Stronger demand for freight, logistics services raises Vibrant Group's profit

SINGAPORE - Vibrant Group, formerly known as Freight Links Express Holdings, posted an 11.2 per cent rise in net profit to $42.7 million.

This was on the back of an 8.4 per cent increase in revenue to $191.4 million for the year ended April 30.

Gross profits surged by 20.3 per cent to $59.3 million, mainly due to increased revenue from freight and logistics business and provision for financial services.

On the other hand, profit from operations fell by 19 per cent to $31.9 million, mainly due to fair value loss on quoted equity securities.

Freight and logistics segment remained the main contributors to group revenue, which climbed by 5.9 per cent to $172.6 million.

This was mainly due to increase in demand for freight and logistics business with the completion of the new chemical hub in Jurong Island.

The ISO tank containers business revenue has also improved.

Revenue from financial services increased by 39.4 per cent to $16.4 million, primarily attributable to interest income from a loan granted by a subsidiary.

Earnings per share swelled to 1.72 cents from 1.62 cents previously while net asset value per share surged by 4.68 cents to 14.24 cents.

Vibrant obtained the full Temporary Occupation Permit for the chemical logistics hub in Jurong Island in December 2013.

The alteration and addition works to existing Tuas Avenue 10 warehouse has also obtained Temporary Occupation Permit.

Its Gul Circle site will be redeveloped into a five-storey ramp-up warehouse with a gross floor area of about 45,000 square metres.

The warehouse is expected to be completed in 2016.

Vibrant said its expansion into real estate and financial services businesses is part of the corporate strategy to strive for a more sustainable long-term growth and to provide diversity in income stream.

A first and final dividend of 0.55 cent a share was proposed, up from half a cent last year.