Local pawnbroking operator MoneyMax announced that its FY2023 ended Dec 31, 2023, earnings were 2.8% higher y-o-y at $22.7 million from $22.1 million a year ago.
This was on top of a 12.7% y-o-y increase in revenue to $285.7 million from $253.5 million last year.
For the 2HFY2023 period, revenue was 32.3% higher y-o-y at $156.2 million, while earnings were 41.8% higher y-o-y at $13.0 million.
The revenue increase for both the FY2023 and 2HFY2023 periods were mainly due to higher revenue from the pawnbroking, retail and trading of gold and luxury items and secured lending segments across the group’s two markets in Singapore and Malaysia.
For FY2023, the group’s cash flow hedges were in the red at a loss of $940,000, compared to gains of $1.3 million a year ago. Foreign exchange losses also widened by 48.0% y-o-y to $1.9 million.
In 2HFY2023, cash flow hedges reported a loss of $509,000 from gains of $262,000, while foreign exchange losses improved to $396,000 from $804,000.
As at end-December 2023, cash and cash equivalents stood at $12.4 million.
The board has declared a final dividend of 1.0 cent per share, unchanged from the previous year.
In its financial statement, the group says that it has continued on its trend of consistent business growth with another record performance in FY2023.
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Notwithstanding the ongoing geopolitical tensions and macro-economic factors, the group notes the increasing demand for its pawnbroking services across Singapore and Malaysia. With 100 outlets in Singapore and Malaysia, the group believes that it is strategically positioned to meet and serve the growing market for financial services in the region.
The group will also continue to explore opportunities as and when they arise to further expand its business. The group’s secured lending business segment has also continued to deliver promising results, and will prioritise its resources and capabilities accordingly to support its growth.
Barring any unforeseen circumstances, the group expects to be profitable for FY2024.
Shares in MoneyMax closed at 24 cents on Feb 27.
