SINGAPORE (June 29): Vibrant Group saw earnings for FY17 ended April fall 65.9% to $3.4 million, from $10.0 million a year ago.
The group's freight and logistics segment reported a net loss of $5.1 million, compared to a profit after tax of $2.4 million a year ago.
This was mainly due to the absence of accretion of deferred revenue, which was fully amortised as a result of the leases expired in November 2015 with Sabana REIT in FY16.
Vibrant is the 51% owner of the manager of Sabana REIT. It also controls some 12% of Sabana REIT’s units, a portion of which is held by the manager.
FY17 revenue fell 34.2% to $184.6 million, from $280.7 million a year ago.
The decrease was attributed to the lower sales revenue from its real estate business as well as its freight and logistics business.
Revenue from its freight and logistics segment, which remained the main contributor to the group’s revenue, fell 4.2% to $152.3 million in FY17. This was mainly due to a $12.0 million contribution in FY2016 revenue from the disposal of an ISO tanks subsidiary.
Revenue from its real estate business plunged to $14.9 million in FY17, from $104.3 million a year ago, mainly due to the lower contribution of the government-approved resettlement housing project in Jiangyin, China.
Cash and cash equivalents stood at $48.2 million as at end April.
Vibrant has declared a first and final dividend of 1.50 cents per share for FY17, lower than the dividend of 1.80 cents per share a year ago.
Looking ahead, the group says it expects to remain profitable for the FY18.
“Given the global economic conditions, the group will continue to exercise prudence and adopt a conservative approach in relation to investment opportunities,” it adds.
Shares of Vibrant Group closed 1 cent higher at 39 cents on Thursday.
