Business in Asia and Middle East Remains Resilient
| Financial Highlights | For 6 months ended 30 April (HK$’000) | ||
| 2010 | 2009 | Change | |
| Turnover | 1,460,422 | 1,049,734 | +39.1 % |
|
Gross Profit (Gross Profit Margin) |
396,102 (27.1) |
354,375 (33.8) |
+11.8 % -6.7 point |
|
Profit Attributable to Equity Holders (Net Profit Margin) |
81,280 (5.6) |
60,422 (5.8%) |
+34.5 % -0.2 point |
| Interim dividend (Recommended) | 3.5 HK cents | 2.5 HK cents | +40.0% |
(Hong Kong, 29 June 2010) – PICO Far East Holdings Limited (“PICO” or the “Group”, SEHK: 0752), a global Total Brand Activation company, today announced its interim results for the 6 months ended 30 April 2010 (the “Period”).
During the Period, Pico recorded turnover of HK$1,460,422,000 (2009: 1,049,734,000), representing an increase of 39.1% over the same period last year. About 50% of the turnover relating to Shanghai World Expo 2010 (“World Expo”) has been recognized during the Period under review, and the rest would be recognized in the second half of this financial year. The Group’s comparatively lowered gross margin this Period was attributed to the World Expo’s project cost of sales which included all direct overheads pertaining to this project. Excluding this effect, the Group’s gross margin is still resilient and comparable to previous years. Profit attributable to shareholders of the Group increased by 34.5% to HK$81,280,000 (2009: HK$60,422,000).
The Board of Directors has recommended an interim dividend of HK3.5 cents per share (2009:HK2.5 cents).
Mr. Lawrence Chia, Chairman of PICO, said “During the Period, our business in Asia and the Middle East remains resilient and all material operating units remain profitable. Leveraging our healthy balance sheet, strong cashflow and the long established ‘Pico’ brand name in the global market, the Group is committed to reaping the elevating market demands and generating better returns for our shareholders.”
Business Review
| Turnover by segments | For the 6 months ended 30 April (HK$’000) | ||
| 2010 | 2009 | Change | |
| Exhibition and Event Marketing Services | 1,228,596 | 860,453 | +42.8 % |
| Brand Signage and Visual Communication | 132,881 | 96,530 | +37.7 % |
| Museum, ThemedEnvironment, Interior and Retail | 54,785 | 63,226 | -13.4 % |
| Conference and Show Management | 44,160 | 29,525 | +49.6 % |
During the Period, the Group undertook some significant projects including Singapore Air Show, Auto China in Beijing, the 5th Hong Kong East Asian Games, the Bahrain National Monument Events as well as the renowned APEC meetings in Singapore. The Group also secured new signage projects for the Agricultural Bank of China in China, Thomson Reuters in Asia and the global Rolls-Royce Customer Lounge. For the scope of museum, themed environment and interior fit-out businesses, the Group also handled key projects such as Macao Science Centre, Singapore Housing Development Board Gallery, Singapore Marina Bay Sands Integrated Resort Retail Mall and Shanghai Alcatel-Lucent Bell Demo Centre.
Outlook
Looking forward, Pico will complete the World Expo project and be involved in the provision of temporary facilities at the Youth Olympic Games in Singapore, the Formula 1 SingTel Singapore Grand Prix and the Commonwealth Games in Delhi in the second half of 2010. The Group has also started thematic works at the Ocean Park Hong Kong and façade works at the Cotai Strip for Venetian Macau etc.
Mr. Chia concluded, “At the beginning of the next financial year, Pico will be involved in the provision of temporary facilities at the Asian Beach Games in Oman in December 2010, and is hopeful of winning contracts at the Asia Games in Guangzhou in November 2010. While the Group still relies on the strength of its Asian business, particularly China market, we are looking forward to a gradual recovery of the North America market and the end of European debt crisis to improve our overall business outlook.”
