HewastheFounderandManaging

Directorofanaward-winningdigitalagencyandhe

wasChairmanofaleadingworldwidedigitalagency.

Other roles:FounderandManagingDirector

ofHorsesFirstRacing,astate-of-the-art

trainingyard,inpartnershipwithtrainerJeremy

Gask.Ownerofanumberofhorses.

Committee membership:None

65

DIRECTORS’ REPORT AND GOVERNANCE STATEMENT

RACING INTERESTS

ThetablebelowliststheracinginterestsofBoardDirectorsandExecutiveDirectors.

BoardDirectors Horseownershipinterests

SteveHarman HorsesintrainingwithMartinKeighley,DavidPipe,JeremyGask,

PhillipHobbs,RichardFahey,CharlieLongsdonandAndrewBalding

NickRust HorsesintrainingwithMickyHammond,RichardPhilips,JeremyGask,

HugoPalmerandCharlieHills

AndrewMerriam HorsesintrainingwithWarrenGreatrex

AthollDuncan HorsesintrainingwithJeremyGaskandHughieMorrison

JulieHarrington HorseintrainingwithJeremyGask

NöelHarwerth HorsesintrainingwithJeremyGask,JonjoO’Neill,RichardHannon

andRalphBeckett

JoeSaumarezSmith HorsesintrainingwithJeremyGask,EdDunlop,EdWalkerandHenryCandy

LauraWhyte HorsesintrainingwithJeremyGask

EamonnWilmott HorsesintrainingwithJeremyGask

ExecutiveDirectors

RichardWayman HorsesintrainingwithChrisWall

66

REMUNERATION REPORT

RemunerationforExecutiveandNon-ExecutiveDirectorsisdeterminedbytheRemunerationCommittee.

EXECUTIVE DIRECTORS

ExecutiveDirectorpayisacombinationoffixedbasicsalary,allowances(ifapplicable)andperformance-driven

remunerationbaseduponoperationaldeliveryandadherencewithfinancialtargets.

Elementandlinktoperformance Summaryofcurrentpolicy Changesintheyearahead

Base salaryissetatalevelthat

aimstoattractandretainhigh

performingexecutivedirectors

Allowancesareallocatedforspecific

purposeslinkedtoeachrole

Pensionandbenefitsarepartof

acompetitivetotalremuneration

package

Annualbonusdrivesandrewards

outstandingperformanceand

delivery

Salariesarereviewedannually,

takingintoaccountperformanceor

changesinjobroles.Thisisinline

withthepolicyforallemployees.

Carallowancesarepayabletoall

executivedirectors.Accommodation

andtravelallowancesarepayable

underspecificcircumstances.

TheCompanyoperatesadefined

contributionpensionschemefor

allemployeesona1:2matching

basisuptoamaximumcompany

contributionof10%.

Dependentuponroleandispayable

baseduponfinancialandoperating

performance.

2%standardpayriseappliedto

mostroles.TwoExecutiveDirectors,

includingtheChiefExecutive,waived

their2%payrisesin2016.

Nochange

Nochange

Nochange.

ThreeExecutivedirectors,including

theChiefExecutive,waivedtheir

2016performanceawards.

67

DIRECTORS’ REPORT AND GOVERNANCE STATEMENT

Therewere11employeescategorisedasExecutivesduring2016asshowninthetablebelow,theirtotalremuneration

paidin2016,excludingpensioncontributions,amountedto£1.797million.Ofthese11,ninewereExecutivesatyearend.

In2017,furtherchangestotheExecutivestructurewereannounced,reducingthetotalheadcount.

NON-EXECUTIVE DIRECTORS

ThetablesummarisesthemainelementsofremunerationforNon-ExecutiveDirectors.

FulldetailsoftotalBoardremunerationisshowninnotethreeofthefinancialstatements.

Elementandlinktoperformance Summaryofcurrentpolicy Changesintheyearahead

DirectorsFeesaresetaccordingto

theroleundertaken

Benefits

Reviewedannually,feesfor2016

wereasbelow:

Chairman–£100,000

IndependentRegulatoryDirector–

£35,000

Othernon–executivedirectors–

£27,000

Non-ExecutiveDirectorsdonot

receiveanybenefitsfromthe

companyoutsideofDirectors’

liabilityinsurance.

Nochange

Nochange

Role TermExpires

NickRust ChiefExecutive

RichardWayman ChiefOperatingOfficer Appointed4January2016

JamieStier ChiefRegulatoryOfficer

RuthQuinn DirectorofInternationalRacingandRacingDevelopment

WillLambe DirectorofCorporateAffairs

GavinJefferies DirectorofCommunications Appointed4January2016

CaroleGoldsmith DirectorofPeopleandDevelopment

BrantDunshea DirectorofIntegrityandRegulatoryOperations Appointed1October2016

CatherineBeloff DirectorofLegalandGovernance Appointed1October2016

AdamBrickell DirectorofIntegrity,LegalandRisk Resigned13September2016

PhilipNash DirectorofBusinessImprovement Resigned31December2016

68

PERSONNEL

BHApersonnelatamanagementlevel,currentattimeofpublication.

NickRust

ChiefExecutive

CatherineBeloff

DirectorofLegalandGovernance

Helen Bryce

HeadofLegal

BrantDunshea

DirectorofIntegrityandRegulatoryOperations

Paul Beeby

HeadofIntegrity

Tim Miller

InvestigatingOfficerTeamLeader

Andrew Streeter

Teamcoordinator

Annette Baker

LicensingTeamLeader

Chris Watts

HeadofIntegrityAssurance

Tessa Muir

Anti-DopingManager

Jez Willis

EquineWelfareIntegrityOfficers'TeamPrincipal

Darren Stone

TeamLeader

Linda Porter

TeamLeader

Gordan Markham

TeamLeader

David Cook

TeamLeader

Emma Marley

HeadofRacedayOperations

Robbie Supple

StarterTeamPrincipal

Charles Stebbing

ClerkoftheScalesTeamPrincipal

Richard Linley

SeniorInspectorofCourses

Nick Bostock

JudgesTeamPrincipal

CaroleGoldsmith

DirectorofPeopleandDevelopment

Kate Howarth

HRManager

Matt Mancini

WelfareDevelopmentManager

Zoe Elliott

CareersMarketingandRecruitmentManager

Gill Greeves

VocationalTrainingManager

GavinJefferies

DirectorofCommunications

Robin Mounsey

HeadofMedia

Sheena Coffey

StakeholderandInternalCommunicationsManager

69

DIRECTORS’ REPORT AND GOVERNANCE STATEMENT

WillLambe

ExecutiveDirector

Ross Hamilton

CorporateAffairsManager

RuthQuinn

DirectorofInternationalRacingandRacingDevelopment

JamieStier

ChiefRegulatoryOfficer

Paul Barton

HeadofStewarding

Sam Angell

StipendiarySteward,

StipendiaryStewards'TeamLeader

Kate Smith

Stewards’Secretary,

Stewards’SecretaryTeamLeader

Adie Smith

StipendiarySteward,

Stewards’SecretaryTeamLeader

Robert Earnshaw

StipendiaryStewardManager

Dr Jerry Hill

ChiefMedicalAdvisor

Paul Lifton

SeniorRegulatoryProjectsOfficer

Tim Naylor

HeadofRegulation

DavidSykes

DirectorofEquineHealthandWelfare

Carol Clarkson

ManageroftheCentreforRacehorseStudies

RichardWayman

ChiefOperatingOfficer

Paul Johnson

HeadofRacing

Steve Gibson

HeadofITandBusinessImprovement

Jason Pearce

SolutionsArchitect

Joel Kinvig

ITManager

Antonia Newman

SeniorProjectManager-Racing

Phil Smith

HeadofHandicapping

Dominic Gardiner-Hill

DeputyHeadofHandicapping

Paul Foster

GroupFinancialController

Lorna Ewens

FinancialAccountant

Robbie Boughton

OfficeServicesManager

70

71

Fixtures 72-73

Races 74-77

Horsesintraining 78-79

Ownershipfigures 80

Foalcrop 81

OtherKPIs 82-83

KEYSTATISTICS

Oursuccessatdeliveringcompetitiveandcompellingracingandgrowingoursport

isbase-linedondataaroundfieldsizes,horsesintrainingandownershipfigures.

Whilethereisalongwaytogobeforewereachpreviousheights,we’vemadegoodprogress

inrecentyears,particularlyagainstthesport’sbroadertargetstoachieve:

1,000additionalhorsesintrainingby2020

Bettingparticipationlevelsupby5percentby2018

Racecourseattendancestoreach7millionby2020

£120millionextraincomeforthesportperannumby2018.

Atthecloseof2016,oursporthadrecorded500additionalhorsesintraining,andgrowthin

racehorseownership,particularlyinsyndicates.Oursportisahugelyattractivebettingproduct,

withtotalbettingactivitygrowingby2percentsince2014andonlinebettingnowovertakingretail.

