MoneyMax Financial Services (5WJ) H1 2023 earnings summary

Executive summary

• H1 2023 revenue was S$129.5m, down 4.4% YoY; profit before tax fell 19.4% to S$13.8m and profit net of tax fell 21.1% to S$11.0m.

• Lower retail and trading revenue was partly offset by higher pawnbroking and secured lending interest income; cash used in operating activities was S$12.2m.

Financial highlights

• Revenue was S$129.494m vs S$135.453m; material costs declined 14.2% to S$77.801m, while employee benefits expense rose 32.7% to S$14.925m.

• Profit before tax was S$13.786m vs S$17.098m; profit net of tax was S$10.977m vs S$13.905m, and total comprehensive income was S$9.002m vs S$14.448m.

• Finance costs rose 84.8% to S$11.245m, reflecting higher bank borrowings and interest rates; other expenses increased 39.9% to S$6.066m.

• Net cash decreased S$1.210m in the cash-flow statement to S$18.137m; the balance-sheet cash and cash equivalents were S$19.793m, before the S$1.7m bank overdraft deduction.

Outlook and guidance

• FY2023 profitability is expected, barring unforeseen circumstances; H1 performance was stated to be in line with the prior forecast.

• No H1 2023 dividend was declared as cash is being retained prudently; the board will assess any dividend based on FY2023 performance.