Investor Presentation - Financial Results 31 December 2015
Sydney, Feb 29, 2016 AEST (ABN Newswire) - Cash Converters International Ltd (
ASX:CCV) Investor Presentation - Financial Results 31 December 2015.
- Return to profits. NPAT of $15.9 million ( 1H15: $5.3 million loss)
- Return to dividend. Interim payout of 2.0 (two) cents fully franked
- Australia clear driver of revenue and profit growth - built on brand, customer satisfaction and network leadership
- United Kingdom improves - scale, regulatory and capability issues impact earnings
- Strong online lending growth in Australia
- New banking arrangements finalised
- Productive involvement in Australian credit contract law review
- Major review of Group strategy (see additional Investor Presentation - Strategy Review, for details):
- Repositioning UK store strategy with planned store divestments to franchisees
- Divesting the UK loan book
- Transitioning Carboodle to new secured motor lending business
- Restructuring will impact second half results
- Capital and management time will be focused on improving returns, driving growth and efficiencies in the core Australian business
New banking arrangements will underpin future growth
- Securing new banking arrangements was a pleasing outcome
- The Fortress facility covers five years - an initial three years with an option for a two year extension
- It allows for a drawdown of up to $100 million ( $70 million currently)
- It does not impose EBITDA or gearing ratio covenants and loans originated online (a key growth origination channel) are unrestricted
- The facility will start in March 2016 ensuring a seamless transition
- We also have a five year agreement with a service provider to replace our existing transactional banking facilities
- The transition is expected to be complete by July 2016.
To view the Half Year Financial Presentation, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-CCV-754449.pdf
To view the Strategy Presentation, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-CCV-754448.pdf
About Cash Converters International Ltd
Cash Converters International (ASX:CCV) is a franchised retail network listed on the ASX. It specialises in the sale of second-hand goods. The Cash Converters group employs modern retailing practices, professional management techniques and high ethical standards to the management of its stores throughout the chain which appeal to a wide cross section of the community. As a result, Cash Converters has been able to position its outlets as credible retail merchandise stores, resulting in a profitable market for the group.
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