Here’s What Singapore Post Limited Said About its Special Audit Report and its Full Year Performance

Singapore Post Limited (SGX: S08) had hosted a presentation for its fiscal fourth-quarter earnings release yesterday.

The company had covered a fair bit of ground in the presentation. But, investors’ eyes could be on the current state of Singapore Post and its future, given the questions around its corporate governance.

Two slides shed some light on these. The first one is about Singapore Post’s key achievements for the financial year ended 31 March 2016 (FY15/16).

2016-05-25 Key Developments Singpost
Source: Singapore Post’s earnings presentation

Chief financial officer Mervyn Lim provided the following commentary during the earnings briefing:

“We have successfully connected the dots in building a global eCommerce logistics platform with our US acquisitions. We are now serving more than 100 monobrands worldwide, generating more than US$4 billion in gross merchandise value transacted on our eCommerce sites.

During the year, we further enhanced our infrastructure and capabilities with investment in the regional logistics hub as well as more than 140 POPstation lockers nationwide.

We also strengthened our eCommerce network and partnerships, growing business volumes via the AliBaba collaboration and raised our stake in 4PX, one of China’s top cross-border logistics players to 35.9%.

We are continually reviewing the yields on our assets. With our SPC mall redevelopment offering a convergence of offline and online shopping, we will maximize the benefits from the re-zoning of Paya Lebar as a commercial hub.”

In short, Singapore Post continues to march towards its goal of being an end-to-end logistics provider.

Corporate matters

The second key slide in question dealt with Singapore Post’s corporate governance.

2016-05-25 Singpost Corporate Matters
Source: Singapore Post’s earnings presentation

This issue has been dogging Singapore Post since its outgoing chief executive Wolfgang Baier announced his resignation in late 2015. Lim said during the earnings presentation:

“The Special Audit report was released on the 3 May 2016 and we are committed to implement the recommendations together with, and as a part of the broader Corporate Governance or CG review.

The CG review looks at matters such as board composition and renewal. It is expected to be completed before the AGM [annual general meeting] on July 2016.

Tomorrow [11 May 2016], we will welcome our new chairman, Mr. Simon Israel, who is currently also the chairman of Singtel [Singapore Telecommunications Limited  (SGX: Z74)].

Lastly, the GCEO [group chief executive officer] search is progressing well, and a number of candidates has been identified.”

There is some progress, such as Singapore Post having elected a new Chairman of the board. The logistics firm also signalled its commitment towards implementing the recommendations of the Special Audit report and the CG review. The search for Dr Baier’s replacement, however, is still ongoing.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.