Progress during the year:

SUSTAINABLEINDUSTRYFUNDING:EstablishedtheAuthorisedBettingPartnerscheme,whichhassecured

interimandimprovedfundingforoursport COMPETITIVEANDCOMPELLINGRACING:Introducedchangestothefixturelisttosupportindustrygrowth

objectivesandimplementedOptimalRacePlanningtoimproveourapproachtocreatingtheraceprogramme KEEPINGRACINGFAIRANDCLEAN:CompletedreviewsofourDisciplinaryPanel,AppealBoardandLicensing

Committeestoensureconfidenceintheseprocessesamongstparticipants WORLDCLASSRACING:DevelopedandenactedEuropean-widechangestotheWeightforAgeScalefollowing

ayear-longconsultationandanalysis,toensurethescaleprovidesalevelplayingfieldforallrunners.

PERFORMANCE UPDATE01 JAN 2016 - 30 SEPT 2016

BRIEFING DOCUMENT

Thisbriefingprovidesanupdateonourfinancialandbusiness

performanceagainstourstrategicobjectivesanddeliveryofmajor

projectsinthefirstninemonthsof2016.Thisbriefingdocument

isthefirstofwhatwillbecomeregularperformanceupdates.

BUSINESS PERFORMANCE

InordertogrowBritishracingandtodeliverourvisionofabrighterfutureforoursport,horsesandpeople,wehavenine

strategicobjectiveswhichdetermineanddrivewhatwedo.

SUSTAINABLEINDUSTRY FUNDING

EQUINE WELFARELEADERSHIP

GROWING BRITISHRACING TOGETHER

SUSTAINABLEINDUSTRY FUNDING

COMPETITIVE ANDCOMPELLING RACING

KEEPING RACINGFAIR AND CLEAN

PROFESSIONALWORKPLACE

WORLD CLASSRACING

LOOKING AFTEROUR PEOPLE

FINANCIALRESPONSIBILITY

©BritishHorseracingAuthority

BRIEFING DOCUMENT

Case study: a new Racing Administration website GROWINGBRITISHRACINGTOGETHER:IncollaborationwithWeatherbys,weareinthefinalyearofanextensive

projecttoreplaceourcoreracingsystems.TheRacingAdministrationwebsiteisvisitedbyalmost2,000industry

professionalseachmonthandthenew,updatedversionwillprovidetrainers,jockeys,owners,agentsandadministrators

withanonlineadministrationexperiencecompatiblewithmoderndevicesandwaysofworking.

Key elements include:

Horse management–allowstrainerstomanageandviewtheirhorsesintrainingaswellasadministratecare

andcontrolrequirementsinamuchsimplerway

Stable employee management–shiftsthemanagementprocessonline,reducingpaperworkfortrainers,andprovides

theBHAwithaccurateandtimelyinformationaboutthenumberandrolesofthepeoplewhoworkinourindustry

Race management–forracecoursesandtheBHAtoanalyse,maintainandoptimisetheirraceprogrammes

Race opportunity finder–helpstrainersandownerstofindtherightracesfortheirhorsesmoreeasily

Entries, declarations and jockey bookings–animprovedlookandfeelwithpagesmademobile-friendly,

allowingpeoplewhousethesystemtoworkonthego

Ownership administration (in development)–onlinesystemstomakeownershipregistrationandadministration

paperlessandlesstimeconsuming.

Case study: streamlining the stewards’ room administration system

KEEPINGRACINGFAIRANDCLEAN:Ourstewardingteamarepresentateveryracemeetingtoensurethey

areconductedinaccordancewiththerulesandtothehighestlevelofintegrity,withtheintenttoensure

confidenceamongstparticipantsandtheracingandbettingpublic.Werecentlyupdatedandstreamlinedtheon-course

regulatorysystem,replacingfiveindividualapplicationswithasingleonlinesystemwhichprovidesgreaterflexibility

andenhancesourregulatoryprocesses.Wenowhavereal-timevisibilityoverracecourseregulatoryeventsanda

systemwhichlinksupdatainstewards’roomsaroundthecountry.

Forward look

We’vecompletedourthree-yearbusinessplanwhichdetailsactivityareasandanewsetofinitiativestoenableustomeet

ourstrategicobjectivesandtogovern,regulateandrepresentBritishracing;toleadandco-ordinateactivitieswhichensure

theoverallhealth,developmentandgrowthoftheindustry;andtoprioritisethewelfareofourhorsesandourpeople.

Theaimofthebusinessplanningprocessistoensurethatwehaveappropriatelyresourcedinitiativeswhichmeetour

strategicobjectivesandaredeliveredwithinabreak-evenbudget.

©BritishHorseracingAuthority

BRIEFING DOCUMENT

Income and expenditure (£’000)

Totalincome

Totalexpenditure

Surplus/(deficit) before tax

30 Sept YTD 2016

24,342

22,962

1,380

Budget30 Sept YTD 2016

24,516

23,060

1,456

ActualVariance Variance

174 0.7%

(98) (0.4%)

76 5.5%

Budget v Actual

Income and costs compared to budget, and prior year actual

Compared to budget:

⬆ Incomeincreasedby0.7%,drivenbya1.6%increaseinfeeincome

Peoplecostswerebroadlyinlinewithbudget

⬆ LegalandprofessionalcostsincreasedduetoactivityrelatingtothereplacementoftheLevyandongoingcompliancework

⬇ Centraloverheadsanddepreciationdecreasedby22%.

Compared to prior year actual:

⬆ Incomeincreasedby3.6%,drivenbya3%increaseinsomechargesandincreasesinowneractivity

⬆ Costsincreased3.9%vs2015intheninemonthstoSeptember

⬇ CostreductioninWeatherbyscontractby2.5%(£100,000)inrealterms.

Cash and reserves

Weendedthethirdquarterwithtotaloperatingcashof£7.5millionwhichisartificiallyhighduetothetimingofsupplier

andcapitalpayments.Thiscomparesto£5millionatthestartof2016.Bytheendoftheyear,weexpectcashlevelsto

beintheregionof£4millionduetooutflowstocovermajorcapitalexpenditure,andnormaloperatingexpenditurebeing

higherthanincomeinthefinalquarterof2016,asthenumberoffixturesreduces.

Wehadnetliabilities(reserves)of£2.5millionatthecloseofthethirdquarter,comparedtonetliabilitiesof£3.9million

atthestartof2016.Thereservesremainnegativeduetoalargepensionschemedeficit.

Full-year forecast:

Anexpecteddeficitbeforetaxof£350,000-£400,000,whichisaslightimprovementonbudget

Abudgetedcashoutflowof£773,000reducedto£650,000,partlyasaresultofdelayingsomecapitalprojectsinto2017

Ourincomeforecastis0.8%,£250,000higherthanbudget

Ourcostsforecastis0.6%higherthanbudget.

©BritishHorseracingAuthority

Ourfinancialobjectiveistooperateonabreak-evenbasisoverthemedium-termandtomaintainanappropriatelevel

ofcashreserves,whilebeingtransparentaboutourbusinessplanandbudget.

Overall,performanceinthefirstninemonthsof2016isbroadlyinlinewithexpectation,incomewasslightlyhigherthan

budgetandoffsetincreasedone-offoperatingcosts.

Highlights:

Progressachievedonindustrygrowthtargetsforownership,resultinginrisesinregistrationfiguresandentry-feeincome

Costsareinlinewithbudget,despiteadditionalandunbudgetedcostsincertainbusinessareas,includingadditional

legalcostsinrelationtoourcomplianceworkandinestablishingthenewRacingAuthority.

FINANCIAL PERFORMANCE