SINGAPORE (Feb 28): Moneymax Financial Services reported 4Q17 earnings increased by 46.1% to $2.25 million compared to $1.54 million in 4Q16.
Hence, FY17 earnings came in at $6.83 million, 9.6% higher than $6.23 million in FY16.
Revenue for the quarter was 24.4% higher at $43.2 million compared to $34.8 million a year ago, due to revenue growth in both the pawnbroking and the retail and trading of preowned items segments.
Other gains surged to $0.98 million compared to $0.18 million last year, mainly due to the recording of a fair value gain on investment in available-for-sale investments of $0.3 million and foreign exchange gains attributable to the strengthening of MYR.
Material costs increased by 27.3% to $31.2 million from $24.5 million in the previous year.
Employee benefit expense was 19.1% higher at $4.33 million compared to $3.63 million a year ago, due to the increased headcount arising from the expansion of operations in Singapore and Malaysia, as well as annual salary increments.
Other expenses increased 17.4% to $3.79 million from $3.23 million last year, due to an increase in advertising and promotional expenses, and an increase in rental and other related costs for relocation and refurbishment of existing outlets.
The group declared a final ordinary cash dividend of 0.5 cents per share.
On the outlook, the group expects its business environment to remain highly competitive and challenging.
Nonetheless, the group will continue to build upon its brand building efforts to attain sustainable growth in its business operations.
Shares in MoneyMax closed at 18 cents on Wednesday.
