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"SHEIKH MOHAMMED’S Australian breeding arm, which recently announced job cuts at one of its studs, recorded a A$27 million loss last year.
Sheikh Mohammed: his Darley Australia operation recorded a loss of A$27 million last year
The latest accounts lodged by Darley Australia showed a significant improvement on the previous year, when losses totaled A$246 million, but also highlighted the company’s reliance on the support of the Sheikh, without whose continued support it might not be able to operate as a going concern.
The Sheikh expanded his Australian operation substantially in 2008 with the purchase of the Woodlands Estate for a reported A$500 million.
Last year the business recorded a rise in revenue to A$99.6 million from A$94.3 million, but cost of sales and administrative expenses jumped sharply, according to the Sydney Morning Herald. Earlier this month Darley said it was shedding nearly 30 jobsat its Twin Hills stud in Cootamundra.
The Herald said Darley Australia’s loss would have been much larger but for a one-off net gain from revaluing up the value of ”biological assets” by A$16 million compared with zero the prior year. Current liabilities total nearly A$1 billion, up from nearly A$900 million the prior year, and the company has a net asset deficiency of A$916 million, up from A$839 million the prior year.
Sheikh Mohammed’s commitment to the operation was acknowledged by Darley’s directors who said ”the company’s ability to continue as a going concern is dependent upon the continued financial support of its ultimate shareholder”.
”The ultimate shareholder is expected to continue to provide financial support, which it has done so for a number of financial years and has continued to do so subsequent to year end, to ensure the company meets its cash flow obligations for at least 12 months after the date of signing this financial report.”
The accounts also stated: ”Given the company’s present and anticipated trading performance and the extent of the net asset deficiency there is uncertainty as to whether the financial support of the ultimate shareholder will remain in place up until such time as the company is able to meet its obligations without the continued support off its ultimate shareholder.
Should the above support be withdrawn there is significant uncertainty whether the company can continue as a going concern.”
Darley will stand 25 stallions in Australia this season split between their bases at Kelvinside and Northwood Park. They include leading young US sire Medaglia d’Oro and Derby winners Authorized and New Approach."
My word the Sheikh really is digging deep
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They look like the accounts of some Dubai property development firms.
"Should the above support be withdrawn there is significant uncertainty whether the company can continue as a going concern.”
Is there no intelligent life beyond the clichés?
There is no significant uncertainty.
The company will not continue as a "going concern". It is not a going concern now.Hmm, better work harder to flog Lonhro to Australian breeders even more. They’re strategy with the Racing side of the operation has been truly amazing, almost in normal Sheik Mohammed style.
"SHEIKH MOHAMMED’S Australian breeding arm, which recently announced job cuts at one of its studs, recorded a A$27 million loss last year.
Sheikh Mohammed: his Darley Australia operation recorded a loss of A$27 million last year
The latest accounts lodged by Darley Australia showed a significant improvement on the previous year, when losses totaled A$246 million, but also highlighted the company’s reliance on the support of the Sheikh, without whose continued support it might not be able to operate as a going concern.
The Sheikh expanded his Australian operation substantially in 2008 with the purchase of the Woodlands Estate for a reported A$500 million.
Last year the business recorded a rise in revenue to A$99.6 million from A$94.3 million, but cost of sales and administrative expenses jumped sharply, according to the Sydney Morning Herald. Earlier this month Darley said it was shedding nearly 30 jobsat its Twin Hills stud in Cootamundra.
The Herald said Darley Australia’s loss would have been much larger but for a one-off net gain from revaluing up the value of ”biological assets” by A$16 million compared with zero the prior year. Current liabilities total nearly A$1 billion, up from nearly A$900 million the prior year, and the company has a net asset deficiency of A$916 million, up from A$839 million the prior year.
Sheikh Mohammed’s commitment to the operation was acknowledged by Darley’s directors who said ”the company’s ability to continue as a going concern is dependent upon the continued financial support of its ultimate shareholder”.
”The ultimate shareholder is expected to continue to provide financial support, which it has done so for a number of financial years and has continued to do so subsequent to year end, to ensure the company meets its cash flow obligations for at least 12 months after the date of signing this financial report.”
The accounts also stated: ”Given the company’s present and anticipated trading performance and the extent of the net asset deficiency there is uncertainty as to whether the financial support of the ultimate shareholder will remain in place up until such time as the company is able to meet its obligations without the continued support off its ultimate shareholder.
Should the above support be withdrawn there is significant uncertainty whether the company can continue as a going concern.”
Darley will stand 25 stallions in Australia this season split between their bases at Kelvinside and Northwood Park. They include leading young US sire Medaglia d’Oro and Derby winners Authorized and New Approach."
My word the Sheikh really is digging deep
They will never have the success the ingham brothers had with crown lodge they just flood the racing scene with numbers and hope one comes a good. Fine if you have the cash why not?? i have heard from a few good sources at warick that snowden can not stand Mckevoy but if Denman does well for godol in euro then all that will happen is snowden will just be another feeder trainer to godol. Hawkes new what was going to happen and got out while the going was good.
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