ROA Annual Report 2022/23

HEART OF THE ACTION

365 DAYS IN THE ROA Annual Report 2022/23

FOR THE LOVE OF THE RACEHORSE —

W elcome

MAKE YOUR VOICE HEARD AT OUR AGM —

Notice is hereby given that the 79th Annual General Meeting of the Racehorse Owners Association Limited (the “Company”) will be held on Wednesday, 15th November 2023 at 11:00 at Kempton Park Racecourse, TW16 5AQ and broadcast live via a weblink sent to all members for the following purposes: 1. To ratify by way of Ordinary Resolution, the Board’s nomination of Charlie Parker as the President and Alan Spence as the Vice President, for the coming year.

2. T o declare that Stephen Applebee, Gay Kelleway and Jim Walker have been duly elected as Elected Directors, taking office from the end of the AGM further to the results of the election to fill the vacancies on the Board.

3. To confirm and adopt, by way of Ordinary Resolution, the Report and Financial Statements for the year ended 31st March 2023.

4. To appoint, by way of Ordinary Resolution, RSM UK Audit LLP auditors in accordance with Section 485 of the Companies Act 2006.

5. To authorise, by way of Ordinary Resolution, the ROA Board to fix the remuneration of the Auditors.

If you are unable to attend the meeting in person, you can vote for these resolutions online. A voting email is sent to all members. If you have not received this, please email info@roa.co.uk and Civica Election Services will reissue the voting link to you.

If you would like to nominate a proxy to attend and vote at this meeting in your place, please do so in writing to info@roa.co.uk or 12 Forbury Road, Reading, Berkshire, RG1 1SB. To be valid, the company must receive your proxy appointment not later than 24 hours before the beginning of the AGM.

Charlie Liverton Chief Executive Racehorse Owners Association Monday 23 October 2023

Registered Office: 12 Forbury Road, Reading, Berkshire, RG1 1SB Registered in England. Company No. 00398604.

Please direct any general queries via email to info@roa.co.uk or by phone on 01183 385680

3

4

ROA ANNUAL R E PO RT 2022/ 23

A YEAR IN THE SADDLE —

A STATEMENT FROM YOUR PRESIDENT, CHARLIE PARKER The financial year of 2022-23 was another challenging twelve months for racing, even with Covid somewhat in the rear-view mirror. The difficulties posed by the war in Ukraine and the knock-on effect on interest rates and the cost of living had a significant impact on all areas of British horseracing. The economic pressures and spiralling costs were, and still are, being felt by all of us in the industry. Racecourses are fighting for the leisure pound, Trainers are leaving the sport and/or struggling to make ends meet and the costs associated with racehorse ownership mean that many owners are thinking long and hard about further investment in bloodstock. In addition, the risks posed by animal rights activists is still an issue which must not be underestimated and indeed it serves to highlight the importance of the ongoing industry focus on equine welfare and the crucial work of the Horse Welfare Board.

However, there have been many notable positives throughout the year and owners, as usual, have responded with typical resilience to the external pressures. Horses in Training numbers remain at a similar level to last year and sales figures have held up well - and not just at the top end of the market.

Total prize money reached a record £182.5m in 2022, with racecourses providing the highest-ever levels of executive contributions. In addition, the Levy yield exceeded expectations with a return of £99m for 2022/2023 representing an increase on the previous year.

The British government’s Gambling Act Review White Paper was presented by the Secretary of State for the DCMS, Lucy Frazer, in April 2023, containing more than sixty areas of work, and as I write this, a further period of consultation is ongoing.

Whilst there will be implications for racing from a number of these, the really key areas of note are the challenges around affordability checks for bettors and a review of the Levy.

The introduction of those affordability checks potentially poses a significant risk to revenue generation and therefore racing’s income levels. The review of the Levy, the first since 2017, is critical given the fact that in real terms the yield is falling further and further behind the targets set six years ago.

A combined approach from the racing industry and the bookmakers would carry significant weight and a significant increase in the level of funds flowing into the sport is the ultimate goal. The Levy review is imminent but the next steps for the response and implementation of the Gambling White Paper remain unclear. The Gambling Commission is tasked with the implementation of the recommendations and it is vital that it does not take matters into its own hands and takes proper note of the recommendations when they are finally published.

P R E SI D E N T ’ S STAT E MEN T

The ROA team, led ably by CEO Charlie Liverton, has continued to be at the forefront of industry initiatives including the BHA-led British Horseracing Industry Strategy, which is being developed across key elements of the sport. Internally, the focus remains on the key areas of our strategy including the development and evolution of our data and technology project, and we continue to build on the work of the Corporate Governance Review, strengthening the skill set of the organisation at all levels.

The sport is now well-placed to deal with these developments given the new governance structure agreed in November 2022. As a key element of this, the Members’ Committee has been disbanded with two new key bodies, the Commercial Committee and the Integrity Advisory Committee being created, with the ROA playing a key role within this structure.

These changes represent the culmination of a process lasting almost two years and will allow the sport to create a collaborative long-term strategy. This will not be without its challenges but it creates an opportunity to support the change management programme that the racing industry requires.

It has facilitated unanimous agreement from the stakeholder bodies on the detail of the 2024 fixture list and shows what can be achieved through collaboration. With this industry-wide support, the 2024 fixture list will pilot a new structure, with a Premier tier of racing highlighting the most significant fixtures, but it should also increase the competitiveness of the sport at all levels, which in turn will drive greater income streams for all those who invest in it.

Please be assured that the ROA Board and executive team continue to represent owner’s views, ensuring that our voice is heard across all elements of the industry and on behalf of all owners, regardless of their level of investment and involvement. The challenges for racing and specifically for owners are bound to continue throughout 2023 and beyond, but we should be encouraged that racing is working together to promote and drive the sport that we love so much.

Charlie Parker

5

6

ROA ANNUAL R E PO RT 2022/ 23

GOING FURTHER FOR OUR MEMBERS — REPORT FROM YOUR CHIEF EXECUTIVE, CHARLIE LIVERTON The external pressures facing racing may remain, but the sport’s momentum to recover and innovate continues, and this has been a year of dramatic and seismic shifts.

