The Tipperary Race Company Plc Reports and Financial Statements for the Financial Period Ended 31 December 2019
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THE TIPPERARY RACE COMPANY PLC REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 Registered Number 4091 THE TIPPERARY RACE COMPANY PLC REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 Contents Page Directors and Other Information 2 Directors' Report 3 - 5 Report of the Comptroller & Auditor General 6 Statement of Income and Expenditure and Retained Revenue Reserves 9 Statement of Financial Position 10 Notes to the Financial Statements 11 - 24 1 THE TIPPERARY RACE COMPANY PLC DIRECTORS AND OTHER INFORMATION Directors Mr. N. Hartery Mr. R. Horan Mr. B. Kavanagh Mr. J. Osborne Secretary Mr. R. Horan Ms. S. Eade (Deputy Company Secretary) Registered Office Horse Racing Ireland Ballymany The Curragh Co. Kildare Auditors Comptroller & Auditor General 3A Mayor Street Upper Dublin 1 Solicitors William Fry Grand Canal Square Dublin 2 Bankers Bank of Ireland 2 College Green Dublin 2 KBC Bank Ireland plc 2 College Green Dublin 2 2 THE TIPPERARY RACE COMPANY PLC DIRECTORS' REPORT The directors present their annual report and the audited financial statements for the financial year ended 31 December 2019. Principal activities and business review The principal activities of the company continue to be the holding of race meetings and related activities. The company is a subsidiary of HRI Racecourses Limited and its ultimate parent is Horse Racing Ireland. Results for the financial year 2019 2018 € € Profit on ordinary activities before taxation 100,925 82,363 Tax on profit on ordinary activities (19,720) (18,704) Profit for the financial year 81,205 63,659 In the opinion of the directors, the state of affairs of the company is satisfactory. Directors and interests The directors who held office at 31 December 2019 are listed on page 2. The directors and secretary at 31 December 2019 had no interests in the share capital of the company or its fellow subsidiaries. The directors received no fees or expenses in the period (2018: Nil). Please see Horse Racing Ireland for further details. Statement on relevant audit information The directors believe that they have taken all steps necessary to make themselves aware of any relevant audit information and have established that the statutory auditors are aware of that information. In so far as they are aware, there is no relevant audit information of which the auditors are unaware. Accounting records The measures taken by the directors to ensure compliance with the requirements of Section 281 to 285, Companies Act 2014, regarding proper accounting records are the implementation of necessary policies and procedures for recording transactions, the employment of competent accounting personnel with appropriate expertise and the provision of adequate resources to the financial function. The accounting records of the company are maintained at the company's office at Ballymany, The Curragh, Co. Kildare. 3 THE TIPPERARY RACE COMPANY PLC DIRECTORS' REPORT (CONTINUED) Events since the financial year end There has been one significant event affecting the company since the financial year end. 1. The impact of COVID-19 has had a very significant effect on The Tipperary Race Company PLC with a loss of revenue. On the 25th March 2020, all Irish horse racing was cancelled in line with Government guidelines. On 8th June 2020, racing resumed behind closed doors with strict protocols in place. Work is ongoing and the financial impact is still under review. Principal risks and uncertainties There are certain risks and uncertainties which may have an effect on the company's performance. This includes: - where the racecourse is unable to hold a race meeting due to the weather conditions it will endeavour to reschedule the race meeting to a later date. - The impact of COVID-19 and the continued disruption to the racing calendar including racing behind closed doors impacting the company's ability to generate revenue. The company has considered the risks and is in a position to respond quickly to changes in economic conditions to ensure its business objectives are achieved. Auditors In accordance with Section 383 (2) of the Companies Act 2014 and section 13 (2) of the Horse and Greyhound Racing Act 2001 the Comptroller and Auditor General will continue as auditor of the company. Directors' compliance statement The directors, in accordance with Section 225(2)(a) of the Companies Act 2014 (the "Act"), acknowledge that they are responsible for securing the Company's compliance with its "relevant obligations". "Relevant obligations", in the context of the Company, are the Company's obligations under: a) the