Maxi-cash financials services reported earnings of $8.1 million in 1HFY21 ended June, down 20% from the $9.9 million logged in the year before.
On a fully diluted basis, earnings per share was 0.77 cents, down 21% from 0.97 cents in 1HFY20.
With this net asset value per share was 13.97 cents on June 30, compared to 14.64 cents on Dec 31.
Revenue for the first six months of the year was up 9% to $111.6 million thanks to higher revenue from the retail of jewelry and branded merchandise as well as an increase in interest income from the pawnbroking business in Singapore and abroad.
These helped to offset the overall revenue recorded by the pawnbroking business following lower intersegment sales that mainly consist of sales from unredeemed pledges.
Operating expenses – comprising employee benefits, depreciation and amortisation and finance expenses - increased by $1.9 million due to higher staff and depreciation costs in support of business expansion locally and regionally.
As at June 30, Maxi-cash’s cash and cash equivalents was $14.1 million, down from $28.7 million in the year before.
The group has declared an interim dividend of 0.65 cents per ordinary share for 1HFY21, down from the 1.15 cents paid out previously.
Going forward, the group reckons that the resurgence of the Covid-19 infections may continue to affect business and consumer sentiments in the countries it operates in.
Still, it expects operations in Singapore to be “fairly stable” as the local vaccination rate increases. The group adds that it will look to improving the effectiveness and efficiency in delivering its products and services by leveraging on innovation and staff training.
Shares in Maxi-cash closed up 0.4 cents or 2.2% at 18.6 cents on Aug 6.
Cover photo: Maxi-cash financial
