SINGAPORE (Nov 8): Maxi-Cash Financial Services announced that 3Q17 earnings increased 32% to $4.33 million compared to $3.28 million in 3Q16.
Revenue was up 11% to $45.5 million from $41.0 million a year ago.
In line with the increase in revenue, material costs increased 11% to $31.1 million from $28.1 million a year ago.
The increase in revenue and material costs were mainly attributed to the increase in revenue from the retail and trading of jewellery, watches and branded bags business.
Employee benefits expenses for 3Q17 increased 21% to $4.27 million from $3.54 million last year, mainly due to the increase in number of employees and basic salaries with more shops in operation and performance bonus.
Depreciation and amortisation was 23% higher at $0.4 million from $0.3 million last year, mainly due to the renovation at shops.
Finance costs increased 84% to $2.06 million compared to $1.12 million a year ago, due to higher loan and interest accrued for multicurrency medium term notes issued in 2Q17.
Other operating expenses increased 15% to $4.86 million compared to $4.22 million last year, mainly due to higher branding, rental and exhibition expenses and amortisation of multicurrency medium term notes programme establishment and issuance expenses.
The group posted interest income of $1.19 million in 3Q17, which was previously not recorded in 3Q16, due to investment securities.
Other income doubled to $1.23 million from $0.62 million last year, mainly due to gain on disposal of investment securities and reversal of provision of doubtful trade receivables.
As at Sept 30, the group’s cash and cash equivalents stood at $32.0 million.
On the outlook, the group’s core business of pawnbroking and retail will continue to operate under very competitive environment, rising operating costs and a volatile gold price.
To counter these challenges, the group will continue to improve its operating efficiencies through greater economy of scale and also leverage on the strong Maxi-Cash brand, while it continues to review its store network by opening new stores in areas with good potential for pawnbroking and retail.
The Group will also continue to strengthen its Maxi-Cash and LuxeSTYLE brands.
Shares in Maxi-Cash closed 17 cents on Wednesday.
