Core Businesses Remain Profitable
| Financial Highlights | For 6 months ended 30 April (HK$’000) | ||
| 2011 | 2010 | Change | |
| Turnover | 1,394,445 | 1,460,422 | - 4.5% |
| Gross Profit | 449,778 | 396,102 | +13.6% |
| Gross Profit Margin | 32.3% | 27.1% | +5.2 percentage points |
| Profit from Operation | 99,650 | 92,484 | +7.7% |
| Profit Attributable to Owners of the Company | 82,100 | 81,280 | +1% |
| Basic Earnings per Share | 6.78 HK cents | 6.79 HK cents | -0.1% |
| Interim dividend (Recommended) | 4.0 HK cents | 3.5 HK cents | +14.3% |
(Hong Kong, 22 June 2011) – 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 2011 (the “Period”).
During the Period, Pico reported turnover of HK$1,394,445,000 (2010: HK$1,460,422,000), representing a decrease of 4.5% over the same period last year. Profit attributable to owners of the Company increased by 1% to HK$82,100,000 (2010: HK$81,280,000). Basic earnings per share is HK6.78 cents (2010: HK6.79 cents), representing a 0.1% decrease. The Board of Directors has recommended an interim dividend of HK4.0 cents (2010: HK3.5 cents) per ordinary share.
Mr. Lawrence Chia, Chairman of PICO said, “Overall, our gross margin has recovered back to 32.3% compared to 27.1% for the same period last year. Our profit from operation has increased 7.7% to HK$99,650,000. The 4.5% decrease in revenue was due mainly to the one-off Shanghai World Expo 2010 which accounted for about HK$300 million of the total revenue recorded in the previous corresponding period. Meanwhile, we have been able to continue our repeat business from our key clients in recurring exhibitions and events.”
“Looking ahead, we expect the second half of the financial year to be profitable barring unforeseen circumstances.” Mr. Chia added.
Business Review
| Turnover by segments | For the 6 months ended 30 April (HK$’000) | ||
| 2011 | 2010 | Change | |
| Exhibition and Event Marketing Services | 1,132,937 | 1,228,596 | -7.8% |
| Brand Signage and Visual Communication | 166,152 | 132,881 | +25.0% |
| Museum, ThemedEnvironment, Interior and Retail | 73,081 | 54,785 | +33.4% |
| Conference and Show Management | 22,275 | 44,160 | -49.6% |
Some of the significant projects we delivered during the Period included the provision of temporary facilities at the 2nd Asian Beach Games held in Muscat, Oman, the XIX Commonwealth Games 2010 in Delhi, and construction of sponsors’ showcases at the 16th Asian Games held in Guangzhou. We were also involved in the 32nd Bangkok International Motor Show, China Sourcing Fairs in Hong Kong and Mumbai, and various special events such as Singapore Day and HSBC World Golf Championships in Shanghai.
Outlook
In the second half of the year, we will provide services for special events such as the Singapore National Day, Formula 1 Singtel Singapore Grand Prix for the 4th consecutive year, and the International Exhibition of Textile Machinery, which will be held in Barcelona in September 2011. ITMA is recognized as the Olympics of the textile and garment machinery industry which is held once in every four years, and we have received secured show booking of more than HK$200 million to-date. Apart from these, we are also appointed as official service provider for various high-profile exhibitions such as the 27th China Sport Show in Chengdu, the China Sourcing Fairs in Dubai and Hong Kong, the China Wind Power in Beijing, the Convention of Pharmaceutical Ingredients in Shanghai, the Hong Kong International Art Fair, the Oil & Gas Asia in Kuala Lumpur and the SIBOS Swift International Banking Operations Seminar in Toronto. We have also concentrated our marketing efforts in the coming London Olympics 2012 as well as the Yeosu World Expo 2012.