Inacompetitiveleisuremarket,nearlysixmillionpeoplewentracingin2016,withthesport

recordingitsthirdhighestattendancefiguresinthelast10yearsandregainingitsspotas

thesecondbestattendedsportafterfootball.

TheimplementationofanewLevy,whichisexpectedtobringanadditional£30-£40million

inLevyreceipts,bringswithittremendousopportunitiestogrowtheappealofoursport,to

becomemorerelevanttothebettingworldandtoreinvestmoreatthegrassroots.

72

FIXTURES

FIXTURES SCHEDULED

Flatturf

2012

583 584

293 296

580 584

1,456 1,464

2013 2015 2016

581 575 572

307 307 317

576 589 594

1,464 1,471 1,483

2014

Flatallweather

Jump

Total

Note: flat includes mixed meetings in table above and throughout this section, unless notified otherwise.

Note: includes additional, rescheduled and partially abandoned fixtures. Flat includes mixed.

FIXTURES RUN

Flatturf

2012

539 573

314 310

515 546

1,368 1,429

2013 2015 2016

578 564 555

315 318 330

538 558 549

1,431 1,440 1,434

2014

Flatallweather

Jump

Total

FIXTURES| RACES| HORSESINTRAINING| OWNERSHIPFIGURES| FOALCROP| OTHERKPIs

ABANDONMENTS

Flatturf

2012

41 4

7 1

81 41

129 46

2013 2015 2016

7 3 7

6 0 1

52 34 49

65 37 57

2014

Flatallweather

Jump

Total

73

KEY STATISTICS

TURF FIXTURES BY GOING

2012

19 17

160 214

292

208

266

106

356

206

227

95

2013 2015 2016

22 13 6

294 231 228

362

179

175

78

390 377

232 216

188 201

68 70

2014

Goodtofirm

Good

Goodtosoft

Soft

Heavy

Firm

1,051 1,1151,110 1,122 1,098Total

KEYSTATISTICS

TOTAL PRIZE MONEY (£'000)

2012

66,022 82,380

31,757 40,609

2013 2015 2016

75,903 89,736 92,354

38,320 42,415 45,249

2014

97,778 122,989114,223 132,152 137,603Total

Flat

Jump

AVERAGE PRIZE MONEY (£) (BY RACE)

2012

10,811 13,060

8,971 10,695

2013 2015 2016

11,867 14,342 14,697

10,219 11,209 12,060

2014

10,136 12,17111,258 13,161 13,711Total

Flat

Jump

74

FIXTURES | RACES | HORSESINTRAINING| OWNERSHIPFIGURES| FOALCROP| OTHERKPIs

RACES

RACES RUN

2016

3,901

2,383

1,348

2,036

280

87

10,035Total

Flatturf

Flatallweather

Steeplechase

Hurdle

NationalHuntFlat

Hunterchase

2012

3,734 3,979

2,373 2,329

1,310

1,826

305

99

1,402

1,968

333

94

2013 2015

4,002 3,947

2,394 2,310

1,387

1,899

357

107

1,361

2,034

295

94

2014

9,647 10,10510,146 10,041

DECLARATIONS

2012

65,102 62,278

34,140 33,469

2013 2015 2016

63,570 62,055 63,384

35,957 33,811 34,626

2014

99,242 95,74799,527 95,866 98,010Total

Flat

Jump

ENTRIES

2012

147,554 128,350

78,500 72,475

2013 2015 2016

136,611 128,675 126,162

80,270 73,094 75,949

2014

226,054 200,825216,881 201,769 202,111Total

Flat

Jump

75

KEY STATISTICSKEYSTATISTICS

AVERAGE FIELD SIZE

2016

9.17

8.53

10

2013 2014 2015 2016

8.5

7.0

5.5

0

2012

8.93All

2012

9.59 8.93

8.92 8.22

2013 2015

8.99 9.02

8.88 8.35

2014

9.35 8.668.95 8.77

Flat

Jump

Aver

age

field

siz

eby

rac

ety

pe

ELIMINATIONS

2012

8,148 4,766

1,500 874

2013 2015 2016

5,723 4,603 5,215

1,546 920 1,066

2014

9,648 5,6407,269 5,523 6,281Total

Flat

Jump

76

FIXTURES | RACES | HORSESINTRAINING| OWNERSHIPFIGURES| FOALCROP| OTHERKPIs

TOTAL RUNNERS

2012

58,593 56,309

31,581 31,222

2013 2015 2016

57,526 56,463 57,606

33,310 31,612 32,010

2014

90,174 87,53190,836 88,075 89,616Total

Flat

Jump

1,263 1,1041,216 1,047 994Dual

INDIVIDUAL RUNNERS

2012

9,614 9,580

2013 2015 2016

9,588 9,726 9,996

2014

18,550 18,07718,506 18,315 18,540Total

Flat

7,673 7,3937,702 7,542 7,550Jump

AVERAGE NUMBER OF RUNS PER HORSE

NON-RUNNERS

2012

2012

2013

2013

2015 2016

2015 2016

2014

2014

5.4 5.3

3.5 3.7

5.3 5.2 5.2

3.7 3.7 3.7

4.9 4.84.9 4.8 4.8

6,509 5,969

2,559 2,247

6,044 5,592 5,778

2,647 2,199 2,616

9,068 8,2168,691 7,791 8,394Total

Flat

Total

Flat

Jump

10,000

2011 2012 2013 2014 2015

7,500

5,000

2,500

Non

-run

ners

by

race

type

2,559 2,647 2,247 2,199 2,616

6,509 6,0445,969 5,592

5,778

Jump

0

77

KEY STATISTICSKEYSTATISTICS

AVERAGE FIELD SIZE

2012 2013 2015 20162014

9.07 9.118.98 9.21 9.18Pattern/Listed

6.55 6.656.33 6.50 6.81WFAconditions

9.58 8.898.90 8.81 9.03Maiden

4.65 4.944.69 4.93 7.31Novice

7.28 7.096.81 7.17 7.24Sellers/claimers

8.30 8.208.20 8.24 8.31Auction

15.64 15.5017.40 16.10 19.17Sales

10.41 10.4510.84 10.21 10.08Pattern/Listed

7.76 7.117.72 7.41 7.76Handicap

5.89 4.805.79 4.92 4.77Maiden/novice

6.62 5.315.58 6.21 5.47WFAconditions

10.65 10.029.87 10.01 9.89Pattern/Listed

10.10 9.0110.17 9.19 9.57Handicap

9.60 8.689.58 8.46 8.40Maiden/novice

8.02 6.137.25 7.11 5.22WFAconditions

7.83 7.457.98 7.94 7.84Sellers/claimers

9.59 8.938.99 9.02 9.17Flat

7.51 7.037.53 7.31 7.54SteepleChase

9.76 8.869.75 8.91 9.08Hurdle

10.09 9.289.62 9.16 9.23NationalHuntFlat

8.65 8.978.56 9.02 8.78HunterChases

11.00

2012 2013 2014 2015 2016

9.50

8.00

6.50

0

10.18 9.219.40 9.33 9.49Handicap

Aver

age

field

siz

eby

rac

ety

pe

78

8,824

4,435

639

FIXTURES | RACES| HORSESINTRAINING| OWNERSHIPFIGURES| FOALCROP| OTHERKPIs

HORSESINTRAININGMONTHLY AVERAGE

13,716 13,52813,703 13,886 14,033

8,471 8,440 8,525 8,715

4,420 4,452 4,3094,397

647 632 635616

2012 2013 2014 2015 2016

6,000

3,000

9,000

12,000

15,000

ALL

2012

8,471 8,525

4,420 4,309

647 635

2013 2015 2016

8,440 8,715 8,824

4,452 4,397 4,435

632 616 639

2014

Jump

Dual

Flat

All

Aver

age

num

ber

ofh

orse

sin

trai

ning

by

race

type

79

KEY STATISTICSKEYSTATISTICS

FLAT

2012

2,849 3,044

2013 2015 2016

2,966 3,214 3,165

2014

8,471 8,5258,440 8,715 8,824Total

1,229 1,1611,230 1,174 1,205

1,741 1,8241,763 1,782 1,815

2,652 2,4952,482 2,545 2,639

647 635632 616 639

DUAL

2012

64 58

164 138

419 439

2013 2015 2016

50 52 62

154 158 140

428 406 438

2014

Total

4,420 4,3094,452 4,397 4,435

JUMP

2012

94 122

566 537

3,760 3,650

2013 2015 2016

111 120 108

528 583 587

3,814 3,695 3,739

2014

Total

2YO

4YO

5YO+

3YO

4YO

5YO+

3YO

4YO

5YO+

3YO

80

OWNERSHIPFIGURES

7,946

NUMBER OF OWNERS

2016

1,798

5,007

920

Total

221

8,215 7,9317,968 7,892

2012

2,142 1,937

4,924 4,859

928 937

2013 2015

2,024 1,852

4,814 4,922

907 905

2014

221 220223 213

Soleowners

Other

Partnership/syndicate

Company

2,142 2,024 1,937 1,852

4,9244,922

4,814 4,859

928 937907905

2012 2013 2014 2015 2016

2,250

0

4,500

6,750

9,000

221 223 220213 221

Num

ber

ofo

wne

rsb

yow

ners

hip

type

920

1,798

5,007

Note:OtherincludespeoplewhoareSoleowners/CompanyownersinadditiontobeingpartofaPartnership/Syndicate.

