hawke’s bay racing annual report · the annual turf report completed by turftech, with reduced...

Hawke’s Bay Racing Annual Report

2013 / 2014

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BUSINESS

1. Apologies.

2. Condolences.

3. Presentation of the Annual Report and Accounts for

the year ended 31 July 2014.

4. Appointment of Auditor.

5. Announcement of Board Appointments.

6. General Business.

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the Annual General Meeting of Hawke’s Bay Racing Incorporated will be held in the Cheval Room, Hastings Racecourse on Tuesday 18th

November 2014 at 7pm.

JP Fleming

CHIEF EXECUTIVE OFFICER

HAWKE’S BAY RACING INCORPORATED

HASTINGS RACECOURSE

HASTINGS

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HAWKE‘S BAY RACING INCORPORATED 2013-2014

DIRECTORS STEWARDS

AUDITORS Staples Rodway Hawke‘s Bay

SOLICITORS

BANKERS ANZ

CHIEF EXECUTIVE OFFICER Jason P Fleming

Bate Hallett

RACING OFFICIALS

NZ Thoroughbred Racing

Handicapper Judge Starter

Dick Hunt Gary Philips

Veterinary Surgeons

Vet Associates Hastings

Assistant Judge

John Jenkins

Clerk of Sales

Brett Withey

Clerks of Course

Murray Thompson

Philip Thompson

Desiree Foxley

Course Commentator

Tom Wood

George Simon

Marketing & Events Manager Greg Howie

Accounts

Administration Manager

Trish Wooten

Alana Waters

Racecourse Manager Richard Fenwick

Track Assistants

Peter Dickie

Craig Berge

Gavin Parker

Caretaker

Chris King

M R Ormond (Chairman)

A J Lockyer (Deputy Chairman)

K J Browne

D J Holden

E B Smyth

C A J Whyte (resigned – December 2013)

K L Wood

TGB Macphee

TGR Lowry

M P White

P Shirnack

Mrs A Horrocks

Ms R Waller

Mrs R Stace

H Chard

L F Drake

SCH Matthews

A J Wall

STAFF

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06. Chairman’s Review

09. Corporate Governance

11. Chief Executive Officer‘s Report

14. Sponsorship

16. Hawke’s Bay Racing and Breeding Awards

19. 2013 / 2014 Season Group Racing Review

26. Finance Review Statements

37. Members of HBRI

TABLEOF CONTENTS

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CHAIRMAN’S REPORT It is my pleasure to present to you the Annual Report and Balance Sheet for the year ending 31 July 2014.

I‘m very pleased to be able to report on a much improved financial performance this year. After last year‘s result we had no room for another annus horribilis, and it‘s satisfying to be able to report on behalf of the Board that the turnaround looks to be solid and repeatable. A six figure cash surplus is a minimum requirement for a sustainable racing club of our size, with our aged infrastructure. It‘s clear from the work done by the NZTR Racing Club Partnership programme on benchmarking that our club has been performing below par for a long period. We‘re certainly not alone in this, but should take no comfort from that. It‘s really up to us to do all we can to ensure the sustainability of racing in Hawke‘s Bay for the long term. That requires us to make excellent profits in the good years when we are favoured by the weather gods and a healthy economy, and just as importantly to minimise our losses when things don‘t go according to Hoyle.

The turnaround from last year‘s cash deficit of $145,000 to a cash surplus this year of $100,000 is significant. The work load on Jason Fleming and his staff has increased markedly with the non replacement of both Kim Treweek as racing manager and Mark Webby in Accounts. My thanks particularly to Tim Macphee who as Chairman of our Finance Committee has brought on board

an extremely capable lady in Trish Wooten who, working just a few hours a week, has been able to help Jason present to the board accurate and clear financial statements on a monthly basis.

The small office team of Jason, Greg, and Alana (supported part time by Cristy Stafford, Trish Wooten and others) are working very efficiently – and with great spirit. It‘s a pleasure to walk into a happy office where everyone is giving their best. And it shows in our results, so on behalf of the board our thanks to you all for the part you play.

The team on the track led by Richard Fenwick, with Peter Dickie and Craig Berge (and on a part time basis Gavin Parker) have as usual done a first class job providing very good racing and training surfaces. Last year the track missed a critical part of it‘s maintenance and it showed up in the annual turf report completed by Turftech, with reduced aeration and slower drainage. However, with those jobs completed this year, we have recently received the annual report showing the track is back on track. No major problems, although the inside 7 metres still needs a better grass cover, with browntop and poa starting to dominate. Further out the ryegrass sward is excellent. The surrounds of the racetrack are a source of pride. Although our buildings may be old they function as well as can be expected, and look as good as they can. Thanks to our caretaker Chris King for his efforts to keep us running.

The feasibility study into the possible relocation of the racecourse to The Showgrounds was completed and presented to the parties involved after some delay in early August. What came out of that was a clear message from the A&P Society that they would not consider a racetrack on their existing site without the acquisition of more land across Elwood Road presently owned by the Elwood Park Trust Board (HB Rugby and Sports and HB Polo.) Funding was always going to be a major issue, and with the unfortunate circumstance surrounding the Opera House requiring substantial Council funds, it was clear we could expect nothing from ratepayers. So the timing was awful..... but the idea was good. Jason Fleming and the board spent a lot of time investigating and considering various plans and I think we were as thorough as we could be. We did our best to consult with our members and other affected parties, and were positive about the possibility of relocating. Jason and I both presented to members of the A&P at their AGM, and were well received. However, the plans have been put on hold indefinitely. Our minds are not closed on the subject, but in the meantime we intend to concentrate on our present site. That doesn‘t mean we‘ll be sitting on our hands. Change is required. Our debt is too large and we are making only slow headway improving our position. All avenues will be explored, but of course nothing will be done without full discussion with you our members.

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We have discussed the issue faced by many clubs such as ours concerning honorary membership at a couple of forums during the year. I know a number of sporting clubs have done away with that class of membership altogether. The reason is due simply to our aging demographic, which causes a smaller and smaller proportion to be paying a sub. I am proposing that we change honoraries to an annual subscription of 50% of the normal sub. I don‘t expect it to be unanimously accepted by that section of our membership, just as one can‘t expect turkeys to vote for an early Xmas. I just hope that those affected (which includes me) can see the logic of the proposition and continue to support us. There are fixed costs in servicing and communicating with our membership, this way everyone will contribute to the wellbeing of the club. We will discuss the subject at the AGM, so if you can‘t get along, please let me know your views before then.

The board has made very little progress on the requirements of earthquake strengthening our buildings. It‘s obviously a nation wide problem for not only racing clubs, but NZ society as a whole. The debate has started on whether or not we should be prepared to take a certain amount of risk in buildings that are not in full use everyday – i.e. sports clubs, churches etc. The odds of loss of life in an earthquake while attending a race meeting or morning prayers are very long indeed. Driving on our roads is infinitely more dangerous, yet most of us do that daily. I think it‘s time to stand up and make

it clear to the Government that we do not need protecting from every eventuality and that we are prepared to take on an amount of risk which is no greater or lesser than we live with today. Notwithstanding my opinions on the subject, the board is focusing on the issue and during the next 12 months will continue to seek leadership from our national governing body New Zealand Thoroughbred Racing.

We have just completed a financially successful JB Organics Spring Carnival. Jason and his team did an outstanding job to achieve that success, with help from a number of volunteers which we appreciate. The Livamol Classic Day is an important event in our calendar, and it‘s success or otherwise is critical to the wellbeing of the club. I‘m not suggesting we have everything right or have pleased everyone, but the day worked pretty well overall. The push for presales was a winner, with a number of packages sold out before raceday which helps insulate the club from the possibility of inclement weather and less reliance on a walk up crowd. The results of a survey conducted by NZTR concluded that owners feel they should be looked after better by raceclubs, including Hawke‘s Bay Racing. Some expectations seem unrealistic, however we have made a conscious effort to improve our treatment of owners. This Spring we provided a room on the first two days (not brilliantly attended) with an Owners‘ Marquee beside the parade ring on the final day. In spite of a cold SW wind, our barbequed Silver

Fern lamb racks were well received by a good number of visitors, and as always we receive plenty of positive feedback on the efforts of Peter Shirnack and his team in the Winners Circle. The Punter of the Year was again well patronised and profitable, and the Fashion in Field added to the day in spite of the ordinary weather. We welcome members‘ feedback – as always there is a trade-off between providing facilities for one section of a raceday crowd at the expense of another, and perhaps members missed out a bit this year. Please let us have your thoughts.

