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ValueMax's FY14 revenue, earnings fall on poorer jewellery trading and gold business
Pawnbroker ValueMax Group on Tuesday reported a 3.9 per cent dip in net profit to S$8.99 million for its full year ended December 31, 2014.
Full-year earnings per share fell to 1.69 Singapore cents, from 2.32 cents a year ago. This was on the back of a 8.1 per cent drop in revenue to S$324.5 million.
"Revenue from retail and trading of pre-owned jewellery and gold business decreased by S$28.4 million while revenue from pawnbroking remained relatively stable," it said.
"Gold prices made a modest recovery at the end of FY2014. However, the business environment will continue to be challenging due to the expected rise in interest rates in FY2015 coupled with increasing competition in the industry and rising operating costs," it added.
Its earnings were also impacted by lower other operating income, which fell due to a one-off assignment fee of S$0.3 million, and another S$1.1 million from the excess of fair value over the consideration paid for a stake in a subsidiary, as well as absence of a gain from the remeasurement of the group's investment in an associate to fair value in FY13.
The group did not provide a separate set of results for its fourth quarter only.
On the stock market, it closed half a cent higher at S$0.375.