Egana Goldpfeil has published adjusted results for the financial year ended last May 31, after a review of its accounts by KPMG. The Hong Kong-based parent company of Salamander, Sioux and other fashion-related operations booked a net loss of 1,940.2 billion Hong Kong dollars (€169m-$250m) for the year, due entirely to extraordinary impairment provisions of HK$1,986.8 million (€175m-260m).
Made chiefly as a result of KPGM’s review, the provisions included impairment charges of about HK1.6 billion on the group’s receivables and promissory notes, plus the writeoff of assets after their reassessment. The gross profit margin dropped to 37 percent from 39 percent, due to additional inventory provisions, but excluding extraordinary charges, the operating profit rose by about 10 percent.
Total revenues grew by 17.5 percent to HK$7,025 million (€614m-914m) for the financial year. Leather and lifestyle products, which include Salamander and Sioux, contributed sales of about HK$3.2 billion (€280m-$414m), up from HK2.8 billion the year before, and their growth of 15 percent was mostly attributable to higher sales of Joop! branded products.
The balance sheet shows total net assets of only HK326.9 million (€28.5m-$42.3m) for Egana Goldpfeil at the end of the financial year. The subsequent five months until October 2007 showed a further 17 percent increase in the total turnover, according to preliminary unaudited figures, and the gross margin improved to 35.3 percent from 34.3 percent in the same period of 2006.
These newly audited results will allow Lifestyle International Holdings to conduct the final negotiations for the acquisition of a stake of about 29.67 percent in Egana Goldpfeil, and they should permit the resumption of trading in the stock on the Hong Kong stock exchange. Lifestyle has provided a bridge loan expiring next Jan. 24 to help the company to meet financial obligations to its bankers.