Luxury car dealer EuroSports Global announces strategic review ahead of AGM


SINGAPORE (THE BUSINESS TIMES) – Luxury car distributor EuroSports Global is undertaking a strategic review to consider options for its various businesses to evaluate opportunities and positioning, with a view to unlocking value and maximising potential value for stakeholders.

In a bourse filing on Wednesday (July 13), the Catalist-listed group said this would include assessing options including potential fundraising exercises or restructuring of companies within the group, such as through spin-off listings or de-Spac transactions.

EuroSports is known for the Lamborghini, Alfa Romeo and Touring Superleggera brands it distributes here. Aside from developing a premium electric motorcycle brand, Scorpio Electric, the group is also incubating a new business-to-business sustainable mobility brand.

In light of these businesses, EuroSports said its strategic review will be “timely” to assess the future of its business and optimal path in realising the group’s potential.

The strategic review aims to maximise shareholder value while also providing the long-term potential benefit of developing the group’s sustainable growth strategies, it added.

EuroSports’ announcement of its strategic review comes ahead of its July 28 annual general meeting.

Its automobiles distribution segment remains the major contributor to its topline, boosting FY2022 revenue by 10.7 per cent on year to $54.4 million from $49.1 million due to higher sales in Lamborghini automobiles.

Gross profit margin for the latest fiscal year however fell 1.3 percentage points to 16.2 per cent due to lower prices in some new car sales.

In its outlook, EuroSports said it expected the group’s performance to be negatively affected by a slowdown of demand, considering global economic volatility and the prolonged Covid-19 pandemic.

It particularly expects its sustainable mobility subsidiary EuroSports Technologies to continue incurring development expenses, and therefore does not foresee meaningful revenue from the unit in the financial year to come.

The group’s executives also noted a decline in high net-worth Chinese nationals residing in Singapore since the start of 2022 due to lockdowns in China. This has impacted the demand for ultra-luxury automobiles, they wrote in a joint letter to shareholders in the group’s annual report for FY2022.

Shares of EuroSports Global ended Tuesday unchanged at 16.5 cents.


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Jaime E. Love

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