Kingsmen Creatives

haha... i think i also mistaken his qns

Revenue FY10 from AR FY10 = 235,190,000
Revenue FY10 from AR FY11 = 233,631,000
difference = $1,559,000

If you read pg68(other income) and pg 115(Comparative figure) of FY11 AR, you will find the missing amount.

(27-05-2013, 10:34 PM)lester Wrote: Yup, as mentioned by Nick, why are the segment revenues for FY2010 different in AR2010 and AR2011?

(27-05-2013, 10:27 PM)Nick Wrote:

(27-05-2013, 10:26 PM)Some-one Wrote:

(27-05-2013, 10:20 PM)lester Wrote: Can I seek help with the experts to the following problem? Why does revenue for segment differ for certain year?

For example, in AR 2010, E&M revenue for FY10 was $105,910 but in AR 2011, E&M revenue for FY10 was $104,833?

Similarly in AR 2010, Interiors revenue for FY10 was $116,580 but in AR 2011, Interiors revenue for FY10 was $115,378.

Shouldn't the value remain constant throughout the years instead of fluctuating? Pardon me for the noob qn as I have very little knowledge in accounting. Thank you in advance.

Of course revenue would fluctuate year over year. If you are the owner of Kingsmen Creative, do you want your revenue to increase or remain constant between years?

I think he meant why the FY 2010 figure is different in AR 2010 and AR 2011.

Well, I guess I also misunderstood his question but then if the difference is not too great, I don't see any reasons why is there a need to know. There's no need to over analyse the figures. From the two examples you have given, I would probably just use the latest figures. The difference is negligible.

(27-05-2013, 10:20 PM)lester Wrote: Can I seek help with the experts to the following problem? Why does revenue for segment differ for certain year?

For example, in AR 2010, E&M revenue for FY10 was $105,910 but in AR 2011, E&M revenue for FY10 was $104,833?

Similarly in AR 2010, Interiors revenue for FY10 was $116,580 but in AR 2011, Interiors revenue for FY10 was $115,378.

Shouldn't the value remain constant throughout the years instead of fluctuating? Pardon me for the noob qn as I have very little knowledge in accounting. Thank you in advance.

Well, I don't think your question has anything to do with accounting knowledge - this is more of understanding how businesses work in general and the forces they are subject to in a competitive marketplace.

While every company tries its very best to improve revenues yoy and over time, there would inevitably be some bumps and hiccups along the way due to competition and a changing and dynamic business landscape. Hence, most companies do not "grow in a straight line", but if the underlying business model is strong, it will grow "over time" (which is why patience is required).

Hope this answers your question.

Part of the "Inside Iskandar" section in today's ST.

The Straits Times
www.straitstimes.com
Published on May 31, 2013
Inside Iskandar
Kingsmen plans to expand if price is right

WHEN Kingsmen Creatives expanded its production capacity back in 2005, its top priorities were space, proximity and price.

The firm, which designs and makes retail and corporate interior furnishings and fittings as well as exhibition installations, wanted a large space that could be divided into sections for woodworking, metalworks, plastics and spray-painting.

It also had to make sure that this workshop was nearby so its managers could easily supervise and check on the quality of the manufacturing.

Singapore was simply too expensive a location in which to lease such a large space, while places such as China and Vietnam, while cheap, were too far away.

Johor was the perfect solution.

Kingsmen rented a 200,000 sq ft workshop space in Senai Industrial Park II, in Flagship E of Iskandar. The rent that it secured for the space was 60 per cent lower than what it would have had to pay in Singapore.

Kingsmen was smart to move into Iskandar early. Rentals have been rising steadily over the past couple of years, noted managing director Simon Ong.

"From being 60 per cent lower, the rent has been creeping up to 50 per cent cheaper than Singapore. The prices of new leases have risen since the announcement of the high-speed railway between Singapore and Kuala Lumpur," he said.

"When we renewed our lease, the rental increased a bit too, but it's still lower than what we would be paying if we were just coming in now."

Despite the fact that Iskandar is no longer as cheap a place to do business as in the past, Kingsmen still sees potential and opportunities there.