Fantastic to have International Animal Health on board this year sponsoring the Livamol Classic. Principal Chris Lawlor was unable to be on course as he was attending the Arc, but he was well represented by his men Kerrin Beatson and Howard Morrison. They enjoyed the day, and we hope this will be a long association. As always, we encourage you to support those that support us. That includes our other major sponsors Windsor Park Stud and Westbury Stud, as well as DHL and all our sponsors throughout the year that you can see listed in this report. We are indebted to all of them, and hope as a racing club we provide some value.

Our annual Racing and Breeding Awards Dinner again held in the Cheval Room was well attended. It was a vintage year for local successes on the track, the highlight being a Group 1 double at Trentham. Guy Lowry (together with Grant Cullen) trained his first Group 1 winner when Irish

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Fling won the Telegraph, and not to be outdone John Bary trained his first Group 1 quinella with Recite beating stablemate Franzac in the Levin Classic on the same racecard. Another NZ Horse of the Year bred and owned in Hawke‘s Bay – Dundeel, with his dam Stareel being named NZ Broodmare of the Year made it obvious that they would win the Hawke‘s Bay equivalents. Long time HB Racehorse Owners President Tony Lyndon was recognised for his huge contribution to racing in Hawke‘s Bay with the presentation of the Horlicks Salver.

During the year, the board elected Andrew Lockyer to the newly created position of Deputy Chairman. As Chairman, I‘m delighted to have a 2 IC. I think it‘s an important part of succession

planning that the board previously lacked. It‘s still up to the board who it elects as Chair and when, but it should help with a timely and smooth transition. We farewell Barry Smyth from the board as our longest serving member. Barry has been there through thick and thin – 25 years is an enormous contribution and he has chaired the track committee for a good deal of that time. We‘ll miss his wise and considered contributions around the board table, and wish him well for the future.

I would encourage members to step up and contribute as both stewards and board members. The club needs you, and participation can be rewarding. If you don‘t see yourself as able to help, then think about who else may add some value to the club, and encourage them to come forward.

My thanks to all who have helped make it a more successful year for HB Racing Inc, especially Jason Fleming for whom racing is much more than a job. His enthusiasm, innovation and dedication serve us and New Zealand racing well. Jason leads a very able team. Finally to the board and stewards, my thanks for your contributions throughout the year, both in the boardroom and on the racecourse.

All the best for the season ahead.Yours in racing.

Mick Ormond - Chairman

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Hawke’s Bay Racing is an incorporated society. The club is governed by the Rules and Regulations adopted by the members (last updated Special General Meeting July 2012 – see www.hawkesbayracing.co.nz for the electronic version).

The Board of the society is responsible for the governance of the Club. Governance is a matter of high importance and is a fundamental foundation of the culture and business practices of Hawke’s Bay Racing Incorporated (“HBRI”).

A description of the main corporate governance practices are set out below, all practices described, unless otherwise stated, were in place for the entire season.

BOARD COMPOSITION & TERM OF OFFICE

The Board consists of the Chairman and nine directors (increased to twelve at the SGM dated July 19 2012). Each Board Director (elected) must retire tri-annually and may then seek re-election. The Chairman is elected annually.

It is the Board’s and indeed rules intention that Directors reflect a broad range of skills to aid it in carrying out its responsibilities and in meeting the Club’s strategic objectives. Three positions are able to be co-opted with emphasis on recruiting Directors with skills that compliment the structure of the group.

The Board meets on a monthly basis and on separate occasions if required to discuss issues and provide direction to management for the operations of HBRI. The Board is responsible for;

Ensuring management focus on and plan to meet the goals and objectives of HBRI.

Contributing to the development and approving the strategic direction of HBRI.

Setting budgets and reviewing financial results.

Approving strategic capital expenditure and stake levels.

Monitoring and reviewing the risk management process of HBRI.

Performance assessment of the Chief Executive Officer.

SUBCOMMITTEES

The Board, where applicable, establish subcommittees to assist in carrying out its central functions. These subcommittees will meet as required and will act in an advisory capacity making recommendations to the full Board. Subcommittees may by invite include Racing Stewards as appropriate. The subcommittees for the 2013/14 season were as follows;

Audit and Finance – Tim Macphee (Chairman), Andrew Lockyer and Kevin Wood.

Racing and Track – Barry Smyth (Chairman), Ken Browne, David Holden, Tom Lowry and Lester Drake.

Marketing and Sponsorship – Andrew Lockyer (Chairman), Mike White, and Tom Lowry.

Health and Safety – All board members.

Chairman Ex-officio across all subcommittees.

CORPORATE GOVERNANCE

BOARD RESPONSIBILITY

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CHAIRMAN AND CHIEF EXECUTIVE OFFICER

The Chairman is responsible for leading the Board, ensuring at all times that the Board activities are recorded and efficiently conducted.

The Chief Executive is responsible for identifying and implementing strategies for HBRI as well as recommending policies for adoption by the Board to meet the goals and objectives of HBRI. The Chief Executive is further responsible for the Club’s operations, to deliver an effective and efficiently maintained business at all times.

FINANCIAL REPORTING

The Chairman, Chief Executive and Finance Sub-committee Chairman have made the following representations to the Board;

That the Club’s Financial Statements are complete and present fairly in all material respects of the financial position and operational results; and

That the above statement is founded on a sound system of internal controls, risk management assessment and that these are operating efficiently and effectively.

CONFLICTS OF INTEREST

Board Members are expected to avoid any action, position or interest that conflicts with any interest of HBRI or gives any appearance of such a conflict. A Board Member that has a conflict or perceived conflict of interest with that of the Club must bring it to the notice of other Board Members.

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CHIEF EXECUTIVE’S REPORT I am pleased to report recalibrated strategic planning has manufactured a significant financial improvement for the past 12 months.

A surplus of $103,917 before depreciation of $123,887 represents a significant form reversal year on year.

Methods to improve performance are much like those which see in the thoroughbred code. Suitable in running conditions, effective preparation, premium inputs which nourish performance and finally an ounce of good fortune.

That aside the achievement of a trading surplus when many positive inputs are continuing to diminish represents the demonstration of an effective, sustainable business model. The conceptual base that forms the strategic framework for our operations fundamentally has fragilities and requires significant additional impetuous to truly defeat those soft edges. Small steps must become giant strides in quick order.

This year the board were faced with a project to define the modern nature of racing in NZ with the exploration of a shared facility at the Hawke’s Bay Showgrounds. It is my sincere regret to report that this project has fallen in running. Not through the lack of cohesion of many intricate parts, nor intent to solve the issues which face provincial pillars - but the basic lack of funding.

The evolution of our location will take a static or dynamic course in the near future – the determination of which course will take courage, strategic vision and capital. The challenges that the club faces will necessitate continued change. There is no greater certainty in racing.

The business of racing continues to frustrate its necessary course of destiny. The virtues of the scale of racings present form in New Zealand cannot be continued if we seek a definitive step-change to generate improvement across every aspect of the supply chain that is thoroughbred racing in NZ.

The definition of what scale racing should undertake must be relative to what it can afford. The necessity is fait acom-pli, as long as the principles of sound financial management are observed, the recalibration and “version 21st century racing” can be a pathway to revitalisation albeit with some necessary inevitable casualties. Given the peculiarities and sentiment that strangle progress in racing currently the pathway to improvement, this author is convinced, is likely to require almost a complete malfunction of the industry before acceptance. It is ultimately a failure that cannot happen and I along with the board will continue to work alongside NZTR to develop and implement sustainable policy.

