Arena Leisure, the race course owner, has seen revenues slump as it targets the end of March for completion of its sale to Aldersgate Investments.
Arena owns seven high profile race courses, including Lingfield Park and Doncaster, but has seen its turnover reduced by the fall in the levy on bookmakers.
As more betting has moved offshore, the number of betting shops which fall under the levy has reduced. The effect on Arena has been a £2.5m decline in revenues in 2011, to £61.5m.
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That decline has come despite record attendances at the group's racecourses of 683,000, representing a 7.8% increase over 2010.
Arena also managed to boost profit before tax, which came in 14.6% ahead of 2010 at £4.2m.
Concerns about future levy income and limited liquidity of the shares led to a review of the business last year and the acceptance, in January, of an offer from Aldersgate at 44.25p per share, valuing Arena at around £167m. Subject to clearance from the Office of Fair Trading and the courts, the deal is expected to go through on March 30th.
The terms of the deal mean no dividend will be paid on 2011 earnings.
Arena's Chief Executive Mark Elliot refused to be down beat over the company's prospects, saying:
"Looking ahead, 2012 sees the commencement of our five year media rights agreement with SIS which significantly enhances the Group's income. We intend to maximise the opportunity provided by our catering service contract at the Olympic and Paralympic Games and to extend our in-house catering services to other third party venues and events.
"The Offer from Aldersgate Investments represents a fair and reasonable opportunity for shareholders to realise value that would not otherwise be available in the current market."
Shares in Arena had fallen 0.56% by 08:16.
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