SINGAPORE (Feb 22): Kingsmen Creatives saw its full-year earnings fall 18.1% to $9.7 million in FY17, from $11.9 million a year ago.
Total FY17 revenue decreased by 6.8% to $307.3 million, from $329.7 million a year ago.
Revenue from its Exhibitions & Thematic division fell 9.7% to $136.8 million in FY17, due to the absence of revenue contribution from several key projects that were completed in FY16.
Revenue from its Retail & Corporate Interiors division fell 4.9% to $143.2 million in FY17, due to the softer retail industry in some of the markets.
Revenue from the Alternative Marketing division fell 7.2% to $11.8 million in FY17, from $12.7 million a year ago.
The declines were slightly mitigated by 2.9% increase in revenue from its Research & Design division to $15.5 million in FY17.
Other income fell 15.5% to $4.0 million in FY17, from $4.7 million a year ago.
Employee benefits expense fell 6.0% to $55.0 million in FY17, mainly due to lower costs resulting from reduced headcount and lower performance-linked incentives recorded.
Other expenses increased by 14.5% to $14.2 million in FY17, from $12.4 million a year ago.
This was mainly due to a net foreign exchange loss of $1.6 million recorded in FY17, compared to a net foreign exchange gain of $0.3 million recorded in other income in FY16.
As at end December, cash and cash equivalents stood at $71.1 million.
“Our FY 2017 performance was impacted by the soft retail market and adverse movements in foreign exchange as well as the completion of several thematic projects and the scheduling of new projects in the pipeline,” group CEO Andrew Cheng.
“Moving forward, we will continue to strengthen our foothold in our core businesses and existing markets, as we embark on the next phase of transformation,” he adds.
As at Jan 31, 2018, Kingsmen has secured contracts worth $84 million, of which $82 million is expected to be recognised in FY18.
Shares of Kingsmen closed 1.5 cents lower, or down 2.4%, at 62 cents on Thursday.
