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Losses at Sheikh's Godolphin Ireland increase by 14pc to €10.77m


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Sheikh Mohammed bin Rashid Al Maktoum

Sheikh Mohammed bin Rashid Al Maktoum

REUTERS

Sheikh Mohammed bin Rashid Al Maktoum

Losses at thoroughbred horseracing stable Godolphin - owned by billionaire Sheikh Mohammed bin Rashid Al Maktoum (pictured) - last year increased by 14pc to €10.77m.

The decline follows a 17pc (€10.7m) fall in revenues to €21.72m at Godolphin Ireland Ltd last year and a €9.4m drop in 2018.

Godolphin's operation in Ireland comprises of five farms in County Kildare, one in Meath and two in Tipperary. The farms are staffed by a workforce of 237.

Staff costs last year totalled €13.19m while key management personnel were paid €891,456.

The HQ for the Irish operation is Kildangan Stud, just outside Kildare town. It is home to the Irish-based Darley stallions and the farm extends to almost 1,500 acres with combined accommodation for more than 400 horses.

Whitefield Yard is the purpose-built foaling unit where two Epsom Derby winners have been born - Shaamit and High-Rise. The stables are also the birthplace of racers Mark of Esteem, Swain, Cape Cross and Singspiel.

According to the directors' report for Godolphin Ireland, the loss of €10.77m was less than the budgeted loss of €11.369m. Due to the losses recorded over the past two years, Godolphin Ireland paid no corporation tax last year or in 2018.

The breeding operation's revenues last year included nomination fees (€11.4m), keep fees (€8.26m), farm income (€1.23m) breeding rights (€675,000) and leasing rights (€82,126).

The loss takes account of non-cash depreciation costs of €2.62m and operating lease costs of €6.9m.

Last year's loss resulted in Godolphin Ireland having accumulated losses of €158m and a shareholders' deficit of €144.85m.

The directors said that Godolphin Ireland has received written confirmation of continued support from a group company, Reliance Holdings Ltd and that it will settle all third-party liabilities. At the end of December last, the firm owed €44.8m to Reliance Holdings Ltd and another €74m to a connected company, Agroyo Ltd.

On the impact of Covid-19, the directors said they have been "implementing contingency plans to mitigate the potential adverse impact on the company's operations and, to date, the pandemic has not had any direct negative impact on our business activities".

Irish Independent