Maxi-Cash reports 3Q19 net profit more than doubled

Maxi-Cash outletMaxi-Cash outlet

Maxi-Cash Financial Services reported Thursday its third quarter net profit jumped 105 percent on-year to S$5.64 million, partly due to a lower foreign exchange loss.

Revenue for the quarter ended 30 September increased 25 percent on-year to S$65.10 million, the pawn-shop operator said in a filing to SGX.

Material costs increased 29 percent on-year to S$43.16 million for the quarter, in line with higher revenue, Maxi-Cash said.

Other operating expenses declined 37 percent on-year to S$5.60 million on a lower foreign-currency exchange loss and rental expenses on changes to accounting for leases, the company said.

For the nine-month period, Maxi-Cash reported net profit increased 40 percent on-year to S$11.24 million on revenue of S$157.06 million, down 3 percent on-year.

Maxi-Cash declared an interim dividend of 0.5 Singapore cent, up from 0.3 Singapore cent in the year-ago period.

The pawn-shop operator issued a cautious outlook.

“The global trade tension and economic uncertainties continue to impact consumer sentiments which affect our retail and pawnbroking businesses. Our operating environment continues to face challenges from keen competition, rising costs and volatile gold prices and exchange rates,” Maxi-Cash said.

“We will continue to leverage on our network, brand recognition and operating systems to mitigate the above challenges,” it added.

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