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E U R O S P O R T S G L O B A L L I M I T E D
OPERAT ING &
F INANCI AL REV I EW (CONT.D)
A L F A R O M E O
G I U L I E T T A
of S$0.97 million due to an increase in headcount arising from
the acquisition of a subsidiary and the additional hiring of staff in
the Group; and an increase in property taxes of S$0.22 million.
The increase in administration expenses was offset by a
decrease in professional fees of S$0.85 million as higher
professional fees were incurred as listing expenses in
FY2014; and a decrease in depreciation expense of S$0.38
million arising mainly from the disposal of 30 Teban Gardens
Crescent.
Loss, Net of Tax
As a result of the aforementioned, the net loss after tax
attributable to owners of the Company in FY2015 amounted
to S$4.02 million.
F I NANC I AL POS I T ION
Non-Current Assets
Non-current assets increased from S$20.68 million as at 31
March 2014 to S$23.68 million as at 31 March 2015 mainly
due to an increase in property, plant and equipment of S$3.52
million, of which S$3.15 million was due to additions in motor
vehicles arising mainly from an increase in leasing automobiles.
The increase was offset by a decrease in the non-current
other assets of S$0.52 million relating to the amortisation of
the long-term portion of the upfront land premium paid in the
sales and leaseback arrangement.
During the period, the Company recognised an intangible
asset of S$2.47 million relating to preliminary goodwill from the
acquisition of a subsidiary which was subsequently adjusted
to S$1.97 million upon the completion of the purchase price
allocation exercise. The goodwill of S$1.97 million was fully
impaired and written off as at 31 March 2015.
Current Assets
Current assets decreased from S$59.36 million as at 31 March
2014 to S$48.47 million as at 31 March 2015 mainly due to a
decrease in cash and cash equivalents of S$24.57 million arising
from the payment of dividends of S$7.42 million and other uses of
funds in operating, investing and other financing activities; and a
decrease in other assets of S$0.67 million because of a decrease
in deposit payment of S$1.07 million relating to one Pagani
automobile being delivered to the Group, partially offset by an
increase in deposit payment of S$0.15 million relating to one
Touring Superleggera automobile and rental deposits of S$0.33
million for the stores at Wisma Atria and Suntec City Mall.
The decrease in current assets was offset by an increase in
inventories of S$13.75 million mainly due to an increase in
inventories of new automobiles of S$14.63 million which was
offset by a decrease of pre-owned automobiles of S$0.92
million and an increase in trade and other receivables of
S$0.60 million, mainly due to balances from a few customers.
Included in other assets is an amount of approximately S$1.90
million relating to deposits paid to Spania GTA Technomotive
S.L. for the order of five GTA automobiles. The Executive
Directors of the Company have on 18 November 2013
executed a deed of indemnity in favour of the Group, pursuant
to which the Executive Directors have undertaken, inter alia,
that they will pay to the Group, on a joint and several basis,
all deposits and monies paid to GTA Spain in connection with
the GTA automobiles remaining undelivered, in the event (i)
GTA Spain fails to deliver the GTA automobiles by 31 March
2015 and fails to refund the deposits and all monies paid to
GTA Spain in connection therewith, in full, to the Group; or
(ii) if GTA Spain is wound up, dissolved, insolvent, bankrupt
or placed in judicial management, whichever is earlier.
The Board of Directors has agreed not to demand for the
repayment of S$1.90 million till the end of August 2015 based
on correspondence from Spania GTA Technomotive S. L. on
the expected delivery schedule. The Management continues to
assess this delivery schedule.
