BLOODSTOCK AGENCY Goffs was owed almost €6 million at the end of its last financial year by customers who bought racehorses at its auctions but did not pay on time, its latest accounts show.
The agency is selling a stake in a French operation to one of its shareholders, the Aga Khan, for €7.5 million, to boost reserves and working capital.
Robert J Goff and Company released accounts yesterday showing it had to provide €5.7 million against overdue debts on March 31st, the end of its last financial year.
The money was due from people who successfully bid for horses at one of the auctions it held over the previous 12 months, but had not actually paid for them.
Goffs said it ensured all vendors, its clients, were paid on time, irrespective of whether or not the buyers had paid the agency.
Pretax losses at the company during the 12-month period more than doubled to €6.4 million from €3.1 million during its 2009 financial year. Its 2010 income was down almost 17 per cent at €14.7 million from €17.6 million last year. This reflected a fall in turnover in its sales ring to €81 million from €102 million.
The agency’s primary source of income is commission paid on the sale of racehorses in its auction ring.
Goffs intends selling a 26.67 per cent holding in French bloodstock auctioneer, Arqana, for €7.5 million cash to Grenfell Ltd, a company controlled by racehorse owner and breeder, the Aga Khan, which owns 40 per cent of the Irish business.
The agency said the deal would help “improve the company’s reserves by €3.1 million and provide the financial resources necessary to support the working capital required for the future and to modify its existing banking facilities”.
Shareholders will be asked to approve the deal at an extraordinary general meeting scheduled for October 29th. If approved, Goffs will be left with a 5 per cent holding in Arqana. The company also owns Doncaster Bloodstock Sales in Britain.
Goffs held its premier sale for yearling thoroughbreds at its Kildare base over three days this week. Turnover was down 10 per cent to €22.3 million, from €24.7 million at the same auction in 2009.
The average price paid for the horses sold this week was €47,800. The highest price paid for a horse offered at the auction this year was €950,000. Top prices earlier in the decade regularly exceeded €1 million.
