Maxi-Cash reports 2021 net profit dropped 51 percent

Maxi-Cash outletMaxi-Cash outlet

Maxi-Cash Financial Services reported Thursday its 2021 net profit fell 51 percent on-year to S$14.45 million on higher expenses and lower sales of jewellery and branded merchandise. 

Revenue for the 12 months ended 31 December declined 14 percent on-year to S$225.70 million, the pawnshop operator said in a filing to SGX. 

The revenue decline was mainly on lower revenue from the trading of jewellery and branded merchandise, partly offset by higher retail sales and interest income from the pawnbroking business both locally and regionally, Maxi-Cash said.

In addition, Maxi-Cash said it had lower profit from the sales of unredeemed pledges and the trading of jewellery. 

Operating expenses rise

Operating expenses increased by S$7.2 million for the year, mainly on higher staff costs, depreciation costs and marketing expenses for business expansion, the company said.

Other income dropped 52 percent on-year to S$4.14 million on lower contributions from government subsidies and rental rebates, Maxi-Cash said. 

Income tax expense for the year was S$3.04 million, compared with a credit of S$137,000 in 2020, the filing said.

Maxi-Cash proposed an interim dividend of 0.6 Singapore cent a share, down from 1.45 Singapore cents in 2020. The total dividend for 2021 will be 1.25 Singapore cents, compared with 2.6 Singapore cents in 2020, the filing said.

Outlook

Maxi-Cash said it was cautiously optimistic on the outlook. 

“The ongoing Omicron wave of Covid-19 infections is impacting business operations both locally and regionally. However, the group is cautiously optimistic about retail activities picking up as restrictions are eased beyond the current Covid-19 wave,” Maxi-Cash said.