EuroSports Global posts S$3.13m H1 loss

Singapore

LUXURY lifestyle company EuroSports Global Ltd has reported a net loss of S$3.13 million for the first half of its fiscal year ended Sept 30, from a net profit of S$1.89 million a year ago.

The company, which is the only authorised dealer for Lamborghini cars in Singapore, said the loss came on the back of lower revenue, which plunged 41.2 per cent on a year-on- year basis to S$15.80 million for the six months ended September 2014.

The fall in revenue was due largely to a decrease in the number of new cars sold, particularly the Lamborghini models, said EuroSports Global.

It added that sales of new cars were affected mostly by tighter government regulations on car ownership in the form of additional vehicle registration fees and loan-financing restrictions. The end of the life cycle of the Lamborghini Gallardo model also contributed to the lower sales.

EuroSports Global said the fall in revenue from new cars was offset by higher revenue from pre-owned vehicles. The company recently acquired AutoInc Sports Pte Ltd, a resale agent for sports and luxury cars, which raked in higher revenue from used vehicles. The lower group revenue was also due to a decline in the sales of deLaCour watches.

Cost of sales fell 34.0 per cent to S$13.53 million for the first half of FY2015. Gross profit for the six months came in at S$2.27 million, down 64.4 per cent.

Loss per share for the period was 1.18 Singapore cents, compared with earnings per share of 0.84 Singapore cents a year ago. Net asset value per share stood at 10.19 cents as at end-September, while it was 13.73 cents as at end-March.

The outlook for the next 12 months "remains challenging" due to intense competition as well as tighter regulations that may be imposed, but the group expects sales to pick up in second-half FY2015 with the recent launch of a new Lamborghini model.