FIXTURES | RACES | HORSESINTRAINING | OWNERSHIPFIGURES | FOALCROP | OTHERKPIs

81

KEY STATISTICS

FOALCROP

NUMBER OF THOROUGHBRED FOALS

2016

4,663

2011 2012 2013 2014 2015

4,250

4,000

4,500

4,750

5,000

Foals

4,663

4,3664,420

4,255

4,569

Num

ber

ofth

orou

ghbr

edfo

als

2012

4,366 4,255

2013 2015

4,420 4,569

2014

82

FIXTURES | RACES| HORSESINTRAINING| OWNERSHIPFIGURES| FOALCROP | OTHERKPIS

OTHERKPIsYEAR TO DATE

SEVEN RACE CARDS (%)

2012

18.1 11.8

81.9 88.2

2013 2015 2016

13.4 21.2 20.5

86.6 78.8 79.5

2014

RACES WITH FEWER THAN SIX RUNNERS (%)

2012

9.8 12.3

16.5 20.5

2013 2015 2016

13.3 10.9 10.0

15.9 16.3 18.5

2014

Jump

Flat

12.2 15.414.3 12.9 13.2Total

RACES WITH EIGHT OR MORE RUNNERS (%)

2012

71.9 63.9

61.0 51.3

2013 2015 2016

64.8 65.9 67.9

60.3 54.8 57.2

2014

Jump

67.9 59.263.1 61.7 63.9Total

2012 2013 2014 2015 2016

80%

60%

40%

20%

0.0%Per

cent

age

ofr

aces

with

8o

rm

ore

runn

ers

byr

ace

type

7+Races

<7Races

Flat

83

KEY STATISTICSKEYSTATISTICS

TERRESTRIALLY TELEVISED RACES

2012 2013 20152014

342 332

195 205

323 340

186 216

537 537509 556Total

Jump

Flat

RACES WITH ODDS-ON FAVOURITES (%)

2012 2013 20152014

11.2 13.7

16.9 18.6

13.7 12.7

17.8 17.8

13.3 15.615.2 14.6Total

Jump

Flat

2016

12.3

18.3

14.6

2016

314

216

530

84

85

FINANCIAL STATEMENTS

Profitandloss 86-87

Balancesheet 88-89

Cashflow 90

Equitychanges 91

Notes 92-113

FINANCIALSTATEMENTS

86

CONSOLIDATED PROFIT AND LOSS ACCOUNT (for the year ended 31 December 2016)

CONSOLIDATED OTHER COMPREHENSIVE INCOME / (LOSS) (for the year ended 31 December 2016)

Note 2016 2015

£'000 £'000

Groupturnover 2 33,500 32,453

Administrativeexpenses (32,355) 31,346

Operatingprofit 1,145 1,107

Otherinterestreceivableandsimilarincome 6 24 34

Interestpayableandsimilarcharges 7 (464) (377)

Profitbeforetaxation 5 705 764

Taxationonprofit 8 129 537

Profitforthefinancialyear 16 834 1,301

Theprofitintheaboveprofitandlossaccountrelateentirelytocontinuingoperations.

Thenotesonpages92to113formpartofthesefinancialstatements.

Note 2016 2015

£'000 £'000

Profitforthefinancialyear 834 1,301

Othercomprehensiveloss

Remeasurementofthenetdefinedbenefitliability 16 (4,348) (1,785)

Totalcomprehensivelossfortheyear (3,514) (484)

PROFITANDLOSS

87

FINANCIAL STATEMENTS

COMPANY PROFIT AND LOSS ACCOUNT (for the year ended 31 December 2016)

OTHER COMPREHENSIVE INCOME / (LOSS) (for the year ended 31 December 2016)

Note 2016 2015

£'000 £'000

Turnover 2 31,852 31,124

Administrativeexpenses (30,846) (30,015)

Operatingprofit 1,006 1,109

Otherinterestreceivableandsimilarincome 6 19 27

Interestpayableandsimilarcharges 7 (464) (377)

Profitbeforetaxation 5 561 759

Taxationonprofit 8 161 530

Profitforthefinancialyear 16 722 1,289

Theprofitintheaboveprofitandlossaccountrelateentirelytocontinuingoperations.

Thenotesonpages92to113formpartofthesefinancialstatements

Note 2016 2015

£'000 £'000

Profitforthefinancialyear 722 1,289

Othercomprehensiveloss

Remeasurementofthenetdefinedbenefitliability 16 (4,348) (1,785)

Totalcomprehensivelossfortheyear (3,626) (496)

88

CONSOLIDATED BALANCE SHEET (at 31 December 2016)

Note 2016 2015

£'000 £'000

Fixedassets

Intangibleassets 9 1,289 1,195

Tangibleassets 10 597 572

1,886 1,767

Currentassets

Debtors(including£2,076,000(2015:£2,211,000)dueaftermorethanoneyear) 12 8,724 10,813

Cashatbankandinhand 13 13,428 12,731

22,152 23,544

Creditors:amountsfallingduewithinoneyear 14 (15,040) (16,411)

Netcurrentassets 7,112 7,133

Totalassetslesscurrentliabilities 8,998 8,900

Provisionsforliabilities

Pensionandsimilarobligations 17 (16,413) (12,801)

Netliabilities (7,415) (3,901)

Capitalandreserves

Capitalreserve 16 19 19

Profitandlossaccount 16 (7,434) (3,920)

Shareholders’deficit (7,415) (3,901)

Thenotesonpages92to113formpartofthesefinancialstatements

Thesefinancialstatementswereapprovedbytheboardofdirectorson4May2017andweresignedonits

behalfby:SHarman,Chairman.

BALANCESHEET

89

FINANCIAL STATEMENTS

COMPANY BALANCE SHEET (at 31 December 2016)

Note 2016 2015

£'000 £'000

Fixedassets

Intangibleassets 9 1,289 1,195

Tangibleassets 10 575 572

Investments 11 3,604 3,604

5,468 5,371

Currentassets

Debtors 12 6,726 8,401

Cashatbankandinhand 13 11,559 11,407

18,285 19,808

Creditors:amountsfallingduewithinoneyear 14 (14,914) (16,326)

Netcurrentassets 3,371 3,482

Totalassetslesscurrentliabilities 8,839 8,853

Provisionsforliabilities

Pensionandsimilarobligations 17 (16,413) (12,801)

Netliabilities (7,574) (3,948)

Capitalandreserves

Capitalreserve 16 19 19

Profitandlossaccount 16 (7,593) (3,967)

Shareholders’deficit (7,574) (3,948)

Thenotesonpages92to113formpartofthesefinancialstatements

Thesefinancialstatementswereapprovedbytheboardofdirectorson4May2017andweresignedonits

behalfby:SHarman,Chairman.

90

CONSOLIDATED CASH FLOW STATEMENT (for the year ended 31 December 2016)

Note 2016 2015

£'000 £'000

Cashflowsforoperatingactivities

Profitforthefinancialyear 834 1,301

Adjustmentsfor

Depreciation,amortisationandimpairment 539 531

Interestreceived (24) (34)

Otherfinanceincome 464 377

Lossonsaleoffixedasset 2 1

Corporationtaxreclaimedinrespectofpriorperiods 246 429

2,061 2,605

Decrease/(increase)indebtors 1,817 (2,282)

(Decrease)/increaseincreditors (1,382) 2,368

Taxation (129) (537)

Differencebetweencashcontributionsandcurrentservicecharge (1,200) (976)

Netcashfromoperatingactivities 1,167 1,178

Cashflowsfrominvestingactivities

Capitaliseddevelopmentexpenditure (487) (419)

Acquisitionoftangiblefixedassets (173) (259)

Interestreceived 24 34

Netcashfrominvestingactivities (636) (644)

Cashflowsfromfinancingactivities

Loansreceivedfromassociatedundertakings 166 264

Netcashfromfinancingactivities 166 264

Increaseincashandcashequivalents 20 697 798

CASHFLOW

91

FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY

Capitalreserve Profitandlossaccount Totalequity

£'000 £'000 £'000

Balanceat1January2015 19 (3,436) (3,417)

Totalcomprehensiveincomefortheyear

Profit - 1,301 1,301

Othercomprehensiveloss - (1,785) (1,785)

Balanceat31December2015 19 (3,920) (3,901)

Capitalreserve Profitandlossaccount Totalequity

£'000 £'000 £'000

Balanceat1January2016 19 (3,920) (3,901)

Totalcomprehensiveincomefortheperiod

Profit - 834 834

Othercomprehensiveloss - (4,348) (4,348)

Balanceat31December2016 19 (7,434) (7,415)

EQUITYCHANGES

92

NOTES(FORMINGPARTOFTHEFINANCIALSTATEMENTS)

1 ACCOUNTING POLICIES

BritishHorseracingAuthorityLimited(the

"Company")isacompanylimitedbyguarantee

andincorporatedanddomiciledintheUK.

