CASH CONVERTERS INTERNATIONAL LIMITED 26 February 2020
ASX Release
Half-Year Financial Results
For the period ended 31 December 2019
Strong Revenue & Loan Book Growth
Cash Converters International Limited (ASX: CCV) ('Cash Converters' or 'the Company') today announces the Company's financial results for the half-year ended 31 December 2019 (H1 FY20).
H1 FY20 Overview*
Revenue of $143.9 million, up 4.9%
EBITDA loss of $12.8 million and Normalised EBITDA of $24.3 million, up 13.7%
Net Loss After Tax of $19.4 million
Normalised NPAT of $11.5 million up 31.2% after adjusting for settlement of Lynch Class Action for $42.5 million and associated legal costs
Total Loan Book of $224.2 million, up 1.6% compared to 30 June 2019
- Medium Amount Credit Contract (MACC) book growth to $46.3 million, up 11.9%
- Pawnbroking (PB) book growth to $11.5 million, up 5.4%
- Small Amount Credit Contract (SACC) and GLA loan books closed relatively flat at $91.2 million and $70.0 million respectively
Normalised net operating cash flows of $13.6 million compared to -$24.6 million in H1 FY19 (adjusted for Class Action Settlements and accounting standard changes)
Total Retail Sales of $42.5 million, up 12.8% with Gross Profit up 6.2% Online Retail Sales of $3.8 million up 24.5%
*all comparisons are to previous corresponding period (H1 FY19) unless stated otherwise
Sam Budiselik, Chief Executive Officer stated, "The strong half-year performance of our business is a direct result of our focus in meeting the cash needs of our customers. We have invested in our store and digital platforms to provide our customers with an interface that ensures they can interact with our business via the channel of their choosing, with customer satisfaction levels reflected in industry leading Net Promoter Scores. The growth of our retail business in difficult trading conditions is a reflection of the strength of our store-based customer relationships. We are getting better at
Level 11
37 St Georges Terrace
Perth WA 6000
Cash Converters International Limited | Telephone: +61 8 9221 9111 |
ABN 39 069 141 546 | ASX: CCV | www.cashconverters.com |
ASX release
26 February 2020
understanding and serving our customers in a sustainable manner, resulting in the reduction in net bad debt expense in the Personal Finance business.
Looking towards the second half of the year, the Board and senior management team are excited about the opportunities the Company has to continue to build on momentum in the underlying business and to serve a growing customer base."
Financial Results Summary
The Group recorded a net loss after tax for the half-year ended 31 December 2019 of $19.397 million (half-year ended 31 December 2018 net loss after tax: $5.236 million). This included the recording of the $42.500 million settlement for the second of two class actions in Queensland (the Lynch Proceeding) and associated legal costs and tax effects. On a normalised basis, net profit after tax for the period was $11.510 million (half-year ended 31 December 2018: $8.774 million), showing a 31.2% improvement in underlying earnings.
In order to provide a meaningful comparison to the prior period, the table below highlights the effect of costs relating to the Class Action settlement and other costs of a non-recurring nature to show the underlying operational performance of the Company.
31 Dec 2019 | 31 Dec 2018 | ||
$'000 | $'000 | ||
Net profit / (loss) after tax from continuing operations | (19,397) | (5,236) | |
Normalisation adjustments: | |||
Class action settlement | 42,500 | 16,400 | |
Class action legal fees | 416 | 2,467 | |
Restructure costs | - | 1,147 | |
Tax effect of adjustments | (12,875) | (6,004) | |
Normalised NPAT | 10,644 | 8,774 | |
Impact of adoption of AASB 16 (net of tax) | 866 | - | |
Normalised NPAT after adjusting for AASB 16 adoption | 11,510 | 8,774 |
Cash Converters International Limited | 2 |
ABN 39 069 141 546 | ASX: CCV |
ASX release
26 February 2020
A summary of consolidated revenues and results by significant segment is set out below:
Segment revenues | Segment profit / (loss | |||
before tax result | ||||
31 Dec 2019 | 31 Dec 2018 | 31 Dec 2019 | 31 Dec 2018 | |
$'000 | $'000 | $'000 | $'000 | |
Franchise operations | 11,130 | 9,638 | 6,453 | 6,144 |
Store operations | 63,580 | 59,678 | 6,331 | 7,217 |
Personal finance | 58,433 | 59,263 | 15,887 | 13,470 |
Vehicle financing | 10,572 | 8,112 | 1,566 | 437 |
Totals before head office costs | 143,715 | 136,691 | 30,237 | 27,268 |
Head office (i) | 205 | 567 | (57,982) | (34,923) |
Totals after head office costs | 143,920 | 137,258 | (27,745) | (7,655) |
Income tax (expense) / benefit | 8,348 | 2,419 | ||
Profit / (loss) for the half-year | (19,397) | (5,236) |
- Head office segment results for the half-year ended 31 December 2019 include a Class Action settlement of $42.500 million and for 31 December 2018 a Class Action settlement of $16.400 million.
Outlook
Cash Converters was pleased to settle the Class Action during the period, thereby removing uncertainty over the impact of the case, and allowing the Company to accelerate its strategy to continue to transform the business into a diverse, sustainable and profitable company.
For further information please contact:
Sam Budiselik, Chief Executive Officer
info@cashconverters.com
Cash Converters International Limited | 3 |
ABN 39 069 141 546 | ASX: CCV |
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Cash Converters International Ltd. published this content on 26 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 February 2020 00:37:02 UTC
