SINAGPORE (Sept 14): Logistics, real estate, and financial services provider Vibrant Group saw its earnings surge to $122.6 million for the 1Q ended July, from earnings of $0.4 million a year ago.
This was mainly due to a one-off gain on bargain purchase (negative goodwill) of $123.9 million recognised on the acquisition of Blackgold International Holdings (BIH) in July.
Earnings per share (EPS) surged to 18.80 cents in 1Q18, compared to 0.07 cent a year ago.
In a filing to SGX on Thursday, Vibrant says it expects to finalise the purchase price allocation (PPA) exercise within a year from the date of acquisition. As such, the gain on bargain purchase as well as the fair values of assets and liabilities of BIH will be adjusted upon the finalisation of the PPA exercise next year.
Revenue grew 89.3% to $86.8 million in 1Q18, from $45.8 million a year ago. This was mainly attributable to a $43.4 million contribution in revenue from BIH.
Gross profit grew 13.0% to $17.0 million in 1Q18, from $15.0 million a year ago.
Gross profit margin fell to 19.6% during the quarter, compared to 32.8% a year ago. This was mainly due to the acquisition of BIH, which has a lower gross profit margin of 6.3%.
Administrative expenses increased by 13.0% to $11.8 million in 1Q18, mainly due to higher staff costs as a result of the consolidation of BIH.
Finance income fell 45.9% to $0.8 million, from $1.4 million a year ago, mainly due to the absence of interest income on investment in an associate and interest income from the deferred payment on a development project.
The group reported share of profits of $1.3 million from associates, which mainly arose from China Southwest Energy Corporation and Freight Management Holdings. This is compared to a share of losses from associates amounting to $0.4 million a year ago.
As at end-July, cash and cash equivalents stood at $126.3 million.
Net gearing stood at 0.59x as at Jul 31, 2017.
Looking ahead, the group says it will continue to exercise prudence and adopt a conservative approach to investment opportunities amid the challenging global economic conditions.
Shares in Vibrant Group closed half a cent higher at 38.5 cents on Wednesday.
