SINGAPORE (Feb 19): Kingsmen Creatives, the communication design and production group, today announced that its FY18 earnings have dropped 16.3% to $8.2 million, compared to $9.7 million in FY17, on the back of higher expenses.
Revenue for the full year ended Dec 2018 came in 17.5% higher at $360.9 million from $307.3 million a year ago, attributed to higher contribution from the group’s exhibition & thematic, retail & corporate interiors, and research & design divisions.
The exhibitions & thematic division saw revenue increase by 17.2% y-o-y to $160.3 million, due to the completion of several major events and projects, namely BNP Paribas WTA Finals Singapore presented by SC Global, Food & Hotel Asia 2018, Formula 1 Singapore Grand Prix, National Day Parade 2018, Shenzhen Binhai Tencent Exhibition Centre, Singapore Airshow 2018, TFWA Asia Pacific Exhibition & Conference 2018, Vinexpo Hong Kong 2018 and thematic projects in the region.
The retail & corporate interiors division recorded revenue of $172.0 million, 20.1% higher y-o-y, due to the contribution from several key projects.
Revenue from the research & design division increased by 10.3% to $17.1 million, attributable to key accounts including clients and brand names such as Burberry, Procter & Gamble Co., TAG Heuer, Tencent and Valentino, and thematic projects in the region.
However, the increase in total revenue was partially offset by a 1.9% y-o-y drop in revenue from the group’s alternative marketing division to $11.6 million.
As cost of sales increased by 21.2% y-o-y to $278.9 million, gross profit for FY18 was $82.0 million, 6.3% higher than $77.2 million last year.
Other income declined by 2.9% to $3.87 million, compared to $3.99 million in the previous year.
The group incurred higher operating expenses in FY18, with the depreciation of property, plant and equipment increasing 17.7% y-o-y to $2.36 million; employee benefit expense increasing 4.8% to $57.7 million; other expenses higher by 1.4% at $14.4 million; and interest expense increasing 50.0% to $0.80 million.
Income tax expense saw a 275.7% jump to $3.7 million from $1.0 million a year ago.
As at Dec 31, 2018, the group’s cash and cash equivalents stood at $77.5 million.
The group has declared a final cash dividend of 1.5 cents per share, which will be payable on May 31.
Andrew Cheng, group CEO of Kingsmen says, “Moving forward, we are excited about the opportunities that are available and will leverage on the capabilities that have been built, enhance them, and push forward to strengthen our presence in our core business areas and secure new ones.”
Barring unforeseen circumstances, the group expects to be profitable in FY19.
Shares in Kingsmen closed half a cent lower at 52.5 cents on Tuesday.
