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Transcorp net loss widens by 35% in FY2018 as car sales fall

CATALIST-listed Transcorp Holdings saw its net loss widen by 35 per cent to S$7.22 million in the 2018 financial year,  from a loss of S$5.35 million in the year before.

Revenue in the 12 months ended Oct 31 was S$3.82 million, a fall of 37.2 per cent from the prior year. This was due largely to a reduction in the number of cars sold, from 52 in the 2017 fiscal year to 25 this year. Higher car rental income and sales of used cars failed to offset the decline.

Gross loss also widened to S$1.8 million from S$438,469, as older vehicles were sold at a deeper discount.

Loss per share was 2.90 Singapore cents in the 2018 fiscal year, widening from a loss per share of 2.23 Singapore cents in 2017.

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Transcorp said in its results filing on Sunday: "There continues to be no turnaround in the group’s automobile sales business. Strategic initiatives and plans by management to revive this line of business did not produce their intended results and hence fewer cars were sold this financial year."

One strategic initiative was to setup a car leasing business. In January 2018, this line of business which is parked under the subsidiary Stallion Auto entered into a tie-up with one of the local Grab authorised counters to provide motor car leasing services to Grab drivers.

Transcorp currently has a fleet of 23 cars that are leased out to private hire car drivers, it said.

Net asset value per share was 3.65 Singapore cents as at Oct 31, down from 6.50 Singapore cents as at Oct 31, 2017.

Transcorp shares last changed hands at S$0.015 on Dec 21.