MoneyMax 5WJ has reported profit before tax of $13.8 million for 1HFY2023 ended June, down 19.4% y-o-y.
Revenue, meanwhile, fell 4.4% y-o-y to $129.5 million over the same period.
Earnings per share stood at 2.2 cents at the end of the period, down 24.8% y-o-y from 2.92 cents this time last year.
Net asset value of the group, meanwhile, stood at 30.42 cents as at June 30, up from 29.67 cents on Dec 31, 2022.
No dividend has been declared for 1HFY2023 as the group seeks to retain cash in the current economic environment. “The board of directors of the company will assess if a declaration of dividends is warranted based on the performance of the group for FY2023,” says MoneyMax on Aug 4.
As at June 30, current assets rose 7.9% to $464.9 million, while non-current assets grew 0.8% y-o-y to $200.9 million.
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Current liabilities, meanwhile, grew 8.6% y-o-y to $385.0 million as at June 30.
Net cash generated from operating activities before changes in working capital in 1HFY2023 was $31.0 million.
Net cash used in working capital amounted to $39.8 million. This was mainly due to an increase in trade and other receivables of $47.0 million, an increase in other assets of $1.4 million and a decrease in trade and other payables of $2.7 million; offset by a decrease of inventories of $11.3 million.
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Net cash used in operating activities amounted to $12.2 million after deducting income tax paid of $3.4 million in 1HFY2023.
Net cash used in investing activities in 1HFY2023 amounted to $1.4 million, mainly due to the purchase of plant and equipment and business software application systems for new and existing stores.
Net cash generated from financing activities in 1HFY2023 of $12.4 million was mainly due to drawdown of new bank borrowings of $171.3 million, partially offset by dividends paid, interest paid, repayment of lease liabilities and repayment of bank borrowings of $4.4 million, $11.2 million, $5.0 million and $138.2 million respectively.
As a result of the above, and including the exchange rate loss on cash and cash equivalents of $0.1 million, there was a net decrease of $1.4 million in cash and cash equivalents from a net cash balance of $19.5 million as at Dec 31, 2022 to $18.1 million as at June 30.
Global economic uncertainties, coupled with the easing of travel restrictions and the return of outbound tourism, has softened the demand for the group’s retail and trading of gold and luxury items segment in 1HFY2023, says MoneyMax.
“Notwithstanding these factors, the group turned in a resilient performance in its other segments, seeing positive growth in both its pawnbroking and secured lending businesses,” it adds.
Barring any unforeseen circumstances, the group expects to be profitable for the current financial year.
Shares in MoneyMax closed flat at 23.5 cents on Aug 4.