Racing and ownership have not been immune to the cost of living crisis and economic headwinds, but the industry has responded as you would have hoped, from racecourse admission initiatives in response to the pressure on attendance figures to the ambitious review of the structure of the fixture list. The long-awaited Gambling Act Review White Paper has been delivered by the government – finally – and whilst the consultation period is coming to a close, the announcement that the Horseracing Betting Levy Review will be undertaken by 2024 is vital to the sport. We wait with hope.

The new industry governance structure – which was approved in November 2022 – is bedding in and the sport is addressing its challenges with a togetherness that has sometimes been lacking in the past. Whilst the difficulties of finding agreement on all items is recognised, representatives from across the sport are now challenging the status quo, and each other, to build a secure foundation for the future of our sport.

This new structure sees the creation of a Commercial Committee which will oversee the existing Racing Committee and Gambling Strategy Group, whilst developing the racing product, promotion of the sport and key stakeholders’ initiatives, including owners.

The newly created Industry Programme Group, meanwhile, will sit over the strategy development in relation to Horse Welfare; People; Equality; Diversity and Inclusion; and Corporate Social Responsibility. The Members’ Committee has been disbanded, thankfully, as part of the changes to the new structure. The ROA sits across the key committees ensuring that the owner’s voice is represented and heard.

The sport’s new governance structure is mirrored by the ROA’s new organisational foundations, put in place following the Corporate Governance Review. Both the ROA’s working groups and racing’s external committees have been established to deliver on the key areas of focus. In our case, those working groups will benefit from the extensive expertise of our Board and the skillset and knowledge of the team – enhancing our effectiveness to support and speak for owners through the ROA’s representation across industry groups.

The ROA is always evolving to ensure that we have a structure in place that allows us to meet the changing needs of the industry. As is the case with any successful organisation, the employees are its most important asset and this applies across British racing too. The new governance structure needs to ensure that – wherever possible – the industry works and collaborates in an integrated way. The ROA will therefore remain agile and recruit new skill sets as required, as the industry strategy starts to take shape.

Charlie Parker, as ROA President, sits as a Member Nominated Director of the BHA. The BHA is now the fi nal decision maker and all proposals are sent from the respective committees to the BHA Board for approval. This allows for a broader strategic discussion to take place amongst racing’s stakeholders and it has also removed the power of veto that was so synonymous with racing’s decisions of yesteryear.

We should not underestimate the demonstrable change that this has brought, as the sport looks to put itself on to a fi rmer footing. Celia Djivanovic continues in her role as the Board appointed Trustee of Retraining of Racehorses, Tom Goffsits on the Bloodstock Industry Forum and Mouse Hamilton-Fairley represents Owners on the Equine Safety Steering Group.

In addition, the Board sits across the internal ROA crossdisciplinary Committees and Groups established as part of the Corporate Governance Review: the Finance Audit and Risk Committee, the Nominations Committee, the HR Committee, and the Equine Welfare, Raceday, Communications, Ownership and Industry Funding Working Groups.

Prize money has continued to build and 2022 saw a year of record prize money with £182.5m on offer; an increase of 23% on 2021 and of 13% on 2019 pre-COVID. This was fuelled by the highest-ever levels of executive contributions made by racecourses, with records being broken at many individual racecourses and across racecourse groups. Increases were made to minimum values, with targeted improvements across both codes. This provides a framework for the package of changes to be made for the 2023/2024 Jumps Season which will help to build and strengthen the top levels of jumping in line with the recommendations made by the Quality Jump Racing Review Group.

The focus on the owners’ experience has been supported by the reintroduction of the ROA Racecourse Accreditation scheme. We have also reviewed the ROA Gold Standard in recognition of racecourse innovation and excellence in relation to the owner’s experience. We are working with all racecourses to enhance the experience of all owners, and the expansion of the number of syndicate lounges continues, with ARC announcing the introduction of these facilities at many of its courses during the year.

C E O R E P O RT

The ROA’s focus on strategic partnerships continues, with our relationship with Racing Welfare going from strength to strength. In parallel, the ROA works closely with the Tote, which supports the Owner-Sponsorship Scheme, initiated in 2020. The Tote-driven World Pool has now expanded to 17 racedays in Britain in 2023, unlocking a growing revenue stream for the racecourses involved to invest back in to prize money.

The ROA is pushing forward with its strategic aims, including investment in data and technology. British racing currently does not use data-driven insights to put the needs of the owner at the heart of the decision-making process. Data and technology need to fundamentally change how the industry communicates, engages and promotes racehorse owners, domestically or internationally. The impact of legacy is a challenge, given that all industry data resides in silos and the industry has not, until recently, developed data sharing agreements or invested in suitable technology. The industry therefore needs to move from being a ‘knowing culture’ to a ‘learning culture’ and our investment in technology over the past three years is at the heart of this required change.

The development of the ROA team is ongoing, ensuring that the organisation is properly represented across the industry.

Andy Clifton has joined the team in the newly created role of Corporate Aff airs Director, and will join the executive team

in ensuring that the owners are central in the delivery of the industry strategy workstreams. He brings with him a wealth of experience, having worked in the racing industry since 1988 and joining us from his position as Racing Director for the Racecourse Association, following senior roles at Cheltenham Racecourse, the Hong Kong Jockey Club and Newbury Racecourse.

My thanks, as always, go to the ROA Board, the executive team and our partners for all of their help and support over the past year. We will continue to concentrate our efforts to enhance the ownership experience across all areas of the industry, on and off the racecourse, and we look forward to more progress for the ROA and the wider sport through the coming year and beyond.

I look forward to seeing you on a racecourse soon.

