ValueMax's full-year profit declines 34.8%
Singapore
PAWNBROKING group ValueMax posted a 34.8 per cent decline in full-year net profit on lower revenue.
The company listed on the SGX mainboard on Oct 30 last year.
Net profit for the 12 months ended Dec 31, 2013 was $9.36 million or 2.32 cents per share, against $14.35 million or 3.84 cents per share a year ago.
A 25.7 per cent rise in administrative expenses to $12.3 million, and a more than six-fold jump in other operating costs to $4.1 million dented the bottom line. This was partially offset by higher share of results of associates and other operating income.
Revenue fell 30.6 per cent to $353.1 million, as a result of a decline in gold prices.
Revenue from the pre-owned jewellery retail and trading business fell 31.6 per cent to $332.7 million, while its pawnbroking business recorded an 8.1 per cent decline in revenue to $20.5 million.
Its gross profit margin rose to 6.4 per cent from 5.1 per cent, due to a higher revenue mix from the pawnbroking business, ValueMax said.
Net asset value per share rose to 27.48 cents at end-2013 from 19.36 cents a year ago.
ValueMax said the industry faced challenging business conditions from lower gold prices and higher competition in Singapore.
"Nonetheless, the group will continue with its strategy to grow its business both in Singapore and Malaysia, and strengthen its brand awareness." it added.
A final cash dividend of 0.88 cent per share was declared.
The counter ended half a cent higher at 45.5 cents yesterday, before the results were announced.
