SINGAPORE (Feb 21): ValueMax Group reported a 54.9% rise in FY16 earnings to nearly $16 million from $10 million a year ago despite a 6.2% fall in revenue to $253 million.
Revenue from retail and trading of pre-owned jewellery and gold business decreased by $23.6 million while revenue from pawnbroking increased by $1.9 million. Revenue contribution from the moneylending business increased by $5.0 million in FY16.
Gross profit margin improved to 14.2% in FY16 from 10.3% in FY15.
Other operating income increased 61.3% in FY15 to $3.3 million in FY16. The higher other operating income was mainly due to the increases in facility fees income from moneylending of $0.9 million, SME cash grant of $0.3 million and rental income of $0.1 million.
The group’s share of results of associates increased from $1.6 million in FY15 to $2.0 million in FY16, due to increased contribution from the Malaysian associated companies.
In its outlook, ValueMax says it has seen healthy growth in the moneylending segment and will continue to develop the moneylending business based on prudent loan-to-value lending guidelines for property mortgages.
The group is recommending a final dividend of 1.08 cents per share.
Shares of ValueMax closed 2 cents higher at 28 cents.
