Track Record
The Management Team has been responsible for purchasing the majority, by value, of the bloodstock assets owned by Breeding Capital PLC. Since Breeding Capital PLC was incorporated in 2005, the Management Team have purchased interests in nine horses, five of which have been sold at public auction.
The table below demonstrates the success that has been achieved over the last two years.
| All figures in £000s | Broodmares | Yearlings for resale | Assets purchased by Breeding Capital team |
|---|
| Proceeds | 1,701 | 373 | 2,074 |
| Acquisition costs | 504 | 278 | 782 |
| Gross Profit | 1,197 | 95 | 1,292 |
| Costs, including nominations | 393 | 73 | 466 |
| Net profit | 804 | 22 | 826 |
Source: Breeding Capital PLC management accounts to 31 December 2007, including accrued costs
In addition to the above, Breeding Capital PLC entered into a joint venture with a third party to address the breeze up market. Ten horses were acquired by the third party, all of which have now been realised, resulting in a loss of £140,000. Whilst Breeding Capital intends to invest in the breeze up market in the future, no investment will be made unless the Management Team has inspected the underlying assets before investment.
As at 31st December 2007, realised bloodstock, including broodmares, foals purchased for resale as yearlings and breeze ups, has achieved an IRR of 60%. The IRR on the bloodstock as a whole, both realised and unrealised, is 43%. The unrealised bloodstock is valued with reference to an independent valuation carried out by BBA Ireland on 31st August 2007, which valued bloodstock held at that date at £3.3 million. The cost of that bloodstock, including nomination fees, was £2.2 million. Since 31st August 2007, five of the horses valued have been sold. Four sold for amounts in excess of valuation, and the average surplus to the valuation on all horses sold was 19%.
The Management Team has also worked together over the last thirteen years whilst building up Watership Down Stud into one of the most prestigious studs in the world. Since 1994, up to the end of 2007, Watership Down Stud has offered for sale as yearlings 223 animals, of which 192 have been sold, representing a clearance rate of 86%. The gross proceeds of sale have amounted to in excess of £34 million, with an average selling price of almost £177,000.
