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LHN Logistics reports loss of $4.3 mil for FY2022

Felicia Tan
Felicia Tan11/1/2022 12:31 AM GMT+08  • 3 min read
LHN Logistics reports loss of $4.3 mil for FY2022
LHN Logistics launched its IPO in April 2022. Photo: LHN Logistics
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LHN Logistics has reported a loss of $4.3 million for the FY2022 ended Sept 30, down from the $3.3 million profit in the year before.

During the 2HFY2022, the Catalist-listed logistics spin-off from LHN reported a loss of $4.9 million, down from the $2.0 million reported in the same period the year before.

LHN is a group that’s listed on both the Singapore and Hong Kong exchanges. It has businesses that range from facilities management to operating co-living spaces

During the FY2022, LHN Logistics’ revenue increased by 0.5% y-o-y to $27.3 million due to the overall increase in demand from business volume handled in the group’s container depot services business.

Cost of sales increased by 7.6% y-o-y to $19.7 million. This was due to the increase in several costs including the depreciation of property, plant and equipment, vehicle-related expenses, direct manpower cost and additional rental expenses incurred for temporary parking yard during the construction period at 7 Gul Avenue.

Gross profit fell by 14.1% y-o-y to $7.7 million mainly due to the higher operating costs.

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Gross profit margin for the period fell 4.8 percentage points y-o-y to 28.0% in the FY2022.

The group registered other losses of $3.6 million in the FY2022, compared to the $910,000 gain in the year before, mainly due to the loss from the redevelopment of the group’s property at 7 Gul Avenue. The loss amounted to $4.8 million, as previously guided by the group on Oct 21.

In its guidance, the group wrote that the loss was one-off and non-cash in nature. It arose mainly from the “write-off of the value of existing building structure which has been demolished for the redevelopment to ISO tank washing depot and ISO tank storage yard located at 7 Gul Avenue”.

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During the FY2022, administrative expenses increased by 41.6% y-o-y to $7.2 million mainly due to the one-off initial public offering (IPO) expenses of $1.4 million, as well as the increase in staff cost incurred due to annual increments and higher headcounts.

Share of results of associated companies rose 46.7% y-o-y to $1.0 million due to better operating results from HLA Logistics.

The group’s earnings per share (EPS) for both the FY2022 and 2HFY2022 stood at 2.55 cents and 2.95 cents respectively.

A final dividend of 0.6 cents has been declared for the period. The dividend is subject to the group’s shareholders’ approval at its upcoming annual general meeting (AGM). The proposed final dividend will be paid on March 16, 2023.

As at Sept 30, cash and cash equivalents stood at $7.6 million.

Shares in LHN Logistics closed 1.3 cents lower or 8.23% down at 14.5 cents on Oct 31.

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