SINGAPORE (Feb 22): Kingsmen Creatives reported a 37.6% drop in FY16 earnings to $11.9 million, hit by lower margins and higher costs.
In FY15, the group had also recognised a one-off gain of $5.9 million from the disposal of interest in Kingsmen CMTI and the fair value of the remaining interest in the company.
Margins for retail & corporate interiors works also fell while higher operating costs impacted the group's bottom line.
FY16 revenue rose 0.6% to $329.7 million.
The Exhibitions and Thematic division recorded a revenue of $151.4 million in FY16, a 12.1% decrease from FY15. The key contributors to the division’s revenue were major events and projects including BNP Paribas WTA Finals Singapore, Formula 1 Singapore Grand Prix, and Singapore Airshow 2016.
The Retail & Corporate Interiors division achieved a 16.7% increase in revenue to $150.5 million. Key accounts included Birkenstock, Bottega Veneta, Coach, DBS Bank, Robinsons and Uniqlo.
The Research & Design division registered a revenue of $15.1 million in FY16, an increase of 0.5% compared to $15 million in FY15. The division’s key accounts included clients and brand names such as BMW, Michael Kors and Under Armour.
The Alternative Marketing division posted higher revenue of $12.7 million in FY16, a 9.5% increase compared to a year ago.
In its outlook, Andrew Cheng, Group CEO of Kingsmen, said: “We see good potential in the lifestyle entertainment and event scenes especially in the thematic attractions, museums and events space, with more developments and new concepts in the pipeline. This is widely driven by economic growth, rising sophistication and heightened consumer spending in the Asian economies.”
The board is recommending a final dividend of 1.5 cents per share.
Shares of Kingsmen Creatives closed at 64 cents on Tuesday.
