KUALA LUMPUR (Aug 23): Freight Management Holdings Bhd said it has obtained a licence from the Ministry of Communications and Multimedia Malaysia to operate a courier service to serve both the domestic and international markets.

In a filing with Bursa Malaysia, Freight Management said the licence — a Class A Non-Universal Service Licence — was awarded to its wholly-owned subsidiary, Parcel To Post Services Sdn Bhd (PTSP), and is valid for the next three years until July 31, 2020.

With the licence, Freight Management is joining another 128 firms in the country that are licensed to provide courier service, according to the latest statistics found on Malaysian Communications and Multimedia Commission's website, an entity that regulates the postal services industry.

Freight Management previously said PTSP, which was incorporated on March 29 and is offering multimodal freight services that include sea, land, air, tug and barge, and rail, would carry out last mile delivery services.

Separately, Freight Management announced a second-interim dividend of 3.5 sen in respect of its FY17 — payable on Nov 14 — following the release of its quarterly results for its fourth quarter ended June 30, 2017 (4QFY17).

Freight Management said net profit for the quarter came in 5% higher at RM5.82 million from RM5.52 million a year ago, boosted by an 18% rise in revenue to RM124.16 million from RM105.14 million previously.

The higher quarterly earnings, the logistic firm said, was due to improved results across its business division — except for landfreight and the tug and barge divisions, with the latter sinking deeper into the red.

For its full FY17, net profit was up 6% to RM21.03 million from RM19.87 million a year ago, as revenue grew 11% to RM461.29 million from RM413.77 million.

On prospects, Freight Management said it will continue to strengthen its customer base, while improving its operational and cost efficiencies. It expects FY18's performance to "remain positive".

Listed since February 2005, shares in Freight Management closed unchanged at RM1.24 today, giving it a market capitalisation of RM230.82 million.

http://www.theedgemarkets.com/article/freight-mgmt-gets-licence-provide-courier-service