BRDC GROUP'S FINANCIAL RESULTS FOR 2010
The British Racing Drivers’ Club Limited is pleased to announce its financial results for the year ending 31 December 2010. These results include the income and revenue from Silverstone’s property, corporate and retail interests as well as those generated from the circuit’s major events, including the 2010 Formula 1 Santander British Grand Prix and AirAsia British Grand Prix (MotoGP).
The Silverstone business continued to grow through 2010, with turnover at £48,580,000 – an increase of 23% over 2009 levels.
The net loss before tax reached £1.9 million in 2010, versus a profit of £1.3 million a year earlier, therefore down £3.2 million on 2009 results. Of this, gross profits were £1.4 million lower at £12.8 million. This was solely due to the combination of a shorter Formula 1 British Grand Prix sales cycle (tickets were on sale for 7 months, rather than 12 months), as well as an increase in costs associated with the new Formula 1 fee structure.
From an overhead perspective, costs increased by £1.5 million. Depreciation accounted for £1 million of the increases, in line with the significant venue investments made in the year. The balance of £0.5 million mainly related to increased staff costs, as Silverstone strengthens its management team in line with the continued growth of the business.
Interest costs also rose by £0.3 million in the year, due to the new loan facility requirements aligned to the aforementioned site investment programme.
Stuart Rolt, Chairman of the British Racing Drivers’ Club (BRDC), said: “The headline is an operating profit of £1.6 million and a net loss after tax of just over £1 million, but we are very pleased and encouraged by these results. It is important that people are aware of the underlying success and growth of the business.
“In the last two years more than £40 million has been invested to improve the circuit and the venue’s facilities, in particular the new Silverstone Wing complex, which was officially launched in May 2011. While this investment has significantly increased relative depreciation and interest costs in the short term, it has provided the platform for Silverstone to significantly grow its circuit-related business in the long term which, in turn, will result in future profit growth.
“This investment has secured Silverstone’s long term future. With a 17-year Formula 1 contract [16 years remaining] and a five-year MotoGP contract [4 years remaining], Silverstone is now uniquely positioned as one of the leading two and four wheel motor sport destinations in the world. I would like to thank the Silverstone Holdings Limited team, led by Neil England and Richard Phillips for their excellent work.”
Neil England, Chairman of Silverstone Holdings Limited, said: “Given the substantial investment in Silverstone over the past two years, we are very happy with our latest figures. We have made considerable progress in diversifying the business into a successful multi-purpose venue, making us less dependent on revenues and profits generated from our major events, including the Formula 1 British Grand Prix. The majority of our profits now increasingly come from other core areas of the business and low risk channels.
“We remain very focused on broadening the appeal of Silverstone and attracting a broader number of clients to the site. To accomplish this we are seeking to attract a property investment partner to fulfil the significant potential of our 760 acre Estate. Outline Planning consent, which will include a multitude of further exciting new facilities, will be submitted to local planning authorities shortly. This will enable Silverstone to take the next crucial step towards becoming a leading global motor sport and leisure destination.”
Richard Phillips, Managing Director of Silverstone Holdings Limited, said: “Our latest financial results show a year on year revenue increase of £9.2m, of which £3.8m related to major events. The remaining £5.4m increase was attributed to growth across the core business – hosting corporate, conference and retail activities, for a broad range of clients and customers. This has been greatly assisted by the improved track facilities at Stowe. The new Stowe Complex and revised circuit layout have provided additional track hire opportunities, for both two and four wheel activities, across all business channels.
“Additionally, the group has continued, and will continue to develop and invest in its property portfolio, increasing the number of facilities available for tenant occupation. The business is currently investing significantly in its future use and expansion. Accordingly, the 2010 financial results contained some exceptional preparatory and planning related costs. The underlying rental income and core costs remain strong and in line with expectations.
“Our costs are well controlled and overheads remain in line with revenue levels. There is strong demand for our leisure and racing offers, and the careful management of our product mix continues to underpin the Group’s performance.
“Silverstone is now one of the premier motor sport venues in the world, run by one of the most experienced teams in the business. We believe that the returns from continuing investment will result in a strong upturn in profitability in future years, and plan to further increase profitability through a combination of continued diversification of income streams and by continuing to improve control over costs.”