Latest News

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.

Termination of Transaction Implementation Agreement with EZCORP

30/08/2011

Cash Converters International Limited (ASX: CCV) (LSE: CCVU) (Cash Converters) advises that EZCORP has elected to terminate the Transaction Implementation Agreement announced on 22nd March, 2011.  Accordingly, the proposed Scheme pursuant to which EZCORP would make an offer to shareholders to acquire further shares in Cash Converters, and the associated proposal for the parties to enter into certain Joint Ventures, have been cancelled.  EZCORP has taken this decision in light of the announcement by the Australian Federal Government on 24th August, 2011 that it intends to amend the National Consumer Credit Protection Act and seek to introduce strict caps on fees and charges for micro-lenders.  Although the amendments have not yet been passed, as currently proposed those limitations could have a material impact on Cash Converters’ consumer loan business in Australia. Accordingly, EZCORP is not willing to proceed with the transaction.   


EZCORP has indicated that, as the major shareholder in Cash Converters, it remains committed to its investment and to the strategic importance of the global brand that Cash Converters is building.  Paul Rothamel, EZCORP’s President and Chief Executive Officer, stated:  “We still have a significant investment in Cash Converters — we remain a 33% shareholder and we own the master franchise rights for the Cash Converters business in Canada.  Consequently, we are very interested in, and committed to, Cash Converters’ long-term success and look forward to finding other ways to proactively work with the Cash Converters team to achieve that success and maximize the long-term value for all Cash Converters shareholders.”
 

Outlook and opportunities
The Board of Cash Converters remains confident of achieving market expectations for the year ending 30 June, 2012.  The proposed reforms will have no impact on the business and earnings of the company during this financial year as they are intended to be effective from 1 July, 2012 at the earliest. 
 

Cash Converters has a number of strategies available to mitigate the negative impact that may be caused by the reforms in Australia.  To preserve the profitability of the Australian store network, Cash Converters can focus on other products and services which may provide an alternative solution for some of the financial needs of customers. Cash Converters will also consider directing additional resources into the United Kingdom where it has a 200 store chain (including 47 corporate owned stores) where its financial services products are experiencing exceptional growth and there is currently no cap on fees and charges.

  
Campaign
Cash Converters continues to lobby the Government concerning the merits of the proposed legislative changes which, amongst other things, may leave many thousands of consumers who do not have access to credit from banks without any available credit from regulated and reputable lenders such as Cash Converters.  Already within three business days of the Government’s announcement, over 14,000 customers have joined Cash Converters’ in-store campaign to send their personal protest to the Minister for Financial Services.  Our customers are concerned about the possibility of restricted access to short term credit that may result from the proposed amendments causing credit providers to withdraw funds from this segment of the market.
 

National Consumer Credit Reforms

25/08/2011

Cash Converters International Limited (“CCV”) were advised that the Federal Government released Exposure Drafts on 25 August 2011 in relation to the National Consumer Credit Protection Amendment (Enhancements) Bill 2011.

In summary, the Exposure Drafts propose reforms to:
• cap fees and charges for consumer loans with different caps applying to “small amount credit contracts” (in summary, loans of $2,000 or less where the term is two years or less) and other loans;
• for small amount loans, the proposed cap comprises an establishment fee of 10%, a monthly fee of 2% and default fees limited to the initial loan amount; for other loans, there is a annual cost rate of 48%;
• the timing of the implementation of these reforms has yet to be decided and the exact nature of these reforms is yet to be determined; further adjustments may be made in light of industry submissions which are required to be lodged by 4th September, 2011.

Impact on CCV
CCV is studying the reforms and will participate in the industry consultation process. The impact of such caps on the business model of CCV will have to be determined once the terms have been finalised.


Ralph Groom
Company Secretary
25 August 2011
 

Record profit result of $27.6 million

23/08/2011

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.  

Please see the attached for full details.

Prospectus

3/08/2011

ADMISSION OF UNITS TO THE OFFICIAL LIST OF THE UNITED KINGDOM LISTING AUTHORITY

Access to this section of the website may be restricted under securities laws in certain jurisdictions. This notice requires you to confirm certain matters (including that you are not resident in such a jurisdiction), before you may obtain access to the information on this section of the website. These materials are not directed at or accessible by persons resident in any jurisdiction where to do so would constitute a violation of the relevant laws of that jurisdiction.

IMPORTANT INFORMATION

This area of the website (the "Micro Site") contains documents and information (together the "Information") published by Cash Converters International Limited ("CCIL"), relating to the application for admission of units to listing in the United Kingdom ("UK") on the premium segment of the Official List and to trading on the main market of the London Stock Exchange (the "Admission"). The Information is made available in good faith and for information purposes only and is subject to the terms and conditions set out below. The Information has been made available in order to comply with Rule 3.2 of the UK Prospectus Rules. The Information disclosed may not be the same as that which would have been prepared in accordance with the laws outside the UK. The Information is not intended to, and does not, constitute or form any part of an offer to sell or an invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities, or the solicitation of a vote or approval in any jurisdiction, pursuant to the Information or otherwise.

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EZCORP Offer and Global Strategic Alliance with Cash Converters

22/03/2011

Proposed strategic alliance to develop and introduce globally a suite of innovative financial services products under the Cash Converters brand announced.
 
The highlights of the proposed alliance are:
  • Cash Converters and EZCORP form strategic alliance to develop financial service products
  • The alliance provides Cash Converters leverage to new markets
  • The alliance includes EZCORP acquiring 30% of Cash Converters issued capital that it does not already own
  • Offer price of A$0.91 per unit represents a premium of 16.6% to the Cash Converters
  • 3 month VWAP and a premium of 9.6% to the last closing price of A$0.83 per unit
Click here for a copy of the full press release and the TRANSACTION IMPLEMENTATION AGREEMENT DATED 21 MARCH 2011.
 

Half-year ended 31 December 2010

21/02/2011

Cash Converters International Limited is pleased to report the following Half-year ended 31 December, 2010 results to the market:

  • Revenues from ordinary activities up 48.3% to $87,919,206;
  • Profit from ordinary activities after income tax expense up 42.2% to $14,311,248;
  • Profit from ordinary activities, after tax, attributable to members, up 42.2% to $14,303,963;
  • Basic earnings per share of 3.8 cents, up 8.6% on last years figure of  3.5 cents;
  • The directors of the Company recommend an interim, fully franked dividend, of 1.75 (one and three quarter) cents per share to be paid on 31 March 2011 to those shareholders on the register at close of business on 17 March 2011.

Please click here to see the full announcement and Financial Report for the half-year ended 31 December, 2010.