2016 - British Horseracing Authority · BHA vision and mission 4 - 5 Our year in summary 6 - 7...
Transcript of 2016 - British Horseracing Authority · BHA vision and mission 4 - 5 Our year in summary 6 - 7...
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
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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
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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.
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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
💻
🏆
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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
💻
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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.
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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
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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
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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
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OURAIMISTOBREAK-EVENOVERTHEMEDIUM-TERM
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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
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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
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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.
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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.
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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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