EuroSports announces strategic review

From here to where?

EuroSports (SGX: 5G1) announces that they are going for a strategic review.

Since EuroSports is in the business of distributing ultra-luxury (Lamborghini) and luxury (Alfa Romeo) automobile with after sale services, shouldn’t they be raking in the dollars right now?

Looking at the 12 months financials, it seems not to be the case.

30th May 2022 Financial Result

Since they are just a distributor and after sales provider, the administrative cost attributed to the automobile division looks perplexingly high¹.

It just tells you that this company is not profitable on a segment profit level².

So now the company wants to do a strategic review to see how they could “create shareholder value” with their sustainable mobility division.

13th July 2022

If they have done this review one year ago when technology, electric mobility and SPAC is all in a rage, this would have been the trigger of a massive re-rating.

But all these euphorias are all gone.

This is a strategic review that is 12 months too late.

1. higher than the segment profit of SGD 8.9m

2. if not for the other income of SGD 3.0m