Kingsmen Creatives 3Q2017 Results – Recovery No Where In Sight

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Kingsmen Creatives have just released their 3Q2017 results and the financial figures does not seem very pleasing. Revenue declined across three out of its four business divisions for 3Q2017 as compared to 3Q2016. It seems that recovery is no where in sight.

Here are the financial results across its four business divisions.

  • The Exhibitions & Thematic division registered a revenue of S$32.3 million, an increase of S$0.9 million or 2.7% from S$31.4 million recorded in 3Q 2016.
  • The Retail & Corporate Interiors division recorded a revenue of S$30.6 million, a decrease of S$8.0 million or 20.8% compared to S$38.6 million in 3Q 2016.
  • The Research & Design division registered a revenue of S$3.2 million, a decrease of S$0.2 million or 6.8% from S$3.4 million recorded in 3Q 2016.
  • The Alternative Marketing division achieved a revenue of  S$3.0 million, a decrease of S$0.4 million or 10.7% from S$3.4 million in 3Q 2016.

I remembered the Group’s cash and cash equivalents was S$58.5 million in 1Q2017.  The Group’s current cash and cash equivalents stood at S$50.7 million as at 30 September 2017 which was a 15% decrease.

Summary of August 2017 Transactions

A summary of my August 2017 transactions came late as I went for a short holiday over the long weekends. In the month of August, I have sold off Lippo Malls Indonesia Retail Trust. (You can read more of my reasons here: Goodbye Lippo Malls Indonesia Retail Trust)

I have also received my company performance bonus in August. As I currently have no stock in mind to invest, I decided to park a portion of my bonus into the Singapore Savings Bond. (Singapore Savings Bond versus Savings Account versus Fixed Deposits)

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Kingsmen Creatives Undergoing a Period of Changes

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Kingsmen Creatives announced a net profit increase of 19.4% from the previous corresponding period (“1H 2016”).

Both the Retail & Corporate Interiors division and Alternative Marketing division reported revenue increases. This shows that there is slight recovery of the luxury industry as luxury brands starts advertising and decorating their stores to attract customers.

The Exhibitions and Thematic division and Research & Design division reported revenue decreases. This can be due to less exhibitions and events being held in the Asia pacific and Middle East region.

Based on my previous post ( Can Kingsmen Creatives Still Hold the Fort? ) the bulk of Kingsmen Creatives revenue comes from the Retail & Corporate Interiors division and the Exhibitions and Thematic division. If both the divisions reported revenue decreases, this will have a negative impact on Kingsmen Creatives. Fortunately, in 1H 2017, the decline in earnings from the Exhibitions and Thematic division is complemented by earnings increase from the Retail & Corporate Interiors division. Read More