TheGroupandparentcompanyfinancialstatements

werepreparedinaccordancewithFinancialReporting

Standard102TheFinancialReportingStandardapplicable

intheUKandRepublicofIreland(“FRS102”)asissued

inAugust2014.TheamendmentstoFRS102issuedin

July2015havebeenapplied.Allamountsinthefinancial

statementshavebeenroundedtothenearest£1,000.

Theparentcompanyisincludedintheconsolidated

financialstatements,andisconsideredtobeaqualifying

entityunderFRS102paragraphs1.8to1.12.

The following exemptions available under FRS

102 in respect of certain disclosures for the parent

company financial statements have been applied:

Thereconciliationofthenumberofshares

outstandingfromthebeginningtotheendofthe

periodhasnotbeenincludedasecondtime;

NoseparateparentcompanyCashFlow

Statementwithrelatednotesisincluded;and

KeyManagementPersonnelcompensation

hasnotbeenincludedasecondtime.

CertaindisclosuresrequiredbyFRS102.11Basic

FinancialInstrumentsandFRS102.12Other

FinancialInstrumentIssuesinrespectoffinancial

instrumentsnotfallingwithinthefairvalue

accountingrulesofParagraph36(4)ofSchedule1.

Theaccountingpoliciessetoutbelowhave,unless

otherwisestated,beenappliedconsistentlytoall

periodspresentedinthesefinancialstatements.

Judgementsmadebythedirectors,intheapplication

oftheseaccountingpoliciesthathavesignificant

effectonthefinancialstatementsandestimates

withasignificantriskofmaterialadjustmentinthe

nextyeararediscussedinnote15inrelationtothe

fairvalueassessmentoffinancialinstruments.

Measurementconvention

Thefinancialstatementsarepreparedonthehistorical

costbasiswiththeexceptionofcertainfinancial

instrumentswhichhavebeenmeasuredatfairvalue.

Goingconcern

ThedirectorsbelievethattheCompanyandGroup

arewellplacedtomanagetheirbusinessrisks

successfullydespitethecurrentuncertaineconomic

outlook.Thedirectorshaveareasonableexpectation

thattheCompanyhasadequateresourcestocontinue

inoperationalexistencefortheforeseeablefuture.

Thustheycontinuetoadoptthegoingconcernbasisof

accountinginpreparingtheannualfinancialstatements.

Basisofconsolidation

Theconsolidatedfinancialstatementsincludethe

financialstatementsoftheCompanyanditssubsidiary

undertakingsmadeupto31December2016.

Asubsidiaryisanentitythatiscontrolledbytheparent.

Theresultsofsubsidiaryundertakingsareincludedin

theconsolidatedprofitandlossaccountfromthedate

thatcontrolcommencesuntilthedatethatcontrol

ceases.ControlisestablishedwhentheCompanyhas

thepowertogoverntheoperatingandfinancialpolicies

ofanentitysoastoobtainbenefitsfromitsactivities.

Inassessingcontrol,theGrouptakesintoconsideration

potentialvotingrightsthatarecurrentlyexercisable.

TheCompanydoesnotownallthesharesinits

subsidiary,BritishHorseracingDatabaseLimited,

withtheminorityshareholdersholding3‘B’and3‘C’

shareseach,comparedtotheCompany’sholdingof

93

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

4,003,932‘A’shares.Nominorityinterestsareshownin

theconsolidatedaccountsoftheCompanyas(i)under

theprovisionscontainedwithintheArticlesofBHDthe

‘A’shareholderistheonlyshareholderentitledtoa

distribution,ifandwhenadistributionisdeclaredbythe

Boardand(ii)onawindinguptheassetsaredistributedin

accordancewiththenumberofsharesheldinallclasses.

AnassociateisanentityinwhichtheGrouphassignificant

influence,butnotcontrol,overtheoperatingand

financialpoliciesoftheentity.Significanceinfluence

ispresumedtoexistswhentheinvestorsholds

between20%and50%oftheequityvotingrights.

Ajointventureisacontractualarrangementundertaking

inwhichtheGroupexercisesjointcontroloverthe

operatingandfinancialpoliciesoftheentity.Where

thejointventureiscarriedoutthroughanentity,itis

treatedasajointlycontrolledentity.TheGroup’sshare

oftheprofitslesslossesofassociatesandofjointly

controlledentitiesisincludedintheconsolidatedprofit

andlossaccountanditsinterestintheirnetassetsis

recordedonthebalancesheetusingtheequitymethod

Intheparentfinancialstatements,investments

arecarriedatcostlessimpairment.

Intangibleandtangiblefixedassets

Thecostofintangibleandtangiblefixedassetsis

theirpurchasecost,togetherwithanyincidental

costsofacquisition.Assetsunderconstruction

relatestoworkinprogressoncomputerrelated

development.Thiswillbeamortised/depreciated

onceitcomesintouseonthebasissetoutbelow.

Depreciation/amortisationisprovidedsoasto

writeoffthecostoftangibleandintangiblefixed

assetsonastraightlinebasisovertheestimated

usefuleconomiclivesoftheassetsconcerned.

The rates of depreciation / amortisation are as follows:

Leaseholdimprovements: 3-5yearsorlease

term,ifshorter

Contractcomputerdevelopment: 7years

Othercomputerdevelopment: 4years

Fixturesfittingsandofficeequipment: 3-5years

TheCompanyholdsalicenceforuseoftheDatabase

ofpre-racedataforgovernanceandregulatory

purposes.InaccordancewithFRS102,noamounts

havebeencapitalisedinthebalancesheetinrespect

oftheserights.Thecostofacquiringthisassetis

writtenofftotheprofitandlossaccountasincurred.

Fixedassetinvestments

Fixedassetinvestmentsinjointventuresandsubsidiaries

areheldatcostlessanyprovisionforimpairment

inthefinancialstatementsoftheCompany.

Basicfinancialinstruments

Trade and other debtors / creditors

Tradeandotherdebtorsarerecognisedinitiallyat

transactionpricelessattributabletransactioncosts.

Tradeandothercreditorsarerecognisedinitiallyat

transactionpriceplusattributabletransactioncosts.

Subsequenttoinitialrecognitiontheyaremeasuredat

amortisedcostusingtheeffectiveinterestmethod,less

anyimpairmentlossesinthecaseoftradedebtors.If

thearrangementconstitutesafinancingtransaction,

forexampleifpaymentisdeferredbeyondnormal

businessterms,thenitismeasuredatthepresent

valueoffuturepaymentsdiscountedatamarket

rateofinstrumentforasimilardebtinstrument.

Interest-bearing borrowings classified

as basic financial instruments

Interest-bearingborrowingsarerecognisedinitiallyatthe

presentvalueoffuturepaymentsdiscountedatamarket

rateofinterest.Subsequenttoinitialrecognition,interest-

bearingborrowingsarestatedatamortisedcostusingthe

effectiveinterestmethod,lessanyimpairmentlosses.

Investments in preference and ordinary shares

Investmentsinequityinstrumentsaremeasuredinitially

atfairvalue,whichisnormallythetransactionprice.

Transactioncostsareexcludediftheinvestmentsare

subsequentlymeasuredatfairvaluethroughprofitand

loss.Subsequenttoinitialrecognitioninvestmentsthat

canbemeasuredreliablyaremeasuredatfairvaluewith

changesrecognitioninprofitorloss.Otherinvestments

aremeasuredatcostlessimpairmentinprofitorloss

94

Investments in subsidiaries, jointly

controlled entities and associates

Theseareseparatefinancialstatementsofthecompany.

Investmentsinsubsidiaries,jointlycontrolledentities

andassociatesarecarriedatcostlessimpairment.

Cash and cash equivalents

Cashandcashequivalentscomprisecashbalances

andcalldeposits.Bankoverdraftsthatare

repayableondemandandformanintegralpart

oftheCompany’scashmanagementareincluded

asacomponentofcashandcashequivalentsfor

thepurposeonlyofthecashflowstatement.

Foreigncurrencies

Transactionsinforeigncurrenciesarerecorded

usingtherateofexchangerulingatthedateof

thetransaction.Monetaryassetsandliabilities

denominatedinforeigncurrenciesaretranslatedusing

thecontractedrateortherateofexchangerulingat

thebalancesheetdateandthegainsorlosseson

translationareincludedintheprofitandlossaccount.

Turnover

Turnover,whichexcludesvalueaddedtax(‘VAT’),

representstheinvoicedvalueofgoodsandservices

suppliedinconnectionwiththeadministrationof

horseracinginGreatBritain.TheGrouprecognises

incomeandcostsupontransferoftitleofgoodsor

performanceofservicesandincomeisrecognisedin

thefinancialstatementsoftheCompanywhenearned.

