Cash Converters posts half-year profit

Cash Converters posts half-year profit

Cash Converters has posted a half-year profit and outlined a new strategy that will see it reduce its UK operations as it focuses on Australia.

The company reported a profit of $15.9 million for the half-year ending December 31 compared to a year-earlier loss of $5.3m.

Revenue increased 5.8 per cent to $198.6m, boosted by Australian operations that are targeted for future growth.

“Our latest financial results confirm our strength in Australia across retail and financial services,” managing director Peter Cumins said.

“Despite an encouraging improvement by our businesses in the UK, they still have major structural and sectoral issues our new strategy will address.”

In the UK, the business will return to its original role as a master franchisor and is currently negotiating to sell corporate stores to franchisees within the network. It will also divest the UK personal loan book.

In Australia, Carboodle will cease operations with the current lease book wound down, as the business looks to transition to a new secured motor lending business, Green Light Auto Finance.

Charges related to the changes to the UK and Carboodle business are expected to be included in the full-year result.

“We will now focus on markets where we already have a strong position, good growth prospects and relatively predictable operating and regulatory environments,” Mr Cumins said.

The company will pay an interim dividend of 2c, fully franked, on April 29 to shareholders on the register at the close of business on April 15.