MULTIMODAL freight service provider Freight Management Holdings Bhd (FMH) saw a 26 per cent jump in net profit in its first fiscal quarter ended September 30 2006, driven by increased revenue from its sea freight division, its customs brokerage services and its tug and barge business.

It posted a net profit of RM2.4 million, up from RM1.9 million, in the same period last year.

"Our core business has generally registered steady growth and our sea freight services have also benefited from our efforts to improve the load factor in the LCL (less than one container load) segment," FMH managing director Chew Chong Keat said in a statement.

The improved profit was a direct result of measures taken to improve load factor in the LCL segment.

Revenue also grew by 21 per cent to RM46.2 million from RM38.1 million a year ago.

FMH's 51 per cent subsidiary TCH Marine Pte Ltd, a newly-acquired business, will give a full-year contribution from its tugs and boats business this financial year.

Singapore-based TCH Marine specialises in the provision of barge, tugboat and other marine services.

"TCH Marine has been a good investment for us and the business is doing well. In that respect, it was timely for us to add a new barge to its fleet to cater to higher demand for its services," Chew said.

TCH Marine recently acquired a new barge, increasing the number of barges it owns to five.

Chew expects the tugs and boats business to contribute about 10 per cent to 15 per cent to the group's profits this year.

"We are pleased with our first-quarter results and are optimistic of achieving a favourable performance for the current financial year ending June 30 2007," Chew said.

FMH currently services the freighting of bulk raw materials between south- west of Thailand, Peninsular Malaysia and Singapore, through the Straits of Malacca.