Fiscal 2017 Highlights
- Total revenue declined slightly by 4% to HK$3,979 million
- Profit for the year attributable to owners of the Company decreased slightly by 6.4% to HK$281.4 million
- Full year dividend HK 18.5 cents representing Payout Ratio of 80.7%
- Operating margin was 8.9%
- Basic earnings per share HK22.92 cents
|
Financial Summary |
For the 12 months ended 31 October (HK$'000) |
||
|
2017 |
2016 |
Change |
|
|
Revenue |
3,978,751 |
4,142,724 |
-4.0% |
|
Gross profit |
1,245,023 |
1,248,143 |
-0.2% |
|
Gross profit margin (%) |
31.3% |
30.1% |
+1.2ppts |
|
Operating margin (%) |
8.9% |
9.0% |
-0.1ppt |
|
Profit attributable to Owners of the Company |
281,439 |
300,501 |
-6.3% |
|
Net profit margin (%) |
7.1% |
7.3% |
-0.2ppt |
|
Basic earnings per share |
HK22.92 cents |
HK24.57 cents |
-6.7% |
|
Final dividend per share (recommended) |
HK9.0 cents |
HK7.5 cents |
+20% |
|
Special dividend per share (recommended) |
HK5.0 cents |
HK5.0 cents |
- |
|
Full year dividend |
HK18.5 cents |
HK17.0 cents |
+8.8% |
(Hong Kong, 24 January 2018) Pico Far East Holdings Limited (“Pico”, “the Company” or “the Group”, HKEx: 752), a leading global Total Brand Activation company, today announced its 2017 annual results for the 12 months ended 31 October 2017 (“the year”).
Profit for the year attributable to owners of the Company decreased by 6.4% to HK$281.4 million (2016: HK$300.5 million). Operating margin was 8.9% (2016: 9.0%), and earnings before interest, tax, depreciation and amortisation (EBITDA) was HK$417.7 million (2016: HK$431.5 million).
Total revenue in Hong Kong dollar terms declined by about 4.0% to HK$3,979 million (2016: HK$4,143 million) mainly due to the completion of two non-recurring mega projects in 2015, Singapore 50th anniversary events (SG50) and ITMA (International Textile Machinery Association) trade show in Milan, that was captured in 2016 but not this year, and the substantial completion of the Shanghai Disneyland in 2016. On the whole, the results we achieved this year were commendable even without the contribution from these non-recurring mega projects.
The Directors now recommend the payment of a final dividend of HK9.0 cents and a special dividend of HK5.0 cents (2016: a final dividend of HK7.5 cents and a special dividend of HK5.0 cents) per ordinary share. Together with the interim dividend of HK4.5 cents (2016: HK4.5 cents) per ordinary share, total dividend for the year amounts to HK18.5 cents (2016: HK17.0 cents) per ordinary share, which represents 80.7% of this year’s basic earnings per share of HK22.92 cents (2016: HK24.57 cents).
Business Review
|
Revenue by segment |
For the 12 months ended 31 October |
||||
|
2017 |
2016 |
Change in Revenue |
|||
|
HK$’ Million |
% to Group’s Revenue |
HK$’ Million |
% to Group’s Revenue |
||
|
Exhibition and Event Marketing Services |
3,189 |
80.1% |
3,001 |
72.4% |
+6.3% |
|
Visual Branding Experiences |
348 |
8.8% |
343 |
8.3% |
+1.5% |
|
Museum, Themed Environment, Interior & Retail |
296 |
7.5% |
593 |
14.3% |
-50.1% |
|
Conference and Show Management |
145 |
3.6% |
206 |
5.0% |
-29.6% |
| Revenue by region | For the 12 months ended 31 October | |||
| 2017 | 2016 | |||
| HK$’ Million | % to Group’s Revenue | HK$’ Million | % to Group’s Revenue | |
|
Greater China (The PRC, Hong Kong, Macau and Taiwan) |
2,481 | 62.4% | 2,610 | 63.0% |
|
South and Southeast Asia (India, Malaysia, the Philippines, Singapore and Vietnam) |
964 | 24.2% | 982 | 23.7% |
|
Middle East (Bahrain, Qatar, and United Arab Emirates) |
230 | 5.8% | 204 | 4.9% |
| Italy, UK and US | 57 | 1.4% | 172 | 4.2% |
| Others | 247 | 6.2% | 175 | 4.2% |
| TOTAL | 3,979 | 100% | 4,143 | 100% |
The Total Brand Activation (TBA) services strategy, which we launched more than five years ago, has lifted the Group to a vantage point to capture the growing demand for such services by more and more companies in Asia. These companies continually seek more precise and targeted marketing solutions through online and offline media to reach their consumers, which we can offer seamlessly through our specialised agencies distinguished under a Pico+ brand.
Looking immediately ahead, the Group should continue to do robust business this year through all its major business segments as seen in the good business momentum we have experienced since the beginning of the new financial year.
Full announcement is available at: https://www.pico.com/en/investor/company-announcement
