Latest News

Notice of Annual General Meeting 2015

16/10/2015

Notice is hereby given that the Annual General Meeting of Cash Converters International Limited (“Company”) will be held at 10.00am (AWST) on Wednesday 18 November 2015 at The Pan Pacific Hotel, 207 Adelaide Terrace, Perth, Western Australia 6000.
 
Click here for the Notice of Meeting, Explanatory Statement and Proxy Form. 
 

Cash Converters Announce 2015 Financial Year Results

31/08/2015

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.

Highlights:

  • 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

Please click here to read the 4E and Chairman and Managing Director's Review.

Investor and Analyst Teleconference to Discuss 2015 Full Year Results

24/08/2015

Notice of Investor and Analyst Briefing

Cash Converters International Limited (“Company”) advises that the Company intends to release its full-year result for the year ending 30 June 2015 on Friday 28 August 2015. Following the lodgement of Appendix 4E – Preliminary Final Report and PowerPoint Presentation to the ASX, the Company’s Managing Director will host an earnings teleconference for investors and analysts on Friday 28 August 2015 at 10.00am Western Australian time.

Conference Call Details
Date: Friday 28 August 2015
Time: 10.00am AWST, 12.00 pm AEST
National Toll Free Number: 1800 280 741
Overseas Toll Free Number: +61 3 8687 7788

Participants are requested to dial in 5-10 minutes prior to the start time.
To register your attendance, please email general.enquiries@cashconverters.com.

For further information regarding the 2015 financial year results please refer to the Cash Converters Appendix 4E - Preliminary Final Report and the PowerPoint Presentation both of which will be lodged with the ASX on 28 August 2015.

Ralph Groom
Company Secretary
 

Update in regard to Banking Facilities

5/08/2015

Westpac Banking Corporation has today written to the Company and have informed it that Westpac has taken the decision to cease to provide banking and financial products and services to its customers who provide Short Term Credit Contracts (STCCs) or Small Amount Credit Contracts (SACCs) under section 5(1) of the National Consumer Credit Protection Act 2009 (cth). Cash Converters is a licenced provider of financial services under the terms of this Act.
 
Westpac has assured the Company that they will implement this decision in accordance with the Company contractual agreements with Westpac, and in a considered and consultative way so as to allow the Company to establish alternative banking arrangements.
 
The Company currently has a securitisation facility with Westpac drawn to $59m which is contracted to March 2016 with an approximate six month run-off period. Westpac also provides transactional banking services to the Company and have agreed to provide these services until the expiry date of the securitisation facility.
 
The Company is confident that all Westpac facilities and services will be replaced in the ordinary course of business, including the securitisation facility for the personal loans.
 
Cash Converters is proud of the financial services it provides to thousands of ordinary Australians who might otherwise not have access to credit. The financial services we provide play a legitimate role in the economy as has been recognised by successive governments.
 
Ralph Groom
Company Secretary
 
 

Class Action Response

3/08/2015

Cash Converters International Limited (Company) was served with a writ lodged with the New South Wales Registry of the Federal Court of Australia on 31 July by a Mr Sean Lynch seeking to commence a class action claim on behalf of borrowers resident in Queensland who took out personal loans from the Company’s subsidiaries during the period from 30 July 2009 to 30 June 2013.
 
Since 1 July 2013, the personal loan lending system has been undertaken in accordance with the regulatory regime introduced by the Federal Government, in conjunction with the States.
 
The current proceedings attack the “brokerage fee” charged to customers between 30 July 2009 and 30 June 2013. The brokerage fee system has not been used since 30 June 2013.
 
The proceedings relate to loans made only in Queensland to Queensland residents by Company subsidiaries based in Queensland, notwithstanding that the action has been commenced in New South Wales. The particular aspect being attacked in these proceedings is the charging of a brokerage fee to customers, mainly by franchisees, for the service of introducing customers to the Company’s subsidiaries, which provided the loans.
The action will be vigorously defended.
 
The Company is satisfied that the brokerage fee is not contrary to any Commonwealth or Queensland legislation. It was a system commonly used by the financial services industry in Queensland. The brokerage fee was introduced in 2009 with the knowledge of the then regulator, the Office of Fair Trading. The Office of Fair Trading was fully aware of the system and raised no objection either at the time it was introduced or at any time during its use. The Company’s franchisees participated in the lending system only after satisfying themselves independently from the Company that the system was not contrary to any regulatory regime within Queensland.
 
The writ is an ambit claim and does not quantify the amount sought to be recovered against the Company’s subsidiaries. In any event, whatever that claim may be, the Company is of the view that it has no prospects of success.

Acquisition of Six Victorian Stores

22/12/2014

Cash Converters International Limited (“Cash Converters”) is pleased to announce that it has finalised the acquisition of six franchised stores in Victoria.
 
The stores have been purchased from an existing franchisee for a total cash consideration of $10.8million, including assets of $3.5 million. The acquisition price represents an EBIT multiple of 3.7 times on current earnings and an EBIT multiple of 2.5 times excluding acquired assets. The consideration will be paid out of Cash Converters cash reserves and existing financing facilities. The actual take-over of the stores will occur on 26 February 2015 and acquisition is subject to the store leases being renewed or transferred to Cash Converters (Stores) Pty Ltd. These acquisitions will take the number of corporate owned stores in Australia to 70 with 59 stores in the UK.
 
Click here to read the full article. 

Completion of Settlement to Terminate Agency Agreements

10/12/2014

Cash Converters International Limited (“Cash Converters”, or “the Company”) is pleased to announce that it has today settled the termination of the agency agreements (“Licences”) with development agents Kentsleigh Pty Ltd and Cliffview Pty Ltd (“Development Agents”). This transaction was announced to the ASX on 27 November 2014.


The termination of the Licenses will provide Cash Converters with a number of benefits including the reduction in expenses with the elimination of commissions paid to the Development Agents on cash advance and personal loan lending products and an improvement in cash flow going forward.

 

Ralph Groom - Company Secretary

Green Light Auto Partnership with FleetPartners

21/11/2014

Cash Converters International Limited is pleased to announce, that its wholly owned subsidiary, Green Light Auto Group (“GLA”), trading as ‘Carboodle’, has entered into an partnership agreement with FleetPartners for the provision of high quality fully maintained end of lease vehicles for re-lease to Carboodle’s customers. 
 
Click here to read the full announcement. 
 

New Director Appointed

19/11/2014

Cash Converters International Limited advises that Mr David Carter will join the board of directors with effect from 1 December 2014. Mr Carter has been an international partner of one of the world’s largest law firms and has extensive legal and management experience. 
 
The Chairman of Cash Converters International Limited, Mr Reginald Webb said: “David’s appointment is very timely, since the Board have been seeking a suitable candidate for some time. With knowledge of both the financial services and franchise industries, David’s appointment will immediately add to the combined experience of our Board. We look forward to him joining from 1 December and I have no doubt David’s appointment will add to the quality candidates who have recently joined the Board of Cash Converters”. 
 
Click here to read the full announcement. 
 
 

Notice of Annual General Meeting 2014

17/10/2014

The Annual General Meeting of Cash Converters International will be held on Wednesday 19th November at 10am (WST) at the Pan Pacific Hotel, 207 Adelaide Terrace Perth.

Full Details attached (PDF).