Progress during the year:
SUSTAINABLEINDUSTRYFUNDING:EstablishedtheAuthorisedBettingPartnerscheme,whichhassecured
interimandimprovedfundingforoursport COMPETITIVEANDCOMPELLINGRACING:Introducedchangestothefixturelisttosupportindustrygrowth
objectivesandimplementedOptimalRacePlanningtoimproveourapproachtocreatingtheraceprogramme KEEPINGRACINGFAIRANDCLEAN:CompletedreviewsofourDisciplinaryPanel,AppealBoardandLicensing
Committeestoensureconfidenceintheseprocessesamongstparticipants WORLDCLASSRACING:DevelopedandenactedEuropean-widechangestotheWeightforAgeScalefollowing
ayear-longconsultationandanalysis,toensurethescaleprovidesalevelplayingfieldforallrunners.
PERFORMANCE UPDATE01 JAN 2016 - 30 SEPT 2016
BRIEFING DOCUMENT
Thisbriefingprovidesanupdateonourfinancialandbusiness
performanceagainstourstrategicobjectivesanddeliveryofmajor
projectsinthefirstninemonthsof2016.Thisbriefingdocument
isthefirstofwhatwillbecomeregularperformanceupdates.
BUSINESS PERFORMANCE
InordertogrowBritishracingandtodeliverourvisionofabrighterfutureforoursport,horsesandpeople,wehavenine
strategicobjectiveswhichdetermineanddrivewhatwedo.
SUSTAINABLEINDUSTRY FUNDING
EQUINE WELFARELEADERSHIP
GROWING BRITISHRACING TOGETHER
SUSTAINABLEINDUSTRY FUNDING
COMPETITIVE ANDCOMPELLING RACING
KEEPING RACINGFAIR AND CLEAN
PROFESSIONALWORKPLACE
WORLD CLASSRACING
LOOKING AFTEROUR PEOPLE
FINANCIALRESPONSIBILITY
©BritishHorseracingAuthority
BRIEFING DOCUMENT
Case study: a new Racing Administration website GROWINGBRITISHRACINGTOGETHER:IncollaborationwithWeatherbys,weareinthefinalyearofanextensive
projecttoreplaceourcoreracingsystems.TheRacingAdministrationwebsiteisvisitedbyalmost2,000industry
professionalseachmonthandthenew,updatedversionwillprovidetrainers,jockeys,owners,agentsandadministrators
withanonlineadministrationexperiencecompatiblewithmoderndevicesandwaysofworking.
Key elements include:
Horse management–allowstrainerstomanageandviewtheirhorsesintrainingaswellasadministratecare
andcontrolrequirementsinamuchsimplerway
Stable employee management–shiftsthemanagementprocessonline,reducingpaperworkfortrainers,andprovides
theBHAwithaccurateandtimelyinformationaboutthenumberandrolesofthepeoplewhoworkinourindustry
Race management–forracecoursesandtheBHAtoanalyse,maintainandoptimisetheirraceprogrammes
Race opportunity finder–helpstrainersandownerstofindtherightracesfortheirhorsesmoreeasily
Entries, declarations and jockey bookings–animprovedlookandfeelwithpagesmademobile-friendly,
allowingpeoplewhousethesystemtoworkonthego
Ownership administration (in development)–onlinesystemstomakeownershipregistrationandadministration
paperlessandlesstimeconsuming.
Case study: streamlining the stewards’ room administration system
KEEPINGRACINGFAIRANDCLEAN:Ourstewardingteamarepresentateveryracemeetingtoensurethey
areconductedinaccordancewiththerulesandtothehighestlevelofintegrity,withtheintenttoensure
confidenceamongstparticipantsandtheracingandbettingpublic.Werecentlyupdatedandstreamlinedtheon-course
regulatorysystem,replacingfiveindividualapplicationswithasingleonlinesystemwhichprovidesgreaterflexibility
andenhancesourregulatoryprocesses.Wenowhavereal-timevisibilityoverracecourseregulatoryeventsanda
systemwhichlinksupdatainstewards’roomsaroundthecountry.
Forward look
We’vecompletedourthree-yearbusinessplanwhichdetailsactivityareasandanewsetofinitiativestoenableustomeet
ourstrategicobjectivesandtogovern,regulateandrepresentBritishracing;toleadandco-ordinateactivitieswhichensure
theoverallhealth,developmentandgrowthoftheindustry;andtoprioritisethewelfareofourhorsesandourpeople.
Theaimofthebusinessplanningprocessistoensurethatwehaveappropriatelyresourcedinitiativeswhichmeetour
strategicobjectivesandaredeliveredwithinabreak-evenbudget.
©BritishHorseracingAuthority
BRIEFING DOCUMENT
Income and expenditure (£’000)
Totalincome
Totalexpenditure
Surplus/(deficit) before tax
30 Sept YTD 2016
24,342
22,962
1,380
Budget30 Sept YTD 2016
24,516
23,060
1,456
ActualVariance Variance
174 0.7%
(98) (0.4%)
76 5.5%
Budget v Actual
Income and costs compared to budget, and prior year actual
Compared to budget:
⬆ Incomeincreasedby0.7%,drivenbya1.6%increaseinfeeincome
Peoplecostswerebroadlyinlinewithbudget
⬆ LegalandprofessionalcostsincreasedduetoactivityrelatingtothereplacementoftheLevyandongoingcompliancework
⬇ Centraloverheadsanddepreciationdecreasedby22%.
Compared to prior year actual:
⬆ Incomeincreasedby3.6%,drivenbya3%increaseinsomechargesandincreasesinowneractivity
⬆ Costsincreased3.9%vs2015intheninemonthstoSeptember
⬇ CostreductioninWeatherbyscontractby2.5%(£100,000)inrealterms.
Cash and reserves
Weendedthethirdquarterwithtotaloperatingcashof£7.5millionwhichisartificiallyhighduetothetimingofsupplier
andcapitalpayments.Thiscomparesto£5millionatthestartof2016.Bytheendoftheyear,weexpectcashlevelsto
beintheregionof£4millionduetooutflowstocovermajorcapitalexpenditure,andnormaloperatingexpenditurebeing
higherthanincomeinthefinalquarterof2016,asthenumberoffixturesreduces.
Wehadnetliabilities(reserves)of£2.5millionatthecloseofthethirdquarter,comparedtonetliabilitiesof£3.9million
atthestartof2016.Thereservesremainnegativeduetoalargepensionschemedeficit.
Full-year forecast:
Anexpecteddeficitbeforetaxof£350,000-£400,000,whichisaslightimprovementonbudget
Abudgetedcashoutflowof£773,000reducedto£650,000,partlyasaresultofdelayingsomecapitalprojectsinto2017
Ourincomeforecastis0.8%,£250,000higherthanbudget
Ourcostsforecastis0.6%higherthanbudget.
©BritishHorseracingAuthority
Ourfinancialobjectiveistooperateonabreak-evenbasisoverthemedium-termandtomaintainanappropriatelevel
ofcashreserves,whilebeingtransparentaboutourbusinessplanandbudget.
Overall,performanceinthefirstninemonthsof2016isbroadlyinlinewithexpectation,incomewasslightlyhigherthan
budgetandoffsetincreasedone-offoperatingcosts.
Highlights:
Progressachievedonindustrygrowthtargetsforownership,resultinginrisesinregistrationfiguresandentry-feeincome
Costsareinlinewithbudget,despiteadditionalandunbudgetedcostsincertainbusinessareas,includingadditional
legalcostsinrelationtoourcomplianceworkandinestablishingthenewRacingAuthority.
FINANCIAL PERFORMANCE
