Cash Converters (CCV) released its third quarter (3Q15) performance to the market today, 1 May 2015.
CCV reported top line increases in revenue up 9.7% to $93.6m, and EBITDA up 12.1% to $16.3m, for 3Q15 compared the corresponding quarter. Strong demand in Australia for financial services continues to drive the group’s growth, while UK operations continue to be a drag on earnings as CCV adjusts to the new regulatory regime.
Source: FIIG Securities, Cash Converters
Australia:
- The personal loan book was $110.5m as at 31 March 2015 representing growth of 10.2% compared to the corresponding quarter but down 4.5% from the 31 December 2014 given the seasonal growth to Christmas. Bad debts written-off or provided for were approximately $3m, which is lower than the ratio of loan book growth (suggesting this has ticked down as a percentage)
- Cash advance loans increased 2.4% to $60.6m driven by online business
- Savings from the termination of the Kentsleigh/Cliffview licence amounted to $1.45m
- Corporate store revenue increased 8.2% to $46.7m due to the ongoing expansion of the network
- The Green Light Auto Group business reported an EBITDA loss of $694,260 driven by costs associated with opening a new distribution outlet in NSW, departure of the National Sales Manager, and collections issues driven by problems with new software
United Kingdom:
- The UK business remains under pressure following the implementation of the new regulatory regime however it is only a small contributor to the overall group profit
- CCV are reviewing operations to better understanding of the returns available and then intend to structure the business accordingly
- Losses increased 95% to $1.5m driven by restructure expenses. Cost savings are expected going forward
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