2003 Horse Racing Ireland - Annual Report

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2 2003 Horse Racing Ireland - Annual Report Contents page 03 page 04 page 06 page 08 page 20 page 28 page 40 page 52 Mission Statement Board Members, CEO and Committees of HRI Chairman s Statement Chief Executive s Statement Irish Racing Review Industry Statistics Audited Reports & Group Financial Statements Notes to Financial Statement 02

3 Mission Statement To develop and promote Ireland as a world centre of excellence for horse racing and breeding. In identifying its mission for the next five years, Horse Racing Ireland (HRI) has placed emphasis on Ireland s position in both the international horse racing and breeding industries and the quality of the product being offered to the racegoing public. The continuity of funding necessary to develop strategies to achieve the mission is the key element of the Plan. The claim to be a world centre of excellence is a realistic one and the benefits of the strategies pursued to achieve the mission will be reflected in the economic, cultural and social environment of the country. This mission gives expression to the values and sense of purpose of the organisation. 03

4 2003 Board Members & CEO of HRI Brian Kavanagh William Flood Peter McCarthy Jerry Desmond John Kidd Cahir O Sullivan Dermot Cantillon Roy Craigie Members of Board and Committees 2003 HRI Board Denis Brosnan Pierce Molony Eddie Browne Dermot Cantillon Frank Clarke Roy Craigie Jerry Desmond William Flood Jessica Harrington John Kidd Dan Kirwan Peter McCarthy Seamus Mulvaney Cahir O Sullivan Michael Osborne Ray Rooney Chairman Vice-Chairman Racing Regulatory Body Representative Representative of Persons Employed in the Horse Racing Industry Racehorse Breeders Representative Racing Regulatory Body Representative Racing Regulatory Body Representative Racecourses Representative Racing Regulatory Body Representative Racehorse Trainers Representative Representative of Persons in the Horse Racing Industry in Northern Ireland Representative of Persons Employed Directly in the Horse Racing Industry Racehorse Owners Representative Authorised Bookmakers Representative Racing Regulatory Body Representative Racing Regulatory Body Representative Retired 18 December 2003 (not pictured) Racing Regulatory Body Representative Retired 18 December 2003 (not pictured) Subsidiary Boards & HRI Appointees to Other Boards Irish Thoroughbred Marketing Limited John Kidd Chairman Dermot Cantillon John Clarke Joe Foley Jim Gorman Brian Kavanagh Joe Osborne Navan Golf Club plc William Flood Chairman Raymond Horan Brian Kavanagh John Kidd Matt O Dwyer Tote Ireland Limited Dermot Cantillon Chairman Alan Byrne Brian Kavanagh Eamon McElroy Paul Tansey Paddy Waldron Cilcoone Limited Margaret Davin Fairyhouse Racecourse John Kidd Michael Lane Gowran Park Racecourse Jessica Harrington Peter McCarthy International Equine Institute, Limerick University Dan Kirwan Irish Equine Foundation Brian Kavanagh Peter McCarthy John Kidd Limerick Racecourse Jerry Desmond Bob Lanigan RACE Margaret Davin Dan Kirwan 04

5 Denis Brosnan Pierce Molony Seamus Mulvaney Eddie Browne Dan Kirwan Jessica Harrington Frank Clarke HRI Board Committees as at 31st December 2003 Appointments & Remuneration Committee Assists the Board in matters relating to composition of Boards and Committees and remuneration of senior executives ensuring compliance with Government policy, state sector guidelines and the provisions of the Horse and Greyhound Racing Act Denis Brosnan Chairman Pierce Molony Audit Committee Assists and advises the Board on governance and internal control matters. Pierce Molony Chairman Eddie Browne Roy Craigie Bookmakers Committee Carries out the functions of the Board in matters relating to the control of the operations of authorised Bookmakers and compliance with the Irish Horseracing Industry Act, 1994 and as amended by subsequent acts with regard to Bookmakers and Betting. Eddie Browne Chairman Roy Craigie Raymond Horan Brian Kavanagh Finance Committee Assists and advises the Board in relation to all financial and accounting matters on the advancement of the objectives as set out in the Strategic Plan. Denis Brosnan Chairman Roy Craigie Jerry Desmond Brian Kavanagh Pierce Molony Peter McCarthy Fixtures Committee The Race Fixtures Committee was established under section 19 of the Irish Horseracing Industry Act, It recommends, in accordance with the terms of reference decided by the Board, the fixing of the annual list of race fixtures. Roy Craigie Chairman Jerry Desmond Peter McCarthy Jessica Harrington John Moloney Seamus Mulvaney Foal Levy Committee Advises the Board on matters pertinent to the operation of the Thoroughbred Foal Levy Scheme. Peter McCarthy Chairman Dermot Cantillon William Flood Derek Iceton John Kidd Edmund Loder Tim O Regan Eimear Mulhern Media Rights Committee Negotiation of media rights matters in accordance with Section 10 of the Horse and Greyhound Racing Act, Jerry Desmond Chairman Peter McCarthy Pierce Molony Leopardstown Committee Assists and advises the Board on the management and development of Leopardstown Racecourse. Frank Clarke Chairman Dave McGrath Vice-Chairman Jimmy Farrelly Jessica Harrington Brian Kavanagh Liam Madden Philip Myerscough Breege O Donoghue Denis McCarthy Honorary Life President Navan Committee Assists and advises the Board on the management and development of Navan Racecourse. William Flood Chairman Donal Matthews Vice-Chairman Eddie Campbell Gina Galvin Liam Madden John McCabe Noel Meade Michael McEvoy Honorary Life President Joe O Sullivan Honorary Life President Programmes Committee Determines in accordance with section 20 of the Irish Horseracing Industry Act, 1994 the race programmes for all race fixtures. Roy Craigie Chairman Dermot Cantillon Jerry Desmond Jessica Harrington Peter McCarthy Seamus Mulvaney 05

