SingPost’s net annual income up 6 percent to enhance dividend policy

Singapore Post has booked a 6 percent increase in annual earnings.

Net income for the year to March came in at 110.5m dollars, beating market forecasts.

Its bottom-line was boosted by higher earnings at its mail and logistics businesses.

For the fourth quarter alone, net profit was 26.8 million dollard.

That’s a slide of 7 percent compared to the same period last year, but still better than analysts’ expectations.

The postal services provider reported growth in its three core businesses.

And there is good news for investors.

SingPost says it is enhancing its dividend policy by raising the minimum annual payout and paying dividends on a quarterly basis.

SingPost’s mail business remained its key money spinner, accounting for some 78 percent of its full-year operating revenue and 80 percent of its annual operating profit.

But its logistics business put on an impressive show – with operating profit jumping 20 percent on year.

And SingPost says it expects its core businesses to improve in the coming quarters.

Singapore Post’s Group CEO, Lau Boon Tuan, said: “We can still grow the three core businesses that we have. I’ve also indicated the growth in direct mail, international mail, logistics. We are building the network to more countries.

“And also on the retail side, the financial services are showing very positive results, without additional investments. Contribution from financial services, especially EzyCash and the remittance business, is coming through.”

Over the past business year, SingPost rolled out several initiatives in financial services – namely, Speedcash and EzyCash.

EzyCash was launched in February this year at four post offices.

SingPost is targeting another six outlets this year.

For Speedcash, it already has two Speedcash pawnshops and plans another three more outlets this year.

Its target market is an estimated 900,000 people with a minimum annual income of more than 30,000 dollars.

The company is targeting business collaboration in the region – in Vietnam, Philippines, India and Malaysia.

Earlier this year, SingPost had announced plans to acquire a key stake in Accord Customer Care Solutions but it later withdrew.

SingPost says it will not be deterred from seeking other tie-ups but will move ahead with prudence.

Mr Lau said: “As you know, we are going to grow our company organically as well through acquisitions. We will structure it in a very prudent manner, looking at shareholder’s interest and protecting our dividend policy.”

The company aims to make an annual net dividend payout of 80 to 90 percent of net profit, or 5 cents per share, whichever is higher.

So, investors can expect 1-and-a-quarter cents per share in dividend each quarter, with the balance to be paid in the fourth quarter.