MoneyMax posts 1H21 net profit grew 53 percent on higher retail and pawnbroking revenue

MoneyMax outlet in Singapore’s Little India neighborhood; taken October 2018.MoneyMax outlet in Singapore’s Little India neighborhood; taken October 2018.

Pawnbroker MoneyMax Financial Services reported Thursday its first half net profit climbed 53 percent on-year to S$8.64 million on increased revenue from the retail of pre-owned and new luxury items, pawnbroking and the motor-vehicle financing segment.

Revenue for the January-to-June period increased 33.6 percent on-year to S$92.39 million, the pawnbroker said in a filing to SGX.

Material costs increased 36.8 percent on-year to S$59.8 million in the first half, inline with the revenue increases from the retail and trading of pre-owned and new luxury items segment, MoneyMax said.

Employee benefits expenses rose 23.1 percent on-year to S$9.1 million in the first half, mainly on salary increments, and on lower staff costs in the year-ago period as outlets were closed for lockdowns in Singapore and Malaysia to stem the spread of the Covid-19 virus.

MoneyMax issued a cautious outlook, but said it expected to be profitable for the full year.

“The group notes that the region still faces ongoing economic uncertainty from the Covid-19 pandemic,” MoneyMax said. “Notwithstanding the challenges brought about by the pandemic, the group continues to seek for new business opportunities and to focus on enhancing its core capabilities. The group will also prioritise its progress along its digitalisation roadmap to further increase its efficiency and productivity.”

MoneyMax did not declare a dividend, unchanged from the year-ago period, citing the need to operate prudently and retain cash in the current economic environment.