EuroSports Global hit by full-year loss

EuroSports Global executive chairman and CEO Melvin Goh (left) and executive director and deputy CEO Andy Goh at the listing ceremony held outside SGX Centre in Shenton Way on Jan 17, 2014. EuroSports Global, the sole authorised Lamborghini dealer in
EuroSports Global executive chairman and CEO Melvin Goh (left) and executive director and deputy CEO Andy Goh at the listing ceremony held outside SGX Centre in Shenton Way on Jan 17, 2014. EuroSports Global, the sole authorised Lamborghini dealer in Singapore, reported a net loss of $4.02 million for its financial year ended March 31, 2015. -- ST PHOTO: CHEW SENG KIM  

SINGAPORE - EuroSports Global, the sole authorised Lamborghini dealer in Singapore, reported a net loss of $4.02 million for its financial year ended March 31. This marked a 123.6 per cent year-on-year drop from the $17.02 million net profit recorded last year.

The loss was partly resulted from a goodwill impairment of $1.97 million arising from the acquisition of subsidiary AutoInc EuroSports.

At the same time, the company has been affected by a difficult operating environment. Revenue grew just 1.6 per cent for the full year to $40.37 million, as the company was hit by a drop in new sales due to tighter loan financing restrictions that led to less new Lamborghinis sold in the period.

As a result, EuroSports Global reported a loss per share of 1.52 cent, down 120.8 per cent year-on-year. Net asset value stood at 9.46 cents per share as at March 31.

The company expects the year ahead to remain challenging due to competition from other distributors in Singapore's crowded market. Demand may also slow further if regulations are further tightened.

But chief executive Melvin Goh said the strength of Lamborghini's brand will remain the company's competitive edge, adding: "We are excited about our new Lamborghini display and retail store which will be opening at Suntec City Mall by end of 2015."