Revenue
For the financial year ended 31
December 2015 (“FY2015”), the Group
recorded a revenue of S$327.9 million,
a decrease of S$8.5 million or 2.5%
compared to S$336.4 million for the
previous corresponding financial year
ended 31 December 2014 (“FY2014”).
The Exhibitions & Museums division
performed well in FY2015 with a
revenue of S$172.3 million compared to
S$136.5 million in FY2014, an increase
of S$35.8 million or 26.3%. The key
contributors to the division’s revenue
included major projects such as 28
th
SEA Games in Singapore, TFWA Asia
Pacific Exhibition & Conference 2015,
Art Stage Singapore 2015, Qatar Motor
Show 2015, Formula 1 Singapore Grand
Prix, BNP Paribas WTA Finals Singapore
presented by SC Global, Gastech
Conference and Exhibition 2015, King
Abdulaziz Center for World Culture,
KidZania Singapore, National Museum of
Singapore, Chinatown Heritage Centre
and thematic projects in the region.
The Retail & Corporate Interiors division
registered a revenue of S$129.0 million
in FY2015, a decrease of S$45.3 million
or 26.0% from S$174.3 million in FY2014.
Demand for interior design and fit-out
services from the high-end luxury retail
segment remained soft. However, the
division continued to see demand for
interior design and fit-out services from
the affordable luxury and travel retail
segments. Key accounts for this division
included Aldo, Christian Dior, Coach,
Fendi, Michael Kors, Ralph Lauren, The
Hour Glass, Tiffany & Co., British Airways
and Shilla Travel Retail.
The Research & Design division achieved
a revenue of S$15.0 million in FY2015,
an increase of S$2.1 million or 16.1%
compared to S$12.9 million in FY2014.
The key accounts which contributed to
the division’s revenue included clients
and brand names such as BMW, Burberry,
Changi Airport Group, Michael Kors,
Procter & Gamble Co. and Valentino, and
thematic projects in the region.
Revenue from the Alternative Marketing
division was S$1.1 million or 8.6% lower
in FY2015 at S$11.6 million, compared
to S$12.7 million in FY2014. The key
contributors to the division’s revenue
included projects and events from
clients such as BMW, Health Promotion
Board, Jurong Health, National Research
Foundation, OCBC and StarHub.
Gross Profit
Gross profit for FY2015 decreased by
S$1.1 million or 1.4% to S$83.7 million
compared to S$84.8 million in FY2014.
The decrease was mainly a result of the
lower revenue registered. Gross profit
margin remained fairly stable at 25.5% in
FY2015 compared to 25.2% in FY2014.
Other Items of Income
Interest income relates mainly to interest
income earned from short-term deposits
and bank balances placed with banks.
Other income increased by S$5.7 million
or 109.4%, from S$5.2 million in FY2014
to S$10.9 million in FY2015. The increase
was mainly due to the recognition
of gains from the deemed disposal
of interest in an associate, disposal
of interest in an associate and fair
value adjustment of available-for-sale
financial asset of S$0.6 million, S$2.0
million and S$3.9 million respectively
offset by lower other service income of
S$0.9 million.
Other Items of Expense
Higher operating expenses were
incurred in FY2015 compared to FY2014.
The higher depreciation charge on
property, plant and equipment and
interest expense were incurred mainly
as a result of the acquisition of a new
factory unit in Malaysia in January
2015 and the corresponding bank
loans taken to finance the acquisition.
The increase in employee benefits
expense was mainly due to higher costs
resulting from increased headcount and
average wage, and partially offset by
lower performance-linked incentives
recorded. Other expenses were higher
in FY2014 compared to FY2015 mainly
due to the recognition of one-off costs
in relation to the settlement of a legal
case in China in FY2014. Also recorded
in other expenses was a net foreign
exchange loss of S$0.6 million in FY2015
compared to a net foreign exchange
gain of S$0.1 million recorded in other
income in FY2014.
Share of Results of
Associates
Share of results of associates changed
by S$1.7 million from a profit of
S$1.0 million in FY2014 to a loss of
S$0.7 million in FY2015. The change
was mainly due to lower profit
contribution from certain associates,
loss contribution from an associate and
a negative goodwill of S$0.2 million
recognised in FY2014 which resulted
from the inclusion of Kingsmen C.M.T.I.
Public Company Limited as a new
associate in January 2014.
Profit Net of Tax
Attributable to Equity
Holders of the Company
Profit net of tax attributable to equity
holders of the Company increased
by S$1.9 million from S$17.2 million
in FY2014 to S$19.1 million in FY2015,
notwithstanding the lower revenue
and gross profit and higher operating
expenses registered. This was largely
due to the one-off other income
recognised as a result of the disposal of
interest in an associate and the fair value
of the remaining interest as an available-
for-sale financial asset.
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