Singer records 8% growth in Group revenue

Singer (Sri Lanka) recorded an 8% increase in Group revenue in the first quarter of the 2014 financial year, compared to the corresponding period of the previous financial year.

The Group's gross profit continued to climb, increasing by 7.3%. However, after setting aside Rs. 46 million to address any potential liability caused by the possible imposition of deemed VAT in 2014, growth in gross profit fell to 5%. Group profit decreased by 24%, primarily due to this provision for deemed VAT, and increase in expenses.

Selling and administration costs rose by 14%, due to inflation and an increase in rent and electricity expenses.

The Group's net finance costs, however, decreased by 13%. Singer Finance, a Group subsidiary, reported an increase in revenue of 7%, although net profit declined by 6%.

Relatively low customer demand also tempered growth, with a sluggish business environment impacting most major retailers.

Although the economic environment posed a number of challenges, Singer's industry-best systems and culture have allowed it to weather the storm.