SINGAPORE (Feb 20): Pawnbroker Maxi-Cash reported $11.3 million in earnings for the full year ended Dec 31 on higher revenue, nearly three times of the $3.8 million posted a year ago.
Group revenue in FY16 was 35% higher at $163.2 million compared to $121 million in the previous year. This was largely attributable to a 15.5% growth in revenue from the pawnbroking business due to higher interest income from the group’s growing pledge book, as well as a 40.7% growth in revenue from the retail and trading of pre-owned jewellery, watches and branded bags business.
Material costs grew 35% to $114.7 million from $121 million in FY15, which was in line with the overall revenue increase.
Rental income grew 14% to $16.2 million from $14.2 million in the previous year due to a new sub-lease which commenced in July 2016.
In its outlook, Maxi-Cash notes a challenging operating environment with “keen competition, volatile gold prices, and maturing local economy with an inherent weak retail sentiment”.
The group says it intends to strengthen its market leadership in store network, branding, innovation and operational efficiencies in order to meet these challenges, in addition to increasing its range of new and pre-owned products while enhancing its distribution network.
Shares of Maxi-Cash closed 0.1 cent higher at 17.6 cents on Monday.