Charlie Liverton

7

8

ROA ANNUAL R E PO RT 2022/ 23

INDIVIDUAL RACECOURSE PRIZE MONEY — ourse/ C Group

Total Racecourse Contribution 2022

Total Racecourse Contribution 2021

Total # of Fixtures 2022

Total # of Fixtures 2021

Average Contribution per Fixture 2022

Rank 2022

Ascot

£10,039,779

£7,087,895

26

26

£386,145

1

Average Racecourse Contribution Per Fixture 2021

Rank 2021

£272,611

1

York

£5,447,459

£3,548,027

18

18

£302,637

2

£197,113

2

Goodwood

£3,949,154

£3,131,591

19

18

£207,850

3

£173,977

3

JCR

£27,667,356

£16,773,135

338

326

£81,856

4

£51,451

5

Newbury

£2,523,883

£1,496,673

31

29

£81,416

5

£51,609

4

Pontefract

£798,956

£405,935

16

16

£49,935

6

£25,371

11

Chester Racecourse Co

£2,749,846

£939,156

57

26

£48,243

7

£36,121

6

Kelso

£625,392

£417,101

15

13

£41,693

8

£32,085

7

Hamilton Park

£788,719

£344,180

19

16

£41,512

9

£21,511

14

Ayr

£1,318,700

£779,399

32

30

£41,209

10

£25,980

10

ARC

£22,366,271

£11,861,022

571

566

£39,170

11

£20,956

15

Ripon

£663,731

£322,635

17

17

£39,043

12

£18,979

19

Chelmsford City

£1,963,006

£707,220

51

52

£38,490

13

£13,600

25

Salisbury

£608,423

£393,029

16

16

£38,026

14

£24,564

12

Wetherby

£662,719

£290,247

19

17

£34,880

15

£17,073

21

Thirsk

£517,842

£265,755

15

15

£34,523

16

£17,717

20

Redcar

£614,892

£424,745

18

18

£34,161

17

£23,597

13

Cartmel

£304,461

£120,246

9

8

£33,829

18

£15,031

23

Ludlow

£488,479

£276,952

16

14

£30,530

19

£19,782

16

Perth

£452,370

£312,969

15

16

£30,158

20

£19,561

17

Plumpton

£501,280

£215,451

17

16

£29,487

21

£13,466

26

Beverley

£557,087

£348,581

19

18

£29,320

22

£19,366

18

Fakenham

£343,189

£291,897

12

11

£28,599

23

£26,536

9

Catterick

£713,393

£302,244

28

25

£25,478

24

£12,090

30

Newton Abbot

£452,059

£276,256

18

17

£25,114

25

£16,250

22

Leicester

£753,066

£356,146

30

27

£25,102

26

£13,191

27

Hexham

£344,037

£207,202

15

15

£22,936

27

£13,813

24

Taunton

£309,507

£146,710

14

12

£22,108

28

£12,226

29

Stratford-on-Avon

£363,699

£217,890

17

17

£21,394

29

£12,817

28

P ri ze money

9

PRIZE MONEY — The level of prize money and its equitable distribution remains the number one priority for the ROA – as it is for all of our owners, who make a huge financial contribution to the sport.

staff, has a seat on the Horserace Betting Levy Board, the organisation which redistributes the Levy collected from betting on British horseracing.

In 2022, following a recovery from the pandemic-affected years, total prize money reached a record level of £182.5m, with racecourses contributing 2.9% more than in 2018.

The total prize money level for 2023 looks set to end up at, or marginally above, the 2022 level, helped by an increase in prize money at several of the major festival meetings.

The ROA plays a key role in all of the industry discussions around this subject and our executives are extremely active participants in the forums that debate prize money levels and funding. These include the BHA’s Racing Committee (formerly the Fixtures and Funding Group), the racing industry’s Commercial Committee and the BHA Board, of which your President is a member.

We are all aware that global politics and the continued cost of living crisis, as well as major concerns around affordability checks in the betting industry, will have an impact going forward. The ROA will continue to work hard to address these but just as importantly to ensure that the current disparity in commercial arrangements is rebalanced to recognise the very significant net investment made by owners.

In addition, the Thoroughbred Group, the representative body of the owners, trainers, breeders, jockeys and racing

TOTAL PRIZE MONEY 2014

2015

2016

2017

2018

2019

2020

2021

2022

Flat (AWT)

14.02

16.09

17.76

18.19

25.39

23.79

16.87

22.28

27.01

Flat Turf

68.36

73.64

74.73

77.34

86.45

85.44

40.74

78.68

93.65

Jump

40.61

42.42

45.11

47.00

54.28

52.60

32.82

47.37

61.84

Total (£M)

122.9

132.1

137.6

142.5

166.1

161.8

90.4

148.3

182.5

CONTRIBUTION HBLB Racecourse

2014

2015

2016

2017

2018

2019

2020

2021

2022

48

48.5

44.6

44.4

47.7

49.6

54.1

75.5

69.7

54.6

61.7

68.5

73.6

84.7

80.9

25.1

53.0

88.9

Owners

20

21.7

22.5

22.3

24.4

23.7

11

19.1

23.3

Other

0.3

0.3

1.9

2.2

9.3

7.6

0.2

0.7

0.6

122.9

132.2

137.5

142.5

166.1

161.8

90.4

148.3

182.5

Total (£M)

10

ROA ANNUAL R E PO RT 2022/ 23

OUR VISION —

OUR MISSION —

TO CREATE A WORLD-CLASS MEMBERSHIP ORGANISATION:

WE WANT TO SHAPE A MODERN SPORT WITH A BRIGHT FUTURE:

One that provides outstanding benefits for owners and helps bring the passion of racehorse ownership and racing to life.

By producing and delivering exceptional membership benefits that both retain current and attract new members.

By representing the interests of owners through rigorous advocacy within the sport and in wider society.

By promoting ownership and racing – its joys and benefits – to current and future generations.

By securing the future of the sport through the modernisation of ownership, standards and funding.

Goals: Initiatives: Governance review Prize money project Levy review Welfare project Whip consultation Shared ownership Acquisition and promotion Tote partnership

Building on foundations for growth

Delivering racings future

✓ ✓ ✓ ✓ ✓

✓ ✓ ✓ ✓ ✓

Elevating the customer experience

Collaborate across the sport

✓ ✓ ✓

✓ ✓ ✓ ✓ ✓ ✓ ✓

Inspiring ownership

✓ ✓ ✓

S haping O ur S port

THE STORY SO FAR — Racecourse Accreditation and Gold Standard Award The ROA Racecourse Accreditation Scheme was introduced in 2019 to run alongside the ROA Gold Standard and has focused on working with racecourses to achieve excellence in the delivery of the owners’ raceday experience. The scheme has evolved and developed further for its third year in 2023.

The results attained by each racecourse were a combination of the assessor’s scores, which were provided in 2022 by AA Hotel and Hospitality Services assessing courses on key areas of an owners’ experience when they had a runner, and the direct owners feedback provided to the ROA. The combined scores and results table were published in January 2023.

