Harness Racing Victoria trots into profit

[Messenger]

http://www.harness.org.au/news-article.cfm?news_id=24681

[jackthepunter]

hows that profit? wheres the other 3.3 million of debt gone?

[Messenger]

hows that profit? wheres the other 3.3 million of debt gone?

That $3.3m debt you refer to Jack is an interesting one.
You have no doubt subtracted the $3.3m profit from the last 2yrs ($1.3m + $2m) from the $6.6m loss in 2012

I am no big reader of financial reports but you piqued my interest as to why this big 2012 loss occurred

In the opening of the 2012 annual report they explain it as such

"The financial performance of the HRV Group saw a consolidated result of a net loss of $6.6m. The majority of the loss is attributed to two major factors; i) a higher than budgeted spend in the Development Fund, resulting in improved infrastructure that will benefit the sport and industry into the future; and ii) HRV has raised a provision for impairment of $1.7m against accrued race field fees from
Sportsbet as a result of the recent decision by the Federal Court in the Sportsbet case.
A drop in revenue also contributed to the loss for the year.
Revenue for the year declined by 2.2% from $74.7m to $73.0m. Operating expenses (including the Development Fund) grew from $69.7m to $73.1m whilst interest and depreciation totalled $4.8m and other economic flows included in the net result totalled $1.7m."

and later in the report they mention

"Other expenses from operations of $45.1 million in 2011/12 were $4.5 million higher than last year.
Most of the increase in other expenses in 2011/12 is attributable to increases in Development Fund
Expenditure (Capital Development Projects at Harness Venues). Development Fund Expenditure totalled $4.7 million in 2011/12 compared to $1.2 million in the prior year"

http://www.hrv.org.au/hrv/index.cfm/general/annual-reports/2012-hrv-annual-report/

This of course has to do with the development of Swan Hill and Cranbourne but you would have thought these would have been budgeted for

What I find interesting is that there is absolutely no mention of how/why Employee Benefits (wages etc) went from $7.6m to $11.8m
when full time staff went from 71 to 61

pgs 39 and 10 of the 2014 Annual Report are the best place to confirm these figures

http://www.hrv.org.au/hrv/index.cfm/general/annual-reports/2014-hrv-annual-report/

This of course would appear to be another way of explaining the majority of $2012's loss
It is probably easily explained but I do not think we are likely to hear from HRV to clarify
A $6.6m loss was surely a terrible result and was the 5th loss in a row.

[jackthepunter]

which is why I again ask who makes John Anderson acountable? In no other indusrty or bussiness in the world would a ceo last with a record like this. Its the very resason the sport is stuffed here in vic. The damage his done will take a lifetime to fix, the sad thing is know one seems to care.

[Messenger]

http://www.harnesslink.com/Australia/Victoria-officials-shocked-by-government-decision

HARNESS racing officials say they are bewildered by the incoming Labor government’s plan to investigate all aspects of the industry.
Labor’s pre-election racing policy promised “a full audit of Harness Racing Victoria to examine governance, board expertise, debts and liabilities, infrastructure, income streams, administrative duplication and integrity services, including out-of-competition investigative arrangements, and attraction and retention of stewards”.
HRV chief John Anderson said he was “totally unaware” of any issues but he and the board “looked forward to meeting the new Minister for Racing”, who looks certain to be Martin Pakula
.................................................. ...................

http://www.harnesslink.com/Australia/Victoria-officials-shocked-by-government-decision

This will be interesting

[Race For Fun]

Hope you lot down there have got everything in order :-)

[Adaptor]

on RSN just before the lection Shadow Racing Minister Pikula noted that if they were elected they would " have a good look under the bonnet" of HRV, due to widespread negative feedback from a wide range of industry participants. For the CEO to seem surprised, and to put in writing that they are travelling ok, is astounding.
Clubs are unable to influence race planning, race day reinbursements from HRV to clubs are below the costs of running a meeting, and look at the fields for the next few days...7 race fields with less than 8 in races.
A big look under the bonnet is needed...hope they find a motor that can be fixed !

[jackthepunter]

I believe hrv have just hired a full time paper shredder :D

[Njcstables]

I believe hrv have just hired a full time paper shredder :D

Jack, that would indicate they kept records of there mis-management. What's happened to the massive chunk of land adjacent to melton that was supposed to be developed to provide an external income to hrv for years to come! Why have there been so many managers at melton sacked/payed out since it opened. Why does melton lose money hand of fist each week? This audit has been driven by participants who are fed up with the bullshit we're been fed and its long overdue! Ifs there's nothing to hide and everthings in order then we'll move on but until we get some honest answers the questions will continue.