SINGAPORE (Feb 26): Maxi-Cash reported a 17% rise in FY17 earnings to $13.3 million from a year ago on higher revenue.
Revenue rose 15% to $188.4 million led by higher interest income from the pawnbroking business, higher sales from the retail and trading of jewellery and branded merchandise business, and maiden contribution from the secured lending business.
Revenue contribution from the pawnbroking business increased by about 6.9% in FY17. The increase was primarily attributed to the higher interest income from its growing pledge book.
The retail and trading of jewellery and branded merchandise business reported a 16.1% increase in revenue in FY17. The new secured lending business reported a revenue of $1.9 million in FY17.
Compared to FY16, operating expenses in FY17 increased in most categories such as material costs, staff costs, rental, finance and depreciation and amortisation costs.
The increase was mainly due to the opening of seven new shops and expansion of five existing shops in FY17, and the issuance of multi-currency medium-term notes.
The group had also embarked on major marketing campaigns in FY17 which resulted in an increase of about $0.9 million in sales and marketing costs.
Maxi-Cash has continued to grow its local core business of pawnbroking and retailing of new and pre-owned merchandise despite keen competition and escalating operating costs.
"To keep our growth momentum, we will continue to invest in brand-building, improve the merchandise range and review the retail network," says the group.
The board is recommending a final dividend of 0.7 cent per share.
Shares in Maxi-Cash closed at 16 cents on Monday.
