Return for Blandford

Press, 6 September 1989, Page 37

Return for Blandford

Blandford Lodge, the Matamata-based listed bloodstock company, has returned to profitability with an unaudited group profit of $2,013,207 before extraordinaries for the year ended June 30.

The company incurred a $9.8 million loss in the previous corresponding period. Both figures included bloodstock valuations.

The directors said overheads had been reduced after the $2.8 million sale of Stockwell Stud farm in Victoria (Australia) last December. The consolidation of Blandford’s bloodstock activities in New Zealand had enhanced the outlook for the company. A trading profit together with a net S2M write-up of bloodstock, which last year had been sharply written back S7M,

contributed to the improved result. An extraordinary group loss of $448,000 from the sale of Stockwell Stud reduced the company’s total profit to $1,565,000.

The result includes Stockwell Stud Pty and Blandford’s Australian subsidiary Swynford Investments Pty. “It has not been an easy year for the thoroughbred industry in New Zealand, but Blandford Lodge has weathered

it better than most,” he added. “With the sale of Stockwell and the rationalisation of S2M worth of bloodstock late last year, followed by excellent yearling sale receipts in January and March, Blandford has reduced it indebtedness to an acceptable level,” the chairman, Mr Brian Freyer, said. “It has not been an easy year for the thoroughbred industry in New Zealand, but Blandford Lodge has weathered it better than most,” he added.

Blandford would work towards further reducing its borrowings in the coming year, plus consolidat-

ing and developing its bloodstock base. “The stud has a strong stallion line-up and an outstanding young broodmare band, which was significantly enhanced with the addition of all the Stockwell Stud mares,” he said. “Blandford has 45 yearlings to sell at the major New Zealand and Australian Sales in 1990, which will be our best draft to date.” The directors said the quality of the bloodstock now owned by the company was reflected, partly, by a $2.74M bloodstock revaluation reserve

this year. The directors have not recommended a dividend payment.

Blandford Lodge unaudited group result for year to June 30 1989 1988 $OOO $OOO Turnover 5823 3632 Profit/(loss) before tax 2017 (9818) Income Tax — 89 Fringe Benefit Tax (4) (4) Profit/(loss) before extraordinary items 2013 (9733) Extraordinary item (loss) (448) (228) Profit/(loss) after extraordinary item 1565 (9961) Surplus/(loss) for year $1565 $(9961)