Kingsmen growing from strength to strength

KINGSMEN’S FY2011 NET PROFIT INCREASES TO S$16.3 MILLION

- Revenue increases 11.7% to S$261.0 million
- Net Profit increases 8.4% to S$16.3 million
- Growth driven by strong demand for the Group’s services
- Expects growth to continue
- Proposes final dividend of 2.5 cents per share

“Despite 2011 being a challenging year for the global economy, I am pleased to report that Kingsmen has again withstood the test, continued to grow its business and has emerged stronger than ever before. Our focus on continuously enhancing our capabilities and expanding our footprint has taken on a more urgent tone as we seek to capitalize on the growth opportunities in Asia. To this end, we opened a new office in Shenzhen in 2011, and also upgraded our offices and facilities in Malaysia, Indonesia and South Korea. Even as we move to enhance our capabilities, we are already seeing an expansion of our client base across our territories and are receiving more inquiries for retail store roll–out and fixture exports to Europe and the US.” said Mr Benedict Soh（苏锡波), Executive Chairman of Kingsmen.

Singapore, February 27, 2012 – Kingsmen Creatives Ltd (“Kingsmen”) (“金明创新”) and its subsidiaries (“the Group”), a leading communication design and production group, today announced a strong set of results for the financial year ended 31 December 2011 (“FY11”). Revenue increased 11.7% to S$261.0 million, while net profit increased 8.4% to S$16.3 million in FY11.

The Group’s good performance was driven by strong demand for the Group’s services and higher revenue contribution from the Interiors, Research & Design and the IMC divisions.

Commenting on the Group’s performance, Mr Soh said: “We have done well despite the challenging global environment and have achieved good momentum for growth. We are confident of our growth prospects as we are in the right business and at the right places. As we continue to enhance our capabilities, we are also consciously integrating our services to better address the needs of our international client base. Training and talent development have now taken centre stage in our drive to enhance our value to clients and for us to plan more effectively for the future. We are also overcoming our perennial challenge of talent shortage by recruiting more strategically and across borders. These enhancements to software, coupled with the continuous upgrading and expansion of our facilities around the region put us in good stead to become an effective global player and a partner of choice to our clients.”

The Group’s Exhibitions and Museums division continued to perform well, posting a revenue of S$99.4 million in FY11 despite the absence of any major events, such as the Shanghai World Expo 2010. During the year, the division worked on various exhibitions including Art Stage, Tax Free Asia, SIBOS, BroadcastAsia and CommunicAsia, and supported events for Audi, LVMH and Chanel. The division also completed works for various museums such as the Guangdong Pavilion at the Guangdong Science Centre, Bank Negara Museum in Malaysia and URA Gallery in Singapore. In addition, the division continued to work on several projects for Hong Kong Disneyland, Universal Studios Singapore and Gardens by the Bay in Singapore.

The Interiors division continued to perform well, posting a 24.9% increase in revenue to S$144.1 million in FY11. This was achieved through strong revenue contribution from key customers and brand names such as Abercrombie & Fitch, AIA, Aldo, Burberry, Chanel, Fashion Retail, Fendi, H&M, Hollister, Nuance Watson, Polo Ralph Lauren, Robinson & Co., Tiffany & Co., Uniqlo and Swarovski. Revenue for the division’s fixture export business also doubled in 2011, on the back of strong demand from overseas customers.

The Group’s Research and Design division’s revenue increased 33.3% to S$8.6 million in FY11. This growth in revenue was achieved through a renewed focus to undertake more direct design services, and also to offer design as a supplementary service for design & build jobs. The Group’s IMC division recorded a 27.6% growth in revenue to S$8.9 million in FY11 as the team undertook more events and projects for their key accounts and success in securing new business.


Outlook for FY2012 and beyond

2012 is expected to be another good year for the Group, given its strong market position and the business flow into and outside Asia. As at 25 February 2012, the Group has secured contracts of approximately S$106 million which is expected to be recognized this financial year. 

The Group’s exhibitions division started off the year strongly with the securing and completing of a number of pavilions and exhibition stands for the Singapore Airshow. The division’s client acquisition focus and marketing efforts have also resulted in the division securing jobs for various exhibitions that are taking place in the first half of 2012. These exhibitions include Food and Hotel Asia, Tax Free Asia Pacific and Asia Pacific Maritime. Overseas, the division has also secured several contracts to construct pavilions at the Yeosu Expo 2012 in Korea, and is currently negotiating for a few more. 

On the theme parks and museums front, the division sees strong demand for its expertise. In addition to ongoing works at Hong Kong Disneyland, Gardens by the Bay, and various other museums projects, the division has also recently secured a sizeable contract for Universal Studios Singapore as well as contracts for Hong Kong Maritime Museum and the Sotheby’s Visitor Centre in Hong Kong. The division expects the theme park business to be an area of growth, as it sees more theme parks and attractions being developed in the region and beyond over the next few years. 

The Group’s interiors division is expected to maintain its momentum. On the local retail front, business remains buoyant and the division expects to be involved in upgrading and new projects in suburban malls and along the Orchard road belt.

With global retailers moving to establish themselves in Asia, new opportunities have opened for the interiors division and it expects to serve even more global brands. The division’s fixture roll-out program continues to deliver strong results, with continuing orders from brands globally. 

In line with the Group’s policy of distributing its profits to reward loyal shareholders, the Board is recommending a final dividend of 2.5 cents per ordinary share. Combined with the interim dividend of 1.5 cents declared in August 2011, the Group would have paid out a combined dividend of 4.0 cents per share in FY11.

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