The average percentage quality score was 80% across the 60 courses which participated in the scheme, with an average score of 3.75 out of 5 for owner’s feedback. All courses scoring 70 or above were awarded the ROA Accreditation in 2022. This link up has seen the standards increase year on year under the ROA Accreditation work.

The scheme dovetails with the ROA Gold Standard, and a key principle of the ROA Racecourse Accreditation Scheme is to review all courses utilising the same criteria, so they are benchmarked against each other regardless of their size.

We were also delighted to announce that 12 courses were successful in attaining the ‘Gold Standard’ demonstrating a truly exemplary performance.

Another of the key aims of the scheme is to encourage racecourses to seek to improve across all categories that they are assessed against and to provide a detailed report which can serve as a “toolkit”.

The 2023 racecourse assessments will again be undertaken

by AA Hotel and Hospitality Services.

Shared Ownership Following a successful launch and collaboration with Great British Racing, the promotion and marketing activities surrounding shared ownership in British Racing has continued into 2023. In 2022 a number of successful shared ownership days took place at racecourses across the country and were positively received by racegoers on the day with the majority of syndicators and club managers in attendance receiving follow up enquiries and also sales of shares available.

In 2023/24 the ROA will look to build out the Syndicate Accreditation proposal, highlighting and complimenting the regulatory and compliance work being undertaken by the BHA. The promotion and marketing activity for shared ownership will continue throughout 2023 with more shared ownership days, enhancements to the central website In The Paddock and digital/social media marketing campaigns.

ROA Business Improvements In 2022/23 the ROA has continued to invest in its business processes ensuring that the ROA continues to champion the voice of owners, whilst meeting our existing owners needs and those needs of our future owners. As part of the ROA’s business improvement plan the reliance on third party administration and additional costs have been removed, ensuring that the ROA leads the operational approach for new and existing owners. This has, and continues to, enable the ROA to expand its offering of benefits across the various ownership types now operating in British Racing. Our full membership is key to meeting the needs and requirements of sole owners, partners, companies and syndicate/club managers, whilst our new primary tier focuses on engagement and ensuring we are communicating regularly with the key investors in our sport. In 2023/24 the ROA will also be launching an associate member tier which will meet the needs and requirements of syndicate and club members, ensuring that all owners are engaged across the industry whilst being rewarded for their investment in our sport.

The ROA is committed to evolving the owner’s data and technology work in 2023, ensuring that owners are appropriately recognised and rewarded for their investment in British Racing.

Industry Strategy: Owners Workstream It was extremely positive that following the Industry Strategy group meeting held in September 2022 a key area for review and investment was highlighted relating to owners and improving the owner experience and encouraging greater investment in ownership, in particular through affordable investment. The industry recognises the significant investment made by owners. The work undertaken by the ROA on behalf of owners and the new workstream has been actively reviewing a vast array of information already held whilst also undertaking workshops with key participants to understand their needs better and ensure the outputs reflect the changes needed. The key areas of focus are Data, Segmentation and Experience and the group is made up of representatives from all key stakeholders. All progress and recommendations are presented regularly to the Commercial Committee as part of the new governance and structure of British racing.

11

12

ROA ANNUAL R E PO RT 2022/ 23

ANOTHER BUSY YEAR AT THE TOTE — The ROA remains a committed investor in the Tote, alongside a host of familiar owners and breeders in British racing.

The ROA would also like to thank the Tote for supporting the ROA Owner-Sponsorship Scheme with 1,707 horses included in the scheme in 2022, helping save owners c£7.5m in reclaimed VAT.

Here’s how the Tote has progressed over the last year: Going Global 2023 has seen the UK Tote sign a landmark five year agreement with the Hong Kong Jockey Club, through to the end of 2028, which ensures it is the exclusive partner of World Pool in the UK and Ireland.

Winfried Engelbrecht-Bresges, Chief Executive Officer of the Hong Kong Jockey Club: “The UK Tote is our principal co-mingling partner, and we are very pleased to be extending our relationship for the next five years with this new agreement.

The UK Tote has been instrumental in the growth of World Pool over the last four years and this new agreement underpins our very valued partnership.”

World Pool, the collaboration of global Totes, enabling racing fans from all over the globe to bet into a single pool creating huge liquidity, excellent value for racing fans and bigger returns from racing, continues to go from strength to strength.

In 2022, the UK and Ireland’s 17 World Pool days provided exceptional value to British and Irish customers: ● Tote+ SP has beaten industry SP 73% of the time ● A £10 bet on all winners across the 17 World Pool days with

Tote+ would generate £2,333 more than placing those bets at Industry SP

● Tote+ overround was 104% compared to 121% industry SP ● The Tote+ Exacta has beaten the Forecast 85% of the time ● The Tote+ Trifecta has beaten the Tricast 74% of the time

As well as benefiting racing fans, World Pool is creating a more sustainable funding mechanism for the sport, with ever more additional income for our racecourse partners.

William Derby, Chief Executive of York Racecourse, after the 2022 Ebor Festival: “By bringing together global pools, World Pool financially benefits the British racing industry and York Racecourse is committed to investing 100% of all its forecast media rights to prize money to support the sport at this crucial time. As a case in point, the prize money for our World Pool days of £4.6m in 2022 was around £1m up on both 2019 and 2021, so demonstrating that virtuous circle of attractive prize money, good horses and competitive fields, strong betting interest, good revenue, attractive prize money.”

Michael Fitzsimons, Executive Director Wagering Products of the Hong Kong Jockey Club, at the end of the 2022 World Pool season: “We are delighted to see British and Irish World Pool days grow so strongly this year with the sporting action proving increasingly popular with racing fans, who appreciate seeing the best horses and jockeys competing at a wide variety of fantastic racecourses. We have enjoyed working in collaboration with our racecourse partners, Racecourse Media Group and the UK Tote, and we look forward to continuing to work together.”

In 2023, the UK and Ireland have 19 of the 44 global World Pool fixtures which now operate across 7 seven countries with more to be added in the future. The UK and Ireland’s 130 World Pool races are offering prize money of £32m – up 12% on 2022 – with £100,000+ in prizes on offer for racing staff for World Pool Moment of the Day and Year.

With 28 countries now co-mingling, the 2023 UK and Irish World Pool season should see in excess of the £521m bet into pools from across the globe in 2022.

