SingPost – BT

SingPost’s Q4 net profit up 15.8% at $40.91m

Group revenue also rises 15.8% y-o-y to $133.84m

SINGAPORE Post (SingPost) chalked up a 15.8 per cent year-on-year increase in net profit to $40.91 million for the fourth quarter ended March 31, 2010.

Excluding one-off items, such as benefits from the Jobs Credit Scheme, amortisation of deferred gain on intellectual property rights and the impact of the reduction in corporate tax rate last year, underlying net profit grew 12 per cent to $36.5 million, said SingPost.

Group revenue also rose 15.8 per cent year-on-year to $133.84 million, on the back of stronger performance across its various business segments and the consolidation of revenue from its acquisition of Quantium Solutions.

Earnings per share for Q4 were 2.123 cents, up from 1.834 cents in the previous corresponding quarter.

For the full year ended March 31, 2010, net profit was 10.9 per cent higher year-on-year at $164.97 million while group revenue increased 9.2 per cent to $525.51 million. Excluding one-off items, underlying net profit was marginally higher, climbing 0.3 per cent to $147.75 million.

SingPost has proposed a final dividend of 2.5 cents per share – subject to shareholder approval – which would bring the total annual dividend to 6.25 cents per share. If approved, the final dividend will be paid on July 15.

‘To build a more balanced revenue and earnings profile, we are looking to further increase contributions from markets outside Singapore, in particular in Asia-Pacific, and to expand our non-mail businesses,’ said Ng Hin Lee, SingPost’s deputy group chief executive officer.

In March, the group issued $200 million of 10-year fixed rate notes at a yearly interest rate of 3.5 per cent, the proceeds of which will be used to fund new investments and as working capital.

From May 15, SingPost plans to switch to a five-day mail collection and delivery service, in an effort to optimise resources. The initiative is a result of declining public mail volumes – and in particular a 40 per cent reduction of mail on Saturdays – as well as changing lifestyles and business environment, SingPost said, adding that savings will be passed on to consumers.

SingPost closed one cent lower in trading yesterday at $1.09.

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