Rockingham was the pits for Hands

THE full scale of the financial debacle that was Guy Hands' worst-ever investment has been exposed in accounts from the spectacularly loss-making motor racing circuit he personally bankrolled.

Figures filed at Companies House by the Rockingham Motor Speedway company disclose that it lost almost £47m in its first two years of operation when the multi-millionaire former Nomura banker was the controlling shareholder.

They also reveal that the company has suspended dividend payments on its preference shares and renegotiated a loan with the Bank of Scotland when it could no longer meet the interest bill.

Hands, 43, a motor racing fanatic, sold his stake in the Northamptonshire circuit last April for an undisclosed nominal sum after ploughing as much as £50m of his own money into the project.

Rockingham's 1.5 mile oval circuit, which opened in May 2001, was billed as Britain's first purpose-built motor racing track since Brooklands in 1907.

It was built at a cost of £52m on 300 acres of former steelworks land near the depressed town of Corby in Northants and was hailed as a triumph of post-industrial regeneration.

However, the launch came in the teeth of one of the worst downturns in motor racing as sponsorship and crowds dwindled during the economic uncertainty.

The company made an £8.04m operating loss in 2002 on turnover of £5.37m. This followed a £10.05m loss in 2001, which with huge start-up costs, left Rockingham £42.7m in the red in its first year.

The company has stopped paying interest and capital on a £13m loan from Bank of Scotland, an agreement that probably saved the it from administration. Capital repayments are not due to recommence until 2005.

A spokesman for Rockingham said: 'At the time it looked like a great investment but the timing was lousy from the economic point of view. He got this place up and running and you have to admire him for putting the money up no matter how it has gone since then.'

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