10/09/2015 - 10:46

Cash Converters flags restructure

10/09/2015 - 10:46

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Cash Converters International has announced a number of board changes, including the retirement of its chairman, and has commenced a review of the business as it responds to challenging market conditions.

Cash Converters International has announced a number of board changes, including the retirement of its chairman, and has commenced a review of the business as it responds to challenging market conditions.

In a statement today, Perth-grown Cash Converters said it needed to review the way it managed itself and how it continued to evolve in a rapidly changing market.

Chairman Reginald Webb will retire from the board at the end of the 2016 financial year, while current director Stuart Grimshaw has been appointed as interim non-executive chairman to assist with the transition.

Mr Grimshaw is also CEO of EZCorp, which is Cash Converters' largest shareholder with a 31.88 per cent stake (according to the company's 2014 annual report).

Mr Grimshaw will immediately undertake a review of the company’s board structure and composition,” the company said.

With the retirement of Ian Day as chief executive Australia, the company has appointed former Bankwest executive Mark Reid to the role.

Mr Reid previously served as the head of Bankwest’s retail banking division, and was CEO of Greenfield Financial Services.

Cash Converters has also engaged Cace Partners to conduct a full review of the business, which is expected to take about 16 weeks to complete.

“As an outcome of this review, Cace Partners and the company will formulate its three-year strategic growth plan,” Cash Converters said.

"The company expects to be in a position to provide a market update on the outcome of the review and the forward strategic plan around January 2016."

The company recently posted a net loss of $21.7 million for FY15, on the back of a $23 million law suit settlement and a massive UK restructure.

Cash Converters shares were 1.1 per cent higher to 44.5 cents at 10:45am.

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