FOR IMMEDIATE RELEASE
Cogent remains committed to dividends proposed in its IPO prospectus
SINGAPORE – 31 March 2010 – Mainboard-listed Cogent Holdings Limited (高昇有限公司)
(“Cogent”, together with its subsidiaries, “the Group”), a leading integrated logistics solutions provider, today reaffirmed that the Group remains committed to reward shareholders with proposed dividends spelt out in its IPO prospectus (“Prospectus”) dated 9 February 2010.
Cogent had said in its prospectus that it intended to recommend and distribute dividends of at least 50% of its profits attributable to shareholder in FY2009 (“Proposed Dividend”). Depending on the Group’s cash requirements, the Company may distribute the dividends on a quarterly basis after the end of each respective financial year.*
On 26 March 2010, the Group reported net profit attributable to shareholders of $17.7 million for
FY2009. On the same day, an interim dividend of 1.39 Singapore cents per share which amounts to 25% of the FY2009 net profit, was declared for the financial year ending 31 December 2010 (“FY2010”). The Company remains committed to pay the remainder of the Proposed Dividends.
Given that the Group was established only pursuant to a restructuring exercise which occurred on 18 January 2010, the Company would be able to declare dividend only after 18 January 2010 when its subsidiary company had distributed to it dividend based on earnings generated in FY2009. That is the reason why interim dividend was being declared for FY2010, as opposed to a final dividend declared for FY2009, in respect of the FY2009 profits.
Said Mr Tan Yeow Khoon, Cogent’s Chairman and CEO, “We are grateful for the support of our
shareholders and are committed to pay the remaining part of the dividends proposed in the
prospectus.
* According to page 34 of Cogent Holding’s IPO Prospectus dated 9 February 2010: Investors
should note that the foregoing statement on the Proposed Dividends is merely a statement of
Cogent’s intention and should not constitute a legally binding obligation on the Company or legally binding statement in respect of its future dividends which may be subject to modification (including reduction or non-declaration thereof) at the Directors’ sole and absolute discretion. Investors should not treat the proposed dividends as an indication of the Group’s future dividend policy. No inference should or can be made from any of the foregoing statements as to the Company’s actual future profitability or ability to pay dividends in any of the periods discussed. There can be no assurance as to the form, amount or timing of any future dividends that will be paid (if any). Any declaration and payment of dividends will depend upon the Group’s operating results, financial conditions, other cash requirements including capital expenditures, the terms of borrowing arrangements (if any), and other factors deemed relevant by Directors of the Company.
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Kim Eng Corporate Finance Pte. Ltd. was the Issue Manager of Cogent Holding’s initial public offering, and assumes no responsibility for the contents of this announcement.
Issued for and on behalf of Cogent Holdings Limited
By August Consulting
For more information please contact:
Silvia Heng – silvia@august.com.sg
Ho See Kim – seekim@august.com.sg
Melissa Yee – melissa@august.com.sg
Tel: 6733 8873 Fax: 6733 9913
About Cogent
With an operating history spanning over 30 years, Singapore-based Cogent is a full-service logistics management service provider, offering:
1. Transportation Management Services
Cogent provides trucking services for both laden and empty containers between ports and its warehouses or other designated destinations, using an extensive fleet comprising more than 100 prime movers, trucks and lorries as well as more than 400 trailers. The Group also provides transportation services for oil and gas equipment, including those used for the construction of offshore oil rigs.
2. Warehousing and Container Depot Management Services
The Group manages and leases approximately 4 million square feet of warehousing space and premises as part of its warehousing and container depot management services business.
Under its Warehousing Management Services business, Cogent stores products such as electronic components and other non-perishable goods, as well as a diverse range of chemicals and hazardous materials. The Group is one of the few chemical warehouse operators in the Singapore logistics industry to be licensed by the National Environment Agency, Pollution Control Department for the handling and storage of hazardous materials.
The Group believes that it has one of the largest depot premises in Singapore located in a single location. Its largest depot premise has a storage capacity of more than 20,000 TEUs (Twenty-foot Equivalent Units). Empty containers Cogent Holdings Limited stored at the depot can be stacked to a maximum height of nine containers using its own fleet of reach stackers, container handlers and forklift trucks. The Group also operates a maintenance workshop to service and repair damaged incoming containers on behalf of its customers.
3. Automotive Logistics Management Services
Its automotive logistics management services include the processing, transportation and storage of motor vehicles, including port and customs clearance, vehicular transportation, warehousing and delivery. By eliminating unnecessary interim transitions between operators, the Group is able to deliver the motor vehicles in a more efficient and cost-effective manner. Further, the Group is licensed by the Singapore Customs to store dutiable motor vehicles on multiple sites under one Licensed Warehouse licence.
In addition, Cogent is also involved in the de-registration and export processing of used motor vehicles.
