AGM Presentation
Perth, Nov 23, 2016 AEST (ABN Newswire) - Cash Converters International Ltd (
ASX:CCV) (CKKIF:OTCMKTS) is pleased to provide the company's AGM Presentation held in November 2016.
At this time last year
At last years AGM we were facing the following challenges
- The Bank had terminated our transactional banking and debt facilities as well as forcing a suspension of our final year dividend
- A Panel had been appointed by Government to review the small amount credit contract (SAAC) laws
- A second writ had been lodged against the Company in respect to lending in Queensland in the period July 2009 to July 2013
- The UK had produced a $9m EBITDA loss for FY2015
- Carboodle had produced a $1.7m EBITDA loss for FY2015
- With the help of an outside specialist, we had just commenced a review of the business with the aim of developing a strategic plan to cover the next 3 years
FY16 Strategy Overview - Announced in February 2016
Our strategy is to maximise the value of our brand and franchise network through a focus on high return businesses.
- Focus our investment and resources toward maintaining market leadership and sustainable profit growth in Australia
- Operate in the United Kingdom as a profitable master franchisor
- Build the brand presence in New Zealand to add value to our investment there
- Build a specialist vehicle finance company - Green Light Auto Finance
- Continue our international master franchise operations
FY16 Strategy - Progress
We have made good progress with our strategy implementation
- Exited UK corporate stores ( 44 sold and 15 closed)
- Ceased lending in May and expect to have the UK personal loan book closed by December 2016
- Implemented a new UK organisational structure. Now operating as a master franchisor servicing 201 franchise stores held between 50 franchisees
- UK restructure completed within budget
- Carboodle business closed and within budget
- New Green Light Auto Finance business started in March 2016 offering principal and loan interest product
Good progress
We have made good progress on the remaining challenges
- The Government appointed Panel completed its review of the SAAC laws and made 24 recommendations to the Minister in a report dated March 2016. To date these recommendations are still with the Minister.
- We continue to defend the Queensland class actions
- We have new transactional banking facilities in place and have secured a $100m funding facility for our personal loan book
- The Company paid a full year, fully franked dividend of 3 cents FY2016
FY17 Outlook
Efficient execution of strategy continues to be a priority
- Demand for our well established retail and pawn broking service remains solid
- UK business returned to profit
- Strategic decision to reduce activity and volume in some SAAC market segments will impact on the Company financial returns and profit
- Volumes from GLA Finance and MAAC lending will continue to grow
- Strong balance sheet to finance growth
- Continued focus on compliance and responsible lending obligations
- Guidance for 2017 is for NPAT to be between $20m and $23m.
To view the presentation, please visit:
http://abnnewswire.net/lnk/3T822JJW
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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