Inaddition,includedwithinGroupturnoverare

amounts(excludingVAT)derivedfromincome

fromsignedlicenceagreementswiththirdparties.

ThelicenceincomestreamsderivedbytheGroup

arerecognisedintheperiodtheyrelateto.

Relatedpartydisclosure

RelatedPartyDisclosuresrequiresthedisclosure

ofthedetailsofmaterialtransactionsbetween

theGroupandanyrelatedparties,asdefined.

Detailsofmaterialrelatedpartytransactionsare

includedinnote21tothefinancialstatements.

TheDirectorsconsiderthattopublishrelatedparty

disclosures,ofthetransactionsandyearendbalances

betweentheCompanyandentitieswhichformpart

oftheBritishHorseracingAuthorityLimitedgroup

wouldbedisproportionatelyonerousandwouldserve

littlepurposegiventheinformationisavailableto

themembersintheordinarycourseofbusiness.

Accordingly,theyhavedecidednottodisclosesuch

informationinthesefinancialstatements.

Provisions

Aprovisionisrecognisedinthebalancesheetwhenthe

entityhasapresentlegalorconstructiveobligationas

aresultofapastevent,thatcanbereliablymeasured

anditisprobablethatanoutflowofeconomicbenefits

willberequiredtosettletheobligation.Provisions

arerecognisedatthebestestimateoftheamount

requiredtosettletheobligationatthereportingdate.

Taxation

Taxontheprofitorlossfortheyearcomprises

currentanddeferredtax.Taxisrecognisedinthe

profitandlossaccountexcepttotheextentthatit

relatestoitemsrecogniseddirectlyinequityorother

comprehensiveincome,inwhichcaseitisrecognised

directlyinequityorothercomprehensiveincome.

Currenttaxistheexpectedtaxpayableorreceivable

onthetaxableincomeorlossfortheyear,using

taxratesenactedorsubstantivelyenactedat

thebalancesheetdate,andanyadjustmentto

taxpayableinrespectofpreviousyears.

Deferredtaxisprovidedontimingdifferenceswhich

arisefromtheinclusionofincomeandexpensesin

taxassessmentsinperiodsdifferentfromthosein

whichtheyarerecognisedinthefinancialstatements.

Deferredtaxisnotrecognisedonpermanentdifferences

arisingbecausecertaintypesofincomeorexpense

arenon-taxableoraredisallowablefortaxorbecause

certaintaxchargesorallowancesaregreateror

smallerthanthecorrespondingincomeorexpense.

Deferredtaxismeasuredatthetaxratethatisexpected

toapplytothereversaloftherelateddifference,using

taxratesenactedorsubstantivelyenactedatthebalance

sheetdate.Deferredtaxbalancesarenotdiscounted.

95

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

Unrelievedtaxlossesandotherdeferredtaxassets

arerecognisedonlytotheextentthatisitprobable

thattheywillberecoveredagainstthereversalof

deferredtaxliabilitiesorotherfuturetaxableprofits.

Operatingleases

Payments(excludingcostsforservicesandinsurance)

madeunderoperatingleasesarerecognisedintheprofit

andlossaccountonastraight-linebasisoverthetermof

theleaseunlessthepaymentstothelessorarestructured

toincreaseinlinewithexpectedgeneralinflation;in

whichcasethepaymentsrelatedtothestructured

increasesarerecognisedasincurred.Leaseincentives

receivedarerecognisedinprofitandlossoverthetermof

theleaseasanintegralpartofthetotalleaseexpense.

Employeebenefits

Defined contribution plans and other

long term employee benefits

Adefinedcontributionplanisapost-employment

benefitplanunderwhichthecompanypaysfixed

contributionsintoaseparateentityandwillhave

nolegalorconstructiveobligationtopayfurther

amounts.Obligationsforcontributionstodefined

contributionpensionplansarerecognisedasan

expenseintheprofitandlossaccountintheperiods

duringwhichservicesarerenderedbyemployees.

Defined benefit plans

Adefinedbenefitplanisapost-employmentbenefitplan

otherthanadefinedcontributionplan.Theentity’snet

obligationinrespectofadefinedbenefitplaniscalculated

byestimatingtheamountoffuturebenefitthatemployees

haveearnedinreturnfortheirserviceinthecurrentand

priorperiods;thatbenefitisdiscountedtodetermine

itspresentvalue.Thefairvalueofanyplanassetsis

deducted.Theentitydeterminesthenetinterestexpense

(income)onthenetdefinedbenefitliability(asset)for

theperiodbyapplyingthediscountrateasdetermined

atthebeginningoftheannualperiodtothenetdefined

benefitliability(asset)takingaccountofchangesarising

asaresultofcontributionsandbenefitpayments

Thediscountrateistheyieldatthebalancesheet

dateonAAcreditratedbondsdenominatedinthe

currencyof,andhavingmaturitydatesapproximating

tothetermsoftheentity’sobligations.Avaluationis

performedtrienniallybyaqualifiedactuaryandthe

positionupdatedannuallyusingtheprojectedunit

creditmethod.Theentityrecognisesnetdefinedbenefit

planassetstotheextentthatitisabletorecover

thesurpluseitherthroughreducedcontributions

inthefutureorthroughrefundsfromtheplan.

Changesinthenetdefinedbenefitliability

arisingfromemployeeservicerenderedduring

theperiod,netinterestonnetdefinedbenefit

liability,andthecostofplanintroductions,benefit

changes,curtailmentsandsettlementsduring

theperiodarerecognisedinprofitorloss.

Remeasurementofthenetdefinedbenefitliability/

assetisrecognisedinothercomprehensive

incomeintheperiodinwhichitoccurs.

Termination benefits

Terminationbenefitsarerecognisedasanexpense

whentheentityisdemonstrablycommitted,

withoutrealisticpossibilityofwithdrawal,

toaformaldetailedplantoeitherterminate

employmentbeforethenormalretirementdate.

96

2 SEGMENTAL INFORMATION – GROUP AND COMPANY

Racingadministration Datalicensing Total

2016 2016 2016

£'000 £'000 £'000

Turnover

UnitedKingdomandRepublicofIreland 31,591 1,909 33,500

Totalsales-Group 31,591 1,909 33,500

Intragrouprevenue(Companyonly) 261

Totalsales-Company 31,852

Totaloperatingprofitbeforeinterestandtaxation 1,016 129 1,145

Netliabilities (7,090) (325) (7,415)

Racingadministration Datalicensing Total

2015 2015 2015

£'000 £'000 £'000

Turnover

UnitedKingdomandRepublicofIreland 30,672 1,781 32,453

Totalsales 30,672 1,781 32,453

Intragrouprevenue(Companyonly) 452

Totalsales-Company 31,124

Totaloperatinglossbeforeinterestandtaxation 1,108 (1) 1,107

Netliabilities (3,474) (427) (3,901)

TheGrouphastwoclassesofbusiness,datalicensingandracingadministration,bothofwhichoriginateintheUK.

Itisnotpossibletosplitthe(loss)/profitbeforeinterestandtaxationorthenetliabilitiesbygeographicaldestination.

97

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

3 REMUNERATION OF DIRECTORS AND KEY MANAGEMENT

TheremunerationpayabletoeachofthedirectorsofBritishHorseracingAuthorityLimitedfortheyearwas:

2016 2015

£'000 £'000

NJRust 328 406

SRHarman 100 100

AWKMerriam 27 22

DGGunn - 18

DLWhyte 27 22

JWSaumarezSmith 27 22

ADuncan 27 22

EWilmott 27 22

JAHarrington 27 22

ENHarwerth 27 22

DAThorpe - 20

JRArnold 24 19

SirPRStevenson 35 18

VACurrie 24 -

Total 700 735

ThecostsofNJRust,whowasChiefExecutive,arealsorepresentedwithinthecostsincludedinnote4.

NJRustwaivedhisentitlementtoabonusinrespectof2016.

Numberofdirectors

2016 2015

Retirementbenefitsareaccruingtothefollowingnumberofdirectorsunder:

Moneypurchaseschemes 1 1

Theaggregateofemolumentsandamountsreceivableunderlongtermincentiveschemesofthehighestpaiddirector

was£328,000(2015:£406,000),andCompanypensioncontributionsof£24,000(2015:£24,000)weremadetoamoney

purchaseschemeonhisbehalf.

98

4 STAFF NUMBERS AND COSTS

TheaveragenumberofpersonsemployedbytheCompanyduringtheyearwas215(2015:211).

