Valuemax profits down 3.9% YoY to $8.9m

Due to higher operating expenses and a one-off expense.

FY14 has not been a good year for Valuemax.

According to a report by OSK-DMG, PATMI was down 3.9% YoY to SGD8.9m, due to higher operating expenses from new outlets and a one-off SGD1.4m listing expense.

Valuemax’s FY14 revenue decreased YoY by 8.1% to SGD324.5m mainly due to a SGD28.4m decline from the retail and trading segment.

Since the acquisition of VM Credit last September, Valuemax has entered into several loan contracts worth a total of SGD18m till date. Going forward, management expects to see continued growing demand for loans in its moneylending arm.

With a fixed dividend payout policy in place paying out 50% of its NPAT, Valuemax declared a dividend of SGD0.88 cents for FY14, representing a 2.2% dividend yield based on the current share price.

Currently, Valuemax has a total of 23 outlets in Singapore and eight in Malaysia. Going forward, it is expected to continue to expand by buying over more of its private peers. Business environment may continue to be more challenging with the anticipated rise in interest rates, coupled with fierce competition and rising operating costs. However, FY15 could be a better year for Valuemax, due to its new moneylending segment and positive contributions to its earnings from its new acquisitions.