Ra Ora turnover up but $207,000 loss

Press, 19 September 1985, Page 38

Ra Ora turnover up but $207,000 loss

PA Wellington In spite of increasing its turnover by 25.6 per cent, Ra Ora Stud, Ltd, has reported a loss of $207,000 (profit $613,000) for the year ended June 30. The Auckland-based horse breeder said in a statement to the Stock Exchange that the loss came after payments to the estate of the late Sir Woolf Fisher of $172,000 in terms of an original bloodstock purchase agreement. The loss was after writing off $45,000 in share issue expenses.

Directors anticipated the loss in their interim report on December 31. Contributing to the loss were: The small draft of yearlings to the national and Waikato sales; the retention of well-bred fillies; and substantial interest costs incurred as a result of using borrowed funds to finance an increase of almost SSM in bloodstock. The statement said Ra Ora had a conservative approach to annual valuation of bloodstock and, based on advice received by inde-

pendent bloodstock experts, directors considered a full market valuation would increase the book value of bloodstock by more than $4.5M.

During the year the bloodstock revaluation reserve increased by $565,000.

The directors are recommending a 2 per cent (lc a share) dividend for the 1985 year and an interim payment of 3 per cent (1.5 c a share) for the present year be made. Both are payable October 25.