KUALA LUMPUR (Aug 21): Freight Management Holdings Bhd’s (FMHB)  net profit fell 28.5% to RM4.17 million in the fourth financial quarter ended June 30, 2018 (4QFY18) from RM5.82 million a year ago, mainly due to share of losses of associate in Singapore-based TCH Marine Pte Ltd and impairment of advances in a joint venture.

This resulted in a lower earnings per share of 2.24 sen for 4QFY18 compared with 3.21 sen for 4QFY17. Quarterly revenue, however, rose 4.6% to RM129.9 million from RM124.16 million a year ago, mainly due to increase of activities across all services.

The group also declared a second interim dividend of 3.5 sen per share amounting to RM6.52 million for FY18, payable on Nov 14.

The weaker quarterly performance dragged the group's net profit for the full financial year ended June 30, 2018 (FY18) down 6.3% to RM19.7 million from RM21.03 million the previous year, even though revenue was up 10.9% to RM511.59 million from RM461.3 million in FY17.

On Dec 19, 2017, FMHB had disposed a 2% stake in TCH to TCH substantial shareholder and director Andrew Tay Nguang Yeow for S$149,000 (RM447,745). This resulted in FMHB's stake in TCH to fall to 49% from 51%.

On prospects, FMHB said due to the uncertainty in the global economy caused by a combination of escalating trade tensions, rising oil prices and currency pressure, it would have an impact on world trade.

"This may influence the performance of the group. In this coming financial year (ending June 30, 2019), the group will focus on strengthening its customer base and to improve on cost management and operational efficiencies.

"Barring unforeseen circumstances, the group expects its performance to be positive for FY19," it added.

FMHB shares closed up one sen or 0.91% at RM1.11 today, giving it a market capitalisation of RM206.63 million.