Kingsmen Creatives’ profit slides 18.2% in 1H

An ongoing lawsuit impacted its bottomline.

Mainboard-listed communication design and production group Kingsmen Creatives reported 1H14 net profit $6.2m, representing a 18.2% year-on-year decline despite a healthy 11.8% growth in revenue.

According to Benedict Koh, Executive Chairman of Kingsmen, “The drop in net profit for the first half is a result of the one-off provision of S$1.5 million for costs and damages for an ongoing law suit in China, which we announced on 26 April 2014, as well as higher overheads from the increase in business flow.”

A report by OSK DMG notes that Kingsmen can expect better results in the second half, as its secured orderbook of SGD141m expected to be recognised.