SINGAPORE (Nov 8): Pawnbroking chain MoneyMax Financial Services saw 3Q ended September earnings grow 6% to $1.8 million from $1.7 million a year ago.
Revenue increased by 22.3% to $38.7 million in 3Q17, from $31.7 million a year ago. This was due to an increase in revenue from both the pawnbroking and the retail and trading of pre-owned items segments.
The higher revenue was partially offset by an increase in expenses.
Material costs rose 26.3% to $27.2 million, in line with the increase in revenue.
Employee benefits expenses rose 19.6% to $3.5 million, due to the increased headcount arising from the expansion of the group’s operations in Singapore and Malaysia.
Other expenses grew 18.4% to $3.7 million on the back of an increase in advertising and promotional expenses, and an increase in rental and other related costs for relocation and refurbishment of existing outlets.
As at end September, cash and cash equivalents stood at a deficit of $1.1 million, after taking into account bank overdrafts amounting to $8.6 million.
Looking ahead, the group says it will continue to invest in brand building efforts to establish a strong market presence amid stiff market competition.
It is looking to build on positive growth momentum and continue to enlarge its network in Malaysia, as well as keeping an eye out for new opportunities in and outside Singapore to generate new revenue streams and deliver sustainable growth.
Shares of MoneyMax last closed at 17.4 cents on Oct 31.
