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 first revenue.

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 borrowings declined.

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.