Dear Shareholders,
2015 will be remembered as the year of testing
for the Group’s resilience and ability to weather
the growing volatility of the global economy.
I am pleased to report that we have performed credibly
in FY2015, despite the global economic headwinds.
The increasingly tough market sentiment from the start
of 2015 pushed us to take a more aggressive stance
towards securing projects and developing businesses.
Despite this, our Retail & Corporate Interiors division
was still adversely affected by slow demand in the high-
end luxury retail segment, resulting in a 26.0% decline
in the division’s revenue to S$129.0 million in FY2015.
On the other hand, our Exhibitions & Museums division
performed well, recording a 26.3% or S$35.8 million
increase to S$172.3 million, compared to FY2014.
This strong showing partially offset the decline in
our Retail & Corporate Interiors division business.
Group revenue in FY2015 was S$327.9 million, a
2.5% decrease from the S$336.4 million recorded in
FY2014. Our full year net profit increased 11.2% to
S$19.1 million. This included a one-off gain of S$5.9
million from the disposal of interest in Kingsmen
C.M.T.I. Public Company Limited and the fair value
of the remaining interest in the company.
On the developments for 2015, we expanded our
footprint in Southeast Asia by setting up operations in
Myanmar, and saw the listing of our Thailand office,
Kingsmen C.M.T.I. Public Company Limited, which
resulted in positive contribution to our bottom line.
More importantly, we have continued to improve
our fulfilment capabilities by upgrading our Johor
production facility which we purchased in early FY2015.
More recently, we purchased a piece of land in Changi
Business Park, on which we intend to build our new
Kingsmen headquarters to better serve our expansion
needs. Talent development remains a priority, with our
people staying at the top of their game through various
training programmes conducted at the Kingsmen
Academy. We have also placed greater emphasis on
cross-selling among our different market segments
and ensuring that our service and quality standards
consistently meet market expectations.
On the Retail & Corporate Interiors front, we
have taken concrete steps to expand our market
presence in other retail segments such as affordable
luxury, fast fashion, travel retail and F&B, areas
of business where there are strong demands.
Looking ahead, we are cautiously optimistic about
the outlook for our various business segments in
FY2016, despite the challenges posed by global
economic uncertainty. As at 31 January 2016, we have
secured contracts of S$113 million, of which S$106
million is expected to be recognised in FY2016.
We expect our Exhibitions & Museums division to
maintain its momentum and continue to perform
well, given the outlook for the exhibitions, events,
museums & thematic industries, and the line-
up of projects and attractions already secured
around the Asia Pacific and Middle East regions.
Our Retail & Corporate Interiors division will continue
to embrace and adapt to the changes facing the
retail sector. Despite the current challenges in the
high-end luxury retail segment, we continue to see
opportunities and will continue to serve our clients
in those areas. We also see good prospects for
interior design and fit-out services in the affordable
luxury, fast fashion, travel retail and F&B segments,
and we are increasing our marketing and service
efforts to secure more projects in these areas.
In appreciation of the support from our loyal
shareholders, the Board of Directors is pleased to
propose a final dividend of 2.0 cents per ordinary
share. Combined with the interim dividend of
1.0 cent per ordinary share paid in September
2015, we would have paid out a total dividend
of 3.0 cents per ordinary share for FY2015.
I would like to extend my sincere appreciation to all
members of Kingsmen who have contributed and
worked very hard to get us through a challenging
year. I would also like to express my gratitude to the
Board of Directors for their steadfast support and
wise counsel throughout the year. Last but not least, I
would like to thank our business associates, clients and
shareholders for their continued support and faith in us.
We remain committed to delivering on our
objectives, pursuing excellence in design,
quality and service standards, and in rewarding
partnerships. I am confident that together, we
can achieve a promising future for Kingsmen.
Benedict Soh
Executive Chairman
k i n g s m e n c r e a t i v e s l t d
a n n u a l r e p o r t 2 0 1 5
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