SEO Version
DEAR SHAREHOLDERS,
EuroSports Global was successfully listed
on Catalist of the Singapore Exchange
Securities Trading Limited (“SGX-ST“) on
17 January 2014, the first Initial Public
Offering (“IPO”) launched on Catalist in
2014. At S$0.28 per share, our offering
of 80 million invitation shares garnered
strong interest from the market and was
approximately 2.9 times subscribed. We
want to thank you for your support of
our listing and it is indeed our pleasure
to present to you our inaugural annual
report for the financial year ended
31 March 2014 (“FY2014”).
STARTING A NEW CHAPTER
The listing marked a major milestone
for the Group and it has given us the
resources and confidence to execute
our long-term strategy which will gear
us up for the next stage of growth.
We have come a long way since our
humble beginnings as a single-brand
MELVIN GOH
Executive Chairman
& CEO
J O I N T L E T T E R
T O S H A R E H O L D E R S
automobile distributor in 1998 with just
nine employees, to what we are today,
a 58-employee strong luxury lifestyle
company that not only specialises
in high-end automobiles, but also
exclusive timepieces, targeted at the
affluent retail market domestically and
internationally.
Over the years, ourGrouphas consistently
delivered strong sales for the Lamborghini
manufacturer, and our stable of luxury
and ultra-luxury automobile brands
have expanded to include Pagani, Alfa
Romeo, and customised automobiles
supplied by Touring Superleggera.
To enhance our product offerings to our
well-heeled customers, we entered the
luxury timepiece business in 2012 when
we secured the exclusive distributorship
for the deLaCour brand of watches
in Singapore, Malaysia, Thai land,
Indonesia and Brunei, setting the stage
for EuroSports Global’s transformation
from a luxury car dealer and distributor
into a luxury lifestyle company.
FY2014 YEAR IN REVIEW
The drastic measures undertaken by
the Singapore government in 2013
to control car ownership and ease
congestion on the roads had inevitably
impacted the automobile industry and
our performance.
In retrospect, the move to diversify our
business proved to be strategic because
it was our fast growing watch business
that partially cushioned the negative
effect of the measures on our business.
In FY2014, our revenue fell 54.0%
year-on-year (“y-o-y”) to S$39.76
million, largely a result of fewer new
and pre-owned automobiles sold. The
higher registration fees imposed by
the government weakened our new
automobile sales, while the tighter loan
restrictions jolted the sales of both our
new and pre-owned automobiles.
Besides the more stringent government
regulations on the local car market,
demand for newLamborghini automobiles
in FY2014 was also muted as customers
pulled the brakes on new purchases in
anticipation of the soon-to-be-launched
Lamborghini Huracán, a brand new
model that will replace the Lamborghini
Gallardo, that is due to hit the roads in
September this year.
The Group’s revenue from the sales of
automobiles declined 60.1% y-o-y to
S$31.33 million. In tandem, revenue
from the provision of after-sales services
dipped 5.7% to S$5.25million in FY2014.
On the other hand, revenue from the
sales of deLaCour watches gained
momentum in FY2014 and grew an
encouraging 40.1% to S$3.18 million,
fuelled by higher sales achieved by our
appointed distributors.
Overall, the Group’s gross profit fell
48.7% to S$8.83 million. However, on
a positive note, our gross profit margin
improved by 2.3 percentage points
from 19.9% to 22.2%, owing to the
OUR BUSINESS STRATEGIES ARE MEANT TO LEAD
US TOWARDS OUR LONG-TERM VISION TO BECOME
A PREMIUM LUXURY LIFESTYLE COMPANY WITH A
DIVERSIFIED PORTFOLIO OF BESPOKE PRODUCTS.
ANDY GOH
Executive Director
& Deputy CEO
LAMBORGHINI HURACÁN:
TO BE LAUNCHED IN SEPTEMBER 2014
12
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A M A R Q U E A B O V E T H E R E S T
2 0 1 4 A N N U A L R E P O R T
E U R O S P O R T S G L O B A L L I M I T E D
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