Pawnbroker Maxi-Cash Financial Services reported Thursday its first quarter net profit rose 55 percent on-year to S$2.80 million on lower other operating expenses, including a narrower foreign exchange loss.
Revenue for the quarter ended 31 March fell 13 percent on-year to S$44.61 million, mainly on a 13.4 percent on-year decline in revenue from the retail and trading of jewelry and branded merchandise, Maxi-Cash said in a filing to SGX.
Lower sales in the retail and trading of jewelry and branded merchandise segment resulted in material costs dropping 20 percent on-year to S$28.46 million, the filing said.
The pawnbroking business’ revenue contribution rose around 3.6 percent on-year in the quarter, mainly on higher interest income from pledge book growth, the filing said.
The secured lending business reported a 15.2 percent on-year increase in revenue, Maxi-Cash said.
Other operating expenses dropped 48 percent on-year to S$4.59 million on a smaller foreign-exchange loss and the changed accounting for leases, Maxi-Cash said.
The pawnbroker issued a cautious outlook.
“With slowing global growth, the Singapore economy is projected to expand at a slower pace in 2019 which in turn will further impact consumer sentiment,” Maxi-Cash said. “This coupled with keen competition, rising interest rates, higher operating costs, volatile gold prices and foreign currency exchange rates continue to pose challenges to our lending and retail businesses. In view of these challenges the group will continue to explore new business opportunities and manage operating costs.”
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