Singapore Post (SingPost) has acquired M J Luff, an Australian-owned interstate transport and distribution company for A$120 million ($106 million).

 

The acquisition of 100% of M J Luff&rsquo s shares was made through SingPost&rsquo s wholly-owned subsidiary, Freight Management Holdings, who entered into a share sale agreement (SSA) with M J Luff&rsquo s vendors and sale beneficiaries. M J Luff&rsquo s total issued share capital comprises 200 ordinary shares and 212 preference shares.

 

The acquisition was completed on March 1.

 

SINGAPORE Post (SingPost : S08 -1.22%) has reported group operating profit of S$27.7 million for the third quarter ended Dec 31, 2023, down 18.3 per cent from the previous corresponding period at S$33.9 million.

 

Group revenue dipped 8 per cent to S$455.4 million from S$495.1 million year on year.

 

Group operating expenses narrowed by 6.7 per cent to S$430.1 million from S$460.8 million.

 

In a business update on Thursday (Feb 8), the company said that it had registered good performances across its businesses in the year-end seasonal peak, despite a difficult macroeconomic environment and continued strength of the Singapore dollar against the Australian dollar and Chinese yuan.

 

The company noted that with 86 per cent of its revenue generated internationally, the strong Singapore dollar has had a significant impact on the Group&rsquo s consolidated performance.

 

On a constant currency basis, the group&rsquo s operating profit would have been down an estimated 3.9 per cent year on year.

All businesses posted positive operating profits in the quarter, with the profitability of its international cross-border business continuing to improve and the Australian business stable amid slowing market conditions.

 

The margins of the international post and parcel business improved despite a slowdown in global trade and reduced volumes of China exports, which were down 12 per cent in the quarter.

 

Air conveyance costs fell 30 per cent year on year, leading to significant margin improvement.

 

Domestic post and parcel revenue increased as a result of a postage adjustment in October 2023, and a 16 per cent increase in e-commerce volumes.

 

With new customer acquisitions and &ldquo continued best-in-market service levels&rdquo , the profitability of the delivery business has improved significantly, it said.

 

However, the post-office network remains unprofitable and is being reviewed, it added SingPost said that it would work with the authorities towards a framework for the long-term commercial viability of the domestic postal service.

 

Revenue and profit from the freight-forwarding business, through subsidiary Famous Holdings, have declined in line with the weakening of sea freight rates and volumes, although margins have remained constant.

 

Revenue and operating profit from the property segment was &ldquo relatively steady&rdquo , with the occupancy rate of SingPost Centre at 96.3 per cent as at Dec 31, 2023, down from 98.2 per cent as at Mar 31, 2023. Retail mall space was at full occupancy, and office space occupancy, at around 95 per cent.

 

As at Dec 31, 2023, the group had S$437.3 million in cash and cash equivalent cent from S$128.7 million as at Mar 31, 2023. Total equity remained almost unchanged &ndash down 0.4 per cent &ndash at S$1.4 billion.

 

The business environment for 2024 is expected to remain challenging amid the global geopolitical situation, continued inflationary pressures and weak consumer spending, it said.

 

A strategic review of the group, which aims to make a transition into a logistics business over time, is in the final stage of completion. A formal announcement of the outcome will be made before the end of the financial year.

 

 

Singapore Post (SingPost) S08 0.00% has acquired the final 2% interest in Australian services provider Freight Management Holdings (FMH) for A$13.3 million ($11.7 million).

 

Following the acquisition from FMH management shareholders, SingPost, through its wholly-owned subsidiary SingPost Australia Investments (SPAI), holds 100% of the issued share capital of FMH. 

 

SingPost first acquired a 28% stake in FMH in December 2020 before upping its stake to 51% in November 2021. The company acquired an additional 37% stake in January and a further 10% interest on Nov 28, bringing its total stake in FMH to 98%.

 

Singapore Post (SingPost) S08 0.00% has acquired an additional 10% interest in Australian services provider Freight Management Holdings (FMH) for A$62.8 million ($55.3 million).

 

This brings SingPost&rsquo s total stake in FMH to 98%, up from 88% previously. SingPost first acquired a 28% stake in FMH in December 2020 before upping its stake to 51% in November 2021. The company&rsquo s 37% acquisition in January took its stake to 88%.

 

The latest 10% acquisition of shares, through wholly-owned subsidiary SingPost Australia Investments Pty Ltd, came from FMH non-management shareholders and Degenhardt shareholders.

 

Separately, FMH management shareholders have accepted an offer to sell all existing FMH shares to SingPost. The transaction is pending completion.

 

Upon completion of the acquisition from the FMH management shareholders, SingPost will hold 100% equity interest in FMH.