Tightening of business practices in Helgstrand Dressage

Helgstrand Dressage has been involved in several hundred successful deals with high-quality horses and remains part of several long-term and professional partnerships with satisfied co-owners.

It is both regrettable and untenable when mistakes have been made in specific cases, or when misunderstandings or disagreements have occurred concerning the contractual basis, prices, costs and guarantee to buyers in connection with resale.

We have therefore decided to tighten several processes and our business practices to professionalize operations and ensure that Helgstrand Dressage lives up to its position as market leader. We will set new standards for transparency in Helgstrand Dressage and hope that the industry will follow our example and introduce the same new and improved standards.

Background

Based on both unsubstantiated and specific allegations and accusations made as part of the critical and one-sided press coverage in Danish regional media outlet NORDJYSKE in May-June 2022, the Board of Directors of Global Equestrian Group Holding on 31 May engaged one of Denmark's largest law firms to conduct a thorough legal investigation of the company's business practices.

The investigation has taken been carried out over the course of 3 weeks and is based on extensive material, which includes:

  • Audit reports of the financial years 2018/2019 – 2020/2021
  • Detailed inventory lists of fully and co-owned horses stabled with Helgstrand Dressage
  • All co-ownership agreements
  • Invoices from co-owners to Helgstrand Dressage
  • Contracts for the sale of horses from Helgstrand Dressage
  • Information concerning payment of commission
  • Information concerning guarantees offered to buyers

The investigation concludes that incomplete documentation and lack of written information on co-ownership of and trading with horses in several cases pose a risk of conflicts of interest and disagreement between partners and Helgstrand Dressage.


Actions

Based on the legal investigation and a closer examination of several individual cases – which are treated confidentially a matter of principle – Helgstrand Dressage's day-to-day management immediately initiates a tightening of the company's procedures.

The measures include, among other things:

  • Preparation of a detailed and transparent co-ownership agreement by an external lawyer with deep insight into the industry
  • Presentation of the new and improved co-ownership agreement to all current partners
  • Full transparency for co-owners regarding all costs and calculation of guarantee amount before settlement of horse sales
  • Introduction of improved written purchase agreements that fully regulate and describe the terms of all purchases of horses
  • Reviewing and updating sales contracts as needed and emphasizing the requirement of documenting agreements in writing and ensuring that all contracts are signed before executing deals
  • Strengthening the ongoing efforts to clarify the overview of costs per horse through the roll-out of a new ERP system that was implemented in January 2022 and is being commissioned
  • Implementing an internal procedure ensuring that Global Equestrian Group Holding’s Board of Directors is informed upon receipt of any allegations of dishonest business practices in Helgstrand Dressage

Timeline and other conditions

The measures are expected to be implemented as soon as possible and communicated directly to all partners and employees of Helgstrand Dressage, and they will be reviewed by day-to-day management in personal conversations with all employees directly involved in the trade of horses.

The above initiatives complement the ongoing efforts to professionalize operations in Helgstrand Dressage, which also includes the employment of a HR Manager in 2022 and a sharpened focus on continuously improving working conditions.

Andreas Helgstrand
CEO

Contact us

We would be pleased to help you choose the perfect horse for you, based on your budget and your requirements.

Andreas Helgstrand
andreas@helgstranddressage.dk

Thomas Sigtenbjerggaard
thomas@helgstranddressage.dk

Uggerhalnevej 80, 9310 Vodskov