Cash Converters International Limited (ASX: CCV) (‘the Company’) has delivered Revenue for the six months to 31 December 2016 of $143.5 million, and a Net Profit After Tax (NPAT) from continuing operations of $11.5 million, which while down 27.9% on the previous year is in line with expectations.
Recently appointed Chief Executive Officer, Mark Reid, commented: “Following the announcement in 2016 of a new strategy for the Company focused on building sustainable growth for the long term, this is a pleasing result. The Company is progressing through a period of strategic transition and during the half year we achieved a number of milestones in this regard on or ahead of schedule."
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Cash Converters is pleased to advise that Ms Ellen Comerford and Ms Andrea Waters have been appointed to the board of directors, with effect from 9 February 2017.
Following a number of strategic changes in 2016, the Company is now focused on sustainable, compliant growth, with tight management oversight that balances risk with return. The early success seen in moving to a master franchise position in the UK has also identified a significant potential opportunity in further developing this business in other new markets.
As a result, there is a repositioning of roles within the executive management team that we believe will ensure the success of the execution of the strategy:
• Peter Cumins, current CEO & MD will move to the role of Executive Deputy Chairman and will have primary responsibility for driving potential growth of the international franchising business; and
• Mark Reid, the current CEO Australia will move to the role of CEO (CCV) reporting directly to the Chairman, Mr Stuart Grimshaw and the Board of Directors. This change will involve Mark assuming full responsibility and accountability for all of the operations of CCV.
The net profit for the period was $6.3 million and is in line with the Company forecast. The first quarter result benefits from the timing of interest earned on higher loan volumes written in the second half of the previous year. The Company confirms guidance previously given to the market of full year 2017 NPAT being in the range of $20.0 to $23.0 million. Full details
- FY 2016 underlying EBITDA profit up 10.2 per cent to $69.1 million (FY 2015: $62.7 million)
- Net statutory loss after tax $11.1 million (FY 2015: net loss of $21.4 million)
- Revenue higher at $379.3 million (FY 2015: $374.3 million)
- Australia performed well with underlying EBITDA steady at $72.3 million (FY 2015: $71.3million)
- Strong growth in online channel sales in Australia and the United Kingdom
- Key strategy initiatives well advanced and within budget
- Exited all corporate stores in the United Kingdom with the majority sold
- CCUK ceased personal loan lending in May, with the loan book expected to wind-down by November 2016
- Green Light Auto Finance business started with early sales promising
- Major change in strategy following a comprehensive six month review
- Future strategic focus on sustainable growth and profits delivered through industry leading customer service and satisfaction
- Increased investment to build on brand and network strengths in Australia
- Return to master franchisor role in the United Kingdom; sale of corporate stores and loan book
- Higher half-year net profit of $15.9 million (HY 14: $5.3 million loss)
- Return to dividend with 2.0 (two) cents interim payment
- Revenue up 5.8 per cent to $198.6 million (HY14: $187.7 million)
- Strong performance across all channels in Australia
- Online personal loans principal advanced up 42.5 per cent to $44.6 million (HY14: $31.3 million)
- New financing and transactional banking arrangements to underpin strategy and growth
- Productive engagement with Government agencies on review of small credit legislation
Cash Converters Reports Strong Revenue and Underlying EBITDA Growth
Media Release, 28 August 2015
Cash Converters (ASX:CCV)(“Cash Converters” or “the Company”) today announced its financial results for the financial year dated 30 June 2015.
- Revenue growth of 13.0% to $374.9 million. The major drivers for revenue growth over the year included an increase in personal loan interest of $14.6 million and establishment fees of $7.8 million, and an increase in corporate store revenue of $18.3 million
- The normalised Group EBITDA of $62.7 was up 12.2%
- The normalised Australian divisional EBITDA of $71.3 million was up 26.4%
- The Australian personal loan book stood at $107.4 million as at 30 June 2015, down slightly on the previous year (2014: $109.2 million) after it peaked at a record $115.7 million at the half year
- The growth of the online personal loan business in Australia continues to be very strong with the value of loans written increasing 53.2% to $74.6 million (2014: $48.7 million)
- The value of online cash advance in Australia has also been strong with the value of loans written increasing by 57.7% to $11.2 million. (2014: $7.1 million)
- The Australian cash advance product produced an EBITDA result of $11.5 million, up 19.8% on last year’s result of $9.6 million
- The Australian corporate store network EBITDA was $18.8 million, representing a 14.6% increase on the corresponding period (2014: $16.4 million)
- A cost cutting and restructure has been completed to more effectively manage the UK business. There have been a number of senior management changes made and staff redundancies, in addition the Company has appointment a very experienced and successful Cash Converters multi-store owner and operator to manage the corporate store network
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