Review of Operations as at 30 JUNE 2015
The 2015 financial year has shown an improvement in business conditions. This has resulted in an operating loss which is significantly lower than the previous year. Corporate overheads have been kept to a minimum in order to preserve funds for the future.
The Scene business managed to improve marginally from last year with turnover increasing from $1.36m to $1.43m. During the year, the Perth office continued to operate satisfactorily, while transitional issues from the previous year with the Melbourne branch continued to put financial pressure on the overall performance of the group. Encouraging improvement has occurred, and the new Melbourne management is working on new initiatives to further increase revenue. The outlook for the Perth operations for the coming year is somewhat uncertain, due to staff movements and increasingly difficult market conditions. So although Scene has experienced higher turnover, and the Melbourne office revenue decline has been turned around, the overall picture for the forthcoming period suggests a challenging year ahead. The BKM board is most appreciative of the way Scene has continued to be managed during such changeable business conditions.
In relation to the Company’s investment in the Singapore based trading entity IGC, the BKM board has been working closely with local management with a view to expand the IGC’s involvement in soft commodity projects. Both IGC and BKM have identified this area as potentially an area of great interest. This is especially so in view of the increasing global demand for these products particularly within the Asian region, which is one reason IGC is well placed to review opportunities and provide expert advice on future investments. Although in its early stages, this process should gather pace in the year ahead, as we work on finding ways to add value to the Company, and build on the excellent connections with IGC and its affiliates.
The Board also acknowledges the support and patience from all of our shareholders as we explore growth opportunities for BKM.
We look forward to the year ahead.
Business Strategy and Future Developments
The consolidated entity continues to look towards growth opportunities in various sectors, particularly in the energy sector as well as resource sector in general.
The consolidated entity has been rebuilding its capital base as well as securing a stable and supportive shareholder base, which will allow the consolidated entity in future to look towards leveraging its strong relationships in Asia and connections in the energy and resource sector.
With respect to the Scene Models business, the rebuilding of the Melbourne branch has begun and steps are being taken to re-establish a Sydney footprint once again, to bring Scene back as a National business in Australia. On this strength, management has plans to utilize its links with Asia to expand opportunities for its modelling client base.