Kingsmen's net profit up 11.2% for FY2015

KINGSMEN Creatives posted a net profit of S$19.1 million for the year ended December 2015, up 11.2 per cent from a year ago. This includes a one-off gain of approximately S$5.9 million from the disposal of interest in Kingsmen CMTI Public Company Limited and the fair value of the remaining interest in the company.

Meanwhile, revenue dipped 2.5 per cent, from S$336.4 million to S$327.9 million. The exhibitions and museums division posted revenue of S$172.3 million, up 26.3 per cent. Its other major revenue contributor - retail and corporate interiors - dipped 26.0 per cent, from S$174.3 million to S$129.0 million due to soft demand for interior design and fit-out services from the high-end luxury retail segment.

Its research & design division recorded a turnover of S$15.0 million in FY 2015, an increase of 16.1 per cent compared to S$12.9 million in FY 2014. The alternative marketing division posted a revenue of S$11.6 million in FY 2015, a S$1.1 million decrease compared to S$12.7 million in FY 2014.

A dividend of 2.0 Singapore cents per share was declared.

Looking ahead, the group said it is "cautiously optimistic" about the outlook for its various business segments.

Said Benedict Soh, executive chairman of Kingsmen: "We expect FY2016 to be another challenging year, but we are well positioned to face the changing market environment. Over the course of FY 2015, we have expanded our footprint, setting up operations in Myanmar, in addition to the US retail services office we set up in the second half of FY 2014. We have also enhanced our fulfilment capabilities through the upgrading of our Johor production facility which we purchased in early FY2015. More recently, we purchased a piece of land in Changi Business Park, on which we intend to build our new Kingsmen HQ to serve our expansion needs.

"Our people continue to be at the top of their game, through training programmes conducted at the Kingsmen Academy. We have placed greater emphasis on cross-selling and ensuring that our service and quality standards consistently meet market expectations."

As at end Jan this year, Kingsmen Creatives has secured contracts of about S$113 million, of which about S$106 million is expected to be recognised in FY2016.