"Our group is growing and we have plans to expand in Iskandar. If we can find the right place, we might invest there. We are looking," said Mr Ong, adding that the company is not restricting itself to the Flagship E area.

One major reason why Kingsmen still wants to expand in Iskandar is the fact that security and infrastructure there have improved greatly, as development has accelerated over the past five years.

"Seven to eight years ago, it was in a very different condition. Now, there are more industrial facilities that are good, with good security," Mr Ong said.

"And in terms of roads, logistics and all that, they are not issues any more. Previously, every area had different issues, whether logistics, manpower or security, because Iskandar wasn't so established."

Nonetheless, Kingsmen is steeling itself for challenges ahead.

"It used to be much easier to find workers. It's become harder and I foresee that going forward, it will be harder because there are more companies going in now," Mr Ong said.

"Workers such as Malaysian carpenters have a choice; they can get work permits in Singapore quite easily... and they are expecting higher and higher salaries."

Salaries have at least doubled, from 2005 to now, he added.

That is why companies looking for cost reductions should not turn to Iskandar, he said.

"If you want to save, you should go to Vietnam."

One more fan of Kingsmen Creative...

Marc Faber:
I like stocks such as SIA Engineering [SIE.Singapore] and Kingsmen Creatives [KMEN.Singapore] in Singapore. As for REIT stocks, they rose 40% last year, and are up 10% to 15% this year. They won't keep rising that way, but yields of 5% and 5.5% compare favorably with those of U.S. REITs. Plus, if inflation picks up, the REITs can raise their rents. In a world of inflated asset prices, there is a competition to choose the least-ugly assets.

He didnt discuss why he liked any of the stocks. You can read the article here...
http://online.barrons.com/article/SB5000...text.print

ISG Group is a competitor to Kingsmen as mentioned by Simon during the AGM. One of the brands they did fit-out for was Uniqlo.

http://www.isgplc.com/about/customers/default.asp

(06-06-2013, 07:57 AM)FFNow Wrote: ISG Group is a competitor to Kingsmen as mentioned by Simon during the AGM. One of the brands they did fit-out for was Uniqlo.

http://www.isgplc.com/about/customers/default.asp

http://www.falconincorporation.com/home.php#cartier
http://www.grandwork.com.sg
http://www.ddsasia.com.sg/html/index.php
...

Probably the list here shows some of its competitors (on local projects)
http://www.bcadirectory.sg/search_result...&grade=MTg=

(28-05-2013, 11:18 PM)Musicwhiz Wrote:

(27-05-2013, 10:20 PM)lester Wrote: Can I seek help with the experts to the following problem? Why does revenue for segment differ for certain year?

For example, in AR 2010, E&M revenue for FY10 was $105,910 but in AR 2011, E&M revenue for FY10 was $104,833?

Similarly in AR 2010, Interiors revenue for FY10 was $116,580 but in AR 2011, Interiors revenue for FY10 was $115,378.

Shouldn't the value remain constant throughout the years instead of fluctuating? Pardon me for the noob qn as I have very little knowledge in accounting. Thank you in advance.

Well, I don't think your question has anything to do with accounting knowledge - this is more of understanding how businesses work in general and the forces they are subject to in a competitive marketplace.

While every company tries its very best to improve revenues yoy and over time, there would inevitably be some bumps and hiccups along the way due to competition and a changing and dynamic business landscape. Hence, most companies do not "grow in a straight line", but if the underlying business model is strong, it will grow "over time" (which is why patience is required).

Hope this answers your question.

Thank you for all the help.

^^ Lester this is a good practice nonetheless to see if the figures are consistent through the years or major revisions. In this case the amount is immaterial but I know of a company which went bust a few years after IPO that I was suspicious because they manipulated their income booking over the FY.

(07-06-2013, 11:17 AM)specuvestor Wrote: ^^ Lester this is a good practice nonetheless to see if the figures are consistent through the years or major revisions. In this case the amount is immaterial but I know of a company which went bust a few years after IPO that I was suspicious because they manipulated their income booking over the FY.

Yes indeed. I am seeing less and less of these questions from new members. Maybe, nowadays, all are already equipped with the required knowledge. In the past, I was educated by experienced forum members and I am deeply grateful to those.