Kingsmen Creatives

[¯|_(ツ)_/¯]

Kingsmen@27
https://links.sgx.com/FileOpen/KingsmenR...eID=678821

https://drive.google.com/open?id=1uxBqw4...PucjNzD4TY
Stay home and stay safe, everyone

[RBM]

The first four days of this week have seen a couple of trading sessions with a (relatively) high number of Kingsmen shares changing hands. And today, the share price ended up more than 10% higher in turnover exceeding 500,000 shares. I don’t pretend to have any insight into what the catalyst(s) is for such unusually high trading activity or share price elevation - Kingsmen has not made any SGX announcements this week. While I’m not claiming this counter has been oversold, based on reported 2H 2021 performance, perhaps a rebound is due. That said, I will not be convinced that Kingsmen’s Management is delivering and competing effectively until dividends are restored.

Vested

[dydx]

Kingsmen's market cap now stands at $61.6m (201.95m shares x $0.305). If the 2 founders choose to retire soon and sell their combined controlling interests of 46.5% - which will trigger a GO for the minorities - can a deal be done around the latest 31Dec21 NAV of $109.5m or $0.54/share, or higher?

[sgmystique]

The first four days of this week have seen a couple of trading sessions with a (relatively) high number of Kingsmen shares changing hands. And today, the share price ended up more than 10% higher in turnover exceeding 500,000 shares. I don’t pretend to have any insight into what the catalyst(s) is for such unusually high trading activity or share price elevation - Kingsmen has not made any SGX announcements this week. While I’m not claiming this counter has been oversold, based on reported 2H 2021 performance, perhaps a rebound is due. That said, I will not be convinced that Kingsmen’s Management is delivering and competing effectively until dividends are restored.

Vested

Somehow, I feel that this increase is a knee jerk reaction to the news about the opening up from Tuesday (29th March). The price-volume action in the coming week will tell us if there is something more behind the jump in price.

Operating performance has been declining from FY2014 (when we had a dividend of $0.04) till the last two years when dividend payments were stopped. Kingsmen will need to show a convincing and sustainable turnaround in bottomline numbers for the market to start believing in them once again...

[dydx]

Kingsmen as an established regional business grouping has and enjoys an existing large customer base and business connections. MICE activities, retail trade, office relocation/expansion, museums and later theme parks are all going to come back up after Covid. Kingsmen's cost base has come down quite a bit in FY21 too. So when business volume recovers and increases again, it should be easier to make money.

[RBM]

I have read through (most of) Kingsmen’s Annual Report today, in advance of the coming AGM. One thing I found striking was the proposed 28% (repeat: Twenty-Eight Percent) y-o-y increase in Directors Fees. And I could not find any substantiation in the AR. To my mind, a Company which has again failed to pay its shareholders a dividend should NOT even be thinking about an increase in Directors Fees, let alone a 28% increase. Most other Singapore listed companies I’m vested in are keeping their Directors Fees flat this year, even if dividend levels have been raised.

i would have expected Kingsmen’s Board of Directors to recall that Shareholders previously expressed their displeasure at a proposed (unjustified) remuneration measure, by robustly rejecting it at the AGM two years ago. It appears the lesson has not been learnt. If Kingsmen resumes Dividend pay-outs then Shareholders may be more acquiescent to incremental increases in Senior Management and Board remuneration levels. But until then, I suggest this kind of proposal is entirely counter-productive and disrespectful towards long-suffering shareholders. Even if its due to an (ill-timed) Board Expansion, i’ll be voting against.

Vested, for some time.

[brattzz]

ok, vote against too!