A N OT HE R B U SY YE A R AT TOT E

All about the customer The Tote team is continuing to work hard to revolutionise the pool betting experience for customers. At the heart of this is an engaging, fun and safe experience, exciting innovation and industry-leading value.

In its third financial year, up to September 2022, there continued to be encouraging levels of growth with the UK host pool flow up 30% year-on-year and a 53% growth in active customers. This is in large part the result of the Tote providing exceptional value for customers:

Onwards and upwards at the Tote In what continues to be an equally challenging and exciting time for British racing, it’s very positive to see the solid progress being made at the Tote.

The Tote+ Win price (available at tote.co.uk and on the App) beat the Starting Price 54% of the time ● The Tote’s Win price was never worse value than the Starting

Price with Tote Guarantee in place

● The Tote+ Exacta and Trifecta dividends have beaten the

Standard Forecast and Tricast 76% of the time

One of the key developments in July 2022 was the launch of Tote Fantasy. Tote Fantasy is a cross between a Fantasy Football-style game and a Placepot. With over 9m players in the Fantasy Premier League, this has huge potential for the Tote and horseracing.

PRODUCT INNOVATION

BETTER VALUE

For £7 entry per stable, players pick one horse in each of seven ITV races using a 10,000 guinea budget. Players must pick wisely and decide which favourites to be with or against.

To help with selections, everyone can see the percentage of players on each horse and use boosts tactically to maximise points. There is profit to anyone in the top 25% of the game.

“Quite possibly the most exciting day of my life. For small-fry punters like me, @ToteFantasy is a hugely fun game.” @CollingsBerry Emma Berry, Journalist

IMPROVED CUSTOMER EXPERIENCE

GOOD PARTNERSHIPS

MORE LIQUIDITY AND BIGGER POOLS

13

14

ROA ANNUAL R E PO RT 2022/ 23

BUILDING ON RECOVERY —

IN APRIL 2022 A PARTNERSHIP BETWEEN THE ROA AND RACING WELFARE WAS FORMALISED, YIELDING MORE THAN £23,000 FOR THE CHARITY IN ITS FIRST NINE MONTHS. Those that ride your horses, day in day out, teaching them as youngsters through to preparing them for their biggest days, are so important and an integral part of the success of your horse on the racecourse. Racing Welfare’s role is to focus on their mental and physical well being to ensure that everyone who looks after horses can do so with the support they require. It is for that reason that the ROA and Racing Welfare formed a strategic partnership, in order that we can support them as they carry out such a vital role for the industry.

Across the course of the year, the partnership saw the ROA sponsor both the Epsom Owners’ and Trainers’ and Northern Racing Awards, donate auction prizes, support Racing Welfare’s events at Woburn and Doncaster – as well as holding a fundraiser at the ROA Horseracing Awards in London.

Support continued into 2023, with the ROA supporting Racing Welfare’s now annual Aintree Lunch on the opening day of the Grand National meeting, amongst other initiatives.

This support has never been more needed by Racing Welfare, as the charity faces a challenging year ahead. The demand and uptake for its wellbeing services continues to grow year on year, with the cost of living crisis continuing to impact racing’s people, as well as the charitable sector as a whole.

Looking back on 2022 Racing Welfare would usually expect to directly support around 2,000 people in a year. In 2022 that figure was 2,740, more than 50 people per week, on average. Racing Welfare supports many more people than can be accurately represented by that figure as financial and other worries loom large for dependents of and those closest to racing’s people.

Physical health has historically always been the most likely reason people approach Racing Welfare for support, with mental health challenges also making up a significant proportion of the charity’s provision. However, more than 20% of all support offered over the past year was related to money matters (a significant jump from 2021 when it represented less than 10% of all support) and 1,385 financial grants were awarded totalling £281,919.

“It was getting to me, affecting my mental health, because I was just constantly counting every pound I was spending. But you don’t want the kids to grow up not having memories of going places because we can’t afford it. I’d rather go without so that they can have.”

Lucy* Stable Staff *name changed for anonymity

R AC I N G W E L FAR E

FURTHER HIGHLIGHTS FROM 2022 — MORE THAN

1,200

INDIVIDUALS SUPPORTED through Racing’s Support Line – up 27% on 2021

“Racing Welfare’s support got the ball rolling for me and really got me thinking about my mental health. Now I’ve opened that door I feel so much more confident in going forward and getting help for myself when the pressure of life starts to take a toll.”

Sam, Racecourse Grounds Person

MORE THAN

50

INDIVIDUALS SUPPORTED

with regular Check-In and Chat calls, totalling 283 hours of conversations “I value Racing Welfare immensely – the charity has been a lifeline to me. I’m in the sticks here so I don’t see many people outside my immediate family.”

Maureen, Retiree

OVER

400

INDIVIDUALS SUPPORTED

in their recovery from physical injury or ill health through Racing’s Occupational Health Service “I had six months in a cast so I wasn’t really walking for a long time… all I wanted to do was to get back to work and get riding again.”

Gemma, Work Rider

126

PEOPLE SUPPORTED

through the Careers Advice & Training Service (CATS) “My life has completely changed, and I do put a lot of it down to CATS… Anybody at a crossroads or thinking about a career change should be using the service.”

Harry, Former Trainer

Given Racing Welfare’s broad range of support services, this huge jump reflects the scale of the impact of the cost-of-living increases on those employed within the horseracing industry.

Further highlights from 2022 During 2022 Racing Welfare’s work in mental health training and awareness was recognised outside the racing world when the charity was highly commended at the Inside Out Awards, a prominent mental health awards event. The judges in the Third-Party Influence category stated that ‘other organisations and industries can learn from Racing Welfare’s commitment to supporting its workforce.’

Further recognition also came for Racing Welfare last year when they were awarded full accreditation for the matrix Standard – the international quality standard for organisations that deliver information, advice and/or guidance. This followed an application and rigorous assessment process and illustrates the charity’s ongoing commitment to maintaining and improving service levels.

Fundraising As a charitable organisation with no government funding, Racing Welfare is reliant upon the generosity of its supporters to continue to provide services to racing’s people. The team operates a busy schedule of fundraising events throughout the year to help raise those vital funds. The flagship fundraising event of 2022 was The Great Racing Welfare Cycle Challenge, which saw 20 teams of four cyclists take part in a gruelling 24 hour challenge. The cyclists took it in turns to ride 30km loops starting and finishing at Cheltenham racecourse, with at least two riding from each team at any one time. Participants included racing personalities and staff from across the industry, and raised over £125,000.