6 2003 Chairman s Statement Success in was a successful year for Irish racing with the new Board of Horse Racing Ireland and its executive team settling into its task and launching a Strategic Plan for the industry for the period 2003 to It was a record year for Irish racecourses with total attendances of just under 1.4 million. Additional fixtures and competitive racing ensured that the quality of Irish racing remained strong both at home and abroad. Nine out of the ten Group 1 races on the flat were kept at home in 2003, including a record breaking first Classic for 84 year old Paddy Mullins with Vintage Tipple in the Darley Irish Oaks at the Curragh. The key performance indicators of betting, attendance, prize money, sponsorship, sales and owner registrations all continued to be strong for the year showing growth across all measurements. Irish Successes Overseas Once again Irish trained, owned, bred and ridden horses had great international success, winning a total of seventeen Group / Graded races in the UK, including ten Group 1 races. In addition to our six Cheltenham Festival winners, Monty s Pass provided a third Irish success in five years in the Martell Grand National, Refuse to Bend won the 2000 Guineas at Newmarket and Hawk Wing had a spectacular Lockinge Stakes success. There was major success for Nobody Told Me and David Casey in the French Champion Hurdle, Alamshar and Johnny Murtagh in the King George, Brian Boru and Jamie Spencer in the Doncaster St. Leger and of course High Chaparral and Michael Kinane in the Breeders Cup Turf. Indeed the Breeders Cup provided a fantastic result for the breeding industry with three Irish bred winners. Such major international successes are very important as a shop window for Irish bloodstock. 06

7 Strategic Plan The launch of the HRI Strategic Plan in March was a major milestone and over the duration of this Plan we will continue to implement policies which will be of significant benefit to the industry. Our mission statement is to develop and promote Ireland as a world centre of excellence for horse racing and breeding and we have made the creation of a vibrant racecourse sector a centrepiece of the Plan. Corporate Governance Horse Racing Ireland is committed to maintaining the highest standards of Corporate Governance and has embraced the 2001 Code of Practice for the Governance of State Bodies. Key requirements under this code such as a Statement on the Systems of Internal Financial Control, the setting up of an internal audit function, the Code of Conduct for Employees and Code of Business Conduct for Directors are all now operating in Horse Racing Ireland and its subsidiaries. Acknowledgements I would like to sincerely acknowledge the work of the Minister for Arts, Sport and Tourism, John O Donoghue TD, and his colleague Charlie McCreevy TD, Minister for Finance and thank them for their support of the horse racing industry. I would also like to pay tribute to the officials of these Departments for their allegiance and assistance to the industry in the past. The Irish horse racing industry is the envy of many other countries worldwide and the positive approach of successive Governments to the industry is the most frequently referred to advantage. In addition I would like to thank all of my Board colleagues and those who served on the various Boards and Committees of the subsidiaries of Horse Racing Ireland during 2003 as well as the executive team and staff, led by Brian Kavanagh, for their dedication and professionalism. Irish horseracing is an important industry and a major contributor to Irish life both socially and economically. I am proud to be associated with it and will continue to promote its value to the social and economic fabric of the country. Denis Brosnan Chairman 07

8 2003 Chief Executive s Statement A Solemn Start Any review of the 2003 racing year must begin with solemn consideration of the fact that Irish racing lost three of its finest young jockeys that year. Kieran Kelly, Sean Cleary and Timmy Houlihan all graced the sport with their presence and will long be remembered wherever the racing community gathers in the future. In 2003 there were a total of 303 fixtures held in Ireland, an increase of 24 from The number of races run reached an all time high of 2,166 and total prize-money amounted to 50.4 million. National Hunt prize-money (including point to points) increased by 11% for the year, while flat prize-money increased by 7%. A healthy increase of almost 600,000 was experienced in race sponsorship. It is pleasing to note that this market remains strong and we look forward to further growth in On-course betting turnover amounted to 237 million, showing a 14% increase on the previous year. Of this total, betting with on-course bookmakers amounted to 183 million, Tote betting was 44.3 million, and on-course SP shops amounted for 9.7 million. One of the most encouraging factors of the year was an increase of 8.5% in total attendance at racemeetings to a figure of million (excluding Northern Ireland fixtures). This works out at an average of 4,985 persons per fixture and compares very favourably with other major racing nations. The overall health of the industry is perhaps best reflected by three key indicators, namely that horses in training showed a 3.7% increase to 5,672, new owner registrations were up in the year 4% to 850, and the value of thoroughbred sales at public auction in Ireland increased by almost 2% to 114 million. It is further estimated that overseas and private sales of Irish bloodstock amounted to a further 121 million approximately. 08

9 Sunrise at Greentree Stud

10 2003 was an extremely successful year on the track for Irish trained, ridden and bred animals and these achievements have been highlighted elsewhere in this report. Off the track, the highlight of 2003 for Horse Racing Ireland was the launch in March of its Strategic Plan for the industry. The mission statement which HRI has chosen to develop and promote Ireland as a world centre of excellence for horseracing and breeding is a realistic one. The benefits of the strategies which will be pursued by HRI to achieve this mission will be reflected in the economic, cultural and social environment of the country. In the Plan, a number of key goals were set in the following areas: 1 Funding 2 Racecourses 3 Integrity 4 Product development 5 Tote 6 Breeding 7 Training, education and employment 8 Information technology I am pleased to say that in the first year of the Plan all of the key economic indicators were in line with the targets set. Thoroughbred Foal Levy Scheme 2003 was the fourth year of the Foal Levy Scheme and income for the year was 1.33 million against 1.28 million for the previous year. Over 5,000 breeders paid this levy in respect of the 10,508 foals which were born. In accordance with the legislation, the proceeds of the levy were used for the benefit of the infrastructure of the breeding sector and the HRI Foal Levy Committee recommended allocations to the following bodies: Irish Equine Centre Irish Thoroughbred Breeders Association Irish Thoroughbred Marketing Irish Farriery Authority Irish Horse Welfare Trust In addition a Breeders Prize Scheme was introduced when the Foal Levy was launched and last year 152,000 was paid to breeders under the Scheme. 10

