GOING
THE DISTANCE
EUROSPORTS
GLOBAL
W
e believe this concept will take off and the Group
is in talks with potential partners around the region
to also launch UD Club overseas.
YEAR
I N REV I EW
Despite a challenging operating environment, the result of
a slowing global economy and poor consumer sentiment,
we were nonetheless able to end the year with higher
sales, thanks to the efforts of our sales team who were
unceasing in their efforts to engage our existing customers
and to chase down every potential sale. As a result, the
Group achieved revenue growth across all its business
segments. As a Group, we achieved a 57.4% year-on-year
(“YOY”) increase in revenue to S$63.53 million.
The past few years have been difficult and challenging
for the car dealership industry, which continued to be
affected by government policies that put a curb on car
loans and introduced an unfavourable progressive tax
structure. The economic slowdown did not help matters
along and it has culminated into a very slow period for
the luxury and ultra-luxury automobile market.
We are grateful to our principal, Automobili Lamborghini
S.p.A., for supporting us and allowing us to make the pricing
of Lamborghini automobiles more attractive so that we
were able to double our sales with 31 new Lamborghini
automobiles sold as compared to the 13 we sold in the
preceding year ended 31 March 2015 (“FY2015”).
Sales of pre-owned automobiles increased by S$11.1
million YOY as our investment in our 60%-owned
subsidiary AutoInc EuroSports continued to pay off.
Corresponding to the higher number of cars sold, our
After-Sales Services grew 10.0% and generated revenue
of S$6.1 million during the year in review.
Over to our watch distribution business, sales generated
by our Sales of deLaCour watches segment also grew
with 44.0% more watches sold YOY.
Despite the good sales performance, we ended the year
with a net loss after tax attributable to owners of the
Company in FY2016 amounting to S$4.50 million as
compared to the net loss after tax attributable to owners
of the Company of S$4.02 million in FY2015.
The bottomline performance was affected by lower gross
profit margins from the sale of cars, and also because
of higher operating expenses. Items that contributed to
the Group’s higher expenses included higher staff costs
mainly due to higher commissions paid out on the back
of better sales performance as well as rentals from both
our new Lamborghini showroom at Suntec City Mall and
Wisma Atria deLaCour watch boutique. Rental from the
Wisma Atria boutique was fully recognised in FY2016
and was therefore higher as compared to FY2015 where
only four months was recorded following its opening in
December 2014.
BUS I NES S OUTLOOK
AND STRATEG I ES
The Group expects the next 12 months to be challenging
due to intense competition among automobile distributors
in the small but mature Singapore market. At the same
time, we are feeling optimistic as we just started Ultimate
Drive, which is not reliant on car sales. In fact, we are
hoping that members of UD Club will enjoy driving the
supercars so much that they will eventually become
our customers.
J O I N T L E T T E R TO
OUR SHAR EHOL DE R S
L AMBORGHINI / HURACÁN
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