Blandford Lodge optimistic on thoroughbreds

Press, 15 May 1985, Page 37

Blandford Lodge optimistic on thoroughbreds

(By NEVIN TOPP) The New Zealand thoroughbred bloodstock industry has come of age in the last three years, say the directors of Blandford Lodge, Ltd, in the prospectus registered yesterday. The prospectus is for the issue of 15,022,000 50c shares at par to raise $7,511,000 to buy the 60.8 ha Blandford Lodge Stud, 2km from Matamata, plus bloodstock. In addition, 4,978,000 fully paid 50c ordinary shares will be issued to Freyer Bloodstock Company (NZ), Ltd, to buy selected bloodstock and to obtain the services of a stallion, Imposing. Mr Brian Freyer, from Melbourne, will be the managing director of Blandford Lodge. The directors say they believe that the recent increases in New Zealand bloodstock values are a clear indication of the potential for further real growth. The new’ awareness in the world’s thoroughbred industry is being further developed by more intensive marketing to encourage Europeans and Americans to buy New Zealand bloodstock. Northern hemisphere owners have been showing increasing interest in NewZealand’s proven racehorses. This interest should inevitably extend to yearling sales, giving them a new underlying strength. “It is significant that the company’s board and management have excellent, contacts with prospective buyers in Australia,” say the directors. These contacts were important in helping the company market its progeny to buyers who were prepared to pay prices in excess of $lOO,OOO for the cream of the Trentham draft. The company’s trade policy is to buy and sell selective bloodstock, providing available cashflow from this additional source of profits.

“The directors believe the best returns from the bloodstock industry are achieved by the combination of a high level of management expertise and investment in premium bloodlines.” The commercial objective is to produce yearlings which will be acceptable in the top range at the Trentham sales. The selection of broodmares has been governed by this policy. The commercial objective of the company is to earn income from stallion service fees, the sale of yearlings. and trading in thoroughbred bloodstock. The company has made an initial purchase of 31 broodmares,’including six mares in foal to Imposing. Revenue in the first year of trading will come from the sale of weanlings as yearlings and the sale of surplus stallion services of the company, but the amount cannot be predicted. The reasons include the demand for yearlings being determined by ‘ fashionable” bloodlines at the time, foaling rate, “quality” of the foals, and prices at public auction. ‘For these reasons, the directors believe it would be misleading to provide financial projections." Blandford Lodge has secured the lease of 15 services from Imposing this year, and a further 10 in for each breeding season in the following three years. The company also has an option to lease up to 10 Imposing service rights a year from 1989 to 1994 at the standing service fee at that time. Also standing at Blandford Lodge this season will be Alibhai, the first New Zealand-bred ?1 million stake-earner. The company has bought 15 of the 44 shares held by Sir Tristan Amico in the stallion, five of which it will sell to leading breeders. The company will receive 10 service nominations to the stallion as a standing

fee in each stud season, and the shares will give it a total of 20 service nominations a season. In addition to Sir Tristan and Blandford Lodge, Freyer Bloodstock, Mr Tommy Smith (the Australian trainer, who will be a director of the new company) and a jockey, Mick Dittman, will all hold interests in Alibhai. The company has already secured services to other top stallions in the industry. The company also has 11 weanlings and half-shares in a further three, which will be nominated for the Trentham yearling sales in 1986. The company has a policy of buying yearlings and retaining selected progeny for breeding stock. The directors say they recognise that racetrack performance strongly influences fashion in the popularity of bloodlines at auction. Therefore, they intend to prove some cf the company’s bloodlines on the racetrack — retaining the services of Mr Smith and another trainer, Mr David O’Sullivan, who will also be a director. Three fillies have been brought for racing. The directors say that no dividend will be paid in the first year of trading, but they expect to be able to recommend a payment in the year to June 30, 1987. Of the 15,022,000 shares for public subscription, 11,262,000 have been reserved on a firm allocation from the organising broker, Jarden and Company, and other stock exchange members (listing is being sought). The public pool will consist of 3,760,000 shares. The issue will open on June 7 and close the same day. The application is for a minimum of 500 shares, and in multiples of 100 shares after that. Other directors are Sir James Fletcher (chairman), Mr Edward Newman, and Mr Alan Galbraith.