The Irish horse breeding operation of Sheikh Mohammed bin Rashid Al Maktoum, Godolphin, saw its losses fall by 30% last year, hitting €5.67 million. This decrease coincides with a rise in revenue for Godolphin Ireland Ltd by 17%, going from €27.44 million to €32.13 million.
Centred in Kildare Town, the operation includes five farms across County Kildare, one in County Meath, and another two in County Tipperary. The employee count experienced a slight increase last year by two, reaching 227 staff members.
One of the farms, known as Kildangan Stud, serves as the home for the Irish Darley stallions and has enough space to house over 400 horses across its near 1,500 acres.
Sheikh Mohammed bin Rashid Al Maktoum, also known as the Ruler of Dubai and the vice-president of UAE, is considered one of the wealthiest leaders globally and a prominent figure in horse racing.
Famous horses within the Godolphin “hall of fame” roster include the likes of Dubawi, Masar, Anamoe, and Cody’s Wish.
The trend of losses for Godolphin Ireland Ltd in 2023 follows a pattern of €8.09 million in 2022, €4.23 million in 2021, €8.36 million in 2020, and €10.77 million in 2019.
Significant factors contributing to the losses include the high operating lease rentals of €12.98m that was reported last year, and €11.43m from the year before.
Although staff expenses saw a small increase from €13.22 million to €13.29 million, overall payments to directors saw a cut from €698,997 to €541,270.
The main business focus of the group involves stud, arable, and livestock farming.
Income from last year’s nomination fee surged by 25% from €20.14 million to €25.15 million. Meanwhile, Godolphin Ireland recorded ‘keep fees’ income of €5.9 million, farm income of €613,021, breeding rights income of €375,000, and leasing income of €53,085.
The losses also account for non-cash depreciation costs valued at €2.2 million. As a result, Godolphin Ireland was left with accumulated losses of €199 million at last year’s end, along with a shareholders’ deficit of €171.23 million.
The company’s liquid assets saw an uptick from €2.99 million to €7.2 million. The physical assets of the business were evaluated to be worth €74.4 million in book value. Over the previous year, the firm succeeded in generating cash amounting to €3.77 million from its operations. Concerning the business’s continuance, the managing board confirms that Godolphin Ireland has been given written assurance from an affiliated corporation, Reliance Holdings Ltd, to provide ongoing support. It has also been agreed by them to cover all debts to external parties. As of the close of last December, Godolphin Ireland was in debt to Reliance Holdings for a sum of €269.68 million.