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Number of racedays

Number of races

Number of horses started

Average starters per race

Hawke‘s Bay total season stake

Average stakes per race

On course turnover

Off course turnover

Fixed odds turnover

Members

15

146

1454

9.96

3,110,125

21,302

2,962,006

21,167,852

516

24,129,858

16

150

1572

10.48

3,595,350

23,969

3,268,736

22,082,560

574

25,351,296

18

162

1697

10.48

5,025,760

31,023

3,502,060

23,747,172

494

27,249,232

15

147

1656

11.27

4,862,500

33,078

3,297,306

22,052,395

507

25,350,701

2005 / 2006 2006 / 2007 2007 / 2008 2008 / 2009

Number of racedays

Number of races

Number of horses started

Average starters per race

Hawke‘s Bay total season stake

Average stakes per race

On course turnover

Off course turnover

Fixed odds turnover

Members

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126

1355

10.75

3,535,000

28,056

2,883,338

18,839,536

3,019,206

506

24,742,130

12

110

1198

10.90

2,413,375

21,940

2,253,619

15,670,770

2,770,280

537

20,694,669

14

114

1219

10.69

2,623,500

23,013

1,816,784

13,659,626

2,415,060

505

17,891,470

15

127

1334

10.50

2,758,800

21,723

1,979,038

15,089,608

4,318,987

528

21,387,633

15

126

1334

10.59

2,667,300

21,169

1,844,449

14,448,910

5,106,708

536

21,400,067

0.0%

-0.8%

0.0%

0.8%

-1.5%

-0.8%

-6.8%

-4.2%

18.2%

1.5%

0.1%

2009 / 2010

2010 / 2011

Total Turnover

Total Turnover

2011 / 2012 2013 v 20142012 / 2013 2013 / 2014% Change

THE YEAR THAT WAS...

With the same amount of racedays held in 2013-14 as last season the slight drop in races 126 (-1) saw stakes decrease by $41,500 and average stakes per race fall slightly from $21,329 to $21,169.

Total betting revenue across the various forums increased marginally to $21,399,346 the second year of improvement and the first time that fixed odds had broken the $5m barrier. Total turnover of $21.4m represents the highest total turnover per annum since 2009/10.

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FINALLY THANK YOU...

I would like to thank and pay tribute to a vast number of individuals who make racing such a success here in Hastings. There are countless staff and volunteers who all contribute to making a raceday a successful one. I would like to offer thanks to you all for ensuring the core values of Hawke’s Bay racing are maintained. All of your efforts underwrite significant achievements and outcomes.

To Chairman Mick Ormond and the board of Hawke’s Bay racing thank you for your continued commitment to defining the strategy and direction of our club. The hours spent on matters relating to the club are significant and your efforts are greatly appreciated.

Director Edgar Smyth or as everyone knows him - “Barry“ - retires after 25 years of service on the board of HBRI. A career on the Masters Golf tour may well beckon, at least he can play more now, with a bit more time on his hands. Our sincere thanks go to him for his longstanding commitment and work.

Thanks to the boards of HBRI and NZTR I attended the 35th Asian Racing conference in Hong Kong in May 2014. The opportunity to network and develop strategies for racing in this jurisdiction was significant and one for which I am honoured to have attended.

To our Raceday Stewards thanks also for your efforts across a variety of tasks. Unquestionably many of the tasks are thankless, however necessary to ensure our racedays are a success.

To Rita Best, Jean Mulcaster, Sue Speedy, Shirley Wall and helpers our sincere thanks for the immaculate presentation of floral arrangements for our larger racedays. Special thanks to Rita who is hanging her secateurs on the wall after countless arrangements over many years – we will miss her sensational baking on raceday eve!

To our members, I thank you for your continued support. Also to all trainers and owners that use the Hastings base - thank you for a sensational year. There has been a raft of great performances from horses trained, owned and or bred in Hawke’s Bay. A summary of these are included later in this report within the victors of the Racing and Breeding Awards.

To those great athletes, from the champion group performers to the humble backmarkers in the maiden races, thank you. The legacy of over 150 years of racing in the Hawke’s Bay owes a great deal more than words to you.

Deserved thanks and recognition must go to staff - Greg Howie, Alana Waters, Chris King, Richard Fenwick, Peter Dickie, Craig Berge, Gavin Parker and Cristy Stafford for their commitment and hard work. The hours required to put on the show are significant and sometimes crazy. There is no way we could do it without the team work ethic that exists. The determined planning to create a surplus position is attributable to your extended efforts.

Finally to my family Anna, Frederick and Georgina thank you for supporting my passion and dreams. Racing is a truly great industry to be a part of.

With regards and best wishes to all for the 2014-2015 Racing Season.

JP Fleming

Chief Executive OfficerHawke’s Bay Racing Incorporated

To perpetuate the success of Hawke’s Bay Racing as a valued and respected leader in thoroughbred racing,

entertainment and hospitality in Australasia.

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Hawke’s Bay Racing is grateful for the continued support of a vast set of sponsors. The success of these partnerships that exist are borne from the enthusiasm, initiative and generosity exhibited by all our sponsors.

It is through these partnerships – financial and relationship based – that we will ensure the club’s survival. There are numerous industry related partners, whilst the continued local support typifies the sense of community and placement of racing within the social and economic fabric of the local economy.

I would like to thank the following key sponsors whose support has been instrumental to the delivery of racing in Hastings this past season.

To Westbury Stud and Sheikh Fahad Al Thani thank you for your support of the Group I Makfi Challenge Stakes, a race which opens the season in New Zealand and sets the scene for further Spring riches.

We are also grateful for the support of Nelson, Sue and Rodney Schick, Steve Till and Mike Moran of Windsor Park Stud for their support of the Group I Windsor Park Plate. Thanks also to local Breeders for their commitment to our fillies classic, the Group III Gold Trail Stakes held in association with Winsdor Park.

DHL have backed racing in Hawke’s Bay for a number of years and the support of Managing Director Brian Broom in sponsoring the Group II DHL Hawke’s Bay Guineas is a partnership which will ensure this great three year old race grows in stature.

To John and Michelle O’Sullivan, thanks are extended for your support of the Group III TUMU ITM Spring Sprint, a race that has grown in prestige and makes a large part of our greatest racing spectacle.

The support of John Bostock with his iconic brand “Rush Munro’s” has been tremendous, and alongside Gladys, David and Tamella Hunt’s support of fashion on course we have hosted events which showcase all that is great about Hawke’s Bay at our key events.

The 2014 running of the Group III Hawke’s Bay Gold Cup saw naming rights for the race drawn from a wide group of local sponsors. We are thankful to all the sponsors and especially Windsor Park Stud with whom naming rights for the race were associated.

I would also like to acknowledge the support of the sponsors of our winter features, the Hawke’s Bay Steep-les and Hawke’s Bay Hurdles. To Animal Health Direct I extend our most gracious thanks for your involvement with the Hawke’s Bay Steeples. Further thanks to Hamish and Wynne de Lautour for the commitment you made in sponsoring the Hawke’s Bay Hurdles in 2014.

I would like to personally thank all our sponsors who have backed Hawke’s Bay Racing and been on board for the past season. I look forward to strengthening these relationships as we continue to build the business over the coming seasons.