Theaggregatepayrollcostsofthesepersonswereasfollows:

2016 2015

£'000 £'000

Wagesandsalaries 10,149 9,283

Pensioncosts 1,241 1,241

Socialsecuritycosts 1,123 956

12,513 11,480

5 EXPENSES AND AUDITOR’S REMUNERATION

2016 2015

Includedinprofit/lossarethefollowing: £'000 £'000

Depreciation/amortisationchargefortheyear:

Tangibleownedfixedassets 146 307

Intangibleownedfixedassets 393 224

Lossondisposaloffixedassets 2 1

Operatingleases:

Buildingrentals 852 777

Carleases 376 350

Photocopierleases 43 37

Auditor’sremuneration:

Auditofthesefinancialstatements 45 41

Amountsreceivablebyauditorsandtheirassociatesinrespectof:

Auditoffinancialstatementsofsubsidiariesofthecompany 13 13

Taxationcomplianceservices 30 22

Othertaxadvisoryservices 10 12

Allotherservices 1 1

99

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

6 OTHER INTEREST RECEIVABLE AND SIMILAR INCOME

GROUP 2016 2015

£'000 £'000

Bankinterest 24 34

24 34

COMPANY 2016 2015

£'000 £'000

Bankinterest 19 27

19 27

7 INTEREST PAYABLE AND SIMILAR CHARGES

2016 2015

£'000 £'000

Interestonassets 2,234 2,094

Interestonliabilities (2,698) (2,471)

Netinterestexpenseonnetdefinedbenefitliabilities (464) (377)

100

8 TAXATION

GROUP 2016 2015

£'000 £'000

Analysisofcurrenttaxrecognisedinprofitandloss

UKcorporationtaxat20%(2015:20.25%)

Taxonprofitfortheyear 32 (1)

Adjustmentinrespectofpriorperiods (161) (536)

Totaltaxcredit (129) (537)

Reconciliationofeffectivetaxrate 2016 2015

£'000 £'000

Profitexcludingtaxation 705 764

TaxusingtheUKcorporationtaxrateof20%(2015:20.25%) 141 155

Effectsof:

Expensesnotdeductiblefortaxpurposes 57 60

Pensioncostsnotimmediatelydeductible (147) (121)

R&Dtaxcreditstooffsettradingprofits (3) (25)

R&Dtaxcreditsexchangedforcash (161) (288)

(over)/underprovidedinprioryear - (248)

Capitalallowancesinexcessofdepreciation (16) (70)

Totalcurrenttaxcredit(seeabove) (129) (537)

TheCompanyhasclaimedR&Dtaxcreditsfor2015.Thishasbeenexchangedforcashastherearenoprofitstooffset

thesecreditsagainst.Thisamountof£161,000(2015:£288,000)isshownseparatelyandwasreceivedfromHMRCin

January2017.TheCompanywillcontinuetoseektoclaimthesegoingforward,whereappropriate,andwillonlyinclude

anamountinrespectofthecurrentyearsuchthatitoffsetsanylikelytaxchargeontradingprofits.Thefullamountwill

beincludedonlyonceclaimedandreceivedfromHMRC.

Factors that may affect future tax charges:

Adeferredtaxassetof£3,283,000(2015:£2,592,000)hasnotbeenrecognisedontheGroup’spensionschemeliability.

Thisisduetotheuncertaintyoftherebeingsufficienttaxableprofitsinfutureyearstoenablesuchtaxdeductionsto

beclaimed.Therearealsounrecognisedlossesof£384,000whichagainareunabletoberecognisedduetoinsufficient

taxableprofitsinfuturetousethemagainst.

FurtherreductionsintheUKcorporationtaxrateto19%(effectivefrom1April2017)andto18%(effective1April

2020)weresubstantivelyenactedon26October2016,andanadditionalreductionto17%(effective1April2020)was

substantivelyenactedon6September2016.GiventheCompany’sexpectationthatitwillcontinuetomakesmallprofits

andreceivegrouprelief,theimpactofareductioninfuturecorporationtaxratesisminimal.

101

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

COMPANY 2016 2015

£'000 £'000

Analysisofcurrenttaxrecognisedinprofitandloss

UKcorporationtaxat20%(2015:20.25%)

Taxonprofitfortheperiod - -

Adjustmentinrespectofprioryears (161) (530)

Totalcurrenttaxcredit (161) (530)

Reconciliationofeffectivetaxrate 2016 2015

£'000 £'000

Profitexcludingtaxation 561 759

Currenttaxat20%(2015:20.25%) 112 154

Effectsof:

Expensesnotdeductiblefortaxpurposes 49 55

Pensioncostsnotimmediatelydeductible (147) (121)

R&Dtaxcreditstooffsettradingprofits (1) (20)

R&Dtaxcreditsexchangedforcash (161) (288)

(over)/underprovidedinprioryear - (242)

Capitalallowancesinexcessofdepreciation (13) (68)

Totalcurrenttaxcredit(seeabove) (161) (530)

TheCompanyhasclaimedR&Dtaxcreditsfor2015.Thishasbeenexchangedforcashastherearenoprofitstooffset

thesecreditsagainst.Thisamountof£161,000isshownseparatelyandwasreceivedfromHMRCinJanuary2017.The

Companywillcontinuetoseektoclaimthesegoingforward,whereappropriate,andwillonlyincludeanamountin

respectofthecurrentyearsuchthatitoffsetsanylikelytaxchargeontradingprofits.Thefullamountwillbeincluded

onlyonceclaimedandreceivedfromHMRC.

Factors that may affect future tax charges:

Adeferredtaxassetof£3,283,000(2015:£2,592,000)hasnotbeenrecognisedontheCompany’spensionschemeliability.

Thisisduetotheuncertaintyoftherebeingsufficienttaxableprofitsinfutureyearstoenablesuchtaxdeductionsto

beclaimed.Therearealsounrecognisedlossesof£383,000whichagainareunabletoberecognisedduetoinsufficient

taxableprofitsinfuturetousethemagainst.

FurtherreductionsintheUKcorporationtaxrateto19%(effectivefrom1April2017)andto18%(effective1April

2020)weresubstantivelyenactedon26October2016,andanadditionalreductionto17%(effective1April2020)was

substantivelyenactedon6September2016.GiventheCompany’sexpectationthatitwillcontinuetomakesmallprofits

andreceivegrouprelief,theimpactofareductioninfuturecorporationtaxratesisminimal.

102

9 INTANGIBLE FIXED ASSETS – GROUP AND COMPANY

Assetsunder

DevelopmentCosts Construction Total

£'000 £'000 £'000

Cost

At1January2016 1,427 88 1,515

Additions 487 - 487

Transfers 88 (88) -

Disposals - - -

At31December2016 2,002 - 2,002

Amortisation

At1January2016 320 - 320

Chargefortheyear 393 - 393

Disposals - - -

At31December2016 713 - 713

Netbookvalue

At31December2016 1,289 - 1,289

At1January2016 1,107 88 1,195

Thesecostsareeitheramortisedover4yearsforexternaldevelopmentorovertheremaininglifeofthecontract

towhichthedevelopmentrelates.Thismethodofamortisationisbelievedtobefairandappropriateandrepresent

theusefuleconomiclifeoftheassetinthemostappropriatemanner.Theamortisationchargeisincludedwith

administrativeexpenses.

103

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

10 TANGIBLE FIXED ASSETS

COMPANY Leasehold Fixtures,fittings

improvements andofficeequipment Total

£'000 £'000 £'000

Cost

At1January2016 1,150 2,990 4,140

Additions - 148 148

Transfers 20 (20) -

Disposals - (32) (32)

At31December2016 1,170 3,086 4,256

Depreciation

At1January2016 1,056 2,512 3,568

Chargefortheyear 26 117 143

Disposals - (30) (30)

At31December2016 1,082 2,599 3,681

Netbookvalue

At31December2016 88 487 575

At1January2016 94 478 572

GROUP Leasehold Fixtures,fittings

improvements andofficeequipment Total

£'000 £'000 £'000

Cost

At1January2016 1,150 2,990 4,140

Additions - 173 173

Transfers 20 (20) -

Disposals - (32) (32)

At31December2016 1,170 3,111 4,281

Depreciation

At1January2016 1,056 2,512 3,568

Chargefortheyear 26 120 146

Disposals - (30) (30)

At31December2016 1,082 2,602 3,684

Netbookvalue

At31December2016 88 509 597

At1January2016 94 478 572

104

11 FIXED ASSET INVESTMENTS - COMPANY

SharesinGroup

Undertakings Total

£'000 £'000

Cost

At1Januaryand31December2016 4,004 4,004

Provision

At1Januaryand31December2016 (400) (400)

Netbookvalue

At1Januaryand31December2016 3,604 3,604

TheCompanyhasthefollowingdirectinvestments:

Countryof Numberof Classof Ownership2016 Ownership2015

incorporation shares sharesheld % %

BritishHorseracing

DatabaseLimited UK 4,003,932 Ordinary 100 100

BritishHorseracingLimited* UK 2 Ordinary 100 100

BritishHorseracing

BoardLimited* UK 2 Ordinary 100 100

RacingForAll* UK 2 Ordinary 100 100

HorseracingRegulatory

AuthorityLimited* UK 1,000 Ordinary 100 100

Thefourcompaniesmarkedwith*arealldormantcompaniesandnolongertrade.Alloftheabovecompanieshave

theirregisteredofficeat75HighHolborn,London,WC1V6LS.

