Kingsmen Creatives

[RBM]

What do you think of the E&M division?
The pbt margin was 4.2% (lowest since 2008, when they ventured into theme park business). I'd think that after 2008-2011 learning curve, it should be more efficient and pull out better margin or at least maintain the 6-8% margin? Do note that pbt was also the lowest since 2008.

Thank you for your response valuestalker - this is excellent push-back - I had overlooked this point. I noticed also in Pico Far East's results that they had suffered eroded margins in this area of their business - I agree with you that the downward margin trend is a concern.

Also thanks to Musicwhiz for his thoughtful posting - very insightful. Looks like you were burning the midnight oil on this one! I do believe that the concern which valuestalker raises merits a question at Kingsmen's AGM, since they did not volunteer a decent explanation for the E&M Margin erosuion in their FY Financial Statement.

I was facsinated by your narrative on Kingsmen's dividend history Musicwhiz - I do worry a bit that that the outright purchase of a New Singapore HQ Office seems to be hanging over Kingsmen like Damocles Sword........ will this restrict the appetite of the BoD to reward shareholders with heightened dividend levels in coming years?

Vested