23/02/2009 - 13:58

Cash Coverters books record H1 profit

23/02/2009 - 13:58

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Perth-headquartered Cash Converters has lifted its full-year net profit guidance to up to $15 million as it delivers a record first half profit result, boosted by acquisitions in Australia and the UK.

Cash Coverters books record H1 profit

Perth-headquartered Cash Converters has lifted its full-year net profit guidance to up to $15 million as it delivers a record first half profit result, boosted by acquisitions in Australia and the UK.

For the six months to the end of December, the company booked a net profit $7.9 million, up 9.3 per cent on the previous year's result and up $600,000 against the budget.

Previously the company had upgraded its full-year net profit for the 2009 financial year to $13.1 million, but based on today's half-year results, has boosted its forecast to be between $14.5 million and $15 million.

"..the Company has taken into consideration the likely continuation of its first half performance from existing business, and a full half year's contribution from the nine recently acquired stores in Western Australia and the UK," Cash Converters said.

Revenue was up 23.8 per cent to $44.5 million while earnings before interest, tax, depreciation and amortisation climbed 13.1 per cent to $12.7 million.

Separately, earnings for the company's financial services operations was up 4.6 per cent to $8.6 million while franchise and store operations, both in Australia and the UK, reported a 34.1 per cent lift in earnings to $2.9 million.

The Australian operations contributed an operating profit of $1.96 million, up 10.9 per cent, while earnings from the UK division soared 120.2 per cent to $1 million.

The company said is expects to acquire a further three stores in WA in the next six months, taking the total number of company owned outlets to 31.

Cash Converters directors have declared an interim, fully franked dividend of 1.5 cents per share.

At the end of the reporting period, Cash Converters had $11 million in cash and cash equivalents.

 

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