TheCompanyhasthefollowingindirectinvestmentsthroughitssubsidiaries:

Countryof Numberof Classof Ownership2015 Ownership2014

incorporation shares sharesheld % %

GreatBritishRacingLimited

(formerlyRacingEnterprisesLimited) UK 4,003,932 Ordinary 99.99985 99.99985

BritishChampionsSeriesLimited UK 139 Ordinary 13.9 13.9

Alloftheabovecompanieshavetheirregisteredofficeat75HighHolborn,London,WC1V6LS.

105

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

12 DEBTORS

Group Group Company Company

2016 2015 2016 2015

£'000 £'000 £'000 £'000

Tradedebtors 3,367 3,963 3,286 3,424

Amountsowedbygroup

undertakings - - 321 466

Amountsowedbyrelatedparties 32 39 32 39

Corporationtaxasset 161 267 161 246

Otherdebtors 2,238 3,560 2,212 3,550

AmountsowedbyBCSLimited 2,212 2,302 - -

Prepaymentsandaccruedincome 714 682 714 676

8,724 10,813 6,726 8,401

Duewithinoneyear 6,648 8,602 6,726 8,401

Dueafteroneyear 2,076 2,211 - -

8,724 10,813 6,726 8,401

Includedwithinotherdebtorsisabalanceof£250,000(2015:£325,000)whichhasbeenfullyprovidedforandthereforehas

anetcarryingvalueof£nil(2015:£nil).Arepaymentof£75,000wasreceivedduringtheyearinrelationtothisbalance.

IncludedintheaboveamountowedbyBCSLimitedisaloanbalanceof£2,211,000.Thisloanwillberepaidbetween

1January2016and31December2025overwhichtimeinterestof£486,000willhavebeenearned.Theinterestrate

chargedvariesaccordingtowhichelementoftheloanitrelatesto.Thefirstrepaymentof£91,000wasmadein2016.

Thesecondscheduledrepaymentof£135,000isduein2017.

TheloantoBCSLimitedisstatedatfairvaluecalculatedusinganinterestratewhichthedirectorsbelieveaccurately

representsamarketrate.Allotherfinancialinstrumentsareheldatfairvalueastheyarerepayableondemand.

13 CASH - GROUP AND COMPANY

Includedwithinthecashbalanceof£13,428,000(2015:£12,731,000)andcompanycashbalancesof£11,559,000(2015:

£11,407,000)arethefollowingringfencedbalances.

2016 2015

£'000 £'000

EarlyClosingmonies 518 522

DevelopmentFund 184 191

OnCoursephysios 20 15

BritishOwnersandBreedersIncentiveScheme - 506

Plus10bonusscheme 2,423 2,631

BHAGrantScheme 659 520

Trainersbenevolentfund 4 20

Industryrecruitmentandtraininggrantfund 642 420

July2018LLP 327 -

Prizemoneyduefordistribution 1,873 1,522

6,650 6,347

106

14 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Group Company Company

2016 2015 2016 2015

£'000 £'000 £'000 £'000

Tradecreditors 2,939 3,153 2,666 2,906

Amountsowedtogroup

undertakings - - 251 239

Ringfencedfunds(note13) 6,650 6,347 6,650 6,347

Corporationtax 11 - - -

Othertaxesandsocialsecurity 753 277 711 277

Othercreditors 3,466 5,402 3,415 5,325

Accrualsanddeferredincome 1,221 1,232 1,221 1,232

15,040 16,411 14,914 16,326

Allfinancialinstrumentsareheldatfairvalueandarepayableondemand.

15 CARRYING AMOUNT OF FINANCIAL INSTRUMENTS - GROUP

Thecarryingamountsofthefinancialassetsandliabilitiesinclude:

2016 2015

£'000 £'000

Assetsmeasuredatfairvaluethroughprofitorloss 7,849 9,864

Liabilitiesmeasuredatfairvaluethroughprofitorloss 7,169 8,832

AlloftheGroup’sfinancialassetsandliabilitiesareheldatfairvalue.Inthecaseofdebtorsthisisthesameasbook

valueasthedebts,withtheexceptionoftheloanfromGBRtoBCS,arerepayableondemand.Similarlyallfinancial

liabilitiesareheldatfairvalueastheyarepayableondemand.

InrelationtotheloanfromGBRtoBCSthefairvaluehasbeendeterminedbyreviewinganappropriaterateof

borrowingavailablebothatthetimeoftheinitialloanbeinggrantedin2011andwhentheloanwasextendedand

renegotiatedin2013.GiventhatBCSisjointlyownedbyacombinationofthegroup(whoown13.9%)andotherlarger

racecoursesandracecoursegroups,itisreasonableindetermininganappropriatediscountratetoreviewthemajor

shareholdersabilitytoborrowasawayofassessinghowtovaluetheloan.Usingavarietyofindicatorsincludinglibor

plus0.8%,liborplus2.5%andtheinterestrateonloanavailablefromwithintheRacingindustry,averagingthese

sourcesgivesarateof3.25%whichhasbeenapplied.Usingthisratetodiscounttheloansgivesafairvalueinline

withtheamountshowninnote12.

ThedirectorsbelievethatthereisminimalcreditriskgiventhesuccessofBCSsinceinceptionandunlessthefirst

repaymentduein2016isnotmadeinaccordancewiththerepaymentplanthenitwillcontinuetotakeapositiveview

oftherecoverabilityandthereforefairvalueofthisloangoingforward.

107

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

16 RESERVES

GROUP Profitand

Capitalreserve lossaccount Total

£'000 £'000 £'000

At1January2016 19 (3,920) (3,901)

Profitforthefinancialyear - 834 834

Remeasurementofthenetdefinedbenefitliability - (4,348) (4,348)

At31December2016 19 (7,434) (7,415)

COMPANY Profitand

Capitalreserve lossaccount Total

£'000 £'000 £'000

At1January2016 19 (3,967) (3,948)

Profitforthefinancialyear - 722 722

Remeasurementofthenetdefinedbenefitliability - (4,348) (4,348)

At31December2016 19 (7,593) (7,574)

17 PENSION SCHEME

Overview

TheCompanyoperatesapensionschemeforitsemployees,theBritishHorseracingAuthorityPensionScheme(‘the

Scheme’).TheSchemehastwosections,adefinedbenefitsectionwhichclosedtofutureaccrualon31December2015

andadefinedcontributionsection.Thedefinedcontributionsectionisalsousedforthepurposesofautoenrolment.

Defined benefit section

Thedefinedbenefitsectionwasclosedtofutureaccrualon31December2015.Priortothis,thedefinedbenefitsection

hasbeenbaseduponcareeraveragerevaluedearnings.

ThelatestfullactuarialvaluationofthedefinedbenefitsectionoftheSchemewascarriedoutat31December2014and

wasupdatedforFRS17purposesto31December2016byaqualifiedindependentactuary.

Thecompanywillcontribute£1,158,000asanannualdeficitrepairpaymentin2017andhasarecoveryplanagreedwith

thetrusteesoftheSchemethatisinplaceuntilSeptember2024.

ThetrusteesoftheSchemehaveaguaranteefromtheHorseraceBettingLevyBoard(‘HBLB’)thatiftheBHAdoesnot

makeitsannualpaymentsforeithertheannualdeficitpaymentoritsongoingservicescontributionsthentheHBLB

willmakethesepayments.Thisguaranteeiseffectiveuntiltheearlierof30September2024orthedateatwhichthe

Schemedeficitusingthe2007actuarialassumptionshasbeenfullypaidoff.

InadditiontheEmployermeetsthecostsofadministeringtheScheme,thecostoflumpsumdeathinserviceinsurance

premiumsandLeviespayablebytheScheme.

108

Netpensionliability:

Valueat31 Valueat31

December2016 December2015

£'000 £'000

Definedbenefitobligation (87,776) (72,126)

Planassets 71,363 59,325

Deficit (16,413) (12,801)

Relateddeferredtaxasset - -

Netpensionliability (16,413) (12,801)

Movementsinpresentvalueofdefinedbenefitobligation:

Valueat31 Valueat31

December2016 December2015

£'000 £'000

Atstartofyear 72,126 71,668

Currentservicecost - 725

Interestcost 2,698 2,471

Actuariallosses/(gains)duetoassumptionchanges 15,535 (3,758)

Experience(gain)/loss (318) 3,147

Contributionsbymembers - 14

Benefitspaid (2,265) (2,141)

Atendofyear 87,776 72,126

Movementsinfairvalueofplanassets:

Valueat31 Valueat31

December2016 December2015

£'000 £'000

Atstartofyear 59,325 60,053

Interestonassets 2,234 2,094

Actuarialgain/(loss)onschemeassets 10,869 (2,396)

Contributionsbyemployer 1,200 1,701

Contributionsbymembers - 14

Benefitspaid (2,265) (2,141)

Atendofyear 71,363 59,325

109

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

Expenserecognisedintheprofitandlossaccount:

31December2016 31December2015

£'000 £'000

Currentservicecost - (725)

Netinterestonnetdefinedbenefitliability (464) (377)

Totalexpenserecognisedinprofitandloss (464) (1,102)

Thetotalamountrecognisedinothercomprehensiveincomeisalossof£4,348,000(2015:lossof£1,785,000).

