Gold Circle members letter-read this...::o

Dear Member
Since the last report made to Members at the Annual General Meeting in December 2012, the Board and Management have been dealing with many issues that impact on the business activities of Gold Circle both from an operational and strategic perspective. Certain of these matters have been embellished on below and updates Members on significant issues.

KWAZULU-NATAL GAMING & BETTING BOARD (KZNGBB)

The Licencing applications submitted by Gold Circle during 2011 for a Racecourse and a Totalisator Licence were finally approved on 4th March 2013 following intense negotiations with the KZNGBB. These Licences however were approved together with onerous conditions which will have an impact on the business in the future.
The KZNGBB is pursuing a targeted Transformation strategy which is directly impacting on certain senior personnel positions within the company. The first of the requirements is that Gold Circle must, within a period of three months appoint a Black Chief Financial Officer designate who must be appointed to the position within twelve months of the granting of the licence. More importantly is the requirement that Gold Circle must, within a period of nine months appoint a Black Chief Executive Officer designate who will understudy the present CEO, Michel Nairac, with a view to taking over the position as soon as practicably possible.
Another licence condition relates to “ownership” quotas whereby effective Black membership to Gold Circle Racing Club must comprise of at least 26% by 31st December 2013.
The Board has taken a stance of “continuing dialogue” with the KZNGBB with a view to persuading that Board to consider amendments to the present imposed Conditions.
Gold Circle also applied, in terms of current legislation, for a Bookmaker Licence during 2011 which will convert the present restricted “Fixed-odds Authority” to a full bookmaker licence. This application is still pending.

DEMERGER: WESTERN CAPE

Members have previously been advised of the successful application to the Competition Tribunal to dispose of the business operation in the Western Cape. Gold Circle is currently in the process of dealing with the various Suspensive Conditions contained in the Demerger Agreement including the transfer of Cape properties to Kenilworth Racing (Pty) Limited. There have also been several discussions held with the interested parties dealing with the practical implementation of the demerger terms. It is believed that the Demerger will be given full effect within the next two months.
2
PROPERTY DEVELOPMENT

The Board has considered the various development proposals for the upgrades to both Greyville and Summerveld and has approved the capital expenditure for these projects. Management are in the process of finalising the contracts which include the following:
The commissioning of a new synthetic track on the inside of the grass track at Greyville. The construction of the track will commence during August 2013 following the completion of the Champions Season.
The commissioning of a new synthetic training track at Summerveld which will be commenced in parallel with the Greyville project.
The construction of 500 stables and ancillary facilities at Summerveld which will house the horses that are to be relocated from Clairwood Racecourse when the company’s property lease expires at the end of July 2014.
Projects that are in progress and should be completed before the 2013 Winter Season are noted as follows:
The large TV screen, which will replace the current Totalisator dividend information board, is on its way from China and will be a great improvement to information communication at Greyville. Members would already have noticed the completed smaller TV screen that has been constructed adjacent to the Greyville finishing post.
New totalisator terminals have been acquired, also from China, which will replace the obsolete equipment currently in use. These will greatly enhance the efficiency of operations at the racetracks. The roll-out of new terminals into the off-course environment will be progressed in due course.

FUTURE BUSINESS STRATEGY

During March 2013, the Board and Management concluded a successful business strategy workshop which updated the “2010 Five Year Strategy” having particular regard to the demerger and the sale of Clairwood Racecourse, and their impact on current business initiatives. Members will be apprised on the new strategy once the final “2013 Five Year Strategy” has been documented.