[weijian]

I have read through (most of) Kingsmen’s Annual Report today, in advance of the coming AGM. One thing I found striking was the proposed 28% (repeat: Twenty-Eight Percent) y-o-y increase in Directors Fees. And I could not find any substantiation in the AR. To my mind, a Company which has again failed to pay its shareholders a dividend should NOT even be thinking about an increase in Directors Fees, let alone a 28% increase. Most other Singapore listed companies I’m vested in are keeping their Directors Fees flat this year, even if dividend levels have been raised.

i would have expected Kingsmen’s Board of Directors to recall that Shareholders previously expressed their displeasure at a proposed (unjustified) remuneration measure, by robustly rejecting it at the AGM two years ago. It appears the lesson has not been learnt. If Kingsmen resumes Dividend pay-outs then Shareholders may be more acquiescent to incremental increases in Senior Management and Board remuneration levels. But until then, I suggest this kind of proposal is entirely counter-productive and disrespectful towards long-suffering shareholders. Even if its due to an (ill-timed) Board Expansion, i’ll be voting against.

Vested, for some time.

The Directors’ fees of S$263,603 for FY2021 are higher compared to the corresponding amount of S$205,750 for the financial year ended 31 December 2020 (“FY2020”), as in FY2020, the Executive Directors and Independent Directors had voluntarily taken a 30% and 15% reduction in their Directors’ fees respectively. There were no such reductions in FY2021.

QUESTIONS FROM SHAREHOLDERS IN RELATION TO THE 2021 ANNUAL REPORT
https://links.sgx.com/FileOpen/KingsmenR...eID=712966

[RBM]

I have read through (most of) Kingsmen’s Annual Report today, in advance of the coming AGM. One thing I found striking was the proposed 28% (repeat: Twenty-Eight Percent) y-o-y increase in Directors Fees. And I could not find any substantiation in the AR. To my mind, a Company which has again failed to pay its shareholders a dividend should NOT even be thinking about an increase in Directors Fees, let alone a 28% increase. Most other Singapore listed companies I’m vested in are keeping their Directors Fees flat this year, even if dividend levels have been raised.

i would have expected Kingsmen’s Board of Directors to recall that Shareholders previously expressed their displeasure at a proposed (unjustified) remuneration measure, by robustly rejecting it at the AGM two years ago. It appears the lesson has not been learnt. If Kingsmen resumes Dividend pay-outs then Shareholders may be more acquiescent to incremental increases in Senior Management and Board remuneration levels. But until then, I suggest this kind of proposal is entirely counter-productive and disrespectful towards long-suffering shareholders. Even if its due to an (ill-timed) Board Expansion, i’ll be voting against.

Vested, for some time.

The Directors’ fees of S$263,603 for FY2021 are higher compared to the corresponding amount of S$205,750 for the financial year ended 31 December 2020 (“FY2020”), as in FY2020, the Executive Directors and Independent Directors had voluntarily taken a 30% and 15% reduction in their Directors’ fees respectively. There were no such reductions in FY2021.

QUESTIONS FROM SHAREHOLDERS IN RELATION TO THE 2021 ANNUAL REPORT
https://links.sgx.com/FileOpen/KingsmenR...eID=712966

Thank you for sharing Weijian. Two points: 
A. The Dividend has NOT been restored. So Kingsmen’s Directors are seeking Shareholder approval to return their Fees to the inflated levels of 2020 (and before), while long-suffering shareholders continue to see depressed share prices and zero dividend. I would have supported a modest increase in Fees had the Dividend been restored. It’s worth noting that the Executive Directors have rewarded themselves with a ~5% y-o-y remuneration increase.

B. For those vested, I suggest the entire Q & A provided by Kingsmen is worth reading. Someone has asked if Kingsmen’s Board of Directors has learned from Shareholder’s robust rejection of a Remuneration Resolution at the 2020 AGM. I suggest the answer is “plane vanilla verbiage”….and that's being polite. If the BoD had heeded the lessons of Shareholder’s voting statement at the 2020 AGM, they would have awaited the restoration of the Dividend prior to upping remuneration levels.

Vested

[CY09]

If I am right, the $200k+ fees was related to the Independent Director's fees, and it is not the executive directors. Based on practice, the ID's fees tend to be less varied.

What will be interesting to find out is how much has the pay of the executive directors and CEO fluctuated through the years