Cumulativeactuariallossesreportedinothercomprehensiveincomeforaccountingperiodsendingonorafter22June

2002,arelossesof£20,208,000(2015:£15,860,000).

Schemeassets:

ThefairvalueoftheScheme’sassets,whicharenotintendedtoberealisedintheshorttermandmaybesubjectto

significantchangebeforetheyarerealised,were:

Valueat31 Valueat31

December2016 December2015

£'000 £'000

Equitiesandotherreturnseekingassets 20,192 18,120

Bondsandotherdefensiveassets 49,818 39,902

Property 1,222 1,166

Cash 120 137

Annuity 11 -

Totalmarketvalueofassets 71,363 59,325

Actualreturnonplanassets 13,103 (302)

110

Themajorassumptionsusedinthisvaluationbytheactuarywere(innormalterms):

31December2016 31December2015

% £'000

Rateofincreaseinsalaries 3.60 3.30

Inflation(ConsumerPriceIndex) 2.80 2.50

Inflation(RetailPriceIndex) 3.60 3.30

Rateofincreaseinpensionsinpayment 2.50-5.00 2.50-5.00

Discountrateappliedtoschemeliabilities 2.80 3.80

Invaluingtheliabilitiesofthepensionfundat31December2016,mortalityassumptionshavebeenmadeasindicatedbelow.

Theassumptionsrelatingtolongevityunderlyingthepensionliabilitiesatthebalancesheetdatearebasedonstandard

actuarialmortalitytablesandincludeanallowanceforfutureimprovementsinlongevity.

The assumptions are equivalent to expecting a 65-year old to live for a number of years as follows:

Currentpensioneraged65:22.8years(male),25.0years(female).

Futureretiree,currentlyaged45,uponreaching65:24.2years(male),26.4years(female).

Theassumptionsusedbytheactuaryarechosenfromarangeofpossibleactuarialassumptionswhich,duetothe

timescalecovered,maynotnecessarilybeborneoutinpractice.

Thehistoryoftheplansforthecurrentandpriorperiodsisasfollows:

2016 2015 2014 2013 2012

£'000 £'000 £'000 £'000 £'000

Presentvalueofschemeliabilities (87,776) (72,126) (71,668) (61,083) (61,689)

Fairvalueofschemeassets 71,363 59,325 60,053 50,131 49,125

Deficit (16,413) (12,801) (11,615) (10,952) (12,564)

Experienceadjustments:

Yearending Yearending Yearending

31December2016 31December2015 31December2014

Differencebetweentheexpectedandactualreturnonschemeassets:

Amount(£'000) 10,869 (2,396) 8,090

Percentageofyearendschemeassets 15% 4% 13%

Experience(gains)andlossesonschemeliabilities:

Amount(£'000) (318) 3,147 -

Percentageofyearendschemeliabilities 0.3% 4% -

Totalamountrecognisedinothercomprehensiveincome:

Amount(£'000) (4,348) (1,785) (1,281)

Percentageofyearendschemeliabilities 5% 2% 2%

111

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

Thedefinedbenefitelementoftheschemewasclosedtofutureaccrualon31December2015andthereforein2016,the

onlycontributionsbeingpaidintothissectionrelatetotheagreeddeficitrepaircontributionsattheratesrecommended

bytheSchemeActuary.Cashcontributionstothedefinedbenefitelementamountedto£1,158,000totheSchemein

2016(2015:£1,706,461).

Analysisofamountrecognisedinothercomprehensiveincome:

Yearending Yearending Yearending

31December2016 31December2015 31December2014

£'000 £'000 £'000

Actuarialgain/(loss)onschemeassets 10,869 (2,396) 8,090

Changesinactuarialassumptions (15,535) 3,758 (9,371)

Experiencegains/(losses) 318 (3,147) -

Actuarialgain/(loss)recognisedinothercomprehensiveincome (4,348) (1,785) (1,281)

Analysisofamountrecognisedinothercomprehensiveincome(continued):

Yearending Yearending

31December2013 31December2012

£'000 £'000

Actuarial(loss)/gainonschemeassets (599) 1,599

Changesinactuarialassumptions 1,499 (7,100)

Experiencegains/(losses) 11 (527)

Actuarial(loss)/gainrecognisedinothercomprehensiveincome 911 (6,028)

Defined contribution section

TheCompany’scontributiontothedefinedcontributionschemeischargedtotheprofitandlossaccountintheperiodin

whichtheyarepaidandamountedto£1,241,103in2016(2015:£692,486).

Therewasnoamountpayabletothepensionfundasat31December2016:£208,000(2015:£210,000).

InadditiontheCompanypaid£nilintothepersonalpensionschemesofcertainemployees(2015:£nil).

18 LIABILITY OF MEMBERS

ThefourmembersoftheCompanyhaveundertakentocontributeasumnotexceeding£1eachtomeettheliabilitiesof

theCompanyintheeventthatitiswoundup.

112

19 COMMITMENTS

TheGrouphasacontractwithWeatherbysThoroughbredLimitedfortheprovisionofsubstantialracingandgeneral

administrationserviceswhichexpiresattheendof2020.At31December2016theGroupandCompanyhadannual

commitmentsundernon-cancellableoperatingleasesasfollows:

2016 2016 2015 2015

LandandBuildings Other LandandBuildings Other

£'000 £'000 £'000 £'000

Expiringwithinoneyear - 35 - 30

Expiringbetweenone

andfiveyearsinclusive 852 351 850 284

Overfiveyears - - - -

852 386 850 314

In2015,theleasecommitmentsincludedinotherrelatetomotorcars.

20 ANALYSIS OF NET FUNDS

At1January2016 CashFlow At31December2016

£'000 £'000 £'000

Cashatbankandinhand 5,614 392 6,006

Ringfencedcash 6,347 303 6,650

Shorttermdeposits 770 2 772

Total 12,731 697 13,428

21 RELATED PARTY TRANSACTIONS

ThedirectorsconsiderthatthedisclosuresrequiredbyFRS102ofthetransactionsandyearendbalancesbetweenthe

CompanyandentitieswhichformpartoftheBritishHorseracingAuthorityLimitedgroupwouldbedisproportionately

onerousandwouldservelittlepurposegiventheinformationisavailabletothemembersintheordinarycourseof

business.Accordingly,theyhavedecidednottodisclosesuchinformationintheseaccounts.

Identity of related parties with which the Company has transacted

Thecompanyhastransactedwiththefollowingrelatedparties,allofwhicharerelatedbyvirtueofoneoftheir

employeesbeingamemberoftheBoardoftheCompany,orasamemberbodyoftheCompany.

RacecourseAssociationLimited

RacehorseOwnersAssociationLimited

ThoroughbredBreedersAssociation

FakenhamRacecourseLimited

NationalTrainersFederation–from19January2015

Horsemen’sGroup

BritishChampionsSeriesLimited

TheHamiltonParkRacecourseCompanyLimited–from1January2016

113

FINANCIAL STATEMENTSFINANCIALSTATEMENTS

Otherrelatedpartytransactions:

Salesto Administrativeexpensesincurredfrom

2016 2015 2016 2015

£'000 £'000 £'000 £'000

RacecourseAssociationLimited 41 42 3 7

RacehorseOwnersAssociationLimited 93 140 - 2

ThoroughbredBreedersAssociation 36 19 - -

FakenhamRacecourseLimited 181 178 - -

TheHamiltonParkRacecourse

CompanyLimited - N/A - N/A

NationalTrainersFederation 3 3 - -

Horsemen’sGroup 4 - (75) (175)

BritishChampionsSeriesLimited 50 - 1 -

408 382 (71) (168)

Receivablesoutstanding Creditorsoutstanding

2016 2015 2016 2015

£'000 £'000 £'000 £'000

RacecourseAssociationLimited 4 11 - -

RacehorseOwnersAssociationLimited 28 28 - -

ThoroughbredBreedersAssociation - - - -

FakenhamRacecourseLimited - - - -

TheHamiltonParkRacecourse

CompanyLimited - N/A - N/A

NationalTrainersFederation - - - -

Horsemen’sGroup - - - -

BritishChampionsSeriesLimited 2,212 2,302 - -

2,244 2,341 - -

114

115

FINANCIAL STATEMENTS

All figures within the document are correct as of time of print 06.06.17

Certain images within this publication are reproduced with the permission of Focusonracing.com

AnelectronicversionofthisbookletisavailableinPDFformatonourwebsite.

BritishHorseracingAuthority75HighHolborn,London,WC1V6LS

Switchboard:02071520000Mediaenquiries:02071520166

www.britishhorseracing.com

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