SingPost says UK commission revision won’t have big impact on earnings

Singapore Post says the revised commission structures, business reorganization and one-time restructuring cost at a European joint venture are not likely to have a significant impact on SingPost’s overall performance for the current financial year.

Previously, SingPost had expected restructuring of the joint venture, called Spring, to cut net profit for this financial year by as much as S$6.5 million.

The losses would have largely come from the gradual write-down of its initial start-up cost.

But SingPost now says it plans to adopt a new rule proposed by Singapore’s accounting authorities which does not require goodwill to be gradually written down.

Spring is 51 percent owned by the Netherlands’ TPG, 24.5 percent by the UK’s Royal Mail and 24.5 percent by SingPost. – CNA