FINANCIAL

The first six months of trading in the current year ended on 31st January 2013. Turnovers generated by the Group amounted to R957 million against a budget of R1 047 million (-6%). Part of the reason for the decline in turnover is due to several race meetings being affected though inclement weather as well as having to readjust racing fixtures as a result of not racing at Greyville during the latter part of 2012.
The Group generated a loss of R3.2 million for the six month interim period with KwaZulu-Natal reflecting a profit of R4.6 million and the Western Cape reporting a loss of R7.8 million. Details of the Interim Financial Statements at 31st January 2013, together with a cash flow statement, can be found on the Gold Circle web site: www.goldcircle.co.za . It is encouraging to note that the projected profit for the Group to 31st July 2013 is estimated at R12.5 million with KwaZulu-Natal generating a profit of R21.5 million and the Western Cape, a loss of R9 million.

CHAMPIONS SEASON

Champions Season 2013 will be officially launched at a media function on Thursday 18th April at Greyville when the first entries for the R3.5 million Vodacom Durban July will also be announced.
As has been widely reported, the Feature Race programme has been boosted by an additional R6 million and the stage is set for yet another exciting season of top quality racing! No doubt many of the champions that will be crowned at the Equus Awards in August will have achieved this ultimate recognition as a result of their performances between May and July.

The annual pilgrimage to KZN of the country’s top horses has already begun and all of Joey Ramsden, Dean Kannemeyer, Justin Snaith, Vaughan Marshall, Brett Crawford, Alec Laird, Adam Marcus and Joey Soma have successfully applied for Champions Season stabling. No doubt the likes of Michael Azzie and Geoff Woodruff are formulating plans to raid with their best horses whilst Mike de Kock, Sean Tarry and Glen Kotzen will be ensuring that their local yards are filled with potential Graded-stakes winners.
With the country-wide success of the Dennis Drier, Gavin van Zyl, Duncan Howells and Paul Lafferty stables, this year’s Champions Season promises to deliver positive “Currie Cup-type” provincial rivalry such as has not been seen for some time. Whatever the outcome, the Sport of Horseracing is sure to be the real winner!
The Golden Horse Casino Raceday, featuring a Jackpot of Grade 1 Sprints, is the first major racing extravaganza of Champions Season and takes place at Scottsville Race Course on Saturday 25th May. Please book early to ensure your seat, either in Rockefellas or in the Members’ facility where Gold Circle will also be hosting the owners’ of runners in the four feature events.

INTERNATIONAL SUCCESS

The 2013 Dubai World Cup extravaganza proved to be yet another memorable evening for the Mike de Kock stable and South African-bred horses.
Soft Falling Rain, a son of National Assembly bred by Highlands Farm Stud, became the first three year old to win the Godolphin Mile and he did it the hard way. Trapped very wide on the turn, Soft Falling Rain looked to have it all to do at the halfway mark but Paul Hanaghan never let up in the saddle and the pair gradually wore down Haatheq to maintain Soft Falling Rain’s undefeated record of seven victories from as many starts.
Not long thereafter Shea Shea, a grandson of National Assembly bred by the Klawervlei Stud, stopped the clock in course record time when winning the Al Quoz sprint over 1 000 metres. Sitting just off the pace for most of the trip, Christophe Soumillon made his move approaching the final furlong and the acceleration from Shea Shea was such that he blew the opposition away in a matter of strides to win going away.
Highdown Stud-bred The Apache then lined up in the Duty Free, looking to give our local stud book an amazing treble – and while the fairy tale finish did not fully materialise, certainly no glory was lost in defeat. The Apache disputed the lead throughout the stretch but proved no match for Sajhaa in the closing stages and was beaten into second. The son of Mogok will now reportedly contest the QE II Cup in Hong Kong, (won so famously by London News in the nineties), while Shea Shea will seek Ascot glory in the Kings Stand Stakes.
The Board, Management and Staff of Gold Circle pay tribute to Mike de Kock for once again flying South Africa’s flag high on the international stage.
We look forward to your continued support and active participation in the affairs of the Club.

Yours in racing
M J R Mauvis
Chairperson

Where is Umlilo

@agra:

I happen to try breeding and named a horse Boston or Bust on my blog; now, they looking for me!

S..t!

