Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

SingPost reports S$75.1 million net loss for Q4 on impairment charges

The firm reported a loss per share of 3.50 Singapore cents for the quarter, compared to an earnings per share of 1.24 Singapore cents previously.

Mail and logistics services provider Singapore Post Limited (SingPost) reported a S$75.1 million net loss for the fiscal fourth quarter ended March 31, a reversal from the net profit of S$31.8 million a year ago, due to impairment charges for two loss-making ecommerce firms in the United States (US).

Net profit attributable to equity holders sank by 86% to S$19 million, due to the one-off impairment charges of the US businesses. Underlying net profit fell by 6.1%, because of the weaker performance its US businesses. The group’s revenue for the three months fell by 2.1% to S$374.1 million.

The firm reported a loss per share of 3.50 Singapore cents for the quarter, compared to an earnings per share of 1.24 Singapore cents previously.

A final dividend of two Singapore cents has been recommended by the board, which is unchanged from the previous year, to be paid out on August 7, pending approval from shareholders. Annual dividend for the financial year stands at 3.5 Singapore cents per share.

SingPost’s shares slumped 1.96% or 2 Singapore cents to S$1.00 at around 10am Singapore time on Tuesday morning, following the earnings results announcement.

Full-year revenue up by 2.9%, on growth in the post and parcel, and property segments

For the full financial year, group revenue increased by 2.9% to S$1.56 billion, supported by growth in the post and parcel, and property segments.

Excluding the US businesses, SingPost said that its underlying net profit would have closed 15.8% higher for the full year.

Revenue for the group’s post and parcel segment rose by 4.1% for the full year, supported by strong international mail revenue growth and a rise in cross-border ecommerce-related delivery volumes, the group said.

Meanwhile, its property segment revenue gained by 13.5%, largely due to rental income from the group’s SingPost Centre retail mall, which hit a committed occupancy of 98.9% as of March 31, an increase compared to the 95.6% occupancy a year ago.

The group’s logistics and ecommerce segments each fell in revenue by 0.3%, respectively.

For the logistics segment, the drag was caused by a revenue fall in the exit of unfavourable customer contracts for Quantium Solutions and the strengthening of the Singapore Dollar against the Australian dollar for CouriersPlease.

The ecommerce segment continues to face challenges in the US in the midst of intensifying competitive and cost pressures, and an increase in customer bankruptcies in the industry, the firm said. Loss on operating activities widened to S$51.9 million for the full year.

Exiting the US market

SingPost has decided to exit the US market following a strategic review and have put up its businesses there for sale.

The firm said it has recorded a total impairment of S$98.7 million to the carrying value of TradeGlobal and Jagged Peak, comprising the balance of S$67.6 million for goodwill and intangible assets, and the balance of S$31.0 million for property, plant and equipment.

It added that it expects to continue to account for operating losses on its US businesses until its exit is completed, and will update shareholders in further announcements on the exit.

‘The group believes its strengths and strategic competitive advantages are in Southeast Asia and Asia Pacific, which would provide attractive growth opportunities and better returns on investments,’ it said.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.