(26-04-2011, 02:41 PM)Musicwhiz Wrote: [ -> ]I'd say it's due to higher staff costs and probably also due to their overseas expansion and beefing up of their North Asia operations.
Will try to find out more at the AGM.
Thanks.
If you look at the analysis one of the forumers posted recently, staff costs has been hovering around 13-15% of revenue for some time so I feel it's quite stable. KC just needs to keep this in check and prevent the % from becoming higher in the future.
Considering the recession and all, a flat net profit is already quite decent by my book. Either way the cost control is still pretty alright around 15% of revenue. IMO staff costs should not be compromised for companies in this kind of industry.
On the topic of expansion/earnings growth, I read the older reports and MICE activities in middle east were all the hype... I wonder what's the plan for that area of the group now. Also quite curious what progress have been made so far with their increased focus in China.
I've revised the data sheet to look neater, but different people have different preferences for categorizing/calculating and the numbers may vary... ymmv as usual
mikh Wrote:Now that another 4+ months have passed, it would be useful to hear what's the current status of those receivables.
Attended the AGM. Quite impressed with the decor of the office, it's very nicely done... guess that's the difference between a designer's workspace compared to say an engineer's :p During the AGM the receivables are said to be mostly collected. They will be releasing the first quarter's results in a week or two with the final figures. Believe the figures for the order book to date will be released then as well.
(26-04-2011, 10:52 PM)piggo Wrote: [ -> ]mikh Wrote:Now that another 4+ months have passed, it would be useful to hear what's the current status of those receivables.
Attended the AGM. Quite impressed with the decor of the office, it's very nicely done... guess that's the difference between a designer's workspace compared to say an engineer's :p During the AGM the receivables are said to be mostly collected. They will be releasing the first quarter's results in a week or two with the final figures. Believe the figures for the order book to date will be released then as well.
I attended as well.
I thought she (Judith - FC) only mentioned that most of 90days past due is collected?
Mr Soh did admit that the barrier of entry is very low for the industry, hence the incentives to retain the key executives is very critical.
IMO, that partly explains the higher staff cost & low net profit margin for Kingsmen?
She started off with saying most receivables were collected then went on to say those past 90 days were mostly collected.
But that's besides the point since most is very subjective... 50.00001% can be considered as most. They were rather evasive on the exact figure but guess that's because they're still compiling the numbers
(28-04-2011, 11:41 AM)piggo Wrote: [ -> ]She started off with saying most receivables were collected then went on to say those past 90 days were mostly collected.
But that's besides the point since most is very subjective... 50.00001% can be considered as most. They were rather evasive on the exact figure but guess that's because they're still compiling the numbers
I attended as well. It was good to meet up with Management and also put the faces to some of the nicks here on VB.
She said a "significant" amount of Receivables past due (90 days) had been collected. Since the only admission of bad debts was for IMC section where an advertiser went bust, I feel the problem with bad debts should not be too severe. That said, a lot of times the Balance Sheet and Cash Flow Statement may reflect timing differences between recognition of revenue, and subsequent collection of cash. This is even more pronounced in Kingsmen's business, which is contracts-based and where billing/collection is based on % of completion.
Andrew Cheng did mention that Kingsmen are pretty strict on collection. If customers do not pay up after two reminders then work simply stops - I don't think many clients can afford that kind of situation.
Piggo, thanks for the compilation. Solid Work.
Cory
(Vested)
(28-04-2011, 01:40 PM)corydorus Wrote: [ -> ]Piggo, thanks for the compilation. Solid Work.
Cory
(Vested)
Pleasure's mine. Do tell if you spot any mistakes or calculation errors... Believe there are some cashflow differences between the years that I was too lazy to adjust for.
I did try to find out about the arbitration from Mr Soh
He mentioned to me that the exposure is over 1 million.
It is still on going and no updates yet at this moment.
To be conservative, i think the figure should be included as potential future write off.
(28-04-2011, 03:23 PM)valuestalker Wrote: [ -> ]I did try to find out about the arbitration from Mr Soh
He mentioned to me that the exposure is over 1 million.
It is still on going and no updates yet at this moment.
To be conservative, i think the figure should be included as potential future write off.
If amount is quantifiable and there is a reasonable chance of crystallizing, it should be disclosed as a contingent liability. If amount is uncertain, then no provision should be made. I believe for FY 2010, the amount was uncertain hence a disclosure was made but no provision passed in the books.
This is in accordance with accounting principles - the prudence concept.
(28-04-2011, 11:41 AM)piggo Wrote: [ -> ]She started off with saying most receivables were collected then went on to say those past 90 days were mostly collected.
But that's besides the point since most is very subjective... 50.00001% can be considered as most. They were rather evasive on the exact figure but guess that's because they're still compiling the numbers
Thanks for sharing guys. I personally don't like that they were evasive and not exact - not a good sign. That they will "stop work" is a bit of bull according to me. You can't stop work for what's already done; as otherwise there should be no overdue collectibles.
The above said, I don't feel the issue is fully resolved, although probably not that serious. That's my view.