Latest News

Parliamentary Joint Committee Recommendations

6/12/2011

Cash Converters International Limited (“CCV”) welcomes the recommendations made by the Parliamentary Joint Committee on Corporations and Financial Services in its report on the phase II reforms proposed by the Government as set out in the CONSUMER CREDIT AND CORPORATIONS LEGISLATION (ENHANCEMENTS) BILL 2011.

Click here to read the full announcement.

Managing Directors Address AGM 2011

16/11/2011

The directors are pleased to report a record profit of $27.6 million for the 2011 financial year, an increase of 27.5% over the previous year and our sixth consecutive record performance.

Further highlights for the year were:

• Revenue growth of 47.6% to $186.1 million. The major drivers for revenue growth over the year included an increase in personal loan interest of $12.2 million and establishment fees of $5.0 million, an increase in corporate store revenue of $38.3 million and an increase in financial services commission of $4.8 million.

• The franchised store acquisition strategy maintained momentum with the acquisition of 21 franchised stores during the financial year (six in the UK and 15 in Australia). In addition, 14 ‘greenfield’ company owned stores were opened in the UK and one in Australia, taking total corporate store numbers as at 30 June 2011 to 88 – 46 in the UK and 42 in Australia. Since the year end a further 6 Greenfield corporate stores have opened in the UK taking their store numbers to 52 and total numbers to 94.

• The corporate store network in the UK and Australia has seen revenues grow by 61.3% to $100.9 million producing a combined EBIT of $8.6 million (up 24.7% on 2010), with only a part year contribution from 21 staggered store acquisitions.

• The personal loan book in Australia grew 36.1% to $52.7 million and the loan book in the UK grew 746% to £5 million. The personal loans business generated an EBIT of $24.4 million (2010 $15.4 million) which is 58.6% up on the previous year.

• The cash advance administration platform in Australia and the UK, generated an EBIT of $12.3 million (2010 $9.1 million) which is up 35.6% on the previous year.

• The UK franchised business performed strongly and contributed an EBIT of $2.1 million. Store numbers (company owned and franchised) grew by a record 37 stores to 194 stores. Since the year end store numbers have grown to 204.

• The sub-master licence for Scotland was acquired on 2 December 2010. There are currently ten franchised stores in Scotland contracted to pay weekly fees which total £188,000 per annum. It is this income stream that the company has acquired from the sub-master licence holder, plus the rights to develop the Cash Converters store network in Scotland to its full potential, which is anticipated to be approximately 60 stores in total.
 

Click here to see the full announcement [PDF].

 

AGM Proxy Summary

16/11/2011

Please see attached the Proxy Summary from the 2011 AGM for:

Election of a Director - Mr William Love 

Election of a Director - Mr Joseph Beale

Remuneration Report

Completion of Migration

4/11/2011

Transfer of Listing Category

Further to the announcement released to ASX and LSE by Cash Converters International Limited (“CCIL”) on 6 October 2011 announcing that the resolution to complete CCIL’s migration from its listing on the Premium segment of the Official List of the UKLA to the Standard segment (the “Migration”) was approved, we are pleased to announce that the Migration has been successfully completed.

Click here to read the announcement.

Annual Report 2011

1/11/2011

The directors of Cash Converters International Limited (‘Cash Converters’) are pleased to report a record profit result of $27.6 million for the 2011 financial year, an increase of 27.5% over the previous year.

 ...This result is particularly pleasing considering the impact of the Queensland floods which severely damaged our corporately owned store located in Goodna. Write-offs to inventory and fixtures and fittings, combined with damage to customers’ pawned goods and the prolonged store closure have all had a negative profit impact, resulting in a loss against budget of approximately $1.5 million. The insurance company has refused to honour our claim in respect
to damages and losses incurred pursuant to the flood. Cash Converters intend to challenge this decision. The store has been re-fitted and was re-opened in July. Partially compensating the above losses is a one-off gain of approximately $1.2 million relating to a reduction in contingent consideration associated with the acquisition of the Goodna store.

The Group has also incurred the following unbudgeted, one-off costs, during the financial year: 

Professional fees associated with the unwinding of the Dividend Access Scheme and the issue of a catch up prospectus in relation to Cash Converter’s London Stock Exchange listing, required by the United Kingdom Listing Authority (“UKLA”), amounted to approximately $800,000 in fees which were charged to the income statement; and Professional fees associated with the transaction with the EZCORP alliance announced to the ASX on 22 March 2011 have resulted in a charge to the income statement of approximately $500,000.
In total these unbudgeted one-off items have had an approximate $1.6 million negative impact on the 30 June 2011 profit before tax. Other than the gain noted above there were no unbudgeted or one-off revenue streams.

In addition to the above costs the income statement included the following additional costs not previously incurred:
The Long Term Incentive plan approved at the last Annual General Meeting as part of the remuneration package for the Managing Director has resulted in an expense of approximately $700,000;
An expense of approximately $460,000 in relation to stamp duty on acquisitions;
Amortisation of re-acquired rights and customer relationships of $444,700; and
An expense of approximately $700,000 in relation to a GST adjustment (Division 135) related to prior year store acquisitions.
$27.6 million for the 2011 financial year, an increase of 27.5% over the previous year. 

Please see the full 2011 Annual Report Attached [PDF].

Depositary Interests UK

19/10/2011

Cash Converters International Limited ("Cash Converters") (ASX: CCV; LSE: CCVU) intends to put in place arrangements in the UK to facilitate trading in Cash Converters ordinary shares ("Cash Converters Shares") on the London Stock Exchange ("LSE") by enabling electronic settlement through CREST. 

Please see the attached for full details of the announcement.

EZCORP Update

18/10/2011

Cash Converters International Limited is pleased to announce that EZCORP, Inc through its wholly owned subsidiary CCV Virginia, Inc has acquired from Cash Converters United LC (“CC United”) its rights as sub-franchisor to the Cash Converters brand and name in several states in the USA.

Please see the attached for full details of the announcement.

 

Notice of AGM

14/10/2011

Annual General Meeting of Cash Converters International Limited.

To be held at the Western Australian Club, 101 St Georges Tce Perth WA 6000

Wednesday 16th November 2011, commencing at 10.00am WST

Please see the attached for full details and proxy form.

Credit Legislation Update

28/09/2011

Cash Converters International Limited is pleased to report that, following a series of representations from both the Company and over 30,000 of our customers, the Australian Government's proposals for a cap on fees and charges for micro-lending, as set out in the Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011, were referred by Parliament, on 22 September 2011, to both the Senate Economics Committee and to the Joint Committee on Corporations and Financial Services.  

 
These committees generally undertake a review of the Bill and consider submissions and hold public hearings. The lead will be taken by the Joint Committee on Corporations and Financial Services and details of submission dates and the public hearing should be released later this week.
 
Cash Converters along with its customers will continue to make submissions to these committees with the intention that a legislative framework will be established that ensures a viable and responsible micro-lending industry.
 

Financial Report June 2011

19/09/2011

The consolidated entity’s net profit attributable to members of the parent entity for the year ended 30 June 2011 was $27,634,929
(2010: $21,629,922) after a charge for income tax of $11,578,126 (2010: $9,536,414), and adjusting for profit attributable to Noncontrolling interests in controlled entities of $Nil (2010: $46,241 profit). 

To see the full report click here.