Bloodstock Corp. plans growth

Press, 2 July 1983, Page 23

Bloodstock Corp. plans growth

PA Auckland The National Bloodstock Corporation, Ltd, has budgeted for a dividend of 6 per cent, twice-covered by profit for the year to March, 1985. The corporation’s managing director, Mr D. W. Phillips, says in the prospectus that initial cost will absorb a high percentage of income during the first nine months, so trading profits from the group are not expected until the first full trading year (to March, 1985). “Future growth in profitability is budgeted, with steady increments in the dividends planned for the succeeding years,” he says. National Bloodstock will be involved in standardbred breeding, racehorse management, bloodstock promotion and sales, including exporting. The breeding activities will initially be centred on a

61ha property at Pukekohe, for which ari agreement to buy has been signed by Mr Phillips as trustee for the National Bloodstock group. The development will include stables, turn-out paddocks, lunging ring, horse swimming pool, therapy room, veterinary, blacksmith, gear and feed rooms, and the renovation of a large villa-style house. An office/accommodation block is planned. Further buildings will be developed for the stud and breeding operations. The total cost of the land is $1,095,000, of which $225,000 is vendor finance available by way of first mortgage. Some of the land, which is close to the Pukekohe trotting track, will be used for horticulture. Golding Pacific, Ltd, a wholly-owned subsidiary of the National Bloodstock group, will be used to pro-

vide credit for the bloodstock industry. Mr Phillips says that Golding Pacific will also be arranging international trade finance for the export of New Zealand racehorses and the import of overseas stallions and broodmares. National Bloodstock shareholders will also become part-owners of 50 horses, 44 of which will be 100 per cent-owned by the group. Six will be 50 per cent owned. The breeding stock includes 17 mares. The group’s stallion is El Sharvid. Another stallion is being sought. The corporation has an interest in the earnings and sale price of all horses managed by Redvale Standardbreds, Ltd. Prince Sharvid and Koala Tabella are just two of the more impressive winners to date, says Mr Phillips. In return for one million ordinary 50c shares in

National Bloodstock and an option to subscribe for cash at par for a further 15 per cent of the capital, Mr Phillips has transferred to the corporation standardbred bloodstock comprising 50 horses valued at $362,000. equipment, plant and leasehold improvements valued at $9OOO, and business operations relating to Redvale's stud farm and the Redvale Standardbred syndicate valued at $129,000. He has agreed not to compete in the standardbred bloodstock industry as a breeder and owner on his own account for a five-year term. The issue to the public of five million ordinary shares, of 50c each payable in full on application, opens on Friday, July 22, and closes on Friday, July 29. Application has been made to the Stock Exchange Association of New Zealand for permission to quote the shares on the official list.