Kingsmen Creatives has reported lower revenue of $156.1 million for 2HFY2021 ended Dec 2021, down 4.8% y-o-y.
However, thanks to cost control, the company was able to report earnings of $2.7 million for the same half year ended Dec 2021, a reversal from the year earlier red ink of $5.8 million.
For the whole of FY2021, the company recorded earnings of $1 million, versus a loss of $11.1 million incurred in FY2020, when the pandemic hit its business. FY2021 revenue was down 4.8% over FY2020 to $273.2 million.
“We continue to see a good volume of work and are back in the black in 2021 with a net profit of $1 million, despite the various lockdowns, restrictions and disruptions in our markets, which impacted our full recovery,” says group CEO Andrew Cheng, who describes the company's core business as "robust".
"With business operations resized, a continued tight rein on cost management and a greater focus on supply chain delivery, we have been able to better adapt to changing market conditions, while looking for opportunities to expand our client base and expand our service offerings to the market,” he adds.
Out of its various main business segments, Kingsmen’s retail and corporate interiors division managed to record a healthy increase in revenue of 23.8% to $148.4 million.
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This division, for the coming year, is seeing “growing enquiries and committed projects from existing and new clients”.
The exhibitions, thematic and attractions division, on the other hand, suffered from a 26.7% drop in revenue to $108.8 million.
The company attributes the lower turnover to the cancellation and postponement of physical trade shows, conferences and events by clients, although growing demand for hybrid events have helped bring in some contracts.
The company notes that while clients continue to be cautious, they are increasing their enquiries, for participation, as well as for new ideas to engage audiences. This bodes well for the recovery of this sector.
The thematic attractions market continues to be buoyant, with 2022 expected to be a busy year for the team who is focused on managing and delivering multiple committed projects, while continuing to build the pipeline for new orders.
While the attractions industry continues to be “severely impacted”, the company says there’s “pent up demand”.
“We are therefore continuing our push to expand our branded intellectual property concepts in the overseas markets, as well as develop and introduce new unique experiences that meet the changing needs of consumers and lifestyles,” the company states.
As at Jan 31, it has an order book of $140 million, of which $128 million is expected to be recognised in 2022.
No dividend has been declared for FY2021.
Kingsmen Creatives shares last traded at 25 cents, it is down 5.77% year to date.
