Part 2 of this series exploring Kingsmen Creatives will focus on the Group’s financials, namely revenue trends, margins and the all-important cash flow. I shall do this from a practical standpoint – what an investor looks for is essentially cash which a Company generates, in order to justify the valuation paid for a business. While profits are the most looked-at number when investors open up a set of financial statements, ultimately it is the cash flow that you receive which you can spend – you cannot spend profits! So this analysis shall focus more on the cash flow generative aspects of the business; as profits can often be affected and influenced by accounting policies, assumptions and also one-off exceptional items.

The above table summarizes the 8-year historical numbers for Kingsmen. I have deliberately left out the entire chunks of P&L, Balance Sheet (B/S) and Cash Flow Statement (CFS) even though …