SINGAPORE (Aug 8): Maxi-Cash Financial Services reported 2Q19 earnings of $2.8 million, 20% lower than $3.5 million in the same quarter last year.
Correspondingly, earnings per share for the group fell to 0.27 cents in 2Q18.
Revenue for the quarter fell 19% to $45.4 million from $55.7 million a year ago, due primarily to lower sales from the retail and trading of jewellery and branded merchandise business.
Depreciation and amortisation surged more than fourfold to $2.2 million from $525,000 a year ago, due to the recognition of right-of-use assets following the adoption of SFRS(I)16.
Finance costs increased 15% to $3.2 million.
Operating expenses fell 19% to $5.5 million, due mainly to the decrease in foreign currency exchange loss and rental expenses following the adoption of SFRS(I) 16 Leases.
As at end June, cash and cash equivalents stood at $12.8 million.
In its outlook statement, Maxi-Cash says that uncertain economic conditions had continued to impact job creation and consumer sentiment which affected retail and pawnbroking businesses. Keen competition, increasing operating costs and volatile gold price and exchange rates posed further challenges.
Shares in Maxi-Cash closed flat at 13 cents on Thursday, prior to the release of results.
