Vibrant Group reports higher Q3 profit

Vibrant Group, formerly known as Freight Links Express, has reported a 4.9 per cent rise in third quarter net profit to $9.1 million.

Revenue for the three months to Jan 31 rose by 12 per cent to $48.3 million.

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

Higher profit was mainly attributed to better performance in the freight and logistics business segment.

The increase in finance income was primarily attributable to interest receivable from financial services.

Finance costs increased due to issuance of $100 million fixed rate notes in May 2013.

As at Jan 31, the group has cash and cash equivalents of $53.7 million, and net gearing of 0.9 times.

Earnings per share were unchanged at 0.36 cent. Net asset value per share climbed to 9.68 cents from 9.56 cents as at April 30, last year.

The group 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 logistics facility is expected to be completed by May 2014.

Despite an improvement in business sentiment, Vibrant believes the uncertainties in global and regional economic conditions, the rising trend in staff and operating costs and the volatility in foreign currencies will continue to impact the group's results.

However, it will continue to strengthen and expand its freight and logistics business, financial services and real estate business, and will explore viable investment opportunities, to sustain long-term growth and to broaden its revenue and earnings base.

Going forward, Vibrant will be focusing more on China to be a strategic part of the group's future growth strategy.

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