In addition to the fundraising events calendar, Racing Welfare relies heavily upon support from charitable trusts and foundations, as well as corporate partnerships such as that which exists with the ROA, to be able to deliver life-changing support services to racing’s people. Obtaining that funding through and beyond 2023 looks to be a challenge and, as such, Racing Welfare remains ever grateful for the support that the ROA and its owners extend.

15

16

ROA ANNUAL R E PO RT 2022/ 23

EQUINE WELFARE UPDATE —

In 2022, the Horse Welfare Board (HWB) entered its second year of implementing strategic change to British Racing with equine welfare and safety at the forefront.

The independently chaired board is proud to announce that of the 26 projects identified to improve all aspects of racehorse welfare, 2 are completed and 22 are live.

The strategy aims to ensure: ●

Best possible QUALITY OF LIFE

●

Collective LIFETIME RESPONSIBILITY

●

Best possible SAFETY

●

Growth and maintenance of TRUST

The HWB programme receives ongoing investment from the Racing Foundation and the HBLB to support project implementation. The appointed programme team works closely with multiple organisations across the industry to ensure clarity of the work being undertaken including the British Horseracing Authority, Professional Jockeys Association, National Trainers Federation, Racecourse Association and Thoroughbred Breeders’ Association.

Support from these groups amongst others allows the HWB certainty that the projects are achievable and can be implemented in suitable timescales.

E QU I N E W E L FA R E U P DATE

Achievements in the last 12 months ● “Orange to White” - All fences and hurdles on British

courses now trimmed white in colour, based on research by Exeter University which evidenced horses see white better than orange.

● Appointment of the Royal Veterinary College to further

develop the Jump Race Risk Model (JRRM) to provide data determining where the risk of jump racing can be reduced.

● Completion of the Stalls and Starting review, making

recommendations for safety improvements which were presented to BHA and are now being implemented.

● Hartpury University contracted to conduct a former

racehorse census, supported by Retraining of Racehorses and World Horse Welfare, to address racehorse traceability post racing.

● Second annual ‘National Racehorse Week’ hosted over

8,000 people at training yards, aftercare centres and studs.

87% of visitors that were not regular racegoers said National Racehorse Week positively changed their opinion of racehorse care. This year it will run between 9-17th September.

● 18-month Turf Assessment Research study by Nottingham

Trent University commenced which aims to develop a standard protocol that can reliably and consistently measure racetrack going and be used to directly compare different racetracks.

● Research and development of various options to

improve the current hurdle design, including a first draft of hurdle frame made from plastic instead of birch, testing of groundlines, and consideration into an above ground hurdle – all with the aim to improve equine safety on course.

● Development of a Hurdle Technical Specification to ensure

greater consistency of performance across hurdle obstacles.

● Successful pilot of a digital medical record system, Equine

Medirecord, at the 2023 Grand National which streamlined the pre-raceday veterinary processes.

● Appointment of a Managing Director in Retraining of

Racehorses (RoR) to ensure focus, integration, and alignment of the Aftercare sector.

● Scoping and development of the Aftercare Funding Review

recommendations with specific focus on the accreditation and horse assessment.

● Collaboration with the Funders Network, facilitated by RoR

and HWB, to ensure a defined process for awarding ad-hoc funding to Aftercare centres.

● Continuation of the Retraining Assessment Programme led

by HEROs, enabling support for horses on their first step out of racing. This programme continues to be reviewed and monitored.

● New projects commenced: Welfare Training and Education,

Suitability and Eligibility to Race.

How does the work of the Horse Welfare Board impact you as an owner?

The Horse Welfare Board strategy focuses on the ambition that every horse bred to race should lead – and be seen to lead – “a life well-lived”. As an owner, you can be sure that: ● There is a single, overarching strategy for

equine welfare in the racing industry which looks across the lifetimes of all horses bred for racing.

● There is constant work looking at ways

to improve equine safety for your horse.

● Data continues to be monitored across

several areas to identify associated risks and make plans to minimise those risks.

● There is a strong focus to ensure more

confident and proactive approach to welfare communications.

● The HWB is working closely with Retraining

of Racehorses (RoR) to ensure that all racehorses are guaranteed a well-deserved and fulfilling career or retirement after racing.

17

18

ROA ANNUAL R E PO RT 2022/ 23

REPORT AND FINANCIAL STATEMENTS —

FOR THE YEAR ENDED 31ST MARCH 2023

Company No. 00398604 Registered Office: 12 Forbury Road, Reading, Berkshire, RG1 1SB

R E P ORT A N D F I N A N C I A L STAT E M E N TS

DIRECTORS’ REPORT The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities The principal activity of the Association continued to be that of promoting and supporting the interests of racehorse owners in Great Britain funded through membership subscriptions.

Directors The directors who held office during the year and up to the date of signature of the financial statements were as follows: M L Albon (Appointed 15 September 2022) K Almudhaf S Astaire (Resigned 15 September 2022) P Davies MP Y Dixon (Resigned 15 September 2022) C J Djivanovic R T Goff A J Hamilton Fairley G Kelleway C O A Liverton J K McGarrity C M Parker A D Spence C C Walker (Appointed 15 September 2022) C Wright CBE Auditor RSM UK Audit LLP have indicated their willingness to be reappointed for another term and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.

Statement of disclosure to auditor So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware.

Additionally, each director has taken all the necessary steps that they ought to have taken as a director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to: ● select suitable accounting policies and then apply them

consistently;

● make judgements and accounting estimates that are

reasonable and prudent;

● prepare the financial statements on the going concern

basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE RACEHORSE OWNERS ASSOCIATION LIMITED Opinion We have audited the financial statements of The Racehorse Owners Association Limited (the ‘company’) for the year ended 31 March 2023 which comprise the statement of comprehensive income, the statement of financial position and notes to the financial statements, including significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements: ● give a true and fair view of the state of the company’s affairs

On behalf of the board

as at 31 March 2023 and of its deficit for the year then ended;

● have been properly prepared in accordance with United

Kingdom Generally Accepted Accounting Practice;

● have been prepared in accordance with the requirements

of the Companies Act 2006.

