No love for Lambo: Luxury car dealer EuroSports reports losses, seeks funding to support business
The group has raised material uncertainty over its ability to continue operating.
Singapore's Lamborghini dealer, EuroSports Global, is facing financial difficulties and is seeking additional funding to support its business. The group reported a widening net loss of $1.24 million in the quarter ending September 30, up from $752,000 a year earlier. Revenue declined by over 30% to $7.83 million. For the first half of the financial year, the group's net loss increased by 57% to $2.29 million, as revenue fell 21.7% to $15.1 million.
EuroSports is the distributor for luxury brands Lamborghini and Touring Superleggera in Singapore, where high-end supercars often sell for more than $2 million. However, increased registration fees and rising certificate of entitlement premiums have dampened demand for these vehicles. The group also anticipates economic and geopolitical uncertainties to make potential buyers more cautious in the coming months.
Despite these challenges, EuroSports remains optimistic. The company hopes that new luxury models will attract more buyers. It expects to deliver new versions of Lamborghini's Urus SE SUV in the October-to-December quarter, and a new version of the Temerario sports car by March 2027. EuroSports also operates an electric motorcycle business, with the Lambda Scorpii, a homegrown model, recently gaining European type approval.
The company plans to mass-produce and sell this motorcycle starting in 2028, after securing additional funding. Currently, the group's short-term liabilities exceed its assets by $6.54 million, indicating financial strain. However, the board still believes the car distribution business can generate enough cash to cover operating expenses in the next year.
EuroSports is in discussions with financial institutions and potential investors for further funding to support operations over the next 12 months.
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