Revenues race ahead at Godolphin's Irish operation to €32m

Thoroughbred stud operation is owned by ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum

Godolphin founder Sheikh Mohammed bin Rashid Al Maktoum during day five of Royal Ascot at Ascot Racecourse.

Losses at Sheikh Mohammed bin Rashid Al Maktoum's thoroughbred stud operation here, Godolphin, last year declined by 30% to €5.67m.

The sharp decrease in losses at the stud and farm operation came as revenues at Godolphin Ireland Ltd increased by 17%, from €27.44m to €32.13m.

Godolphin's operation in Ireland comprises five farms in Co Kildare, one in Co Meath and two in Co Tipperary, and numbers employed by Godolphin last year increased by two to 227.

The HQ for the operation here is Kildangan Stud, just outside Kildare town.

Kildangan itself is home to the Irish-based Darley stallions and the farm extends to almost 1,500 acres with combined accommodation for more than 400 horses.

Ruler of Dubai and vice-president of the United Arab Emirates (UAE), Sheikh Mohammed bin Rashid Al Maktoum is one of the world’s richest leaders and is one of the most famous names in the world of horseracing.

Godolphin’s ‘Hall of Fame’ horses include Dubawi, Masar, Anamoe and Cody’s Wish.

Losses at Godolphin Ireland Ltd in 2023 follows losses of €8.09m in 2022, €4.23m in 2021, €8.36m in 2020 and €10.77m in 2019.

A major contributor to the losses is the firm’s high operating lease rentals of €12.98m last year and €11.43m in 2022.

Staff costs increased marginally from €13.22m to €13.29m, while overall pay to directors reduced from €698,997 to €541,270.

The principal activity of the group is that of stud, arable and livestock farming.

Nomination fee income last year increased by 25%, from €20.14m to €25.15m, while Godolphin Ireland recorded ‘keep fees’ income of €5.9m, farm income of €613,021 breeding rights of €375,000 and leasing income of €53,085.

The loss takes account of non-cash depreciation costs of €2.2m.

The loss resulted in Godolphin Ireland having accumulated losses of €199m at the end of last year and a shareholders’ deficit of €171.23m.

The firm's cash funds increased from €2.99m to €7.2m. The book value of the company's tangible assets totalled €74.4m.

The firm last year generated cash €3.77m from operating activities.

On the company’s going concern status, the directors said Godolphin Ireland had received written confirmation of continued support from a group company, Reliance Holdings Ltd, and it would settle all third-party liabilities.

At the end of December last, Godolphin Ireland owed €269.68m to Reliance Holdings.