Transpac posts net profit of $42.7m for FY2013

VENTURE capital firm Transpac Industrial Holdings, which recently unveiled an operations revamp, posted net profit of $42.7 million, or earnings per share of 18.24 cents for fiscal 2013, up from $6.63 million, or earnings per share of 3.13 cents a year ago.

The company, which derives income from the sale or revaluation of investments located in various countries, reported total investment income of $63.7 million for the full year ended Dec 31, up from $9.7 million a year ago. Of the $63.7 million, $53.5 million came from China/Hong Kong SAR, $7.47 million from British Virgin Islands, $2.26 million from Singapore and the rest from Taiwan and Indonesia.

Transpac reported total comprehensive income of $47.4 million for fiscal 2013, which included profits realised on divestments and changes in fair value of the group's investments.

Looking ahead, the company said there are signs that the growth outlook for the US, the eurozone and the UK have improved.

"If the growth can be sustained, it will positively impact the business outlook and demand in the developing economies of Asia. There is indication of some stability of growth albeit at a lower rate in China. If the trend continues, the investment activities in the Asian region will be likely to pick up."

No dividend was declared for the current financial period, but the company had earlier proposed, as part of an "internalisation exercise", an interim cash dividend of five cents per ordinary share to entitled shareholders for the fiscal year ended Dec 31.

Transpac had announced plans to terminate its agreement with its investment manager, Transpac Capital Pte Ltd, for $13.75 million in an "internalisation exercise". Part of the exercise involved Transpac taking the investment services in-house by absorbing the staff of Transpac Capital.

The consideration of $13.75 million in cash, funded internally, took into account the loss to Transpac Capital from the early termination of the agreement before Dec 31, 2015, among other things, bringing to an end a management agreement that had been in place for almost 20 years since 1994.

Transpac shares closed trading yesterday at $1.70, down one cent.