The death of Queen Elizabeth II and the cost-of-living crisis led to the company behind Chester Racecourse posting financial results lower than had previously been expected.
The Chester Race Company, which dates back to 1892, said the cancellation of four fixtures in the wake of The Queen's death last year hit its profits by around £1.6m.
It added that economic factors such as high inflation also negatively impacted its results.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
According to newly-filed documents with Companies House, the business nonetheless posted a turnover of £34.5m for 2022, up from £23m, while it made a pre-tax profit of £860,067 after posting a loss of £997,865 in 2021.
Chester Race Company owns the Chester and Bangor-on-Dee racecourses, an on-course hotel – the Holiday Inn Express, two on-site restaurants; 1539 Restaurant & Bar and The White Horse, in addition to the Chester city centre bar; Commonhall Social.
In June 2020, the company took on the long-term operating contract of a third racecourse in Scotland; Musselburgh.
Established in 1539, Chester Racecourse is officially recognised by the Guinness Book of World Records as the oldest racecourse still in operation.
Most Read
A statement signed off by the board said: "2022 saw activities return almost to normal for the group. Demand for Chester racing hospitality and premium general admission has been very strong.
"Wait times at bars were reduced and evidenced by excellent spend per head at every fixture. Hotel occupancy and room rates were at historically high levels.
"Unfortunately, there were several issues during the year that negatively impacted our financial results.
"The sad passing of Queen Elizabeth II led to the cancellation of four fixtures across the group, reducing 2022's profit before tax by c.£1.6m.
"In addition, racing attendances at Chester and Musselburgh were below usual levels - a trend seen across most racecourses during the year.
"This was caused by the cost-of-living crisis, along with the fact that some racegoers have got out of the habit of racing.
"At Chester, attendances in our higher volume enclosures were c30% down on pre-pandemic levels.
Don’t miss
"The pressure on costs has also been significant, with prize money having to be increased significantly to keep pace with our competitors."
On its outlook, the company added: "2023 is going to be a challenging year financially.
"High inflation and a potential lengthy recession, or a period of very low growth, may be a drag on consumer spending. The inflationary pressure on costs is high.
"Utility costs have increased significantly on 2022's levels and national minimum wage is increasing by 10%.
"Salaries, casual labour costs, food and liquor prices and the cost of services are all being heavily impacted by what is happening in the wider economy.
"On top of this, in racing there is significant pressure on prize money even though the Horserace Betting Levy Board price money funding is falling."