SINGAPORE (Feb 23): ValueMax reported FY17 earnings increased by 22.7% to $19.1 million compared to $15.6 million in FY16.
Revenue in FY17 ended Dec came in at $239.4 million, 5.5% lower than $253.3 million last year, mainly due to higher contribution from the group’s pawnbroking and moneylending businesses, but was partially offset by lower revenue from its trading of pre-owned jewellery and gold business.
Cost of sales dropped 9.2% to $197.2 million compared to $217.3 million a year ago.
Hence, gross profit for FY17 came in at $42.2 million, 17.2% higher than $36.0 million last year, due to the greater drop in cost of sales than revenue.
Marketing and distribution expenses doubled during the period to $1.13 million from $0.56 million in the previous year, mainly due to the increase in commission expenses and labour charges.
Administrative expenses were 8.1% higher at $20.4 million compared to $18.9 million a year ago, mainly due to the increase in employee benefits expenses of $1.1 million, depreciation expenses of $0.3 million and legal and professional fees of $0.1 million.
Finance costs increased by 57.6% to $3.74 million from $2.38 million in FY16.
Share of results of associates increased by 30.3% to $2.73 million from $2.09 million in the previous year, due to increased contribution from the Malaysian associated companies.
As at Dec 31 2017, the group’s cash and cash equivalents stood at $3.29 million.
The group has recommended a final cash dividend of 1.26 cents per share.
Looking forward, the group will continue to explore acquisition opportunities and suitable locations to grow its network of pawnshops and retail outlets, and grow its moneylending business.
Shares in MoneyMax closed flat at 18 cents on Friday.