11 TOTE Tote Ireland had a most successful year in 2003, achieving solid growth in all areas. Total turnover for the 12 months came in at 44.3m, which was up 5.5m or 14.1% on the previous year. Turnover on Irish racing at 41.5m was up 3.9m or 10.5% on the previous year. The Irish racing turnover includes 0.6m bet into Irish Pools from the UK. Co-mingling into foreign pools showed exceptional growth, with 2.83m being bet as against 1.30m in Tote Ireland is now betting into all race meetings in the UK. The range of products available through co-mingling is the Win, Place and Exacta bets. Work is continuing apace to make further products such as the Jackpot and Placepot available for co-mingling in the not too distant future. There were some significant Tote records achieved in 2003, with Galway on 31st July achieving an all-time national Tote record of 1.74m. There were also course records at the Curragh on Derby Day of 1.02 million and at Punchestown on 30th April of 954k. The seven-day Galway Summer Festival produced a massive turnover of 7.5m for the week, which was up 0.8m on the previous year. 11

12 In April 2003, Tote Ireland reduced its retention on the Win Pool for races with 10 or less runners from 20% to 10%. This had a major impact on the dividends paid on these races when compared with bookmakers prices. Of the 457 races to which the lower retention applied, 274 or 60% paid better than the corresponding bookmakers price. The average Tote Dividend for these races was 5.74 as against 4.66 for the bookmakers. There was major testing carried out the on GPRS technology during the year. This technology will be used as the communication platform for the Teller Handheld Machines. The Tote introduced these handhelds on the racetracks in spring GPRS technology, besides being more cost effective than other communication platforms, will allow the Tote to bring its range of products via the handhelds direct to its racecourse patrons in bars and restaurants. The year also saw the introduction by Tote Ireland of an incentive payments system for racecourses. The total amount paid out to racecourses under this heading was 550,000 for the year. Payment was based on the amount of Tote turnover achieved by each track. The amount paid out represented 1.3% of track turnover. This initiative has been warmly welcomed by the racecourses. Profit for the year before provisions came in at 2.1 million, an increase of 0.5million on the previous year. All profits generated by Tote Ireland are used for reinvestment in the business or for the benefit of racing. Leopardstown 2003 ended on a very high note for Leopardstown with a recordbreaking attendance at the traditional Christmas Festival. Over 61,000 people attended the four day National Hunt Festival which will long be remembered for Best Mate s superb performance in the final running of the Ericsson Chase under that title sponsorship. The decision to run the reigning Gold Cup champion at Leopardstown was a great vote of confidence by connections in the quality of the race and the condition of the track. The full year attendance at Leopardstown exceeded 184,000 people. The Miller summer evening meetings on both Wednesdays and Saturdays continue to grow in strength with over 41,000 people attending. The highlight of the racing year at Leopardstown in many ways was the Ireland, the Food Island Champion Stakes which produced another tremendous contest. The 2003 race was the highest rating 12

13 race ever run in Ireland and the second best in the world last year (just behind the Prix de l Arc de Triomphe). The seven runners had amassed a remarkable seventeen Group 1 wins and over 13 million in win prize money alone. A highly competitive race ended up with victory for the home trained High Chaparral. It is worth noting that six of the seven runners in this race were bred in Ireland. Leopardstown received planning permission in 2003 for the proposed development of its car park, stable yard and golf centre. Work is expected to commence on this in The planning focus now is on the development of the stands, weighroom, parade ring, entrances, crèche and auxiliary areas with the objective of enhancing Leopardstown s status as a major international flagship course. Leopardstown eagerly anticipates the opening of the Sandyford and Carricksmines interchanges which will benefit the racecourse immensely due to designated access roads, and additionally the new LUAS light rail service to Sandyford industrial estate will be of great assistance. Navan The sixteen meetings which took place at Navan during 2003 attracted a total attendance of 48,384 with slightly increased betting turnover of 11.2 million. As indicated in recent years, the sponsorship performance at Navan racecourse continued to be strong with over 60% of all races sponsored. The Navan Race Committee has finalised its development plan in relation to the racecourse with particular emphasis on the stableyard, weighroom, and public facilities, and work will commence on this project in the near future. 13

14 Marketing Report 2003 was a record year for Irish Racecourses with total attendances of just under 1.4 million. HRI s Marketing Strategy is focused on growing attendances, with particular emphasis on the age group. The major festival meetings were targeted as key points of entry for this age group and were supported with a significant TV Advertising campaign, which was recognised with a prestigious Silver Shark at the Kinsale International Advertising Awards. National and local radio campaigns were developed to support racecourses across the country together with Business to Business and consumer direct mail campaigns. HRI sponsored a new racing programme on TV3 with a 13 week summer series. Go Racing achieved a cumulative audience figure of over 1 million. Website and database development continued throughout the year with over 7,000 unique visitors per week visiting which included a facility to register on-line for weekly racing updates and text message alerts. In April 2003, the Racegoers Consultative Forum was launched and continued with a regular series of meetings to put forward the views of racegoers all across Ireland on the quality of the racing product on offer. In the latter half of the year, HRI recruited TV and racing personality Hector O heochagain to front advertising and promotional campaigns for HRI for a three year period. HRI was also proud to recognise the achievements of the heroes of the sport with the inauguration of the Irish Racing Awards and sponsorship of the inaugural Irish Stablestaff Association Awards. 14

