K W Nelson Announces 2017 Annual Results

Revenue Increases 49.1% to HK$89.3 Million;
Net Profit Up by 455.3% to HK$26.1 Million;
Recommends a Final Dividend of HK0.2 Cent per Share

HONG KONG — K W Nelson Interior Design and Contracting Group Limited (“K W Nelson” or the “Group”; Stock Code: 8411), a Hong Kong-based interior decorator focusing on commercial premises including office and retail space, has today announced its annual results for the year ended 31 December 2017 (“FY2017”).

During the year under review, the Group’s revenue solidly increased by 49.1% to approximately HK$89.3 million (FY2016: HK$59.9 million). Gross profit rose by 49.2% to approximately HK$38.8 million (FY2016: HK$26.0 million), with gross profit margin at about 43.5%.

The Group’s profit attributable to shareholders increased by 455.3% to approximately HK$26.1 million in FY2017 (FY2016: HK$4.7 million). Excluding the non-recurring listing expenses of approximately HK$12.8 million incurred during the year ended 31 December 2016, the Group’s profit would have risen by 49.1% to approximately HK$26.1 million for FY2017 (FY2016: HK$17.5 million).

The Group maintains a strong financial position with cash and cash equivalents of approximately HK$71.3 million as at the end of FY2017 (FY2016: HK$44.2 million). The gearing ratio is zero. The Board has recommended payment of a final dividend of HK 0.2 cent per share for the year ended 31 December 2017.

Business Review
The Group provides services including provision of interior design proposals by in-house designers, engaging subcontractors to carry out fitting-out works and coordinating, managing and supervising the fitting-out works by its in-house project managers. The projects can be broadly categorised into (i) design & decoration projects in which the Group is responsible for the tailor-made interior design proposals, project management and fitting-out works; (ii) decoration projects in which we are responsible for project management and fitting-out works; and (iii) other interior design and fitting-out services.

During the reporting year, the Group has achieved impressive increases in revenue and net profit mainly driven by the increase in revenue from design & decoration projects for commercial premises. Looking ahead, the Group is positive about the prospects of the interior design and decoration market and will continue to focus on its core business. In order to maximise the long-term returns to shareholders, the Group intends to devote more resources towards the development of its interior design and decoration business for commercial premises.

Mr. Nelson Lau, Chairman, Chief Executive Director and Executive Director of K W Nelson said, “Since the Group’s debut on The Stock Exchange of Hong Kong in December 2016, we have become stronger and better equipped to drive business growth and attain another level of corporate development as the economy and market have thrived. Moving forward, we are enthusiastic about the prospects of the interior design and decoration market and we will continue to build on the strong foundation of our portfolio. We will also enhance our responsiveness to trends in the market, which is essential for strengthening our position in our current markets and aiding business expansion, so as to grow our profit and maximise returns to shareholders.”