F I NANC I AL PERFORMANCE
Revenue
Revenue achieved by the Group in FY2015 was S$40.37
million, a 1.6% increase from S$39.76 million in FY2014.
• Sale of Automobiles segment
Revenue contribution by this segment increased by
approximately 7.0% from S$31.33 million in FY2014 to
S$33.51 million in FY2015, mainly because of contribution
by newly acquired 60% subsidiary, AutoInc EuroSports
Pte. Ltd., which deals primarily in the sale of pre-owned
automobiles and the provision of after-sales services.
Sales of pre-owned automobiles sold increased from 13
in FY2014 to 24 in FY2015. This increase was offset by the
decrease in the sale of new Lamborghini automobiles from
15 in FY2014 to 13 in FY2015 mainly due to the effects of
new vehicle regulations related to increased additional
registration fees and the tightening of loan financing
restrictions.
• Provision of After-Sales Services segment
The new subsidiary also contributed to the increase in
revenue achieved by the Group’s Provision of After-Sales
Services segment, which rose 4.8% to S$5.50 million in
FY2015.
• Sale of deLaCour Watches segment
Revenue from this segment decreased 57.1% from S$3.18
million in FY2014 to S$1.36 million in FY2015 due to a
lower number of watches sold through distributors.
Cost of Sales
Cost of sales increased by 6.8%, from S$30.93 million in
FY2014 to S$33.01 million in FY2015 mainly due to an increase
in vehicle taxes and fees of S$3.83 million, which was partially
offset by a decrease in cost of purchases of S$1.84 million.
Gross Profit & Gross Profit Margin
The Group’s gross profit decreased from S$8.83 million in
FY2014 to S$7.36 million in FY2015. Gross profit margin also
fell approximately from 22.2% in FY2014 to 18.2% in FY2015
due to the increase in the proportion of the lower-margined
pre-owned automobiles sold.
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T H E S T R E N G T H O F O U R B R A N D S
Other Income
Other income increased by approximately 31.2%, from
S$5.19 million in FY2014 to S$6.47 million in FY2015. The
increase was mainly due to a rise in deferred income of
S$1.40 million related to the completion of the sales and
leaseback of 30 Teban Gardens Crescent on 17 March 2014,
an increase in leasing income of S$0.39 million arising from
the increased number of leasing automobiles, partially offset
by a decrease in commission income of S$0.58 million.
Other Credits & Charges
The Group recorded a charge of approximately S$1.47
million in FY2015 as compared to a credit of S$16.35 million
in FY2014 mainly due to:
• an impairment loss of goodwill of S$1.97 million relating
to the acquisition of a subsidiary; and
• a decrease in gain on disposal of property, plant and
equipment of S$16.28 million as the one-time gain
arising from the sales and leaseback of 30 Teban
Gardens Crescent was recognised in FY2014.
The decrease in other credits was partially offset by an
increase in other payables written back of S$0.51 million
relating to income recognised on non-refundable customer
deposits and other long outstanding owings.
Marketing & Distribution Expenses
Marketing and distribution expenses increased from S$2.93
million in FY2014 to S$3.32 million in FY2015. The increase was
due to an increase in advertising and promotions expenses
of S$0.86 million incurred for launch events for the new
Lamborghini Huracán, brand building activities on Lamborghini
held at Wisma Atria, and launch events for the new deLaCour
boutique at Wisma Atria. The increase in marketing and
distribution expenses was partially offset by a decrease in
entertainment expenses of S$0.29 million.
Administrative Expenses
Administrative expenses increased by approximately 42.1%,
from S$9.70 million in FY2014 to S$13.79 million in FY2015,
mainly due to an increase of rental and related expenses
of S$3.89 million mainly due to the leaseback of 30 Teban
Gardens Crescent; an increase in employee benefits expenses