JP Fleming

REVIEW OF ACTIVITES – SPONSORSHIP

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Agroforum Comcat

AON

Animal Health Direct Ltd

Amcor Kiwi Packaging

Awesum Organics

Bate Hallet Lawyers

Bay Ford Hastings

BBI

Bedpost Hastings

Best Travel Hastings

Bruce Perry Bloodstock

D M Palmer Ltd

David and Jenny Morison

de Gruchy, G & D

DHL Global Forwarding

Dow Agro-Science

Dunstan Feeds

Elbow Room Sports Bar

Endeavour Foundation

Farmers Transport

Farmlands

Fruitfed Supplies

Game Lodge

Gary Sherratt

Grieve Ivan

Hales, Peter & Margaret

Hastings District Council

Hastings RSA

HB Hunt

HB Breeders Assn

HB Racehorse Owners Assn

SPONSORS HB Master Plumbers

Hunt & Seek Limited

I See Red Syndicate

Infinity Foundation

J M Bostock Ltd

Jackson‘s Bakery & Cafe

Jenny Nilsson House of Travel

John & Barbara Holt

John Bary Racing Stables

John Duncan

John & Lou Scoular

Ken Browne

Kolla

L I Redshaw Ltd

Lime Country Thoroughbreds

Lion Breweries

Lion Foundation

Liquor King Napier

Little Avondale Stud

Lowry, TR

Lowry, P

Lynn Electrical

Majestic Horse Transport

Manawatu Sound Service

McDonalds Hastings

Mediaworks Radio HB

Mossman, David

Nelson, Paul and Carol

NZCT

New Zealand Bloodstock

New Zealand Racing Board

NZ Thoroughbred Racing

Ormond, Mick

PGG Wrightson

Phillips, DJ

Profruit NZ

Redwood Stallion

Roger Russell

Rush Munro

Russell Roads

Sam Nelson

Staples Rodway HB

Swiss Ace Stallion

Taradale Club

TAB

Te Whangai Romney

Ted the Painter Ltd

Total World Fresh

Trinity Hill Winery

TradeRacks

TruTest

Tumu ITM

Veterinary Assoc Hastings

Waikato Stud

Waimea Nurseries

Wairoa Livestock Brokers

WASP NZ Ltd

Wendy Twist

Westbury Stud

Whyte C & A

Wood K & S

Windsor Park Stud Ltd

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2013-2014 HAWKE’S BAY & POVERTY BAY RACING AND BREEDING AWARDS

Each year the leading performer in their particular field is recognised at the Hawke’s Bay /Poverty Bay racing and breeding awards. Long term sponsors Bate Hallett and Vet Associates were once again the lead sponsors of the award night. We also had awards sponsored and presented by Westbury Stud and Richard and Elizabeth Wood.

This year’s awards evening continued their condign setting in the Cheval Room. A full house was in attendance, demonstrating the popularity of the event. Steve Davis as MC provided humour and laughs, many at his own expense. Undoubtedly the year’s calibre of achievements to acknowledge was a vintage one.

Hawke’s Bay/Poverty Bay Trainer of the Year (Wins) - Awarded to the trainer utilising the Gisborne, Hastings, Waipukurau or Wairoa training facilities who attained the most wins in the 2013/2014 Racing Season. Winner – Guy Lowry and Grant Cullen with 24 wins, 20 seconds, 22 thirds and $392,260 in stakes and a strike rate of 8.7. Major wins included the Group I Telegraph and Listed Pegasus Stakes with Irish Fling.

Hawke’s Bay/Poverty Bay Trainer of the Year (Strike Rate) - Awarded to the trainer utilising the Gisborne, Hastings, Wairoa or Waipukurau training facilities who attained the best strike rate in the 2013/2014 Racing Season, with twenty starters being the minimum qualifying amount. Winner - David Goldsbury – 22 starters (7.33 strike rate), 3 wins/4 seconds/ 2 thirds and stakes of $34,025.

CRITERIA & WINNERS WERE AS FOLLOWS -

Hawke’s Bay/Poverty Bay Owned Horse of the Year - Awarded to the owners of the horseowned in the Hawke’s Bay or Poverty Bay districts based on their performances in black type races. This award is judged by representatives of Hawke’s Bay Racing, the Hawke’s Bay Racehorse Owners Association and the Hawke’s Bay/Poverty Bay Branch of the NZ Thoroughbred Breeders Association. Winner – Dundeel. The kiwi wonder whom raced as “It’s a Dundeel” in Australia furnished another stellar year of performance as a four year old entire. Wins in the Group I Queen Elizabeth Stakes and Group I Underwood Stakes underwrote the next chapter of his career at Arrowfield Stud.

Hawke’s Bay/Poverty Bay Trained Horse of the Year - Awarded to the owners of the horse trained at the Gisborne, Hastings, Waipukurau or Wairoa training facilities who has won the most stakemoney in the 2013/2014 Racing Season. Winner – Recite who won $229,525 in stakes, including wins in the Group I Levin Classic and Listed Wairarapa Thoroughbred Breeders Stakes.

Hawke’s Bay/Poverty Bay Owner of the Year - Awarded to the leading owner or partnership residing in the Hawke’s Bay or Poverty Bay districts based on their horses trained at the Gisborne, Hastings, Waipukurau or Wairoa training facilities in the 2013/2014 Racing Season. Winner – Don Gordon, the owner of Survived, Quality Street and Pit Pat.

Hawke’s Bay/Poverty Bay Broodmare of the Year - The mare owned in the Hawke’s Bay or Poverty Bay districts whose progeny has recorded the most success at black type level. Judged by the Keeper of the Stud Book. Winner – Stareel, Dam of Dundeel, bred by Murray & Joanne Andersen. Stareel (Zabeel x Staring) was the dam of three previous winners and has produced three further foals since, her latest mating with High Chaparral will result in a full little brother or sister to the incomparable Dundeel.

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Hawke’s Bay/Poverty Bay Breeder of the Year Award - Awarded to the Hawke’s Bay or Poverty Bay based bree-der who recorded the most points based on the per-formances of horses they have bred in the 2013/2014 Racing Season. Winner – Sue Harty. A prolific breeder who has countless interests in racing stock across the country. Her best performers this season were Sea King, Surf Patrol, Tidal Wave and Zane Bay.

Horlicks Salver- Awarded in recognition of an outstanding contribution to thoroughbred racing in Hawke’s Bay. Winner – Tony Lyndon.

- Awarded to the Hawke’s Bay and Poverty Bay based breeders of horses that have won black type races in the 2013/14 season;Winners –Dundeel – bred by Murray and Joanne Andersen. Winner of the G1 QE II Stakes and GI Underwood Stakes.

Survived – bred by Don Gordon. – Winner of the G1 Makfi Challenge Stakes, GIII Tauranga Stakes.

Sea King – bred by Sue Harty. Winner of the Waikato Hurdle, and Australian Grand National Hurdle.

Thrive – bred by Ken Browne. Winner of the Group III Merial Metric Mile.

Miss Selby – bred by Graeme Lowe. Winner of the Group III Little Avondale Lowland Stakes.

Keyarna Blue – bred by Alan Jackson. Winner of the Listed Laelia Stakes.

Group and listed awards

Jimmy Choux 3YO of the Year - Highest earning 3YO bred by a Hawke‘s Bay Breeder in the 2013-2014 SeasonWinner – Miss Selby. Bred by G E S Lowe, this filly earnt $146,557 in stakes by virtue of her win and placings in four of the best fillies races in NZ – the Group III Eulogy Stakes (2nd), Group III Desert Gold Stakes (2nd), Group III Little Avondale Lowland Stakes (1st) and second to Miss Mossman in the Group I NZ Oaks.

19

2013-2014 SEASON RACING REVIEW

The first three year old winner of the Hawke’s Bay Cup since Bunvaro in 1977, Survived came into the first group one of the season as a warm favourite given his wet track liking and his stallions progeny known appreciation of the softer footing. The rain fell, Thunderbird One dislodged his mount, others were supposedly disadvantaged and Survived settled mid field. Bosson took a rails route on the bend and then angled Survived into the clear and he held out a determined Full of Spirit and the flying southern mare Final Touch winning by a length.

Group 1 Makfi Challenge Stakes WFA 1400m

1st Survived 2nd Full of Spirit3rd Final Touch

Owner - DJ Gordon Trainer - JGG Bary Jockey - OP Bosson Breeding - 2009 (g) Zed x Liberal (by Generous) Breeder - DJ Gordon Time - 1.32.78 (Heavy 11)

In a competitive opening leg of the NZ Bloodstock Filly of the Year series the colours of Gary Harding reigned supreme. Bounding who cost AUD$425,000 as yearling had earnt some of her purchase price back with a Listed two year old win as well as earning Group I and II runner up cheques. The race proved to a strong form race as the first two home also provided the quinella in the Group I 1000 Guineas at Riccarton.

Group III Hawke’s Bay Breeders Gold Trail Stakes 3YOF SW 1200m

1st Bounding 2nd Costa Viva 3rd Fascination Street

Owners - GE Harding Trainer - Ken & Bev Kelso Jockey - Mark Du Plessis Breeding - 2010 (f) Lonhro x Believe’n’Succeed (by Exceed and Excel) Breeder - MAW Birchall Time - 1.09.59 (Dead 4)

20

Bev Kelso didn’t mince words when telling husband Ken to put blinkers on Xanadu or prepare to run second. Thank-fully he listened to his good wife as jockey Michael Coleman powered Xanadu with a withering burst in the last 100m to defeat Mufhasa and put behind her a rash of second placings and secured a second group one victory for the mare.

