ValueMax reports 2021 net profit rose 23 percent

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

Pawnshop operator ValueMax reported Thursday its 2021 net profit rose 22.5 percent on-year to S$41.51 million, boosted by the moneylending business. 

Revenue for the 12 months ended 31 December slipped 0.2 percent on-year to S$275.51 million, the pawnshop operator said in a filing to SGX. 

The retail and trading of jewellery and gold businesses reported revenue decreased by S$18.3 million, while revenue from the moneylending businesses and pawnbroking increased by S$17.5 million and S$200,000, respectively, ValueMax said.

The gross profit margin increased to 27.3 percent in 2021 from 21.7 percent in 2020 on a higher contribution from the moneylending business, ValueMax said.

Cost of sales fell 7.3 percent on-year in 2021 to S$200.43 million on lower cost of goods sold for retail and trading of jewellery and gold businesses, and finance costs dropped 41.8 percent on-year to S$2.36 million, the filing said.

ValueMax declared a final dividend of 1.88 Singapore cents, up from 1.80 Singapore cents in 2020. 

Outlook

ValueMax issued a cautious outlook. 

“With the ongoing Covid-19 epidemic and expected rise in interest rates, gold price may continue to remain volatile. The group continues to face a challenging business environment and increased competition,” ValueMax said. 

“In December last year, the group acquired Hersing Credit Pte. Ltd., a moneylending business. The group will continue to explore acquisition opportunities and suitable locations to grow our network of pawnshops and retail outlets, and grow our moneylending business,” the company said.