The earnings surge for the full year was thanks to the “strong” performance in the 2HFY2022, says group CEO Andrew Cheng.

During the 2HFY2022, Kingsmen’s earnings also grew by 128.0% y-o-y to $6.2 million.

“We expect the momentum to continue. Our markets are finally fully open and we see good traction in our discussions and interaction with clients and new prospects, who are moving ahead to reclaim opportunities and markets missed these few years,” Cheng adds. “Demand for the solutions and services we can provide are strong. Our immediate focus will be on improving profitability by better managing sales and project selection, continuing a tight rein on cost management, and improving efficiency and operational delivery.”

2HFY2022 revenue grew by 31.9% y-o-y to $206.0 million while FY2022 revenue grew by 20.4% y-o-y to $328.4 million. This was due to opportunities secured by the group that contributed positively to its bottom line, despite some projects being put on hold during the year.

For both periods, revenue across the group’s segments grew on a y-o-y basis.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/vicplas-reports-521-lower-profit-after-tax-42-mil-fy2023?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Vicplas reports 52.1% lower profit after tax of $4.2 mil for FY2023</a>

Gross profit for the 2HFY2022 and FY2022 grew by 24.6% y-o-y and 19.4% y-o-y to $44.2 million and $70.3 million respectively. That said, gross profit margin (GPM) for the 2HFY2022 and FY2022 fell by 1.2 percentage points and 0.2 percentage points to 21.5% and 21.4% respectively.

Interest income for the 2HFY2022 and FY2022 grew by 95.4% y-o-y and 73.1% y-o-y to $295,000 and $464,000 respectively. This was due to the higher fixed deposit interest rates from the banks.

Share of results of associates reversed into profitability for the 2HFY2022 and FY2022 at $966,000 and $865,000, up from the losses of $358,000 and $1.1 million in the corresponding periods the year before. The changes were mainly due to compensation income received by an associate from the failure of a client to fulfil its contractual obligations.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/isdn-posts-113-lower-revenue-438-lower-net-profit-1hfy2023?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>ISDN posts 11.3% lower revenue, 43.8% lower net profit for 1HFY2023</a>

Earnings per share (EPS) for the 2HFY2022 and FY2022 stood at 3.06 cents and 2.30 cents respectively.

As at Dec 31, 2022, cash and cash equivalents stood at $75.1 million.

Looking ahead, Cheng says the group sees a “more purpose-driven and focused market returning with clients looking for new areas of differentiation and experiences”.

“Our evolution and push to focus on experiential solutions is timely and bodes well for us. As at Jan 31, we have secured contracts of S$133 million, of which S$125 million is expected to be recognised in 2023,” he adds, noting that the exhibition and events business has returned with organisers and brand owners “making up for lost time and ground”.

“The thematic attractions market remains buoyant with a good pipeline of projects coming onstream across the region, and the team is busy managing and delivering multiple committed projects,” says Cheng.

Across the group’s segments, the group is seeing more enquiries and projects, as well as modest recovery.

“Overall, we see a good return of the market and opportunities across all sectors of our business, as clients want more unique engagement, and experiential ideas and solutions for their audiences,” he adds.

A final dividend of 1 cent per share has been declared for the period, and is payable on May 31.

Shares in Kingsmen closed 0.5 cent lower or 1.72% down at 28.5 cents on Feb 23.

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