For the financial year ended 31 December
2014 (“FY2014”), the Group recorded
revenue of S$336.4 million, an increase
of S$40.2 million or 13.6% as compared
to S$296.2 million for the previous
corresponding financial year ended 31
December 2013 (“FY2013”). This was mainly
attributable to organic growth within the
Group and revenue contribution from
Kingsmen Middle East LLC (“KME”) which
was accounted for as a subsidiary of the
Group with effect from 1 January 2014.
The Exhibitions & Museums division
performed well in FY2014 with revenue of
S$136.4 million as compared to S$103.4
million in FY2013, an increase of S$33.0
million or 31.9%. The key contributors
to the division’s revenue were revenue
from major projects such as Formula 1
Singapore Grand Prix 2014, FIA Formula
E Putrajaya ePrix 2014, Singapore Sports
Hub, Singapore Airshow 2014, Food & Hotel
Asia 2014, TFWA Asia Pacific Exhibition &
Conference 2014, BNP Paribas WTA Finals
Singapore presented by SC Global and
thematic projects in China.
The Retail & Corporate Interiors division
recorded revenue of S$174.3 million in
FY2014, an increase of S$7.7 million from
S$166.6 million in FY2013. The increase in
revenue was due to the continued strong
demand for interior design and fit-out
services from key accounts such as Shilla,
Tiffany & Co., Lotte Group, H&M, Christian
Dior, Fendi and Uniqlo.
The Research & Design division continued
to grow steadily registering revenue of
S$12.9 million in FY2014, an increase of
13.5% as compared to S$11.4 million in
FY2013. Key accounts which contributed to
the division’s revenue included customers
and brand names such as Burberry, SKII,
Metro and Shilla.
Revenue from the Alternative Marketing
division was S$12.7 million in FY2014,
reflecting a decrease of S$2.1 million as
compared to S$14.8 million in FY2013. The
higher revenue in FY2013 was due to the
completion of a major one-off project. In
FY2014, the division completed projects
and events for clients such as BMW, Jurong
Health, Heineken and StarHub.
Revenue
Higher operating expenses were incurred in
FY2014 as compared to FY2013. The increase
was mainly due to the inclusion of KME as
a subsidiary of the Group with effect from 1
January 2014, and increases in expenses such
as employee benefits expense due to higher
headcount and increased average wages,
and one-off costs in relation to the settlement
of a legal case in China.
Other Items of
Expense
Gross profit for FY2014 increased by S$8.8
million or 11.7%, from S$76.0 million in
FY2013 to S$84.8 million in FY2014. The
increase was brought about mainly by
higher revenue registered. Gross profit
margin was stable at 25.2% in FY2014 as
compared to 25.6% in FY2013.
Gross Profit
Share of results of associates increased by
S$0.2 million or 24.5% from S$0.8 million
in FY2013 to S$1.0 million in FY2014. The
increase was mainly due to contribution from
a new associate, namely Kingsmen C.M.T.I
Co., Limited acquired in January 2014.
Share of Results
of Associates
Interest income relates mainly to interest
income earned from fixed deposits and bank
balances placed with banks.
Other income comprises mainly of corporate
fee income, other service income, rental
income and miscellaneous income.
Other Items of
Income
Profit net of tax attributable to equity
holders of the Company decreased by
S$0.6 million or 3.3% from S$17.8 million
in FY2013 to S$17.2 million in FY2014,
notwithstanding the higher revenue and
gross profit registered. This was largely
due to the higher operating expenses (such
as employee benefits expense and one-off
costs in relation to the settlement of a legal
case in China) incurred.
Profit Net of Tax
Attributable to Equity
Holders of the Company
KINGSMEN CREATIVES LTD
ANNUAL REPORT
2014
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