Page 13 - ar2011

11
annual report 2011
Revenue
The Group achieved a revenue of S$261.0
million for FY2011, which was S$27.4 million
or 11.7% higher compared to S$233.6 million
for last year. The increased revenue was mainly
due to higher revenue contributions from the
Interiors division, Research & Design division and
IntegratedMarketing Communications Division.
The Exhibitions andMuseums division recorded a
full year revenue of S$99.4 million as compared
with S$104.8 million in FY2010. This is an
achievement in the absence of amajor exposition
event such as the World Expo Shanghai 2010.
During the year, besides the work on various
exhibitions including Art Stage Singapore,
BroadcastAsia, CommunicAsia, SIBOS and Tax
Free Asia Pacifc and launches for Audi, Chanel
and LVMH, the division successfully delivered
the works for the 2011 Formula 1 Singapore
Grand Prix.
2011 also saw the completion of variousmuseum
works such as the rebuilding of the Guangdong
Pavilion at the Guangdong Science Centre, Bank
Negara Museum in Malaysia and upgrading of
the URA Gallery. There were also various parcels
of thematic works that the division continued to
work on, including those for Universal Studios
Singapore, Hong Kong Disneyland and Gardens
by the Bay in Singapore.
The Interiors division performed well with higher
revenues of S$144.1 million, which is 24.9%
(S$28.7 million) above that of the same period
last year.
The division continues to sustain strong revenue
contribution from key clients and international
brands. Some of the key contributors include
Abercrombie& Fitch, AIA, Aldo, Burberry, Chanel,
Fashion Retail, Fendi, H&M, Hollister, Nuance
Watson, Polo Ralph Lauren, Robinson & Co.,
Tiffany & Co., Uniqlo and roll-out for Swarovski.
Revenue for the fixture export business has
doubled in 2011.
Revenue from the Research and Design division
increased by 33.3% (S$2.2 million) to S$8.6
million in FY2011. This was achieved through
a renewed focus on undertaking more design
consultancy services. The Integrated Marketing
Communications (IMC) division’s revenue of
S$8.9 million represents a growth of 27.5%
(S$1.9 million) compared to S$7.0 million for
the same period last year.
Gross Proft
Gross proft increased by 4.4% (S$2.8 million)
to S$66.7 million in FY2011 as compared to
S$63.9 million in FY2010. Overall gross proft
margin declined from 27.3% to 25.5% due to
lower margins on interior ft-out projects and as
well as fxture exports.
Other Items of Income
Interest income relates mainly to interest income
derived from fxed deposits and bank balances
with the banks.
Other income comprises of administrative
income, corporate fees, rental income and other
miscellaneous income.
Other Items of Expenses
Operating expenses increased by S$2.9 million,
from S$48.7million in FY2010 to S$51.6million
in FY2011. This was mainly due to an increase
in staff salaries and related expenses which was
directly related to increased staff resources and
wage adjustments.
Share of Results of Associates
Higher share of profts of associates resulted
mainly frombetter performance achieved by the
associated companies, Enterprise Sports Group
Pte Ltd, Kingsmen Nikko Limited and Kingsmen
Korea Limited.
Net Proft Attributable to Owners of
the Company
The Group achieved a higher net proft after
MI of S$16.3 million, an increase of 8.4%
(S$1.2 million) as compared to S$15.1 million
for the previous year.
Net Assets (Net of MI)
Net assets of the Group increased by S$9.8
million, from S$57.1 million to S$66.9 million,
which was contributed by the profts retained
in the business after a dividend distribution of
S$7.6 million to shareholders.
Intangible Assets
The decrease in intangible assets was due to
the amortization of S$305,000 which is partially
offset by translation gain.
Investment in Associates
As disclosed in an announcement by the
Company on 12 December 2011, an associated
company, KingsmenKorea Limited (“KKR”) issued
an additional 7,500 common shares to a key
executive of KKR. Subsequently, the Company
exercised its right to convert the redemption-
preferred shares it had held to common shares.
Upon completion of the abovementioned
issue and conversion, the Company’s effective
shareholding in KKR has increased from 30%
to 32.1%.