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higher sales of deLaCour watches which
command higher margins as compared
to automobiles.
Boosted by the one-time gain arising
from the completion of the Sale and
Leaseback Arrangement of our existing
premises at 30 Teban Gardens Crescent
in March 2014 for a consideration of
S$41.0 million, the Group ended the
financial year with a net profit jump of
153.3% y-o-y to S$17.02 million.
As a gesture of appreciation to all
our shareholders and to fulfil the
commitment made to investors during
our IPO exercise, we have proposed a
special dividend of 2.8 cents per share,
which translates to a dividend payout of
43.6%. This will be funded solely from
sales proceeds arising from the Sale and
Leaseback Arrangement, and is subject
to shareholders’ approval at our first
Annual General Meeting (“AGM”) to
be held on 31 July 2014.
BUSINESS OUTLOOK
AND STRATEGIES
The Singapore automobile industry
is going through trying times. Motor
companies, particularly pre-owned
automobile dealers, are struggling
to stay afloat in the face of tougher
government measures that have eroded
the buying power of potential buyers.
On this note, we are heartened to have
carved out a niche market in the affluent
consumer segment, which is less price
elastic and therefore less affected by
market volatility and policy changes.
While the competition in our industry
is expected to remain intense, we are
optimistic that the Lamborghini Huracán
and Alfa Romeo 4C will stir up some
excitement among our customers in
the luxury and ultra-luxury automobile
segments, where purchases are typically
higher when newmodels hit the market.
We look forward to improvingour FY2015
performance with the roll-out of these
two new car models.
Having made a name for ourselves in
Singapore, we are exploring regional
markets for the expansion of our
business and have taken first steps
with our luxury watch distribution
business. Since bagging the exclusive
distributorship for deLaCour watches
in several Southeast Asian markets,
JOINT LETTER
TO SHAREHOLDERS (Con t ’ d )
we have enlarged our regional footprint
by appointing a local distributor PT
Eurobutik Bangun Indonesia in Jakarta,
Indonesia, and are currently in talks with a
potential distributor inBangkok, Thailand.
Wewill continue to explore opportunities
to expand this segment of our business.
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. Moving forward,
EuroSports Global intends to grow its
geographical reach and widen its array
of products, including customisable
products that are one-of-its-kind to suit
the exclusive tastes of our customers.
The rise of Asia and the shift in global
wealth to this part of the world looks
set to create more high net worth
individuals in Singapore and the region,
driving discretionary spending in luxury
and ultra-luxury products. As such, we
will continue to leverage on our key
competitive strengths – our strong
and long-standing relationships with
existing principals and established
pool of high net worth customers, to
enhance our sales performance and
obtain new distributorships/dealerships
towiden our portfolio of automobile and
luxury products.
We have also constructed new facilities in
line with our growth plans. Construction
works at our 30 Teban Gardens Crescent
premises have been completed and the
new double-storey annexe building now
comprises a newAlfa Romeo showroom,
an exotic cars display area and an office.
To make room for further business
expansion,wewill commenceconstruction
of our new facilities at 7 and 9 Chang
Charn Road in 2015. The new location
is close to Singapore’s automobile
shopping belt of Leng Kee Road and
it will supplement our Teban Gardens
headquarters. It will house our new
office, showroom, service centre and
automobile parts and accessories store.
Construction works is expected to take
24 months.
APPRECIATION
At this juncture, wewould like to take this
opportunity to thank all our shareholders
who have supported our listing and
joined us on this new journey as a listed
company. Special thanks go to our staff
for their hard work and dedication
towards building EuroSports Global
into what it is today. We are also deeply
appreciative of the trust, support and
friendship that our principals, business
partners and customers have given us
over the years, and we look forward to
deeper collaboration in years to come
as EuroSports Global sets its sights on
greater heights.
We look forward to seeing you at our
AGM on 31 July 2014.
MELVIN GOH
Executive Chairman & CEO
ANDY GOH
Executive Director & Deputy CEO
LAMBORGHINI URUS: EXPECTED TO BE LAUNCHED IN 2017
ALFA ROMEO 4C: TO BE LAUNCHED IN JULY 2014
WE ARE OPTIMISTIC THAT THE
LAMBORGHINI HURACÁN AND
ALFA ROMEO 4C WILL STIR UP
SOME EXCITEMENT AMONG
OUR CUSTOMERS.
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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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