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ValueMax sees 33% growth in FY20 earnings of $33.9 mil on growth from retail and trading of pre-owned jewellery and higher gold prices

Felicia Tan
Felicia Tan2/24/2021 10:04 PM GMT+08  • 2 min read
ValueMax sees 33% growth in FY20 earnings of $33.9 mil on growth from retail and trading of pre-owned jewellery and higher gold prices
A final dividend of 1.80 cents per share has been declared for the FY2020.
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Homegrown pawnshop chain ValueMax Group has reported earnings of $33.9 million for the FY2020 ended December, 33% higher than earnings of $25.5 million a year ago.

Revenue for the year grew by 17% y-o-y to $276.1 million due to higher revenue from retail and trading of pre-owned jewellery and gold businesses increased by $40.7 million due to the higher gold prices during FY2020.

The higher figure was mitigated by a decrease of $0.5 million from the group’s moneylending businesses. Revenue from its pawnbroking business remained stable.


SEE:ValueMax Group leads overall, but iFAST emerges best in returns to shareholders

FY2020 gross profit increased 10.4% y-o-y to $59.8 million due to higher cost of sales during the period, while gross profit margin (GPM) fell to 21.7% for FY2020 from 23.0%.

Other operating income doubled to $7.7 million from $3.8 million due mainly to the increase in government grants and rental reliefs.

Share of results of associates increased 42.2% y-o-y to $5.5 million due to higher contribution from the Malaysian associated companies.

As such, profit before tax for the FY2020 increased 29.3% y-o-y to $40.4 million.

Earnings per share (EPS) for the FY2020 stood at 6 cents on a fully diluted basis, from 4.68 cents the year before.

A final dividend of 1.80 cents per share has been declared for the FY2020, higher than the 1.61 cents per share declared in FY2019.

For more stories about where the money flows, click here for our Capital section

As at end-December, cash and cash equivalents stood at $11.1 million.

Shares in ValueMax closed 1.5 cents higher or 4.4% up at 35.5 cents on Feb 24.

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