Homegrown pawnshop chain ValueMax has reported earnings of $23.1 million for the 2HFY2021 ended December, 9.4% higher than earnings of $21.2 million in the same period the year before.
Total earnings for the FY2021 increased 21.9% y-o-y to $41.3 million.
Earnings per share (EPS) for the 2HFY2021 and FY2021 stood at 3.31 cents and 6.38 cents respectively.
2HFY2021 revenue fell 20.5% y-o-y to $143.9 million, as revenue from ValueMax’s retail and trading of jewellery and gold business fell by $48.2 million. The figure was partly mitigated by the growth in revenue from its moneylending business and interest income from its pawnbroking business by $10.7 million and $0.3 million respectively.
Gross profit, however, increased 17.0% y-o-y to $38.7 million, with gross profit margin (GPM) up by 8.6 percentage points to 26.9% in the 2HFY2021. The higher GPM is due to a higher proportionate contribution in revenue by the moneylending business, which has higher gross margins.
As at end-December, cash and cash equivalents stood at $14.5 million.
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A final dividend of 1.88 cents was proposed.
Shares in ValueMax closed flat at 35 cents on Feb 24.