Did I have to append my true name?

Lol!

()

sent you a pm!

(tu)

@agra:

Strange that GC notes 'These Licences however were approved together with onerous conditions which will have an impact on the business in the future.'?

after all, I always thought that they were in the forefront as far as transformation was concerned....according to their web site?

Recently, I lost all interest in pursuing a battle for years (not just for transformation) but the overhaul of the elitist, ultra-rich white male dominated and controlled industry to the detriment of the mass (all punters stakeholders..... black or white).

They dictated.... and we had to listen like little kindergarden kids! Seems.... no more! Like Graeme Hawkins who hijacked my idea of syndication while he was at the RA and sold it as his own! Yes, I was pissed off by this opportunist!

There were other suggestions I had made to the KZNBG and GC would be wise to engage with me; it's never too late! Also consider, (coming from the cabal days of the NIC), I have always been open to compromise, resolution and unity of all.

Right now, I doubt GC will make its target and the 2014 licences are in jeopardy. My ancestors (khoisan herdsmen) always adhered to the maxim; for the grass to grow green again.... burn it! They knew exactly what we dread to think of today!

Finally, I hope that this 'cancer' spreads to Gauteng and impacts on the new GGB members to start asking questions and laying down conditions.

No..... I am not after any form of enrichment or position; never ever was!

on a lighter note:

I see GC has ordered equipment from China.

Hope it's not like my experience?

I ordered a perforator with 4 extra perforating wheels.

They sent me the unit with 4 indenting wheels.....uselss for what I required it for!

Now, they want me to order 10 units and they will replace the perforator wheels!

A klap for dealing with such Chinese!

()

:X

umlilo Wrote:

---

> on a lighter note:
>
> I see GC has ordered equipment from China.
>
> Hope it's not like my experience?
>
> I ordered a perforator with 4 extra perforating
> wheels.
>
> They sent me the unit with 4 indenting
> wheels.....uselss for what I required it for!
>
> Now, they want me to order 10 units and they will
> replace the perforator wheels!
>
> A klap for dealing with such Chinese!
>
> ()
>
> :X

If you got it from SA there would have been no wheels!!!!!!X(

@WE:

'If you got it from SA there would have been no wheels!!!!!!hot smiley'

-D

umlilo Wrote:

---

> @WE:
>
> 'If you got it from SA there would have been no
> wheels!!!!!!hot smiley'
>
> -D


And you would have to give someone a back-hander.

Does it say what nationality the CEO designate has to hail from?

The imposition of these conditions on the granting of the licence, imvho, is tantamount to "black male". In the trade we refer to such arrangements as "bending over blackwards".

Everybody knew it was coming and like Umlilo says should be extended into Gauteng at the very least. At least they have stopped at quotas on the colour of horses who are wise enough never to be classified as black or white.

A good move overall but the quota on membership will be difficult to achieve in practice.

@Gajima:

'A good move overall ...'

(Heh! Heh! quoting you out of context!)


As noted on another fresh thread; the operators could do by using ABC (and listening to clan members).

I am certain that if they took heed of some of the comments / suggestions I made (and others), they would not have been in the situation they now face!

I can tell you (off the record!) that things are going to be even tougher next time around. They should remove their 'blinkers' and engage with others who also have an interest / stake in the game..... if it still is!

umlilo Wrote:

---

> @Gajima:
>
> 'A good move overall ...'
>
> (Heh! Heh! quoting you out of context!)
>
>
> As noted on another fresh thread; the operators
> could do by using ABC (and listening to clan
> members).
>
> I am certain that if they took heed of some of the
> comments / suggestions I made (and others), they
> would not have been in the situation they now
> face!
>
> I can tell you (off the record!) that things are
> going to be even tougher next time around. They
> should remove their 'blinkers' and engage with
> others who also have an interest / stake in the
> game..... if it still is!


ex employee of GC told me part of their job was to watch the site and report back..