Triumph has announced financial results for the year up to June 30, 2013 which are different to those reported in the Financial Times this morning which the British bike firm says were ‘incorrectly reported’.
Triumph’s statement shows the company made a £0.1m operating loss before interest and tax which is down from a £15.7 million profit in 2012. Triumph says the losses were as a result of foreign exchange losses and the costs of expanding into Brazil and India.
The press release says: “Group turnover has increased to £368.6 million in 2013 from £342.3 million in 2012 and unit sales of motorcycles increased to 52,000 in 2013 from 49,000 in 2012. In line with expectations, due to significant movements in foreign currency and continued planned overseas investments the operating loss before interest and tax was £0.1 million in 2013 from £15.7 million profit in 2012.
“The operating results for the year have been adversely affected by foreign exchange losses emanating from the restatement of foreign currency denominated assets and liabilities, additional net inter group charges and the continuing cost of entry into Brazil and the new entry into India.
“The Triumph Group’s recognition as a worldwide brand continued to grow and its overall market share has increased to 6.0% (2012 – 5.7%) in a challenging economic climate particularly in Europe, particularly Italy, France and Spain, three key markets for Triumph . The global 500cc plus motorcycle market has fallen by 6.4% during the 12 month period to date.
“Triumph’s sales performance was particularly pleasing in the UK, US and Brazil; Triumph’s retail market share in the UK increased to 20.1% maintaining its market leading position. During the year Triumph benefited from an excellent initial first year performance upon entry to the Brazilian market, capturing 3.4% market share. Triumph has also set up operations in the Indian market with the official launch on 28th November, 2013.
“Throughout the year Triumph further invested in Research and Development, maintained manufacturing efficiency via proven working patterns and ensured the lean and flexible supply chain all translated into lower costs and carefully managed cash.
“The continued Research and Development spend, including Product Development within the Triumph Group continues at record levels. Expenditure for 2013 was £25.3 million and for 2012 £24.0 million.”