Kingsmen Creatives (5MZ) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 10.1% YoY to S$361.5m; net profit fell 38.4% to S$2.9m, with results impacted by impairment losses on receivables.

• All business divisions grew as physical events resumed and clients increased projects; management expects performance to improve as receivables matters are resolved.

Financial highlights

• Revenue was S$361.5m, up 10.1% YoY from S$328.4m.

• Gross profit increased 11.2% YoY to S$78.2m from S$70.3m.

• Net profit was S$2.9m, down 38.4% YoY from S$4.6m.

Outlook and guidance

• Secured contracts stood at S$171m as at 31 January 2024; S$152m is expected to be recognised in 2024.

• Management expects good performance despite an uncertain general outlook, supported by a robust pipeline of potential and secured projects.

• Plans include advancing creative digital capabilities, integrating them into solutions and developing sustainable, environmentally positive experiences.