Act, where a breach of the obligations would be a category 1 or category 2 offence; b) the Act, where a breach of the obligation would be a serious Market Abuse or Prospectus offence; and c) tax law. Pursuant to Section 225(2)(b) of the Act while the Directors are satisfied that there are appropriate arrangements and structures in place that, in their opinion, secure material compliance with the Company's relevant obligations, pursuant to Section 225(2)(b) of the Act, the directors confirm that the Company has drawn up a compliance policy statement as required by Section 225(3)(a) of the Act. 4 THE TIPPERARY RACE COMPANY PLC DIRECTORS' REPORT (CONTINUED) Directors' responsibilities statement (continued) Irish company law requires the directors to prepare financial statements for each financial year. Under the law, the directors have elected to prepare the financial statements in accordance with the Companies Act 2014 and generally accepted accounting practice including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council. 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 assets, liabilities and financial position of the company as at the financial year end date and of the profit or loss of the company for the financial year and otherwise comply with the Companies Act 2014. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgements and 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; and - state whether the financial statements have been prepared in accordance with applicable accounting standards, identify those standards, and note the effect and the reasons for any material departure from those standards. The directors are responsible for ensuring that the company keeps adequate accounting records which correctly explain and record the transactions of the company, enable at any time the assets, liabilities, financial position and profit or loss of the company to be determined with reasonable accuracy, enable them to ensure that the financial statements and directors' report comply with the Companies Act 2014 and enable the financial statements to be audited. 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. Code of Practice for the Governance of State Bodies (2016) The Code of Practice for the Governance of State Bodies (2016) requires additional disclosures in relation to certain categories of expenditure. These requirements have been addressed in the Governance Statements and Statement of internal control within the Group Financial Statements of Horse Racing Ireland. The company was compliant with the Code of Practice of State Bodies in 2018. Signed on behalf of the Board Brian Kavanagh Raymond Horan 26/06/2020 Director Director Date 5 THE TIPPERARY RACE COMPANY PLC STATEMENT OF INCOME AND EXPENDITURE AND RETAINED REVENUE RESERVES FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 Notes 2019 2018 € € Income from racing activities 2 1,081,384 1,023,077 Turnover 1,081,384 1,023,077 Operating expenses 4 (904,668) (879,403) Administrative expenses 4 (118,030) (105,016) Other operating income 5 50,753 43,801 Operating profit 109,439 82,459 Interest receivable 6 4 247 Interest payable 7 (8,518) (343) Profit on ordinary activities before taxation 8 100,925 82,363 Tax on profit on ordinary activities 11 (19,720) (18,704) Profit for the financial year 81,205 63,659 Retained profits at the beginning of the financial year 683,570 619,911 Retained profits at the end of the financial year 764,775 683,570 Notes 1 to 26 form part of these financial statements. The company had no recognised gains or losses in the financial year or the preceding financial year other than those dealt with in the Statement of Income and Expenditure and Retained Revenue Reserves. The result on ordinary activities arises solely from continuing activities. The financial statements were approved by the Board of Directors on 26/06/2020 and signed on its behalf by: Brian Kavanagh Raymond Horan 26/06/2020 Director Director Date 9 THE TIPPERARY RACE COMPANY PLC STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 Notes 2019 2018 € € Fixed assets Tangible assets 12 1,777,225 1,822,946 Current assets Debtors 13 265,180 365,215 Cash at bank and in hand 277,948 20,714 543,128 385,929 Creditors: (Amounts falling due within one year) 14 (293,262) (279,336) Net current assets 249,866 106,593 Total assets less current liabilities 2,027,091 1,929,539 Provision for liabilities 17 (1,188) (1,470) Deferred capital grant 18 (661,408) (644,779) Net assets 1,364,495 1,283,290 Capital and reserves Called up share capital presented as equity 19 554,686 554,686 Other reserves 45,034 45,034 Retained profits 764,775 683,570 Shareholders' funds 1,364,495 1,283,290 Notes 1 to 26 form part of these financial statements.