Company’s earnings per share also improves from 0.04 baht to 0.05 baht, making investors more confident in its path to shift from motorcycle hire purchase to home electrical appliances
Singer Thailand Public Company Limited led by Vice Chairman and Manager Director Daniel Michel Philiponet reports the company’s performance for the second quarter of 2008 to the Stock Exchange of Thailand (SET), posting net profit of 12.9 million baht, up 23.3% from 10.5 million baht in the first quarter and impressively jumped from net loss of 116.6 million baht at the end of the second quarter of 2007.
Earnings per share of 0.05 baht also showed improvement when compared with 0.04 baht at the end of the first quarter of 2008 and negative figure of 0.43 baht from the same period a year ago.
However, the company reported decline of 11.8% in total revenue from 697.7 million baht at the end of the same quarter a year ago to 615.3 million baht, which was mainly due drop in sales following the policy to shift its core business from motorcycle hire purchase to home electrical appliances, where sales of motorcycle plummeted 78.4% or 94.6 million baht. Sales of home electrical appliances increased by 7.8% or 32.2 million baht but that could not compensate for the deliberate decline in motorcycle sales.
At the end of June 2008, the Company had a total of 211,777 installment accounts, down from 230,957 accounts reported at the end of December 2007. Among these accounts, 33,271 were motorcycle accounts, representing 15.7% of the total portfolio.
In addition, the percentage of paying accounts which is measuring how many accounts are paying from the total portfolio has been improving by 3.04% at the end of June 2008, compared with the end of December 2007.
Singer Thailand PLC generated a positive operating cash flow for the second quarter of 2008 at 53 million baht and a positive cash flow for the combined first and second quarters at 200.7 million baht.
The long-term loans have been reduced by 161.7 million baht from 683.3 million baht at the end of last year to 521.6 million baht, whereas short-term loans slightly increased by 0.8 million baht from 653.2 million baht to 654.0 million baht.
“Our TV commercials highlighting a multi brands, multi products trade-in strategy have been so overwhelmingly received that we plan to keep it on until the end of the year taking advantage of the opportunity of a huge replacement business for the company. The company has confirmed successful U-Turn converting a core business based on motorcycles into a core business based on electrical home appliances as shown in total gross sales for the second quarter of 2008, in which the motorcycle business represented only 5.5% of the total Gross Product Sales for the Quarter,” said Mr. Philiponet, adding that in order to create a complete, updated and consistent customer and guarantor contact information and streamline the credit approval process including with improving the account checking function, the company has re-engineered the Credit Process and Customer Database Enhancements under the supervision of the Head of Corporate Internal Audit
For more information please contact:
Bussakorn Konluk Tel. 02-973-2700 Mobile.089-686-7145 |
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