Pawnbroker ValueMax reported Wednesday its first quarter net profit dropped 9.9 percent on-year to S$5.57 million on declines in revenue from the jewelry business.
Revenue for the quarter ended 31 March fell 12.2 percent on-year to S$50.20 million, the pawnbroker said in a filing to SGX after the market close.
The retail and trading of jewelry and gold business saw revenue decline by S$7.8 million in the quarter, while the pawnbroking and money-lending business posted a S$400,000 increase in revenue, the filing said.
The gross profit margin rose to 23.5 percent in the first quarter from 21.4 percent in the year-ago period on increased contributions from the pawnbroking and money-lending businesses, ValueMax said.
Administrative expenses increased 11.5 percent on-year to S$6.25 million for the quarter, mainly on changes to accounting for leases and increased costs for employee benefits, ValueMax said.
In its outlook, ValueMax was cautious.
“The pawnbroking business continues to face challenges from keen competition, rising operating costs and uncertain interest rate movements,” it said.
“The group will continue to grow its money-lending business as well as explore acquisition opportunities to expand our network of pawnbroking and retail outlets,” it added.
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