15 Catherine Gannon 15

16 Irish Thoroughbred Marketing When discussing the 2003 season there are any number of horses which spring to mind - world class thoroughbreds with one thing in common, they are all Irish. One of the most memorable moments of the year would have to have been the Breeders Cup Turf in Santa Anita where High Chaparral (Ire) dead-heated with Johar while the world looked on. The adrenalin rush when watching that particular race was intense. Dermot Weld started the flat season off with a memorable success for Irish-bred and trained horses with Refuse to Bend winning the 2000 Guineas at Newmarket. On the home front, His Highness the Aga Khan dominated the Budweiser Irish Derby running both his colts, Alamshar (Ire) and Dalakhani (Ire), with Alamshar taking the trophy. These are but a few examples of some of the quality Irish Thoroughbreds which enthralled racing fans the world over. Others such as Vinnie Roe (Ire) and Vintage Tipple (Ire) all added to our already impressive portfolio of world class bloodstock, which is used by ITM to demonstrate the success obtained by buying quality Irish thoroughbreds was yet another excellent season for Irish-bred National Hunt horses and saw a second Gold Cup win for Best Mate and victory for Monty s Pass in the Aintree Grand National with Irish-bred runners taking the Scottish, Welsh and Irish equivalents. The Cheltenham Festival highlighted the domination by Irish-bred horses of the UK National Hunt scene with seven Grade 1 victories for horses bred in Ireland, including the Irish trained trio of Moscow Flyer, Back in Front and Hardy Eustace. ITM continued to play a pivotal role in encouraging overseas buyers to choose Ireland as a premier location to purchase quality thoroughbreds. A total of 1060 overseas buyers from 21 different countries availed of the Inward Buyer Program in 2003 including buyers from Israel, Russia and Chile for the first time. Throughout the year ITM issued its regular weekly newsletter to over 2,500 contacts world wide and also provided information on Flat and National Hunt activity in Ireland on a regular basis. With the youthful ITM team working together for the past two years, strong relationships have now been cultivated with clients worldwide. This has been assisted by a constant communication process. 16

17 A total of 632 people availed of the ITM New Owners Promotion during the year showed an 8% increase on 2003, with 850 first time owners registering with HRI during the year. Finance The financial information for year-ended December 2003 is compared to a 54 week previous period. As a result of this, the comparative figures incorporate two Christmas festivals: December 2001 and December 2002, for both the Racecourse Division and Tote activity was the first year of the new Strategic Plan for HRI. Turnover for the period was up 4.6% compared to the 54 week period in When you take out the effect of the extra two week period in 2002 however, the turnover at 53.1m is up 12% or 5.6m on a figure of 47.5m in 2002 (52 week period). The turnover increase is primarily due to the Tote increasing by 14% or 5.467m and the racecourse turnover increasing by 358k or 5% (52 week period). Betting income dropped by 220k due to the drop in the fixed fee payable to HRI by on-course bookmakers from 2,540 per annum to 500 per annum from August The Tote increase was due to an additional 22 fixtures as well as an additional 1.5m co-mingled from betting on a greater number of UK fixtures. Surplus The net profit for the Tote was 2.138m. Out of this profit, the Tote paid a dividend to HRI of 500,000, incurred rationalisation costs of 443,000 and also paid 550,000 to racecourses as part of an incentive programme to enable racecourses to invest this income towards further improvements on track. The remainder of the group surplus is primarily generated by HRI. This surplus is required to repay loans, invest in capital expenditure and to provide for the significant developments being planned by racecourses under the new Capital Development Programme. 17

18 Other Income The other Income at 81.8m against 81.4m reflects a drop in the Horse and Greyhound Fund as explained below, but an increase in Registry Office income and prize money contributions is due to the full year effect of this activity which was transferred across from the Turf Club in May reflects a partial year (from May 1st 2002) in the Registry Office income and prize-money deductions. The Horse and Greyhound Racing Fund was down by 4.8m in 2003 against When you take out the effect of the 2001 element in the previous year figure, the drop is 3.1m or 5.7%. This drop is due to the lower level which the Fund is linked to since the reduction in Off-Track Betting Duty to 2% in May Expenditure Group expenditure of m was down from the 2002 figure of m. The increase in prize-money is primarily due to the extra fixtures year-on-year of 24. The increase in prize-money contributions from owners and sponsors is as a result of comparing a twelve month period against an eight month period, since the transfer of the Registry Office in 2002 as well as the additional fixtures. A drop in expenditure of 7.3m arose under Capital Development Fund Amortisation since most of the grants were fully amortised by the end of The total paid at this point on development grants under the old scheme is m. The remainder of the expenditure includes an increase of 938k on Integrity Costs due primarily to the extra fixtures as well as additional legal costs, drug testing costs and an increased pension contribution. Racecourse improvement payments were up by 681k or 33% due to sponsorship and tote incentive schemes. Health and Safety grants were down since the new scheme had not significantly started in Grants paid to industry bodies were lower than 2002 since a once off grant was paid in 2002 to the Irish Equine Centre to enable a significant capital development to be carried out. General marketing and promotional costs were up by 346k due mainly to the Go Racing TV Programme. This is supported by the commitment of HRI to a strong marketing campaign for the racing and 18

19 breeding industry which will continue to fund programmes on TV as well as advertising contributions to local racecourses. The ITM contribution from the industry at 649k was utilised, together with an additional contribution from HRI of 1m, to fund initiatives ensuring the Irish Thoroughbred is branded strongly both at home and abroad. Through further investment in marketing the industry, ownership and sponsorship should continue to grow ensuring that Ireland enhances its reputation as a World Centre of Excellence. Acknowledgements In conclusion I would like to sincerely thank my management colleagues and the staff of Horse Racing Ireland (both full time and part time) for their significant contribution during a successful year for Irish racing. The staff of the subsidiaries (Tote Ireland, HRI Racecourses and ITM) also performed to a very high standard. I would also like to recognise the significant support of the Chairman, Denis Brosnan, the Board members and Committee members of Horse Racing Ireland, for their ongoing guidance on policy issues and to thank the officials of our sponsoring Department of Arts, Sport and Tourism for their consistent support and harmonious relations which undoubtedly are of great benefit to the industry in general. Brian Kavanagh Chief Executive Officer 19

