VALUEMAX Group : T6I 0% on Wednesday (Mar 1) reported earnings of S$19.2 million for the second half of 2022 ended December, down 16.8 per cent from the net profit of S$23.1 million in the corresponding period in 2021. 

Revenue for the period was down 7.1 per cent at S$133.6 million from S$143.9 million. 

Topline contributions from the group’s retail and trading of jewellery and gold business declined by S$17.3 million during H2. 

This was, however, partially offset by higher revenue contributions from the company’s money lending business and interest income from pawnbroking business, which saw revenue rise by S$4 million and S$3 million respectively.

Cost of sales for H2 came in 10.7 per cent lower at S$93.9 million chiefly due to a decrease of S$16.8 million in cost of goods sold for retail and trading of jewellery and gold business, in line with the decline in revenue. 

This was partially offset by the increase in interest costs of the pawnbroking and money lending businesses of S$2.2 million and S$3.4 million, respectively.

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For the full year, ValueMax’s earnings rose 7 per cent to S$44.4 million from S$41.5 million. Revenue for the year was up 4.2 per cent at S$287.1 million. 

The board of directors at ValueMax has proposed a final dividend of S$0.02 per share, up from the final dividend of S$0.0188 per share in the prior year. The book closure and payment dates will be announced at a later time, the company said.

In its outlook statement, ValueMax noted that gold prices may continue to remain volatile amid the likes of rising interest rates, the war between Russia and Ukraine, as well as geopolitical tensions. 

The group said it will continue to explore acquisition opportunities and suitable locations to grow its network of pawnshops and retail outlets, and expand its moneylending business. 

“The group will consider and assess potential value propositions in relation to its associated companies, including fundraising, capital market, joint venture and/or merger and acquisition opportunities, subject to macroeconomic and market conditions,” it added. 

Shares of ValueMax closed flat at S$0.355 on Wednesday.