Group I Windsor Park Plate WFA 1600m

1st Xanadu 2nd Mufhasa 3rd Nashville

Owners - Block Partnership Trainer - Ken and Bev Kelso Jockey - Michael Coleman Breeding - 2008 (m) Elusive City x Forest Dream (by Forest Glow) Breeders - Little Avondale Trust Time - 1.35.60 (Dead 4 – meeting abandoned after the 8th race)

Sir Andrew is raced by John and Margaret Thompson who have enjoyed outstanding success with the likes of Atapi, Sound the Alarm, Penitentiary and Pacific Dancer. The son of an English Derby, Sir Andrew settled well back in the field before rider Mark Du Plessis drew him wide on the turn. They roared down the outside of the track and collared favourite All Decked Out on the line with the filly Fascination Street 2 ¼ lengths back in third. Plans to send the victor to the Melbourne carnival never made fruition and he has not been seen on the track since this victory.

Group II DHL Hawke’s Bay Guineas 3YO SW 1400m

1st Sir Andrew 2nd All Decked Out 3rd Fascination Street

Owner - JC & Mrs MA Thompson Trainer - Richard Otto Jockey - Mark Du Plessis Breeding - 2010(g) Sir Percy x Biennale (by Royal Academy) Breeder - A R Galbraith Time - 1.22.95 (Dead 4)

21

Former gun three year old Historian – runner up to Jimmy Choux in the 2011 Derby – showed what group one performers were made of when he put a lengthy set of problems behind him with an emphatic victory. The winner of the G1 Thorndon Mile the previous January he had to give runner up Neo 4.5 kilos weight relief. With the group III banked further Group I riches were added on Boxing day at Ellerslie in the Zabeel Classic over 2000m.

Group III TUMU ITM Spring Sprint OPN HCP 1400m

1st Historian 2nd Neo 3rd Scapolo

Owners - Ngai Chun-Hung Trainer - Gary Alton Jockey - Matt Cameron Breeding - 2007 (g) Choisir x Cyclonic (by Marauding) Breeder - Bledisloe Bloodstock Ltd Time - 1.22.81 (Dead 4)

Tough stayer Ransomed rewarded his steadfast admirers with the ultimate racing reward, where he upset the favourites to claim the biggest prize of the spring carnival’s triple crown. Raced by Vile, Jean Walsh (wife of the late Taranaki trainer Frank Walsh) – who in earlier years had enjoyed success with the likes of Koporoa, Counsel, Marinoto and Maria Mitchell. Ransomed’s late finish narrowly denied Nashville and favourite Survived. For both trainer and jockey it marked a red letter day as they toasted their first group one victories.

Group I Turks Spring Classic WFA 2040m

1st Ransomed 2nd Nashville 3rd Survived

Owners - GR Vile, Mrs JT & est late FM Walsh Trainer - Gary Vile Jockey - Jonathan Parkes Breeding - 2007 (g) Handsome Ransom x Ski Queen (by Sky Filou) Breeder - FM & Mrs JT Walsh Time - 2.04.21 (Dead 4)

22

The fifth running of the Lowland Stakes at Hastings attracted a top field of fillies all of whom were chasing important black type status for their page. For the second successive year the sire O’Reilly claimed top honours with a horse bred by an icon of Hawke’s Bay and raced by his three children. The progression from the Lowland to the Oaks was franked again as Miss Mossman reversed the tables at the Champagne turf at their next meeting to take the Oaks for 2014. Miss Selby then progressed onto the AJC Oaks at Royal Randwick and ran a credible seventh behind Rising Romance.

Group III Little Avondale Lowland Stakes 3YOF 2100m 1st Miss Selby 2nd Miss Mossman 3rd Far Fetched

Owner - ASK Partnership Trainer - JGG Bary Jockey - JKB Riddell Breeding - 2010 (f) O’Reilly x Singing Star (by Danasinga) Breeder - GES Lowe Time - 2.10.29(Good 3)

Dedication and persistence epitomises the training effort by Lance and Andrew to get the son of Captain Rio into the winners circle after an 18 month hiatus and nine minor placings along the way. The first running of this black type event on Cup day featured two locally owned and trained place getters in Sanriba and Shezgorgeous for whom both were their best rated performances to date.

Listed Napier Park Sprint OPN HCP 1200M

1st Whosyourmaster 2nd Sanriba3rd Shezgorgeous

Owner - DW & JA Moss Trainer - LA O’Sullivan & A Scott Jockey - Rory Hutchings Breeding - 2008 (g) Captain Rio x Peace of Mind (by Wild Rampage) Breeder - DW & JA Moss Time - 1.15.52 (Heavy 10)

23

First run in 1881 the Hawke’s Bay Hurdles has been a strong pointer to the seasons form line and ultimate top liners. Zenocoin was a gallant third in the previous years Hawke‘s Bay hurdles and this year he trained on and from the 800m mark there was only one horse you wanted to be one as he made short work of the opposition to win by 3 ¾ lengths.

Te Whangai Romney’s Hawkes Bay Hurdles OPN 3100m

1st Zenocoin 2nd Real Treasure 3rd Just Got Home

Owner - PJ Favretto, GA Rogerson MNZM & MJ Whitby Trainer - G & D Rogerson Jockey - M Mitchell Breeding - 2007 (g) Zenno Rob Roy x Desert Cent (by Desert Sun) Breeder - FJ Dale & Mrs S Oomen Timer - 3.36.84 (Slow 8)

If you are ever in doubt as to where the horse Intransigent is in the field simply look for Trainer Kirsty Lawrence. There are few more enthusiastic in the crowd and this was one of her finest training feats that deserved to shout the house down. Regular hoop David Walsh’s unavailability was a blessing as the “Pope” – Robert Hannam - craftily cut the corner and then zoomed along the inside saving lengths despite the heavy track reading to win by ¾ length from the fast finishing The Tidy Express.

Group III Windsor Park Hawke’s Bay Gold Cup OPN HCP 2200M

1st Intransigent 2nd The Tidy Express 3rd Langdon

Owner - S & K Lawrence, B Sizer, B & B Ray, B & A Hawkins Trainer - Mrs Kirsty Lawrence Jockey - Robert Hannam Breeding - 2006 (g) Refuse to Bend x Risible (by Pentire) Breeder - Judge Clapham Time - 2.27.20 (Heavy 10)

24

NZ’s second oldest Steeplechase, behind the Grand National, the Hawke’s Bay Steeplechase is steeped in history and excitement. The longest race held at Hastings racecourse the marathon of sorts sees three circuits.

Across the distance there were multiple lead changes and coming into the final 1000m a line of five horses took the jump vying for the lead. Meanwhile in behind Palemo was stalking the leaders and made his run for home eventually winning by a commanding 8 ¼ lengths. A model of winter steeplechase consistency Palemo recorded wins in the Waikato and Hawke’s Bay versions, a second in the NZ Koral Steeplechase and thirds in the Wellington and Manawatu renewals.

Animal Health Direct Hawke’s Bay Steeplechase OPN 4800m

1st Palemo 1st Volkswagin 3rd Dane Ruler

Owner - D McK Duncan & JL McVean Trainer - K Myers Jockey - M Gillies Breeding - Breeding – 2006 (g) Don Eduardo x Shekanwyn (by Musical Phantasy) Time - 6.14.97

25

To the Members of Hawke’s Bay Racing (Incorporated)

We have audited the financial statements of Hawke’s Bay Racing (Incorporated) on pages 25 to 36, which comprise the statement of financial position as at 31 July 2014, the statement of financial performance, statement of movement in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Board ResponsibilitiesThe board is responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted accounting practice in New Zealand and for such internal control as the board determine is ne-cessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presen-tation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Our firm has no other relationship with, or interests in, Hawke’s Bay Racing (Incorporated).

OpinionIn our opinion, the financial statements on pages 25 to 36 present fairly, in all material respects, the financial position of Hawke’s Bay Racing (Incorporated) as at 31 July 2014, and its financial performance for the year then ended in ac-cordance with generally accepted accounting practice in New Zealand.

