Are HRV broke?

[Messenger]

Frugal Fare is well named for this thread
Before last night FF had had 10 starts for 5 wins, 3 seconds and 1 third
All his starts had been at Shep or Bendigo and yet he had won only $21k
Now after a Saturday night Melton win his prizemoney is still a few bucks short of $30k

https://www.harness.org.au/racing/fi...25#MXM29032506

[Messenger]

I have heard a rumour about a possible redundancy that will absolutely shock people if correct
When I look at the fb page at all the people we are paying to give tips or report on trials etc I cannot believe this rumour could be true but my source is very strong.
We must be totally $@^%*# !!!!!!!!!!!!!!!!!

Tread carefully HRV - you don't dismiss the ones that we can all see are doing important work well

[trish]

So Kev , you do not think I can ask them for a loan?

[trish]

6 $4000 races at Melton last night . Not good .
Obviously people are not in it for the money!!!

[Messenger]

I have gone to the Annual Report to try and work out how we got into this mess

At the time of the Report only one of the 5 on our current board had been there longer than 3 months
so you could say that heads have rolled

The following chart is from the Report

Now for some 'super amateur' accounting
We will begin in the latest 2024 column
Lets start at the Yellow Net Result line

Our Net Result was +$41m But you will see from the lines above that, that was only due to nearly $67m of grants cancelling out our $25.838m loss.
Then if you follow my red line you will see how the grants stopped the previous years Total Liabilities of $61.872m from spiraling out of control (to what would have been over $80m)
The $41m Net Result helps get our Total Liabilities down to $16.85m (very bottom row)
See in my next post 'what this has cost us' !

This is of course very aproximate stuff by me. I did the 2023 with a blue line because I do not understand how the - $6.658m Net Result took the Total Liabiilites from $42m to nearly $62m? Something is missing which I will try and hunt out (maybe last year's report?)

It is disgusting how the board was letting this debt spiral out of control

[Messenger]

From the report = How they have taken HRV's excess land !

In the 2024 financial year, the Victorian Government provided $23.7 million in operating grant income to help with HRV’s solvency and the implementation of a restructuring strategy. A further $41.9 million has been recognised as grant income, funding that was paid directly to Treasury Corporation Victoria to repay both HRV’s short-term and long-term debt facilities. This funding is part of the solvency support package for HRV that the Victorian Government Budget and Finance Committee (BFC) meeting approved on 12 December 2023. The receipt of these funds from the Government resulted in an overall profit for the year of $40.1 million, however, as part of the support package, the decision of BFC also required HRV to declare 75.1 hectares of vacant land at Melton surplus to its requirements and referred to the Department of Transport and Planning to facilitate its sale

This is where you find the Annual Reports

https://www.thetrots.com.au/about-hrv/annual-reports/

[Messenger]

Now looking at the 2023 Annual report, I think I found the answer to why the blue line above showed a bigger jump in Liabilities than simply adding Net Result to the previous year's liabilities figure

The Answer is Borrowings

We were obviously spending more than we could afford = Mismanagement