New appointments at SingPost as financial results released
SingPost has announced an organisational restructure in a move to step up its transformation and growth. Under the new structure, Ng Hin Lee will be promoted to CEO (Postal and Corporate Services). He will lead transformation efforts in SingPost’s mail business and provide a sharper focus to its postal services.
Ng, who is responsible for the Group’s strategic acquisitions, will also oversee corporate support services. The new appointment is effective from 7 February 2011. Ng will also be covering the Group CFO position until a suitable candidate is appointed, the company said.
Dr Wolfgang Baier has been appointed as the CEO (International) to accelerate SingPost’s regionalisation and diversification efforts. His international experience especially in logistics is key for SingPost’s expansion in the region and for revenue generation in the logistics and other non-postal businesses SingPost confirmed.
He will oversee the Logistics, Retail and Financial Services and Sales and Marketing divisions as well as Quantium Solutions. Dr Baier, who has worked with SingPost on major initiatives over the past five years whilst he was a Partner with McKinsey & Company, will join SingPost on 7 February.
Lim Ho Kee, chairman of SingPost said: “The postal industry is facing enormous challenges especially from e-substitution. Globally, mail volumes are on the decline. SingPost started transforming its business seven years ago and we have been quite successful in reversing the declining mail trend. We hope and are reasonably confident that we will be able to continue on this path.
“The SingPost Board recognises the need for SingPost to step up its transformation efforts to stay relevant and to grow. At the same time, it is committed to the best interests of SingPost’s various stakeholders. As Singapore’s Public Postal Licensee, SingPost is committed to its social obligations and will have dedicated resources to ensure a good level of service which the public is entitled to expect. We also have a responsibility towards our shareholders, staff and customers, to continue to grow, both locally and in the region, and remain sustainable.
“With a strengthened management team and resources aligned to provide sharper focus on its postal services as well as its regionalisation and diversification efforts, the Group is poised to achieve higher performance.”
The appointments were confirmed just before SingPost announced its unaudited results for the third quarter and nine months ended 31 December 2010.
Group revenue grew 6.3% to S$148.5m (US$115.7m) in Q3 FY2010/11 with improved performances from the Mail and Logistics segments. Mail revenue grew 7.5% to S$101.5m as domestic and international mail recorded stronger performances.
In Logistics, revenue increased 10.2% to S$54.2m due to growth in Quantium Solutions, trans-shipment and vPOST shipping activities. Retail revenue stayed constant at S$16.8m with growth in financial services offset by the decline in agency services and retail business.
Rental and property-related income was S$10.6m, an increase of 4%, as a result of higher rental income from Singapore Post Centre.
Total expenses for the Group amounted to S$110.5m, an increase of 10.3%. Labour and related expenses increased as a result of higher contract labour costs and the absence of the benefit from the government’s Jobs Credit Scheme, which ceased in June 2010.
Volume-related expenses were higher due to higher traffic expenses arising from increased international traffic and conveyance costs. Administrative and other expenses were higher, due mainly to increases in property tax and other property related and administrative expenses. Finance expenses included additional interest expenses from the S$200m
Net profit for the Group was S$43.8m, or flat compared to the corresponding period last year, while underlying net profit was S$40.9m, an increase of 5.1%.
Ng said: “In Q3, we benefited from the increase in business and e-commerce logistics activities, which boosted our mail and logistics revenues. Our trans-shipment business has also grown rapidly in tandem with the boom in e-commerce activities in the region.”
(1 US$ = 1.28 S$, xe.com, 28 January 2011)
