Pawnbroker MoneyMax Q3 profit more than triples to $3m

MoneyMax's earnings per share stood at 0.86 cent for the quarter, up from 0.28 cent a year ago.
MoneyMax's earnings per share stood at 0.86 cent for the quarter, up from 0.28 cent a year ago.PHOTO: ST FILE

SINGAPORE - MoneyMax Financial Services reported profit for the third quarter more than tripled to $3.0 million, from $990,000 a year ago, on stronger performance from certain business segments.

This was partially offset by the increase in material costs and various expenses, according to a regulatory filing by the Catalist-listed pawnbroker on Thursday night.

Earnings per share stood at 0.86 cent for the quarter, up from 0.28 cent a year ago.

Revenue for the quarter ended Sept 30 surged 48.8 per cent to $52.9 million, from $35.5 million a year ago. This was mainly due to a rise in revenue in its retail and trading of luxury items segment, as well as its pawnbroking segment.

Material costs rose 57.4 per cent to $37.9 million, from $24.1 million a year ago, mainly due to the increase in revenue for the retail and trading of luxury items segment.

Depreciation and amortisation expenses stood at $3.1 million, around five times that of $611,000 the previous year. Meanwhile, finance costs were up 11.8 per cent to $2.0 million, from $1.8 million the year prior.

No dividend was declared for the quarter, unchanged from a year ago.

On outlook, the group said the industry continues to face challenges from global uncertainties - resulting in volatile gold prices and interest rates. Lower consumer demand is expected as a result, and the next 12 months is expected to be challenging for the group.

That being said, MoneyMax expects to remain profitable for fiscal 2019, it added.

 

"Our group will continue to focus on launching new product and service offerings to engage a wider group of customers," it said.

In addition, it will also look at enhancing service quality and brand building efforts, along with leveraging its business partnerships and network to drive business goals.

MoneyMax shares last traded at $0.158 on Oct 17.