20 2003 Irish Racing Review The Start of The Year In early January, the Tony Martin trained Xenophon (12/1) landed the Pierse Handicap Hurdle at Leopardstown under a well - judged ride from Mick Fitzgerald while two weeks later Christy Roche s Like-A- Butterfly just edged out Limestone Lad in a real thriller for the AIG Europe Champion Hurdle over the same course. Having landed the 2002 Ericsson Chase at Leopardstown in late December, all eyes were on the Michael Hourigan trained Beef Or Salmon in the Hennessy Cognac Gold Cup in early February and he certainly didn t disappoint his supporters with another impressive victory under Timmy Murphy while on the same day James Bowe s Solerina defeated Hardy Eustace in the Deloitte and Touche Novice Hurdle and Barrow Drive took the Dr. P.J. Moriarty Novice Chase after being left clear by the fall of Le Coudray at the final fence. Like A Butterfly Back In Front Moscow Flyer The Irish at Cheltenham and Aintree Cheltenham proved to be a resounding success for the Irish with six winners over the course of the three days. Edward O Grady s Back In Front won the opening Supreme Novices Hurdle in great style while Youlneverwalkalone took the William Hill Handicap Steeplechase in the hands of Barry Geraghty. On day two, the Jessica Harrington 20

21 trained Moscow Flyer lived up to his tag as the Irish banker with a brilliant display to win the Queen Mother Champion Chase while Dessie Hughes Hardy Eustace landed the Sun Alliance Hurdle for Kieran Kelly and Tony Martin s Xenophon hit the bookies hard as he scored in the Coral Cup. A fantastic week for jockey Barry Geraghty was rounded off by the victory of Jessica Harrington s Spirit Leader in the County Handicap Hurdle on the Thursday but it was not all plain sailing for the Irish as Beef Or Salmon was an early faller in the Gold Cup which was won in superb style by Best Mate. The Irish National Hunt Festivals The Grand National Meeting in early April saw another six winners for the Irish, with the victory of the Jimmy Mangan trained Monty s Pass in the Aintree Martell Grand National the Hardy Eustace highlight of the three days. Supported at fancy prices in the weeks before the race, Montys Pass (16/1) jumped superbly throughout as he strolled home twelve lengths clear under man-ofthe-moment Barry Geraghty and there were wild celebrations in the winners' enclosure as the Dee Racing Syndicate greeted their charge. At the same meeting Edward O Grady s Sacundai won a thrilling Martell Hurdle as he defeated Rooster Booster by a head while Irish jockey Charlie Swan announced his retirement from the saddle after he rode Patriot Games to victory on the Friday. At home the Powers Irish Grand National was won by the Dessie Hughes trained Timbera in front of a large crowd at Fairyhouse on Easter Monday while the following week the Punchestown Festival of National Hunt Racing proved to be a huge success with record crowds and levels of betting during the week. There was a big shock for punters when Moscow Flyer fell at the second last fence in the BMW Steeplechase on the opening day leaving Flagship Uberalles clear to record a notable victory while the following day the Francois Doumen trained First Gold became the first French trained horse to win at 21

22 Punchestown when he made all the running to win the Punchestown Heineken Gold Cup. Overseas raiders were to the fore once again on Thursday when Sporazene and Le Roi Miguel gave trainer Paul Nicholls and jockey Ruby Walsh a fine double in the IAWS Champion 4YO Hurdle and the Swordlestown Cup respectively. Trainer Jonjo O Neill rounded off an excellent week for the raiders when saddling Quazar to get the better of Back In Front in the Emo Oil Champion Hurdle on the Friday. First Gold On the Flat On the flat, trainer Dermot Weld sent out Refuse To Bend to win the English 2000 Guineas at Newmarket in early May while two weeks later the Aidan O Brien trained Hawk Wing put up a superb front running performance when winning the Lockinge Stakes at Newbury by a staggering eleven lengths. The Entenmann s Irish Guineas weekend at the Curragh in late May saw the Paul D Arcy trained Indian Haven land the 2000 Guineas under John Egan while the following day Aidan O Brien s Yesterday just held off Six Perfections by a short head to win the 1000 Guineas in a real thriller to complete a memorable day for connections after Black Sam Bellamy had taken the Tattersalls Gold Cup in good style. 22

23 The Epsom and Irish Derbys In early June there was a strong Irish challenge for the Epsom Derby but victory went to the Michael Stoute trained Kris Kin who defeated The Great Gatsby and Alamshar in a close finish and there was no luck for Aidan O Brien s Yesterday in the Epsom Oaks as she narrowly lost out to Andrew Balding s Casual Look after enduring a nightmare run in the straight. In late June, the John Oxx trained Alamshar got the better of Dalakhani to win the Budweiser Irish Derby in front of a huge attendance at the Curragh with Aidan O Brien s Roosevelt faring best of his six runners in finishing third. Alamshar had been a doubtful runner right up to the morning of the race after being plagued by a persistent back problem but after extensive physiotherapy everything worked out well in the end and this local victory went down brilliantly with the large attendance. Alamashar Yesterday Indian Haven 23