Staples Rodway Hawkes Bay Partnership

22 October 2014

Hastings, New Zealand

INDEPENDENT AUDITOR’S REPORT

26

HAWKE‘S BAY RACING (INCORPORATED)CONSOLIDATED STATEMENT OF

RACING PERFORMANCEFOR THE YEAR ENDED 31 JULY 2014

Racing Revenue

Admission

Commission

Nomination & Acceptance Fees

Race Subsidy

Bulk funding

NZTR Spring Carnival Support

Race Book Sales

Gaming Funds

Net Sponsorship Income

Net Bar & Private Function Contribution

Distributions

Sundry Raceday Income

Notes 2014 $

2013 $

52,803

341,666

205,275

477,500

2,715,300

100,000

6,871

41,000

245,069

31,072

-

811

81,536

336,436

221,088

472,500

2,712,474

100,000

8,504

86,728

221,973

14,014

10,149

6,061

TOTAL RACING REVENUE 4,217,367 4,271,463

(2)

(15)

Racing Expenditure

Advertising

Promotion

Raceday Charges

Punter of the Year Expenses

Race Book Costs

Raceday Services

Raceday Wages

Stakes & Trophies

Tote Costs

Cleaning

Sundry Raceday Expenses

Notes

73,914

48,553

202,800

20,928

35,723

234,597

40,025

2,726,240

83,798

19,755

17,352

80,088

43,670

216,436

75,982

36,097

229,532

47,308

2,767,869

110,490

39,197

23,672

TOTAL RACING EXPENDITURE 3,503,685 3,670,341

NET RACING SURPLUS 713,682 601,122

2014 $

2013 $

The attached accounting policies and notes form part of and are to be read in conjunction with these financial statements.

27


FINANCIAL PERFORMANCEFOR THE YEAR ENDED 31 JULY 2014

Revenue Net racing surplus from Race Meetings

Interest

Membership

Rental

Secretarial Fees

Track & Training Income

Net Farm Revenue

Grants and Donations

Sundry Income

Notes 2014 $ 2013 $ 713,682

113

37,367

77,670

60,318

122,342

5,897

29,920

37,806

601,122

4,225

28,949

64,244

101,980

94,088

4,328

136,125

26,661

TOTAL REVENUE 1,085,115 1,061,722

Expenditure Administration Costs

Audit Fees - Audit

Accounting Services

Bad Debts

Depreciation

Insurance

Legal Fees

Interest & Bank Charges

Rates

Equipment Rental

Repairs & Maintenance

Travel

Subscriptions & Donations

Light and Power

Motor Vehicles

Promotion and non racing hospitality

Track related expenses

Salaries & Wages

Other Staff costs

Sundry Expenses

Notes 2014 $ 2013 $ 52,284

17,634

11,107

14,289

123,887

60,788

3,915

72,420

61,897

5,325

73,619

4,977

7,702

32,460

7,243

4,215

22,654

494,486

29,613

4,570

80,729

16,135

3,201

-

139,527

97,042

3,699

78,824

60,258

5,627

77,575

6,719

4,975

41,668

9,941

18,598

26,523

630,594

42,811

2,790

TOTAL EXPENDITURE 1,105,085 1,347,236

(14)

(5)

(13)

(3)

NET SURPLUS (DEFICIT) (19,970) (285,514)


28

Non Current Assets


FINANCIAL POSITION AS AT 31 JULY 2014

Current Assets Cash on hand

Bank current account

Bank deposits

Accounts receivable & prepayments

Stock on hand

GST receivable

Notes 2014 $ 2013 $ 300

142,582

942

88,798

17,947

36,117

38

391

466

83,841

17,469

231,531

TOTAL 286,686 333,736

(4)

Current Liabilities Bank overdraft

Trade creditors & accruals

Employee entitlements

Income in advance

Current portion of borrowings

Notes 2014 $ 2013 $ -

149,004

58,929

73,469

96,705

24,558

174,243

53,679

80,056

91,967

TOTAL 378,107 424,503

Shares in companies

Property, Plant and Equipment (5)

8,590

3,854,253

3,862,843

8,590

3,965,274

3,973,864

TOTAL ASSETS 4,149,529 4,307,600

Notes 2014 $ 2013 $

(6)

(6)

Trophy funds - Walker/Stead

Non current portion of borrowings

(7)

(6)

11,200

1,026,867

11,200

1,118,572

TOTAL LIABILITIES 1,416,174 1,554,275

Notes 2014 $ 2013 $ Non Current Liabilities

NET ASSETS 2,733,355 2,753,325

Represented By: EQUITY 2,733,355 2,753,325 These financial statements were authorised for issue by the Board on 22 October 2014


ChairmanFinance Committee Chairman

29

OPENING EQUITY 2,753,325 3,038,839


MOVEMENTS IN EQUITYFOR THE YEAR ENDED 31 JULY 2014

Net Surplus/(Deficit)

Total Recognised Revenue & Expenditure

(19,970)

(19,970)

(285,514)

(285,514)

CLOSING EQUITY 2,733,355 2,753,325

Notes 2014 $ 2013 $

Retained Earnings

Revaluation Reserve

1,484,499

1,248,856

1,504,469

1,248,856

2,733,355 2,753,325


30


CASHFLOWS FOR THE YEAR ENDED 31 JULY 2014

Cashflows From Operating Activities Cash was provided from:

Receipts from customers & racing industry

Interest received

GST (net)

Cash was applied to:

Payments to suppliers & employees

Interest paid

GST (net)

Net operating cashflows

Notes 2014 $ 2013 $

4,923,633

113

195,414

5,119,160

(4,804,668)

(67,609)

-

(4,872,277)

246,883

5,129,630

4,225

-

5,133,855

(5,271,378)

(62,038)

(165,868)

(5,499,284)

(365,429)(8)

Cashflows From Investing Activities

Cashflows From Financing Activities

Cash was provided from:

Loan recovery

Cash was applied to:

Fixed asset purchases

Net investing cashflows

Cash was applied from:

Loan repayments

Net financing cashflows

Net increase (decrease) in cash

Add cash at beginning of year

Ending cash carried forward

Represented by:

Cash on hand

Bank accounts

Bank deposits

Notes

Notes

2014 $ 2013 $

2014 $ 2013 $

(86,530)

(86,530)

167,487

(23,663)

143,824

300

142,582

942

143,824

(160,000)

156,203

(299,908)

276,245

(23,663)

38

(24,167)

466

(23,663)

20,000

(12,866)

7,134

-

(90,682)

(90,682)


31

REPORTING ENTITYHawke‘s Bay Racing Incorporated (HBRI) is an Incorporated Society established under the Incorporated Societies Act 1908. The consolidated financial statements comprise HBRI and its non trading subsidiary, Hawke‘s Bay Racing Centre Limited. The financial statements have been prepared in accordance with generally accepted accounting practices in New Zealand.

MEASUREMENT BASEUnless otherwise stated the measurement base adopted is that of historical cost.

PARTICULAR ACCOUNTING POLICIESThe following are the particular accounting policies which have a material effect on the measurement of results and financial position.

DIFFERENTIAL REPORTINGHBRI is a qualifying entity under the Framework for Differential Reporting as it is not publicly accountable and is not large. HBRI has taken advantage of all available exemptions except for FRS 10 Statement of Cashflows and FRS 19 Accounting for GST.

INCOME RECOGNITIONSponsorship income includes donated products and services at fair value.

DEPRECIATIONDepreciation is charged to write off the cost of depreciable fixed assets over their expected economic lives. The principal rates of depreciation used are as follows: Buildings 2% SL Plant and Equipment 7 - 100% SL & DV Vehicles 20% SL Furniture and Fittings 10 - 35% SL & DV Office Equipment 17.5 - 50% SL

TAXATIONTaxation is not payable as Racing Clubs are exempt from Income Tax in terms of Section CW 40 (2) of the Income Tax Act 2007.

DEBTORSDebtors are valued at expected realisable value.

HAWKE‘S BAY RACING (INCORPORATED)NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 JULY 2014

1. STATEMENT OF ACCOUNTING POLICIES

32

STOCKTrading stocks are valued at the lower of cost or net realisable value.

