VALUEMAX on Tuesday (Feb 20) posted a 44.4 per cent rise in net profit to S$27.8 million for the second half of 2023 ended December, from S$19.2 million in the previous corresponding period.
Revenue for H2 rose 34.1 per cent to S$179.2 million, from S$133.6 million a year earlier.
Top-line contributions from the group’s retail and trading of jewellery and gold business, pawnbroking business and moneylending business rose by S$31.1 million, S$4.9 million and S$9.6 million, respectively.
Cost of sales for H2 climbed to S$124.7 million from S$93.9 million a year earlier.
This was mainly due to increases in cost of sales for the retail and trading of jewellery and gold business and the moneylending business, at S$26 million and S$4.8 million, respectively. These are in line with the increase in revenue.
Earnings per share stood at 3.59 Singapore cents for the second half of FY2023, up from 2.63 cents the previous year.
A final dividend of 2.2 Singapore cents per share was declared for the full year, up from 2 cents the year before. The date payable will be announced later.
For the full year ended Dec 31, 2023, net profit was up 19 per cent to S$52.9 million, while revenue was 15.3 per cent higher at S$331 million.
In its outlook statement, ValueMax noted that gold prices might remain volatile with uncertain interest rate changes, the war between Russia and Ukraine, as well as geopolitical tensions in the Middle East.
This means the group will continue to face a challenging business environment and heightened competition, especially in moneylending.
“The group will continue to explore acquisition opportunities and suitable locations to grow our network of pawnshops and retail outlets, and grow our moneylending business,” it said.
ValueMax shares closed down 1.6 per cent at S$0.315 on Tuesday, before the results were announced.
