SINGAPORE (Aug 10): Pawnbroker and moneylender ValueMax Group posted a 14.6% increase in earnings to $4.5 million for the 2Q ended June, from $3.9 million a year ago.
Overall gross profit increased by 19.3% to $10.3 million as gross profit margin improved by 3 percentage points to 16.3% in 2Q17.
Revenue dipped by 2.6% to $63.2 million in 2Q17, from $64.9 million a year ago.
Revenue from ValueMax’s moneylending business increased by $1.5 million in the quarter, but was offset by a $3.2 million drop in revenue from its retail and trading of pre-owned jewellery and gold business.
Revenue from its pawnbroking business remained relatively stable.
As at end June, cash and cash equivalents stood at $9.6 million.
In a SGX filing on Thursday, ValueMax says keen competition, rising operating costs, and uncertain interest rate movements continue to pose challenges to its pawnbroking business.
Looking ahead, the group says it will continue to seek growth opportunities through acquisitions and establishing new outlets, and endeavour to grow its moneylending business.
Shares in ValueMax closed half a cent higher at 28.5 cents on Thursday.
