There’s more to racecourse operator Northern Racing, (the company that runs Chepstow, Uttoxeter, Newcastle and Fontwell Park) than just horses.

Rod Street and Tony Kelly, the management duo cracking the whip, insist ‘we are commercial leisure operators first and foremost. It just so happens that at this moment we’re focused on horse racing’. An audacious recent bid for the right to run Silverstone demonstrates their wider leisure sector ambitions. Furthermore, the group possesses 2,200 acres of freehold and long-leasehold land, where it looks to realise value by developing and disposing of the non-core parts.

Recent interims prove that these substantial land assets and a wider strategic remit in leisure provide icing on the cake to the core racecourse operating business. Despite unfortunate timing issues, including fixtures that clashed with key World Cup games, the first-half figures to June saw pre-tax profits nosing ahead 3.2% to £940,000, ahead of forecasts, on turnover of £14.2m (£15m). This despite the fact that Northern Racing’s two busiest meetings – the Northumberland Plate and the Summer National – ran in July, whereas in 2005 they were run in the first half. And also in spite of some lamentable weather, which caused 13 fixtures to be abandoned, compared with only four a year earlier. Nevertheless, Northern Racing grew revenues from hospitality and sponsorship, and insisted that the full year forecasts would be met.

Liquidity in the stock isn’t great, with the Clarke family holding 57.1% and property group St Modwen a further 27.2%. However, reported net assets have grown to 131p, and analysts think that the true value of the group’s net assets are now worth 205p. If you hold shares already, do not part with them.