SINGAPORE (Feb 20): ValueMax Group saw its full-year earnings grow 6.3% to $20.3 million for the FY18 ended December, from $19.1 million a year ago, on the back of better margins.
FY18 gross profit rose 12.6% to $47.5 million, as falling cost of sales outpaced a decline in revenue. Gross profit margin rose 5.1 percentage points to 22.7% in FY18.
Revenue fell 12.8% to $208.7 million in FY18, from $239.4 million a year ago. This was led by a $37.9 million decrease in revenue from retail and trading of pre-owned jewellery and gold business.
Administrative expenses rose 16.8% to $23.9 million, mainly due to the increase in employee benefits expenses of $2.1 million as a result of an increase in headcount and salary adjustments.
Other operating expenses doubled to $1.9 million, mainly due to an increase in allowance for doubtful trade receivables of $0.9 million, and goodwill written off of $0.4 million.
As at end December, cash and cash equivalents stood at $9.1 million.
Earnings per share (EPS) rose to 3.80 cents in FY18, compared to 3.58 cents in FY17.
ValueMax has declared a final dividend of 1.33 cents per share for FY18, 5.6% higher than the final dividend of 1.26 cents per share a year ago.
According to ValueMax, keen competition, rising operating costs and uncertain interest rate movements continue to pose challenges to its pawnbroking and moneylending businesses.
Moving forward, the group says will continue to explore acquisition opportunities and suitable locations to grow its network of pawnshops and retail outlets.
It adds that intends to set up a few more new pawnshops in Malaysia, jointly with Malaysian partners, over the next two years.
Shares in ValueMax closed flat at 28 cents on Wednesday.
