The Postman likely to get on an acquisition train as net cash hits $329m

Are the odds for a buying spree high?

SingPost’s capital expenses have been quite high at $75.6m this quarter, but this did not deter the group’s cash flow to grow. Analysts predict that acquisitions are on the horizon as SingPost is currently in a good position to shell out cash.

The net cash was a result of its robust operating activities which netted $59.2 this quarter, but was offset by the company’s capital expenditure of $75.6 for the construction of the eCommerce Logistics Hub and addition of POPStations.

“There was also the purchase of S$23.3m of financial assets,” the report from OCBC said.

“Singapore Post (SingPost) reported a 20.7% YoY increase in revenue to S$254.6m and a 15.8% rise in net profit to S$46.6m in 1QFY16,” the report added.