The group’s cost of sales increased to $53.2 million in 3Q17 from $50 million a year ago, in line with the increases in revenue from all three business segments.
Overall gross profit increased by $1.3 million in 3Q17 compared with the same period in 3Q16. Gross profit margin improved to 17.3% in 3Q17 from 16.4% in 3Q16.
Other operating income was $1.0 million in 3Q17 compared with $0.7 million in 3Q16. The higher other operating income was mainly due to the increases in facility fees income from the moneylending business of $0.1 million, rental income of $0.2 million and interest income of $0.1 million.
The group’s share of results of associates decreased to $0.4 million in 3Q17 from $0.6 million in 3Q16, due to weaker Malaysian Ringgit against the Singapore Dollar in 3Q17 compared with the same period in 2016, thus resulting in decreased contribution from Malaysian associated companies.
ValueMax says gold price has been fluctuating between US$1,250 and US$1,350 since the last quarter results announcement. Meanwhile, the pawnbroking business continues to face challenges from rising operating costs and keen competition.
The group continued to expand its pawnbroking business with the acquisition of Sengkang Pawnshop in Oct. The group will continue to explore acquisition opportunities and suitable locations to grow our network of pawnshops and retail outlets.
Shares in ValueMax closed 1 cent higher at 32 cents.
