Cash Converters International Ld Trading Statement (8549Q)
12 November 2012 - 9:08AM
UK Regulatory
TIDMCCVU
RNS Number : 8549Q
Cash Converters International Ld
12 November 2012
Trading Update
Quarterly Earnings Growth Well Ahead of Expectations
Highlights
-- Unaudited EBIT up 43% on previous corresponding period (1Q
2012FY) to $14.2 million
-- Strong growth in UK loan book to GBP15.3 million, up 146.1%
on the corresponding period and 20.8% since 30 June 2012
-- EBIT contribution from the UK operations up 155.4% on the
corresponding period
-- Continued growth in the Australian Personal Loan book, up
32.7% on the corresponding period
-- Two more stores acquired, two new corporate stores opened
-- Record online loan advances and online store sales from
Webshop gaining momentum
Quarterly Earnings Growth Well Ahead of Expectations - Trading
Update
The directors of Cash Converters International Limited ("Cash
Converters" or "the Company") are pleased to provide the following
trading performance and operational update based on the first
quarter of the financial year to June 2013.
The unaudited EBIT for the first quarter ended 30 September 2012
increased 43.3% from the previous corresponding period (1Q 2012FY)
to $14.2 million. This result has been driven by the continued
strong performance of the personal loan books. In particular the UK
loan book has grown by 146.1% on the previous corresponding period
to GBP15.3 million. This strong performance has driven an increase
in the UK EBIT contribution by 155.4% over the previous
corresponding period. The mature Australian personal loan book is
continuing to grow strongly with the loan book reaching $67.1
million as at 30 September 2012, an increase of 32.7% on the
previous corresponding period. It is also pleasing that the bad
debt levels have stabilised in the UK while the profitability of
the UK loan book has increased strongly as the loan balance has
increased. The Australian personal loan book bad debt levels are in
line with historical levels.
The Company's online strategy is continuing to grow with record
loans advanced through the online platform during the quarter and
the Webshop platform now achieving sales in the order of $250,000
per month in Australia. The Company is currently implementing a new
point of sale system with an application to facilitate the online
display of store inventories across the Australian (and eventually
the UK) store network. The directors expect this to increase the
sale of goods online.
During the quarter additional stores were acquired in Wigan and
Gloucester in the UK, taking total corporate owned stores in the UK
to 61 and total stores in the UK to 222 including franchised
stores.
In Australia, the Company opened two new corporate stores in
Port Kennedy (WA) and Bankstown (NSW) taking total corporate owned
stores in Australia to 44 and total store numbers in Australia to
147.
Cash Converters Managing Director, Mr Peter Cumins, said: "The
September quarter was exceptionally strong and has exceeded our
expectations. Particularly pleasing, but not surprising, is the
growth we have achieved in the UK as our efforts and focus on
corporate store acquisitions and growing the personal loan book is
beginning to contribute strongly to our earnings".
Enquiries
Cash Converters International Limited
Mr. D.R. Groom
61 (8) 9221 9111
Charles Stanley Securities
Dugald Carlean / Karri Vuori
+44 20 7149 6000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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