Vibrant Group Q1 net profit down 95% to S$0.4m

VIBRANT Group, which is in the freight forwarding, property and financial services businesses, reported a net profit of just S$387,000 for the three months ended July 31, 2016.

This was a 95 per cent decline from S$7.5 million the same period a year ago, and is mainly due to substantially lower contributions from associates compared to a year ago.

Revenue fell 4.6 per cent to S$45.8 million, from S$48.1 million a year ago.

The revenue dip was mainly due to lower revenue from the freight and logistics business.

While higher gross profit margins were reported, losses from associate China Southwest Energy Corporation and lower contribution from associates Plaza Ventures and Figtree Holdings dragged down Vibrant's results. There was also higher income tax expenses.

This year, associates made a net S$399,000 loss, for the three months ended July 31.

A year ago, share of profit from associates was S$5.5 million, mainly due to the contribution from Plaza Ventures from the sale of strata office units at GSH Plaza, and from Figtree Holdings.

Vibrant closed at S$0.37, down half a cent, before results were out.