Kingsmen Creatives

[Musicwhiz]

Annualized ROE for Kingsmen Creatives stands at 24.9% for 1H FY 2010, and this is without leverage. Kingsmen's ROE has been consistently very high without excessive debt, their Balance Sheet is strong and they are consistently generating Free Cash Flows every year. They also pay very regular dividends, at 1.5c/share interim and 2c/share final (for FY 2009).

Business Times - 13 Aug 2010

Kingsmen Creatives Q2 profit up 30.2% to $4.6m

By VEN SREENIVASAN

DESIGN group Kingsmen Creatives chalked up a 30.2 per cent rise in second-quarter profit to $4.6 million as it booked in higher contributions from its exhibitions and museums and interiors divisions.

With the latest results boosting its first-half earnings 17.2 per cent to $6.9 million, from $5.9 million a year earlier, the company has declared an interim dividend of 1.5 cents a share.

Q2 revenue was up 22 per cent to $64.6 million, from $53 million a year ago, lifting H1 revenue 25.5 per cent to $111.3 million.

Kingsmen had $29 million cash at end-June and an order book of $187 million at the start of this month.

Its exhibitions and museums division registered Q2 revenue of $29.2 million, which was $2.2 million or 8.5 per cent more than a year earlier.

Key projects carried out by this unit included seven pavilions at World Expo 2010 in Shanghai.

Other projects included events such as Asia-Pacific Maritime 2010, Food and Hotel Asia 2010, the Singapore Airshow 2010, Tax Free Asia-Pacific 2010 and other trade exhibitions, and for Nissan/Infiniti at various auto shows.

The interiors division posted Q2 revenue of $32.3 million, which was $8.9 million or 38.1 per cent more than a year earlier.

This unit continues to pull in revenue from retail store roll-outs by key customers and brands such as Tiffany and Burberry in Singapore, Hong Kong and China.

Kingsmen said the opening of the Marina Bay Sands resort boosted its revenue: 'We have completed 13 shops which contributed about $6 million to our revenue as at H1, and have at least 13 more shops to be completed by year-end.'

Projects in hand include boutiques for brand names such as Bottega Veneta, Burberry, Chanel, Chaumet, Fendi, Polo Ralph Lauren, Swarovski, The Hour Glass, Tiffany & Co and Uemo Collezioni & Stefano Ricci.

Kingsmen's research and design division chalked up $1.3 million in Q2 revenue, while its integrated marketing communication division's revenue came in at $1.8 million.

The company's executive chairman Benedict Soh said Kingsmen delivered well on all its projects.

'With Asia spearheading the global recovery, our operational footprint is exactly where it ought to be - at the heart of where it is all happening,' he said, adding that the government's drive to make Singapore a regional hub for MICE activities will further boost Kingsmen's opportunities.

'The next few years will be even more exciting for us as the world looks towards Asia for solutions,' Mr Soh added.