KILDARE-BASED Goffs Bloodstock Sales Ltd, which arranges the auction of thoroughbred horses, entered the red in the year to the end of March and predicts that the current economic downturn will further hit its business.
The company, which is based in Kill and is a subsidiary of Robert J Goff Co, made a pretax loss of €259,836 in the year to the end of March 2008 compared with a profit of €1.2 million in the previous year.
In its directors' report, Goffs said the decline reflected a reduction in European bloodstock turnover levels.
"Our own business has seen a 15 per cent decline in ring turnover," it added.
The directors said they expected the current year to be equally challenging. "Several factors outside our direct control will impact on the results for the year ahead ," it said.
"Local and international economic factors and the credit squeeze will impact on the Irish and European bloodstock markets and Goffs will not be immune to those," it said.
Commenting on the results to The Irish Times, Goffs' chief executive Henry Beeby said: "We're dealing in a luxury item, it's not a cheap one, so anytime the economy takes a dip then inevitably that has a knock-on for us."
Mr Beeby said the collapse in the property boom had resulted in a number of developers pulling back on buying race horses.
"We would have done a lot of business with property developers when they were going well but maybe that's been reined in."
Mr Beeby said it was "not all bad news" for Goffs, with a yearling selling for €1 million at a recent auction. "We're still trading well and we're happy with where we are."
In spite of the decline in its business, Goffs paid a dividend of €28,694 to its backers, an increase on the €18,969 on a year earlier.
Since the year-end, Goffs, whose results include UK-based Doncaster Bloodstock Sales (DBS), has rolled out a loyalty scheme for regular traders at its auctions to help stimulate activity.
"The vendors of lots previously bought within Goffs/DBS will be exempt from vendor commission on their subsequent resale," the accounts state.
The accounts show that Goffs turnover declined by 8.5 per cent to €7.8 million in the 12 months to the end of March.
Directors' earnings fell to €638,478 during the 12-month period from just under €1.1 million in the previous year.
The cost of wages and salaries declined by 13.6 per cent to €2 million.
Horses sold at Goffs, which is chaired by Eimear Mulhern, continue to perform strongly in Group One races around the world. Finsceal Beo won both the Newmarket and Irish Guineas in 2007 and New Approach took the honours in both the Epsom Derby and the Irish Champion Stakes.
