Goffs sees welcome return to profit after difficult period

BLOODSTOCK sales group Robert Goff has returned to profit, with Goffs chairwoman Eimear Mulhern stating that the group has managed to come through a very difficult period and has now stabilised its finances.

Accounts filed by Robert J Goff & Co show that the company recorded a profit of €3.46 million in the 12 months to the end of March this year. This followed a pre-tax loss of €6.4m in the 2010 fiscal year.

The chief factor behind the company returning to profit was the €2.8m profit Goffs made from the €7.5 million sale of 26% of its share in French bloodstock auctioneers Arqana Holdings. The deal left Goffs with a 5% share of Arqana.

The figures show that the firm’s income dropped by 11% from €14.7m to €13.1m in the 12 months to the end of March this year.

In her accompanying statement, Ms Mulhern said: “We believe the company is now well financed and structured to enable it to move forward positively.”

Ms Mulhern said that the sale of Arqana Holdings “has given the company the necessary financial resources and working capital to enable it to lessen the reliance on banking facilities”.

Ms Mulhern said that Goffs recorded an operating profit of €1.3m on its core business — this followed an operating loss of €5.8m in 2010.

Ms Mulhearn attributed the operating profit to continued tight focus on the company’s cost base along with better management of credit to the company’s customer base.

In his statement, group chief executive Henry Beeby states: “We have managed to turn the business around against the tide.

“While there is no doubt we continue to live in challenging times, it is our strong feeling that the company continues to move in the right direction.”

The figures show that the Goffs group had shareholders’ funds of €21.7m at the end of March that includes €6.5m in accumulated profits.

The figures reveal that the group’s profit was achieved after taking account of non-cash costs of depreciation and amortisation of €1.24m.

The numbers employed by the group dropped from 71 to 68, with staff costs also decreasing from €4.1m to €3.7m.

The staff costs include €734,000 to directors’ remuneration for management services.

The figures show that the group substantially reduced its bank loans and overdrafts from €18.4m to €7.2m.

A note attached to the accounts states: “Subsequent to year end, the banking facilities of the group were renegotiated.”