Singer revenue hits Rs. 14b in 1H
Singer (Sri Lanka) notched a 14% increase in Group revenue in the
second quarter of the 2014 financial year, compared to the corresponding
period of the previous financial year.
This follows an 8% increase in revenue in the first quarter of 2014.
Group revenue crossed the Rs. 14 billion mark at the end of the first
half, a 11% increase. Company revenue for the first half climbed by 12%
with Singer Finance, a Group subsidiary, reporting a 7% increase in
Although revenue has been trending upwards, profits have been
affected by the imposition of the deemed VAT. The Group's net profits
declined by 18% while Company net profits decreased by 19% primarily due
to deemed VAT. Singer Finance recorded a 6% decrease in net profit for
the first half.
Sales and administrative expenses increased by 10% due to inflation
and an increase in rent and electricity expenses. The Group's net
finance costs, however, decreased by 18%, as interest rates and
Business conditions continued to be challenging, with the prevailing
drought conditions and resulting difficulty in collections affecting the
industry overall. However, Singer's industry-best systems and culture
have allowed it to maintain momentum. For example, the Group has
leveraged its state-of-the-art online real-time ERP system and its call
centre service, SMS reminders and more traditional collection drives to
ensure that the collections process was well managed.