24 The Summer Months Two weeks later and veteran trainer Paddy Mullins is the man very much in the news as he saddled his first ever Classic victor when Vintage Tipple (12/1) arrived late and fast to win the Darley Irish Oaks under Frankie Dettori. Mullins then completed a tremendous big race double as Nearly A Moose landed the Hewlett Packard Galway Plate at the seven day Galway Festival in late July. Once again, the Galway Festival managed to break records on a daily basis with huge attendances and levels of betting being one of the features of the week. The racing world was stunned by the death of National Hunt jockey Kieran Kelly, following a fall at Kilbeggan in early August, as he became the first jockey to lose his life on an Irish racecourse since As the Irish racing community struggled to come to terms with this tragedy, things went from bad to worse when apprentice jockey Sean Cleary died after suffering severe head injuries in a fall at Galway in late October and fellow jockey Timmy Houlihan died in tragic circumstances in November. Vintage Tipple The Galway Festival Vinnie Roe Late Summer On the racetrack trainer Aidan O Brien saddled his sixth consecutive winner of the Waterford Wedgwood Phoenix Stakes at the Curragh when One Cool Cat defeated stable companion Old Deuteronomy and the same horse jumped to the head of the ante-post market for the 2004 English 2000 Guineas with another fine display when landing the Dunnes Stores National Stakes at the Curragh in mid-september. In early September, O Brien s High Chaparral just held off the flying late challenge of Falbrav to win the Ireland, the Food Island Champion Stakes at Leopardstown while seven days later the Dermot Weld trained Vinnie Roe became the first horse to win three consecutive Irish St Legers as Pat Smullen s mount defeated English raider Gamut by a length. 24

25 The Autumn Months In October, Dermot Weld s Grey Swallow confirmed himself as a very exciting prospect for next season with an impressive eight length victory in the Killavullan Stakes at Leopardstown while on the same weekend High Chaparral won the Breeders Cup Turf for the second consecutive year when dead-heating for first place with Johar after a truly memorable race. This proved to be Michael Kinane s last big race success as stable jockey for Aidan O Brien as two weeks later it was announced that the partnership was at an end after five excellent years which featured fifty eight Group One victories. Kinane is set to ride for the John Oxx stable in 2004 with Jamie Spencer filling Kinane s boots at Ballydoyle. Grey Swallow 25

26 In The End In late November, the James Bowe trained Solerina put up a fine frontrunning performance to win the Hatton s Grace Hurdle at Fairyhouse while on the same card Frances Crowley s Nil Desperandum easily took the Drinmore Steeplechase and Newmill won the Royal Bond Novice Hurdle for Thomas O Leary. Seven days later Michael Hourigan s Beef Or Salmon landed the John Durkan Memorial Steeplechase at Punchestown but he was firmly put in his place by the Henrietta Knight trained Best Mate in the Ericsson Chase at Leopardstown three weeks later. Best Mate s impressive victory was witnessed by a huge crowd at Leopardstown and the winner received a tremendous reception after his flawless display. Beef Or Salmon Best Mate Golden Cross At the same four day meeting, the Dessie Hughes trained Central House won the Denny Gold Medal Novice Steeplechase on St Stephen s Day while twenty four hours later the Paddy Power Handicap Chase went for export as Jonjo O Neill s World Wide Web took the honours. The concluding day of the meeting sees the Michael Halford trained Golden Cross spring a 66/1 shock in the Bewleys Hotels December Festival Hurdle under young Adrian Lane and this victory rounded off an excellent year for Irish Racing. 26

27 Nearly A Moose Wins

28 2003 Industry Statistics Fixtures Analysis - Per Year Year No. of Fixtures No. of Races Fixtures Analysis - Per Month 28 No. of Fixtures January February March * April May June July August September October November December TOTAL *cancellation of meetings due to foot and mouth restrictions

29 Fixtures Analysis - Per Day No. of Fixtures Sunday Monday Tuesday Wednesday Thursday Friday Saturday Bank Holiday TOTAL Horses in Training Years Average Average Average Average Average Old ,122 1,038 1, ,614 2,616 2,471 2,255 2,326 Total 5,672 5,469 5,108 4,776 4,666 29

30 Breeding & Sales Breeding Thoroughbred Stallions Thoroughbred Mares 16,938 16,467 15,503 14,655 13,928 Thoroughbred Foals 10,574 10,214 9,452 8,793 8,119 Sales Catalogued 10,437 10,802 9,794 8,865 8,313 Offered 8,535 8,909 8,189 7,408 6,880 Sold 6,305 6,404 6,241 5,870 5,492 Aggregate ' , , , ,034 87,553 Average 18,108 17,541 17,439 20,278 15,942 Betting On - Course Home Away Betting Fixtures Annual Year Total Totaliser Bookmakers Bookmakers Shop (ex. NI) Attendances '000 '000 '000 '000 ' ,511 32, ,377 1,342 4, ,309, ,626 35, ,147 1,971 5, ,354, ,016 36, ,651 2,171 7, ,296, ,393 38, ,768 2,323 7, ,286, ,014 44, ,792 2,269 9, ,395,833 30

31 Off - Course Betting Exclusive of Betting Duty m m m m m 1,921 1,569 1,359 1, On - Course Betting Analysis Home Away Betting Annual Total Totaliser Bookmakers Bookmakers Shop Fixtures Attendances (incl. NI) (excl.ni) Sunday 72,149,062 11,776,738 56,790, ,861 2,828, ,747 Monday 16,129,668 2,834,732 12,515, , , ,595 Tuesday 15,657,397 3,159,517 11,994,244 69, , ,496 Wednesday 27,206,377 5,427,458 20,339, ,458 1,300, ,222 Thursday 28,194,724 5,167,528 21,910, , , ,337 Friday 18,707,643 3,975,780 13,893, , , ,843 Saturday 38,705,640 6,824,310 29,286, ,346 2,272, ,318 Bank Holiday 11,512,480 2,285,693 8,359, , , ,275 Point to Points 5,924,286-5,701, , unavailable Comingling out 2,826,778 2,826, Total 237,014,055 44,278, ,791,793 2,268,615 9,675, ,395,833 31

