Vibrant Group's Q1 net profit jumps on the back of Blackgold acquisition

INTEGRATED logistics solutions provider Vibrant Group posted a net profit of S$122.56 million for its first quarter ended July 31, up significantly from S$1.84 million a year ago, due mostly to negative goodwill arising from the acquisition of Blackgold International Holdings Limited (BIHL).

Revenue has gone up 89.3 per cent to S$86.76 million, again contributed by BIHL.

Earnings per share for Q1 was 18.8 Singapore cents, up from 0.07 Singapore cents a year ago.

No dividend was declared for the quarter.

As at July 31, 2017, the group has cash and cash equivalents of S$128 million, and net gearing of 0.59 times. The group is in a net current liabilities position of S$12.2 million due to short-term revolving bank loans of BIHL.

Announced earlier in July, BIHL, a China-based producer of thermal coal that is predominantly sold to power plant customers in China, was acquired for A$37.6 million (S$40.7 million).