INVESTMENTSInvestments are valued at cost.

FIXED ASSETSLand, Course Developments and Buildings are recorded at 1978 Government Valuation plus subsequent additions at cost, less building accumulated depreciation. All other assets are at cost less accumulated depreciation. Land and course developments are not depreciated.

GSTAll amounts are shown exclusive of Goods and Services Tax (GST), except for receivables and payables that are stated inclusive of GST.

CASH FLOWSThe following definitions are used in the statement of cash flows:

CHANGES IN ACCOUNTING POLICIESDuring the year, HBRI has reclassified some income and expenses to better reflect their functions within the consoli-dated statement of financial performance. This practice had led to some changes within the consolidated statement of financial performance against the reported 2013 figures. There has been no impact on the net profit in either year.

There have been no other changes in accounting policies. All policies have been consistently applied.

Operating activities include all transactions and other events that are not investing or financing activities.

Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment and of investments.

Financing activities are those activities that result in changes in the borrowings not falling within the definition of cash. Cash comprises cash on hand, bank in funds and short term deposits offset by bank overdrafts.

33

Revenue

Cost of Sales and Catering Expenses

Gross Profit

Wages

Other Expenditure

Net Bar Contribution

391,323

209,303

182,020

86,288

64,661

31,072

383,075

71,278

311,797

53,025

244,757

14,014

2. NET BAR & PRIVATE FUNCTION CONTRIBUTION 2014 $ 2013 $

Interest

- Bank Loans and Overdraft

- Other

Bank Fees

62,929

3,119

66,048

6,372

72,420

71,430

2,696

74,126

4,698

78,824

3. INTEREST AND BANK CHARGES 2014 $ 2013 $

Bar stock

Other

17,650

297

17,947

15,132

2,337

17,469

4. STOCK ON HAND 2014 $ 2013 $

34

5. PROPERTY, PLANT AND EQUIPMENT Freehold land at valuation

Freehold land at cost

Total freehold land

Course developments at valuation

Course developments at cost

Total course developments

Buildings at cost

Less accumulated depreciation

Total buildings

Plant & equipment at cost


Total plant & equipment

Motor vehicles at cost


Total motor vehicles

Furniture & fittings at cost


Total furniture & fittings

Office equipment at cost


Total office equipment

2014 $ 2013 $

Depreciation

Buildings

Plant, Equipment & Vehicles

Furniture & Fittings

Office Equipment

68,855

49,383

2,809

2,840

$123,887

68,855

58,222

2,759

9,691

139,527

Pre 1979 Land, Course Developments and Buildings are revalued to 1978 government valuation, with subsequent additions recorded at cost. This is allowed under the transitional provisions of Financial Reporting Standard No 3 Property, Plant and Equipment.

The latest Rating Valuation (01/08/2013) of land and buildings is $10,265,000.

The Board of HBRI are yet to have a formal engineering assessment of the earthquake strength of HBRI’s buildings. This assessment may necessitate a change in the useful life of buildings. As the outcome and timing of this process are not yet known, the directors have not yet reassessed the useful lives of the property, plant and equipment. When there is more clarity regarding the useful lives the depreciation rates for the assets will be updated.

739,058

474,420

1,213,478

362,754

561,032

923,786

3,010,933

(1,402,708)

1,608,225

825,760

(755,760)

70,000

162,072

(150,688)

11,384

336,361

(310,313)

26,048

192,188

(190,856)

1,332

739,058

474,420

1,213,478

372,950

561,032

933,982

3,010,933

(1,344,048)

1,666,885

813,985

(713,028)

100,957

162,072

(144,130)

17,942

335,361

(307,503)

27,858

192,188

(188,016)

4,172

TOTAL FIXED ASSETS 3,854,253 3,965,274

35

HBRI has an overdraft facility of $120,000 of which Nil was drawn down (2013: $120,000 of which $24,408 was drawn down) and loans totalling $633,355 (2013: $711,564) at 31 July 2014 with ANZ bank. The bank facility is secured by way of a first charge registered mortgage over HBRI‘s property and guarantee from Hawke‘s Bay Racing Centre Limited. The interest rate on the bank facilities ranges from 6.27% to 7.25% (2013: 6.15% to 11.4%)

HBRI also has other borrowings totalling $490,217 (2013: $498,973). The NZTR loan is interest only and is secured by way of first charge registered mortgage over one of HBRI‘s properties. Interest charged on other borrowings is 3.5% to 13.25% (2013: 3.5% to 13.25% ).

6. BORROWINGS

Due within one year

Due beyond one year

96,705

1,026,867

91,967

1,118,572

TOTAL BORROWINGS 1,123,572 1,210,539

The interest on these funds is put towards a sash for the Gold Trail Stakes (Stead) and trophies for the Hawke‘s Bay Hurdles & Steeples (Walker) each year.

7. TROPHY FUNDS

Net Surplus/(Deficit) for year

Add non-cash items

Depreciation

Bad and Doubtful Debts

Movement in Working Capital Items

(Increase) / Decrease in Accounts Receivable, Prepayments & GST

(Increase) in Stock on Hand

Increase / (Decrease) in Accounts Payable

Increase / (Decrease) in Employee Entitlements

Increase / (Decrease) in Income in Advance

Net Operating Cash Flows

(19,970)

123,887

14,289

118,206

156,168

(478)

(25,239)

5,250

(7,024)

126,677

246,883

(285,514)

139,527

-

(145,987)

(153,793)

4,655

(5,948)

16,391

(80,747)

(219,442)

(365,429)

8. RECONCILIATION OF OPERATING CASHFLOWS 2014 $

2014 $

2013 $

2013 $

36

Revenue

Expenses

Net Revenue

257,926

12,857

245,069

249,881

27,908

221,973

Lease CommitmentsHBRI has an ongoing commitment in the form of an operating lease for a photocopier for the following amounts.

Directors M Ormond, C Whyte, K Wood, K Browne and T MacPhee have provided sponsorship during the year. This is at normal commercial rates and terms.

There are no contingent liabilities at balance date (2013: Nil).

There are no significant events subsequent to balance date.

On the cessation of the employment of the organisation‘s fulltime accountant, the Board decided to not replace the accountant (November 2013) and an outside accountant was hired on an hourly basis. This charge is offset by the savings in wages.

An allowance has been made for non-recovery of the debt owing by Why Hospitality Ltd (trading as Turks Bar).

9. COMMITMENTS

10. RELATED PARTY TRANSACTIONS

11. CONTINGENT LIABILITIES

12. SUBSEQUENT EVENTS

13. ACCOUNTING SERVICES

14. BAD DEBTS

15. NET SPONSORSHIP INCOME

Lease Commitments

Within 1 year

1 - 2 years

2 to 5 years

Total lease expenses for the period was $5,325.

Capital Commitments

There are no capital commitments at year end (2013: Nil)