32 Betting by Racecourse Racecourse Fixtures Tote Betting Bookmaker Betting 2003 Total Home Away SP Shop 2003 Ballinrobe , ,262 2,202,989 85,683-2,288,672 Bellewstown , ,907 1,777,059 40,903-1,817,962 Clonmel , ,884 4,605,834 48, ,710 4,970,525 Cork ,275,214 1,397,721 5,806, , ,741 6,680,503 Curragh ,663,578 4,503,311 19,143,337 60, ,069 20,119,316 Dundalk Fairyhouse ,448,576 2,618,163 13,035,512 19, ,115 13,777,011 Galway ,312,711 7,308,630 19,045, ,433 1,143,296 20,344,062 Gowran Park ,047, ,562 6,777,130 52, ,992 7,199,967 Kilbeggan , ,556 4,031,574 45,613-4,077,187 Killarney , ,477 2,806, ,552 67,968 2,990,055 Laytown 1-34, ,310 4, ,825 Leopardstown ,133,788 5,414,022 23,090,937 58,642 1,736,139 24,885,718 Limerick ,424,919 1,313,375 5,626, , ,540 6,473,236 Listowel 9 9 2,345,791 2,144,309 7,821, , ,098 8,414,315 Naas ,063,523 1,025,122 6,839,048 10, ,204 7,269,136 Navan ,297,419 1,157,684 9,339,910 78, ,116 9,981,259 Punchestown ,483,498 3,771,441 17,105,783 49,372 1,193,444 18,348,599 Roscommon , ,912 4,670, ,104-4,817,234 Sligo , ,871 2,568,466 94,715-2,663,181 Thurles , ,676 4,261,809 11, ,048 4,419,818 Tipperary , ,297 4,439,829 59, ,771 4,673,031 Tralee , ,661 3,387, ,573-3,500,456 Tramore , ,456 3,773,294 90, ,862 4,026,198 Wexford , ,556 2,747, ,333-2,882,969 Down Royal Downpatrick Sub Total ,451,756 37,509, ,090,265 2,045,857 9,675, ,811,235 Point to Point ,701, ,758-5,924,286 Comingling out - - 2,826,778 1,301, Total ,278,534 38,810, ,791,793 2,268,615 9,675, ,735,521 32

33 Bookmaker Betting 2002 Total Ttl Betting Bookmakers/Tote Home Away SP Shop ,270,762 55,258-2,326,020 2,901,067 2,930,282 1,588,972 33,762-1,622,734 2,203,335 1,948,641 3,850, ,287-4,090,288 5,553,488 4,608,172 5,775, , ,307 6,481,319 7,955,717 7,879,040 15,305,288 19, ,485 16,123,508 24,782,894 20,626, ,993,628 29, ,859 12,704,198 16,225,587 15,322,361 16,562,060 90, ,649 17,483,477 28,656,773 24,792,107 6,741,450 28, ,762 7,060,194 8,247,250 7,956,756 3,655,445 35,793-3,691,238 4,861,152 4,327,794 2,619, ,171-2,797,674 3,586,214 3,456, ,322-18,496, ,877 1,365,734 20,011,682 31,019,506 25,425,704 5,046, , ,023 5,799,167 7,898,155 7,112,542 8,738, , ,725 9,416,496 10,760,106 11,560,805 6,584,372 4, ,794 6,892,756 8,332,659 7,917,878 8,691,293 86, ,762 9,255,282 11,278,678 10,412,966 14,222,338 38, ,715 15,257,131 22,832,097 19,028,572 2,274,421 61,942-2,336,363 5,507,283 2,698,275 1,362,070 55,706-1,417,776 3,106,331 1,653,647 5,407,471 55, ,177 5,591,941 4,790,026 5,995,617 3,874,077 61,182 65,308 4,000,567 5,205,903 4,419,864 3,562,853 90,661-3,653,514 4,103,058 4,350,175 3,447, ,320-3,553,575 4,818,078 4,183,031 2,813, ,102-2,930,200 3,412,312 3,399, ,882,990 2,122,810 7,491, ,497, ,262, ,006,955 4,884, ,986-5,084,505 5,924,286 5,084, ,826,778 1,301, ,767,509 2,322,796 7,491, ,581, ,014, ,392,460 33

34 Prizemoney Contributions Total HRI Sponsors Owners Year,000,000 %,000 %,000 % ,048 8, % 4, % 7, % ,088 11, % 5, % 8, % ,879 14, % 6, % 9, % ,319 23, % 6, % 12, % ,230 25, % 6, % 14, % ,369 28, % 7, % 14, % 2003 Prizemoney Total HRI Sponsors Owners,000,000 %,000 %,000 % National Hunt 25,192 16, % 3, % 5, % Flat 25,177 12, % 3, % 9, % Total 50,369 28, % 7, % 14, % 34

35 Sponsors National Hunt Total EBF INHS Commercial NI Tracks,000,000 %,000 %,000 %,000 % , % % 2, % % , % % 2, % % , % % 2, % % , % % 2, % % , % % 2, % % Sponsors Flat Total EBF INHS Commercial NI Tracks,000,000 %,000 %,000 %,000 % , % - - 1, % % ,126 1, % - - 2, % % , % - - 2, % % ,382 1, % - - 2, % % ,550 1, % - - 2, % % Prizemoney Overview Prizemoney 2003 % 2002 % 2001 %,000,000,000 Flat 25, % 23, % 21, % National Hunt 25, % 22, % 20, % Total 50,369 46,230 42,319 Races Flat National Hunt 1,318 1,205 1,153 Total 2,166 1,994 1,935 35

36 Analysis by Race Type Prizemoney Races 2003 % 2002 % 2001 % ,000,000,000 2yo 5, , , Classic 2, , , Other Flat 16, , , Chase 9, , , Hurdle 12, , , Bumper 2, , , Point to Point Total 50, , , ,166 1,994 1, Runners Analysis by Race Type No. Horses Average Average of Races Entered * Entries Starters Starters 2yo 170 5, , Classic Other Flat , , Chase 404 9, , Hurdle , , Bumper 214 7, , Total 2,166 66, , * after balloting 36

