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Kingsmen Q3 profit falls 84% on softer demand from high-end retailers
KINGSMEN Creatives' net profit fell 83.6 per cent in third quarter as the retail and corporate interiors business slowed for the maker of physical displays.
Kingsmen posted earnings of S$566,000, or 0.29 Singapore cent per share, for the three months ended September. Nine-month profit haved to S$4.4 million, or 2.26 Singapore cents per share. Kingsmen shares did not trade on Thursday, but were bid at 77.5 Singapore cents and offered at 78.5 Singapore cents at the close.
Revenue fell 11.8 per cent to S$76 million during the quarter as sales from retail and corporate interiors dropped 10.2 per cent to S$37.9 million amid soft demand from the high-end luxury retail segment. The affordable-luxury and travel retail segment, however, continues to provide demand.
The exhibitions and museums business also saw revenue decline by 7.8 per cent to S$30.7 million.
Kingsmen guided for demand in the high-end luxury retail segment to remain soft. The company had contracts worth S$348 million as at Oct 31, 2015, of which about S$305 million was expected to be recognised in 2015.