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Spackman back in black in FY2017 with US$2.98m profit

SPACKMAN Entertainment Group swung back into the black for the 2017 financial year, buoyed by recognition of profit from production fees and investment returns in connection its "Master" film, as well as increased distribution of films and income from its equipment leasing business.

The film production company clocked a US$2.98 million profit for FY2017 from a US$2.43 million loss the previous year, on the back of a 36 per cent boost in revenue to US$20.55 million.

The lift in results was mainly due to recognition of US$3.98 million in profit for being the producer of action film "Master", return of investment of US$0.20 million as a passive investor for the same film, gross profit of US$0.60 million from video on demand (VOD) sales for crime action film "The Outlaws", as well as gross profit of US$0.38 million from its restaurant sales and café lounge business.

Frame Pictures, a newly acquired unit, contributed US$2.25 million in revenue from equipment leasing to third parties.

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Other income decreased by 61 per cent year-on-year to US$3.28 million in FY2017 in the absence of non-recurring gain of US$2.40 million in FY2016 related to the disposal of subsidiaries, Opus Pictures and UAA Korea.

As a result of its positive financials, earnings per share similarly swung to 0.65 US cent from a loss per share the previous year, and net asset value per ordinary share increased to 5.9 US cents.

Richard Lee, Spackman's interim chief executive and executive director, said the group was "pleased to record our positive turnaround in fiscal year 2017".

"We have made strides in our strategy of investing into companies that can help us develop a more consistent revenue stream and add accretive value to our existing film production business.

"Some of the key acquisitions and investments completed during the year have already contributed to our fiscal year results, and we believe that they will continue to positively impact our corporate development," Mr Lee said.

Spackman added it has been preparing to enter into production of Korean drama series in order to capitalise on the rising popularity of Korean drama in South-east Asia.

The counter closed on Wednesday at 9.4 Singapore cents before the earnings announcement, up 0.1 Singapore cent or 1.08 per cent.