CM Parker Director

23rd October 2023

Directors’ Responsibilities Statement for the year ended 31 March 2023 The directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

19

20

ROA ANNUAL R E PO RT 2022/ 23

Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: ● the information given in the directors’ report for the

financial year for which the financial statements are prepared is consistent with the financial statements; and

● the directors’ report has been prepared in accordance

with applicable legal requirements.

Matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ● adequate accounting records have not been kept, or

returns adequate for our audit have not been received from branches not visited by us; or

● the financial statements are not in agreement with the

accounting records and returns; or

● certain disclosures of directors’ remuneration specified

by law are not made; or

● we have not received all the information and explanations

we require for our audit; or

● the directors were not entitled to prepare the financial

statements in accordance with the small companies regime and take advantage of the small companies exemption from the requirement to prepare a strategic report or in preparing the directors’ report.

Responsibilities of directors As explained more fully in the directors’ responsibilities statement set out on page 19, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

R eport and financial statements

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: ● obtained an understanding of the nature of the industry

and sector, including the legal and regulatory frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks;

● inquired of management, and those charged with governance,

about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

● discussed matters about non-compliance with laws and

regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and inspecting any correspondence with external tax advisors.

The audit engagement team identified the risk of management override of controls and completeness of revenue as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business and performing tests of detail on revenue recognised in the year and subsequent to the year end.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor’s report.

Use of our report This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Claire Sutherland Senior Statutory Auditor For and behalf of RSM UK Audit LLP Statutory Auditor Chartered Accountants Blenheim House Newmarket Road Bury St Edmunds Suffolk IP33 3SB

STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2023 Notes

2023 £

2022 £

Turnover Cost of sales

1,966,878 (2,271,747)

1,993,718 (2,157,399)

Operating deficit

(304,869)

(163,681)

Interest receivable and similar income

6,753

1,963

(298,116)

(161,718)

(1,283)

(522)

(299,399)

(162,240)

Deficit before taxation Tax on deficit

3

Deficit surplus for the financial year

STATEMENT OF FINANCIAL POSITION As at 31 March 2023

Notes

2023 £

2022 £

4 5 6

39,083 234,075 501,915

69,183 300,638 501,915

775,073

871,736

382,148 322,779 425,744

412,868 889,207 100,930

1,130,671

1,403,005

(954,927)

(1,024,525)

Net current assets

175,744

378,480

Total assets less current liabilities

950,817

1,250,216

(60,000)

(60,000)

Net assets

890,817

1,190,216

Reserves Income and expenditure account

890,817

1,190,216

Members’ funds

890,817

1,190,216

Fixed assets Intangible assets Tangible assets Investments

Current assets Debtors Investments Cash at bank and in hand

Creditors: amounts falling due within one year

Provision for liabilities

7 8

9

10

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved by the board of directors and authorised for issue on 23rd October 2023 and are signed on its behalf by:

C M Parker Director

21

22

ROA ANNUAL R E PO RT 2021 / 22

NOTES TO THE FINANCIAL STATEMENTS — FOR THE YEAR ENDED 31ST MARCH 2023

N otes to the financial statements

1 ACCOUNTING POLICIES Company information The Racehorse Owners Association Limited is a private company limited by guarantee and is registered and incorporated in England and Wales. The registered office is 12 Forbury Road, Reading, Berkshire, RG1 1SB. Accounting convention These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

Going concern The directors continue to review the company’s status as a going concern, including its financial security, the adequacy of its reserves and the robustness of future financial projections.

The ROA has made conservative budget projections for a period covering at least 12 months from the approval of the financial statements. There is a reasonable level of confidence attached to the current budgeted income and expenditure projections that do not threaten the solvency of the ROA or its status as a going concern. Existing cash resources provide the company with sufficient financial strength to withstand a significant downturn and there is presently no indication of such a downturn as income is in line with expectations and expenditure remains carefully controlled. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Income and expenditure Income and expenses are included in the financial statements as they become receivable or due.

Income from events is recognised when the entity is legally entitled to the income. Entitlement is the earlier of the date of the event or the date on which a non-refundable booking is made.

Income from provision of services is recognised on a receivable basis in line with when the services are completed.

Grants Grants relating to revenue are recognised in income on a systematic basis over the period to which the entity recognises the related costs for which the grant is intended to compensate.

Members’ subscriptions Members’ subscriptions are accounted for on an accruals basis, in compliance with Section 23 of FRS 102. When the company receives subscription income from a member in advance, a liability is recognised of an equal amount. Over the period to which the subscription relates the liability is proportionately reduced and recognised as revenue.

Intangible fixed assets other than goodwill Intangible assets, including website development costs, are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases: Software

20% per annum on cost

Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases: Leasehold improvements Other plant and machinery

10 years straight line 20% straight line

Fixed asset investments Interests in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Trade investments are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Financial instruments The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets Basic financial assets, which include trade and other debtors and loans due from associate companies, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method.

23

24

ROA ANNUAL R E PO RT 2022/ 23

Other financial assets Other financial assets, including trade investments, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in surplus or deficit, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

4 INTANGIBLE FIXED ASSETS Other £ Cost At 1 April 2022 Additions

204,324 13,165

At 31 March 2023

217,489

Amortisation and impairment At 1 April 2022 Amortisation charged for the year

135,141 43,265

Taxation The company is exempt from corporation tax, other than on its investment income, it being a company not carrying on a business for the purposes of making a profit.

At 31 March 2023

178,406

Carrying amount At 31 March 2023

39,083

Provisions Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

At 31 March 2022

69,183

Basic financial liabilities Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price and are subsequently carried at amortised cost.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in surplus or deficit in the period in which it arises.

Employee benefits The costs of short-term employee benefits are recognised as a liability and an expense.

Leases All other leases are operating leases and the annual rentals are charged to profit or loss on a straight line basis over the lease term. Rent free periods or other incentives received for entering into an operating lease are accounted for as a reduction to the expense and are recognised on a straight line basis over the lease term.

2 EMPLOYEES The average monthly number of persons (including directors) employed by the company during the year was: 2023 number 9

2022 number 9

2023 £

2022 £

UK corporation tax on profits for the current period Adjustments in respect of prior periods

1,283

373

-

149

Total current tax

1,283

522

Total

3 TAXATION Current tax

5 TANGIBLE FIXED ASSETS Leasehold improvements

Plant & machinery etc.

