Pawnbroker ValueMax's Q3 profit falls 44% as gold prices drop

Singapore

MAINBOARD-listed pawnbroker ValueMax Group saw its net profit attributable to shareholders fall 43.9 per cent year-on-year to S$1.69 million for the third quarter ended Sept 30, 2014.

This, despite its revenue climbing 7.5 per cent to S$87.58 million, from the year before. Revenue was up, thanks to an increased contribution of S$7.5 million for the retail and trading of pre-owned jewellery and gold business, while the pawnbroking business declined by S$1.3 million.

The group's gross profit slipped 11.8 per cent from the year before, as its cost of sales increased by 9.3 per cent year-on-year - outpacing its growth in revenue. Its gross profit margin declined to 7.0 per cent in the September quarter this year, from 8.5 per cent in the Septe…