Despite the economic downturn, the horse racing industry has weathered the storm comparatively well, according to Jeremy Martin, Executive Director and Clerk of the Course at Salisbury Race Course.

“Like everyone, we’ve taken a hit.  Race day corporate hospitality is down about 15% compared to when the economy was strong, and catering spend is a bit unpredictable.  However, race sponsorship remains healthy and spend per head in terms of bars and betting is actually up compared to last year.  Our total attendance this year was 53,000 compared to 49,500 in 2010.”

Nevertheless, Jeremy Martin is ready to acknowledge that they have to work hard to achieve a level of income to ensure one of the UK’s oldest race courses continues to prosper.

The 16 flat race meetings a year in a season which lasts from May to October attract crowds from 2,000 to 7,000 but there are long periods when this delightful race course remains unprofitably idle which is where the hard work comes in.

Jeremy Martin said: “It is an expensive place to run.  We need to keep re-investing and upgrading the infrastructure in order to offer value added activities on race days and to make the facilities attractive as event venues.  We hope to make a significant capital investment in the next couple of years.

”The leisure market is a competitive one and we, like other racecourses, often have to provide added value to race meetings.  Visitors are with us for 3 to 4 hours and will see between 6 and 8 races.   At some evening race meetings we provide live music afterwards attracting people to stay longer and we maintain our family days with children’s entertainments.  Racing is also a sport that appeals more to women than some other sports.”

In terms of racing, Salisbury has a lot going for it.  Apart from being a very attractive place, its small course is known to be challenging and is often sought after by trainers wanting to educate their young prospects.  Harbour Watch, the ante-post favourite for next year’s 2,000 Guineas which is trained by Richard Hannon at his nearby Marlborough yard, won its first race at Salisbury while the course’s blue riband event of the year, the Group 3 Sovereign Stakes, is a well established and highly regarded race.  

Commercially, Salisbury Race Course is also doing well as a venue for conferences, seminars, weddings, trade fairs and it enjoys a large annual Christmas Fair but this is the area where there remains capacity in a very competitive market.

With its roots in the centuries old Bibury Club, Salisbury Race Course  is operated as a limited company which reinvests its profits in the business.  There are 10 full time employees but race days can see over 240 staff on site.

Jeremy Martin continued: “Racing Finance is quite unique so it is important that we have accountants and business advisers who properly understand the industry.  For that reason we have been very happy over the last few years with the team at Francis Clark.

“Their advice is multi-purpose and they are approachable, thorough and extremely supportive. They help us make the best uses of our resources particularly in terms of cash flow and corporation tax mitigation.”

Paul Giessler, client partner from Francis Clark added: “Salisbury Race Course is a valued client and we advise on aspects of the management accounts reporting structures and tax planning of capital expenditure.

"Jeremy and his team must generate as much income as they can from racing and from other commercial activities, especially as the balance of income shifts from racegoers on the course to that generated by media sources.  To meet future market demands, they will need to further develop their infrastructure and this will take some significant investment from hard won resources."