SINGAPORE (Mar 14): Logistics, real estate, and financial services provider Vibrant Group saw its earnings plunge 88.6% to $0.1 million for the 3Q ended January, from $1.3 million a year ago.
The decline was on the back of unrealised foreign exchange loss and higher finance costs.
Revenue more than trebled to $177.3 million in 3Q18, from $53.5 million a year ago. This was mainly contributed by Blackgold International Holdings (BIHL), which was acquired in July 2017.
However, gross profit fell 11.4% to $13.7 million, mainly due to the temporary shut-down of the mining activities for maintenance work.
Finance income shrank 91.1% during the quarter to $0.1 million, from $1.6 million a year ago. The decrease was mainly due to the absence of interest income on investment in associate, interest income on convertible bond, and interest income from the deferred payment on a resettlement housing project.
Meanwhile, finance costs jumped 54.6% to $5.7 million in 3Q18, from $3.7 million a year ago, mainly due to the inclusion of BIHL’s borrowing costs.
Consequently, net finance costs surged 165.9% to $5.6 million in 3Q18, from $2.1 million a year ago.
As at end January, cash and cash equivalents stood at $68.7 million.
Looking ahead, the group says it will continue to adopt a prudential approach in relation to investment opportunities.
Shares of Vibrant Group closed flat at 36.5 cents on Wednesday.