Total £

Cost At 1 April 2022 Additions

246,716 –

205,714 676

452,430 676

At 31 March 2023

246,716

206,390

453,106

Depreciation and impairment At 1 April 2022 Depreciation charged in the year

47,214 26,017

104,578 41,222

151,792 67,239

At 31 March 2023

73,231

145,800

219,031

Carrying amount At 31 March 2023

173,485

60,590

234,075

At 31 March 2022

199,502

101,136

300,638

6 FIXED ASSET INVESTMENT Other investments other than loans

2023 £

2022 £

501,915

501,915

On 8 June 2004 the company became a member of Owner Breeder Media Group Limited (formerly Thoroughbred Owner & Breeder Limited), a company registered in England and Wales, limited by guarantee, and not having share capital. As such there is no asset in the accounts. At 31 March 2021 there were two members of this company. On 1 July 2021 the company purchased the other member’s interest in Owner Breeder Media Group Limited for £100,000 purchase consideration to leave The Racehorse Owners Association Limited as the sole member and this is now recognised as a subsidiary of the company. Owner Breeder Media Group Limited produces a magazine for members. The liability of its members is limited to £1 each.

N otes to the financial statements

On 16 June 2006 the company became a member of The Thoroughbred Group Limited (formerly Horsemen Limited), a company registered in England and Wales, limited by guarantee, and not having share capital. The liability of its members is limited to £1 each and nothing was paid for the investment. As such there is no asset in the accounts. At the balance sheet date there were five members of this company.

The company represents the collective interests of owners, trainers, breeders, jockeys and stable staff.

On 31 July 2007 the company became a member of British Horseracing Authority Limited, a company registered in England and Wales, limited by guarantee, and not having share capital.

The liability of its members is limited to £1 each and nothing was paid for the investment. As such there is no asset in the accounts. At the balance sheet date there were four members of this company. The company is the regulatory and governing body of horseracing in Great Britain. British Horseracing Authority Limited have two wholly owned subsidiaries, Great British Racing Limited and British Horseracing Database Limited. Both companies are registered in England and Wales.

The principal activity of Great British Racing Limited is the commercialisation of the contents of the Racing Administration database through access and user licence agreements with third parties, whilst British Horseracing Database Limited’s principal activity is the maintenance and licences of the database.

On 10 June 2019 the company became a member of UK Tote Group Limited a company registered in England & Wales.

At 31 March 2021, the cost of the investment was recorded at £350,000 in the accounts, on 8 December 2021 the company increased the investment by £51,915 and this is now valued at £401,915.

Movements in fixed asset investments Investments other than loans £ Cost or valuation 501,915 At 1 April 2022 & 31 March 2023 Carrying amount At 31 March 2023

501,915

At 31 March 2022

501,915

9C REDITORS Amounts falling due within one year: Trade creditors Corporation tax Other taxation and social security Other creditors

Amounts falling due within one year: Trade debtors Amounts owned by undertakings in which the company has a participating interest Other debtors

2022 £

28,787 223,162

26,340 214,674

130,199

171,854

382,148

412,868

8 CURRENT ASSET INVESTMENT Cash held on deposit and bonds

2023 £

2022 £

322,779

889,207

2022 £

21,106 1,656 45,887

36,619 373 48,802

886,278

938,731

954,927

1,024,525

10 PROVISIONS FOR LIABILITIES Dilapidation provision

2023 £

2022 £

60,000

60,000

This provision is in respect of dilapidation obligations relating to leasehold property and will be utilised before the termination of the lease.

11 MEMBERS’ LIABILITY Each member’s liability is limited to a maximum contribution of £3 in the event of the winding up of the company. The number of members as at 31 March 2023 was 6,542 (2022: 6,936).

12 SPONSORSHIP ARRANGEMENTS During the year the company acted as agent to facilitate sponsorship arrangements between certain sponsors and ROA members. The funds were passed directly on to the ROA members participating in the scheme. No income or expenditure has been recognised in the statement of comprehensive income in respect of the scheme.

7 DEBTORS 2023 £

2023 £

Amounts received as agent Amounts disbursed as agent

2023 £

2022 £

221,380 (221,380)

203,880 (203,880)

13 OPERATING LEASE COMMITMENTS Lessee At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year Between one and five years

2023 £

2022 £

84,027 75,739

84,027 159,766

159,766

243,793

25

26

ROA ANNUAL R E PO RT 2021 / 22

B OA R D M E M BER S

MARK ALBON

Year elected: 2022 Board attendance1: ✓ Qualifying Owner2: ✓

KHALID ALMUDHAF

CHARLIE LIVERTON

Co-opted 2021 Board attendance1: ✓

KEN MCGARRITY

Co-opted: 2021 Board attendance1: ✓ Qualifying Owner2: ✓

ROA Scotland Representative Co-opted: 2021 Board attendance1: ✓ Qualifying Owner2: ✓

PHILIP DAVIES MP

CHARLIE PARKER

Year elected: 2021 Board attendance1: ✓ Qualifying Owner2: ✓

CELIA DJIVANOVIC

Year elected: 2021 Board attendance1: ✓ Qualifying Owner2: ✓

ALAN SPENCE

Year elected: 2021 Board attendance1: ✓ Qualifying Owner2: ✓

Year elected: 2020 Board attendance1: ✓ Qualifying Owner2: ✓

TOM GOFF

CHARLES WALKER

Year elected: 2022 Board attendance1: ✓ Qualifying Owner2: ✓

AMANDA (MOUSE) HAMILTONFAIRLEY Year elected: 2021 Board attendance1: ✓ Qualifying Owner2: ✓

Year elected: 2022 Board attendance1: ✓ Qualifying Owner2: ✓

CHRIS WRIGHT CBE

Co-opted: 2016 Board attendance1: ✓ Qualifying Owner2: ✓

GAY KELLEWAY Year elected: 2020 Board attendance1: ✓ Qualifying Owner2: ✓

*1 in compliance with Articles (20.13).

2 in compliance with Articles (20.5).

27

roa.co.uk 12 Forbury Road Reading Berkshire RG1 1SB