4,712

4,712

3,926

13,350

4,712

4,712

8,638

18,062

2014 $ 2013 $

37

Best R

Buddo D

de Gruchy G W

Ellingham R L

Harvey W J

Holden S

Hutchinson B J D

Hylton-Smith J D

Langdale P M Y

MEMBERSHIP - LIFE HAWKE’S BAY RACING INC 2013/2014 RACING SEASON MEMBERS

Lowry T R

McCallum S M

Mudgway W A

Nation R W

Nelson S O

Ormond A E

Redshaw L I

Renton D M

Roebuck P J

Sabiston D W

Scoular J D

Shanley C G

Small M S

Symes T W M

Trower D G

White H P

MEMBERSHIP - HONORARY Agnew J A

Anderson S

Baillie J M

Barker P

Barrett P E F

Bary A

Beachen A J

Beale J A

Begley L J

Berkahn R O

Blackmore C H

Breakwell G L

Bridgeman C

Bridgeman J A

Broughton L W

Callaghan D B

Chittick A G

Chittick B W

Christensen E M

Coleman P M

Couper W A X

Cranswick D

Crawford J M

Crosse L G

Dawson R C

Dent W J

Donnelly G P

Frizzell J A

Gordon D J

Grieve I D

Grieve P H

Guerin P J

Halpin W L

Harris K N

Harris M J

Holland J E

Hope M B

Horton J H

James B H

Jans B W

Jarvis J A

Johansen J E

Jones D

Kerins P M

Leathley C D

Lepper W E

Liddle A R

Little S D

Lobban H G

Loughnan T O

Lowry E P

Mackintosh J

MacMillan M R

Mahony J M

Mahony P S

McCormick G H

McLeod D R

McLiesh A R

McMillin J R

Miller R M

Mulcaster R J

Murtagh M L

Murtagh P M

Nelson P S

Nichol D W

Nicholson B G

O‘Malley O

Orange K W

Ormond M R

Ormond W W

O‘Sullivan M

Parkinson L E

Parsons R J

Pettigrew R H

Plowman M V

Plowman G J

Powell F T

Rae D G

Reeves N

Robson A R

Scott G J

38

HAWKE’S BAY RACING INC 2013/2014 RACING SEASON MEMBERS

MEMBERSHIP

Sheild J I

Sherratt C W

Smith E W

Smith R A

Stevenson D L

Strother P M

Thelwall G A

Todd R G

Tremain P

Twigg D R

Twist N B

Verschaffelt E

Wall B C

Walls E M

Watson M J

Wattie R K

Wedd D J

Wedd M

White E D

Willis J C

Wilson J I

Wong H

Yardley D W

Aldridge A M

Anderson J P

Anderson M M

Anderton C H

Andrews N

AON Insurance Brokers

Apatu N

Arrowsmith R

Atkins D L

Baker D

Barber B

Bary J

Bate Hallett

Bayliss K P

Beachen W H

Bell R F

Bell M P

Benton J M

Berge C

Biggs M

Bishop D S

Bisman G B

Bisset C R

Bisset I

Black R A

Blundell B

Blundell J H

Bradford D

Brady P M

Breban D F

Brenton-Rule M

Bridge J

Brittin D R

Brittin P G

Brodie J C

Broom B

Brooke S

Browne K J

Buchnan B

Buckeridge J

Buckingham F P

Byers J

Cadigan P J

Cameron A

Campbell J

Campbell P

Carney M R

Carran A K

Castles D B

Castles K A

Chapman W A

Chard H C

Howard J

MEMBERSHIP - JUNIOR

Thomson D

Chilton E J

Chilton R W

Chittick W L

Chrystall V

Clark T

Clayton C D

Clifford A

Coates F

Coates J

Coffey T P

Collings R J

Collins A K

Colson G C

Cook A B

Cooper E

Costello J P

Craig M

Craig S

Cranswick J

Crawley B

Cuming A B

Cutler R N

de Denne J

de Lautour H

de Lautour K

de Lautour W B

39

HAWKE’S BAY RACING INC 2013/2014 RACING SEASON MEMBERS Death R A

Dee R

Devon M

Dick H R

Dickie P

Dixon M J

Donovan B J

Dorward N

Downey W P

Drake L F

Drinkwater J R

Driscoll G

Duckmanton N

Duff G I T

Duncan G M

Duncan G A

Duncan J

Dunn H D

Edgecombe K D

Edmunds D M

Evans C J

Fairgray C A

Fargher G O

Farmlands

Feetham W

Fenwick R

Ferguson A D

Fitness L T

Fitzpatrick H M

Fleming J P

Fletcher V C

Forbes A

Foskett G

France F

Francis G

Fraser P B

Galbraith V R

Galloway A M

Gibbs A J

Gillies A

Goodall M T

Gordon A J

Gore J

Grace A R

Graham G

Grant H

Gray D E

Greaney M J

Greene K F

Greer P J

Grey N

Grey R

Grieve D P W

Griffin J

Gudsell M H

Guerin B J

Hales P J

Hannah M J

Harold M J

Harper M J

Harrison J

Hart G J

Hart G H

Hastings District Council

Hawke‘s Bay Today

Hawkins B F

Hay O J

Hayes

Healy M J

Hebberley B J

Henneker B S

Hesketh G J

Hill G

Hill D B

Holden D J

Holden P R

Hollebone N R M

Hollingshead M

Holt P G & H D

Hood J

Hook G B

Horrocks A M

Houlahan M G

Howard S

Howie G N

Humphreys K J

Hunt D

Hunt G

Hunt T

Hunt T N

Hurlimann W E

Hutton M

Ireland B P

Jackson A

Jensen P

J M Bostock

Johansson L W

Johnson K R

Johnston K

Jones L

Jury P H

Keall A

Keighley B W

Keighley D M

Kelly J F

Kelsey B J

Kennedy H D

Keown G

Kerins P M

Kettle R

Kieran B

King C

Knobloch H J

Lambeth R L

Lawrence N

Laxon E B

Lee D

40

HAWKE’S BAY RACING INC 2013/2014 RACING SEASON MEMBERS Lime Country Thoroughbreds

Lion Breweries

Liquor King Napier

Lister N J

Little Avondale Stud

Livingston W

Lockyer A J

Longley T E

Lowrie M

Lowry E G

Lowry T G

Lyndon T

MacGregor H D

Macklow P K

Macphee B R

MacPhee T D B

Maguire M J

Mahony T P

Matthews P

Matthews S C H

McCarthy G K

McCarthy K J P

McClurg D J

McDonald P R

McDowall C C

McEntee P

McGinty P J

McGregor J

McIntosh L P

McIntyre P J

McKenzie R C

McLaughlin J

McLeod K B

McMillan G D

McPeake B

Meates J B A

Meech H

Mettrick A J

Molloy T A

Moorhead S C

Morgan S I

Morison D C

Mossman D

Moughan G F

Munro G C

Murdoch W T

Murphy P M

Nelson D R

Nelson L

Nelson M

Nichol R W

Nicholson K

Nicol L

Nilsen B

Nobilo R

Nokes B

Northover S M

O‘Connor K J

O’Dwyer B

O‘Grady H J

Olsen N

Ormond C A

Ormond R

Ormond M

O‘Shaughnessy P

O’Sullivan B

O’Sullivan J

O‘Sullivan T

Owen D J

Parker G

Parker L

Patterson H

Pattullo D

Payne A

Peacock A

Perry B H

Pettigrew W J

Phillips D J

Piercy A

Potaka P

Potter R

Pratt S

Pratt A L

Prenter S

Price V

Priest C

Puhio M

Quin M J F

Quinn M J

Razos M P

Razos J S

Redshaw M

Reilly W J

Reisima B M

Richardson I L

Richardson E I

Rigby F B

Rimmer J

Rimmer L

Roddick G J

Roebuck J

Russell M

Russell K & C

Ryan D

Ryan D H

Sanders V J

Sanson C

Sayers J

Schirnack P

Schirnack M J

Schmidt A J

Scobie R D

Selby C J

Shaw N D

Sherratt G

Sim A B

Simonsen E N

41

HAWKE’S BAY RACING INC 2013/2014 RACING SEASON MEMBERS Skerman C J

Skerman G

Slack T

Smith A H B

Smith F H

Smith I D S

Smyth E B

Speedy S

Spotswood R C

Spring K

Stace J L

Stace R M

Stafford C

Standring D J

Stevenson P M

Stovell M

Sugden P F

Sutherland M D

Sutherland B W

Symes W E

Tasker B L

Taylor F

Taylor H A

Terry P R

Thomas B A

Thompson M J

Tomlins C

Tonge A

Tough R

Townrow P J

Train A

Treweek K

Treweek P J

Trinity Hill

Turfrey N O

Turner R J

Turner S K

Valcarcell J R

Van Zonnevend T

Waikato Stud

Waldin D W

Wall A J

Wall A S

Waller R

Walter C R

Ward P B

Warren M

Waters A P

Wedd G J

Westbury Stud

Weston W G

White M P

Whyte C A J

Wilder A

Wilkins P

Williams K

Williams R A

Williamson G

Wilson D M

Windsor Park Stud

Withey B

Wood K

Wood R D

Wood S

Woodham T

Woodmass R B

Woolhouse B R

Yanko B A

Yartlett I W

Yortt P L

Hawke‘s Bay Racing, Prospect Road, Hastings, New Zealand

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hawke’s bay racing annual report · the annual turf report completed by turftech, with reduced...

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