Financial Highlights
- Record-high revenue increased by 8.3% to HK$5,017 million
- Profit from core operations increased by 6.4% to HK$389.5 million
- EBITDA increased by 2.8% to HK$450.6 million
- Full year dividend of HK13.5 cents; Dividend payout ratio is 65%
- Basic earnings per share HK20.76 cents
|
Financial Summary |
For the 12 months ended 31 October |
||
|
2019 |
2018 |
Change |
|
|
Revenue |
5,016.7 |
4,631.4 |
+8.3% |
|
Gross profit |
1,525.2 |
1,416.1 |
+7.7% |
|
Gross profit margin (%) |
30.4% |
30.6% |
-0.2ppt |
|
Profit from core operations |
389.5 |
366.1 |
+6.4% |
|
*EBITDA |
450.6 |
438.3 |
+2.8% |
|
Profit attributable to owners of the Company |
256.8 |
271.5 |
-5.4% |
|
Net profit margin (%) |
5.1% |
5.9% |
-0.8ppt |
|
Basic earnings per share |
HK20.76 cents |
HK22.01 cents |
-5.7% |
|
Final dividend per share (recommended) |
HK9.0 cents |
HK9.0 cents |
- |
|
Full year dividend |
HK13.5 cents |
HK13.5 cents |
- |
*Before change in remeasurement of contingent consideration
(Hong Kong, 21 January 2020) Pico Far East Holdings Limited (“Pico”, “the Company” or “the Group”, HKEx: 752), a leading global total brand activation company, today announced its 2019 annual results for the 12 months ended 31 October 2019.
This year the Group celebrated its 50 year anniversary and reported another year of record-breaking revenue. During the year under review, the Group reported total revenue of HK$5,017 million (2018: HK$4,631 million), representing an increase of 8.3% compared to the same period last year.
Profit from core operations was HK$389.5 million (2018: HK$366.1 million), an increase of 6.4% compared to the same period last year. Profit for the year attributable to owners of the Company decreased by 5.4% to HK$256.8 million (2018: HK$271.5 million). This decrease is mainly due to the increase in the change in remeasurement of contingent consideration, interest expenses and the amortisation of other intangible assets arising from business combinations due to the acquisition activities of the Group.
The Directors recommend the payment of a final dividend of HK9.0 cents (2018: a final dividend of HK9.0 cents) per ordinary share. Together with an interim dividend of HK4.5 cents (2018: HK4.5 cents) per ordinary share, the total dividend for the year amounts to HK13.5 cents (2018: HK13.5 cents) per ordinary share, representing 65.0% of this year’s basic earnings per share of HK20.76 cents (2018: HK22.01 cents).
Business Review
|
Revenue by segment |
For the 12 months ended 31 October |
||||
|
2019 |
2018 |
Change in Revenue |
|||
|
HK$’ Million |
% to Group’s Revenue |
HK$’ Million |
% to Group’s Revenue |
||
|
Exhibition and Event Marketing Services |
3,888 |
77.5% |
3,818 |
82.4% |
+1.8% |
|
Visual Branding Experiences |
255 |
5.1% |
368 |
7.9% |
-30.7% |
|
Museum, Themed Environment, Interior & Retail |
730 |
14.5% |
359 |
7.8% |
+103.3% |
|
Conference and Show Management |
144 |
2.9% |
86 |
1.9% |
+67.4% |
| Revenue by region | For the 12 months ended 31 October | |||
| 2019 | 2018 | |||
| HK$’ Million | % to Group’s Revenue | HK$’ Million | % to Group’s Revenue | |
|
Greater China (Mainland China, Hong Kong, Macau and Taiwan) |
2,706 | 53.9% | 2,736 | 59.1% |
|
South and Southeast Asia (India, Malaysia, the Philippines, Singapore and Vietnam) |
1,038 | 20.7% | 1,123 | 24.2% |
|
Middle East (Bahrain, Qatar, and the United Arab Emirates) |
632 | 12.6% | 287 | 6.2% |
| UK and US and Italy | 451 | 9.0% | 285 | 6.2% |
| Others | 190 | 3.8% | 200 | 4.3% |
| TOTAL | 5,017 | 100% | 4,631 | 100% |
Outlook
With the Group’s Pico+ strategies continuing to be a growth driver, the Exhibition and Event Marketing Services segment will continue to account for the majority of our business activities in the near term. Meanwhile, the Group’s Pico X digitalisation strategies will continue to create more value for its existing clients and attract new clients through the deployment of relevant technologies and data analytics.
The Group is scheduled to complete several major events in the coming financial year. Meanwhile, the performance of its acquisitions in the US and UK over the past two years mostly continues on track, with good results overall. The Group expects that these companies will make greater contributions to the Group beginning in the 2020 financial year.
According to a January 2020 World Bank report on global economic prospects, the global economic outlook for 2020 envisions a slow global growth and a high degree of uncertainty. However, the Group remains positive regarding its growth for the 2020 financial year, and will stay firmly focused on delivering the major events and projects scheduled for the year. The Group will continue to innovate its services, which strengthening its prudent cost controls and risk management strategies.
Full announcement is available at: https://www.pico.com/en/investor/company-announcement
