$108k loss sparks changes for HOY

The night market at the Horse of the Year show in March proved popular. Photo / File

Changes are being made to the running of Horse of the Year event after the organisation behind the show reported a $108,000 annual loss.

Horse of the Year (Hawke's Bay) boosted its revenue in the year to the end of May slightly - from $2.27million to $2.36million - but the $108,000 loss compared with a $7000 profit in 2013.

In its annual report, presented to the Hastings District Council yesterday, HOY chairwoman Cynthia Bowers said the company's board was disappointed with this year's financial result, but had invested in several initiatives that would pay off in future years.

"The loss has highlighted several things: Firstly the challenge of running a world-class event in Hawke's Bay, and secondly the need for sound business practice and timely and accurate financial systems," she said in the report.

One issue for the event had been its barrier to growth because of the size of Hawke's Bay Showgrounds where it was staged. It was not possible to have more horses competing. The board had been working on other ways to develop new revenue streams. A push to attract Chinese riders, spectators and horse buyers to Hawke's Bay had met success this year and was one of the investments the company had made aimed at future growth.

Another change this year was running the cross-country event at the showgrounds. "The relocation of this event came at a cost but again the board view this as an investment in the future.

"Events such as the cross-country have high spectator appeal and contribute to the board's objective of making the show better but not bigger," Ms Bowers said.

Money had also been invested in putting a health and safety plan in place.

General manager Ian Wilmot said in the company's annual report the threat of a cyclone was among the challenges for show organisers this year. It had forced directors to make the "bold move" to cancel a prequel event - The Holy Grail of Showjumping at Church Road - planned for the Sunday before the show.

The feared Cyclone Lusi ended up bypassing the region and "the weather for the remainder of the show was very kind", Mr Wilmot said. Estimated attendance at the show was 83,000 this year, up from 76,000 in 2013.

"It is extremely disappointing to report a loss this year when the show was so widely acclaimed as a great show," he said.

"Some of the investments made in 2014 will produce rewards in future years and some lessons have been learnt about tighter financial controls."