37 Cumulative Attendances to 31st December 2003 RACECOURSE Total Attendances No. Of Fixtures Average Attendances Ballinrobe 16,317 17, ,331 2,915 Bellestown 12,200 13, ,067 4,608 Clonmel 25,136 19, ,934 1,617 Cork 61,432 61, ,233 3,212 Curragh 145, , ,672 7,369 Dundalk Fairyhouse 69,933 70, ,114 3,891 Galway 208, , ,363 18,225 Gowran Park 47,020 37, ,939 2,919 Kilbeggan 44,317 40, ,331 6,681 Killarney 23,939 24, ,420 3,470 Laytown 2, ,901 - Leopardstown 184, , ,374 7,544 Limerick 71,238 72, ,452 4,800 Listowel 97,293 95, ,810 10,653 Naas 34,100 30, ,623 2,550 Navan 48,384 46, ,024 2,931 Punchestown 100,840 86, ,932 5,431 Roscommon 32,117 16, ,569 3,224 Sligo 19,461 10, ,780 2,746 Thurles 24,175 27, ,198 2,252 Tipperary 31,851 26, ,654 2,923 Tralee 32,059 33, ,580 4,788 Tramore 35,871 33, ,261 3,710 Wexford 26,900 24, ,989 2,701 TOTAL 1,395,833 1,286, ,985 4,988 37

38 Top Six Festival Meetings No. of Days Total Betting '000 Tote Betting ' Galway ,587 21,428 7,516 6,702 Listowel ,147 10,684 2,202 1,948 Punchestown ,269 12,054 3,350 2,982 Leopardstown (Christmas) 4 3 9,849 7,106 2,052 1,516 The Curragh (Derby Weekend) 3 3 5,937 4,669 1,485 1,270 Fairyhouse (Easter) 3 3 5,987 5,346 1,175 1,184 Total ,776 61,287 17,780 15,602 Total fixtures (excl. NI) , ,393 44,278 38,811 Top 6 as % of all meetings 10.36% 10.85% 29.44% 29.41% 40.16% 40.20% 38

39 Bookmakers Betting '000 Prizemoney '000 Attendance ,071 14,726 1,573 1, , ,669 7,945 8,736 1,214 1,077 93,243 89,803 9,919 9,072 1,709 1,539 69,629 65,250 7,797 5,590 1, ,314 44,246 4,452 3,399 2,546 2,516 46,995 42,809 4,812 4, ,281 29,089 51,996 45,685 9,040 8, , , , ,582 50,369 46,230 1,395,833 1,286, % 26.94% 17.95% 18.38% 35.49% 35.58% 39

40 2003 Audited Reports & Group Financial Statements Members of the Board Mr Denis Brosnan Chairman Mr Pierce Molony Vice Chairman Appointed Mr Raymond J. Rooney Vice Chairman Retired Mr Eddie Browne Mr Dermot Cantillon Mr Roy Craigie Mr Jerry Desmond Mr William Flood Mrs Jessica Harrington Mr John Kidd Mr Dan Kirwan Mr Peter McCarthy Mr Seamus Mulvaney Mr Michael Osborne Retired Mr Cahir O Sullivan Appointed Mr Frank Clarke Appointed Other Information Registered Office Secretary Thoroughbred County House, Kill, Co Kildare. Mr Raymond Horan Auditors Comptroller and Auditor General, Dublin Castle, Dublin 2. Solicitors Arthur Cox & Co, Arthur Cox Building, Earlsfort Terrace, Dublin 2. Bankers Bank of Ireland AIB Bank Ulster Bank Bank of Scotland Anglo Irish Bank 40

41 Moscow Flyer Wins 041

42 Statement on the System of Internal Financial Control for Horse Racing Ireland For the year ended 31st December I acknowledge that the Board of Horse Racing Ireland is responsible for the body s system of internal financial controls. 2 The internal financial controls are such that they provide reasonable, but not absolute, assurance against material error in the financial statements. 3 The undertaking of a formal review process to identify and evaluate organisational risks will be carried out during body of text here... 4 As well as complying with Generally Accepted Accounting Principles, the following are further key procedures in place designed to provide effective financial controls: A clearly defined Management Structure within Horse Racing Ireland and its subsidiaries with clarity on responsibilities. A division of duties for responsibilities within the finance function is split where appropriate and possible. A Financial Control function operates in principal subsidiaries additional to one operating in Horse Racing Ireland. Budgets are built from zero base each year and there are detailed review processes with management and CEO before Board approval. Subsequently, qualified accounting staff prepare monthly management accounts and report on variances from Budget. These reports go before Senior Management and then Boards. HRI has an outsourced internal audit function, which operates in accordance with the Framework Code of Best Practice set out in the Code of Practice on the Governance of State Bodies and which reports directly to the Audit Committee and in turn to the Board of HRI. In 2003, 4 Audit Committee meetings were held and 13 reports reviewed and recommendations implemented. All cheques payable must have 2 signatories under the agreed mandate. Banking On Line system is used for internal transfers, foreign payments and other selected payments. All payments through this system are done through an approved cheque-signing mandate. All Bank Accounts are reconciled once a month. All other financial transactions (such as money deposits and transfers) are signed off under 2 authorised signatories also. A formalised purchasing procedure for expenditure of a revenue and capital nature operates and tendering is complied with under EU and Irish public procurement procedures. Pension valuations are completed within the specified period and minimum funding standards are reviewed ongoing. 5 During the course of 2003 the effectiveness of the system of internal financial control was kept under review by the Audit Committee on behalf of the Board. A formal review was not conducted during 2003 but the Board will conduct one in Denis Brosnan Chairman 42