In annual results to 30 June 2018, British flag carrier Triumph Motorcycles achieved a marginal turnover increase but wrote its bottom line in red ink due to foreign exchange translation issues. BDN financial editor Roger Willis reports.
Total global revenue from bikes, parts, accessories, apparel and other merchandise for the 12-month period grew by just 0.2% to £434m. UK turnover was 5.3% up to £72.9m, with the rest of Europe adding 2.1% at 182.1m. But North America was 2.6% down to £90.1m and other international markets fell by 4.5% to £89m. Worldwide motorcycle sales volume declined by 2% to 59,427 units.
However, the company suffered an operating loss of £11.3m, against an operating profit of £6.2m during the previous year. The net loss was £9.7m, versus a net profit of £5.3m to June 2017.
Triumph’s accounting statement filed with Companies House on 7 January 2019 said profitability was adversely impacted by “a swing in unrealised foreign exchange of £13m”, relating to “revaluation of foreign currency assets and liabilities held on the group balance sheet”.