SINGAPORE (May 9): Maxi-Cash Financial Services Corporation saw its earnings fall 39% to $1.8 million for the 1Q ended March, from $3.0 million a year ago, on the back of higher expenses.
1Q18 revenue rose 20% to $52.8 million, from $44.1 million a year ago.
This was mainly due to higher interest income from the pawnbroking business, higher sales from the retail and trading of jewellery and branded merchandise business, and contribution from the secured lending business.
Material costs grew 16% to $35.6 million, generally in line with the increase in revenue from the retail and trading of jewellery and branded merchandise business.
In 1Q18, employee benefits expense rose 24% to $4.8 million, while finance costs more than doubled to $2.5 million.
These were mainly due to an increase in the number of shops, the issuance of multicurrency medium notes, and the secured lending business which commenced after 1Q17.
Other operating expenses jumped 61% to $7.7 million, mainly due to higher rental and exhibition expenses, largely unrealised foreign currency exchange losses, and other professional fees.
As at end March, cash and cash equivalents stood at $26.3 million.
Looking ahead, the group says it will increase its store network, strengthen its leading brand awareness, increase its range of products and services, and introduce improved digital services for the seamless delivery of products and services to its customers.
Shares of Maxi-Cash closed 0.1 cent lower at 15.4 cents on Wednesday.
