Dear Shareholders,
Positioning for the next phase of our growth…
2014 was a fruitful year as we made strides in ramping up our
production and human resource capabilities in anticipation
of increasing demand for our products and services
around the world. The acquisition of the Johor property
was a strategic step towards establishing a permanent
manufacturing base. We continued to upgrade and align the
skills and knowledge of our people through the Kingsmen
Academy, with training courses tailored to develop
well-rounded individuals attuned to our business needs.
We also sought to extend our expertise in the design and
production of shop fixtures and decorations to the United
States with the incorporation of our subsidiary, Kingsmen
Projects US, in California in 2014. This is in line with our
long-term view of the growth prospects for our business,
as we continue to build and invest in facilities, processes
and manpower. In 2014, we included our Dubai office,
Kingsmen Middle East LLC, as a subsidiary in accordance
with the new accounting standard, FRS 110 – Consolidated
Financial Statements.
In FY2014, our full year net profit experienced a 3.3% dip
to S$17.2 million, despite a favourable growth of 13.6% in
revenue to S$336.4 million, from S$296.2 million in the
previous corresponding year. The decrease in net profit
occurred due to a one-off settlement for costs in relation to
a legal case in China. Without these costs, we would have
increased our bottom line over the previous year.
We experienced positive increase in demand for our
services in all business divisions, despite the uncertainties
of the global economy. With Asia Pacific remaining the
bright spot for growth, the strategic positioning of our
offices in the region had largely insulated us from the
challenges faced by those in the West.
The face of marketing communication media also
continued to change dynamically, especially owing to the
influence of technology and trends. There are winners and
losers. We continue to monitor and adapt to the changes
and cleverly offered solutions, including embracing new
technologies, to help clients gain a superior return on their
marketing dollar in the multi-disciplinary marketing mix.
Thus, offering them the convenience of a one-stop service
in the Asia Pacific region. This has enabled us to keep our
teams in the different divisions relevant to market needs.
We appreciate the continuing support of all the prestigious
clients that have been using the services of Kingsmen for
many years, even as we win over new ones. Our Group’s
quest for continuous learning and upgrading of our
offerings will stand us in good stead in the years to come.
Looking ahead, all our offices remain confident about the
prospects for 2015 as we continue to secure new contracts
across all our business divisions. We envisage 2015 to be
a strong year, given the regional pipeline of contracts and
continued demand for the Group’s services. As at 31 January
2015, the Group has secured contracts of S$137 million, of
which S$119 million is expected to be recognised in FY2015.
Our Exhibitions & Museums division expects to perform
well in FY2015, considering the exciting line-up of projects
and attractions that will be built in Asia and the Middle
East. This coupled with the SG50 celebrations in Singapore
and Asia’s continued status as the epicentre for major
lifestyle events and developments in the MICE industry
bode well for our business.
On the Retail & Corporate Interiors front, we expect the
division to sustain its momentum, as more mid-tier and
fast fashion brands enter the Asian markets and expand
rapidly in the city centres. International and domestic travel
is also rising at a steady pace, backed by the building and
refurbishment of airports in Asia, which in turn has led to
travel retail becoming an important expansion strategy for
luxury brands to court transit passengers.
We are also excited about the potential of our Alternative
Marketing division to increase its business exponentially,
as a growing number of brands continue to explore new
ways of reaching out to customers by adopting a seamless
omni-channel strategy to keep up with the proliferation of
social media.
In appreciation of the support from our loyal shareholders,
the Board of Directors is pleased to propose a final dividend
of 2.5 cents per ordinary share. Combined with the interim
dividend of 1.5 cents per ordinary share paid in September
2014, we would have paid out a total dividend of 4.0 cents
per ordinary share for FY2014.
In closing, I would like to express my sincere gratitude to
all members of the Kingsmen group who have contributed
towards our success with their dedication and hard work.
I would also like to extend my appreciation to the Board
of Directors for their steadfast support and guidance
throughout the year. Last but not least, I would like to thank
our business associates, clients and shareholders for their
continued support and belief in us.
Through lasting partnerships and an unwavering
commitment to exceeding our design, quality and service
standards, I am positive that we can achieve great results
at Kingsmen.
BENEDICT SOH
Executive Chairman
KINGSMEN CREATIVES LTD
ANNUAL REPORT
2014
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