Cashies delivers on profit expectation

Cash Converters International has recorded an 18 per cent decline in net profit for the half year to December as the company transitions its business under chief executive Mark Reid.

With revenue of $122.9 million for the period, down 12.6 per cent on the previous year, Cashies registered a net profit of $9.3 million.

Mr Reid was appointed as chief executive after the business had multiple run-ins with regulators and a net loss in the 2016 financial year.

The company has since begun implementing a multi-pronged strategy that features new products and services, while still embracing its traditional pawnbroking and second-hand retail stores.

Earnings from store operations and personal finance fell 14.2 and 15.5 per cent respectively, while franchise operations were up 14.2 per cent.

Mr Reid said there were signs of improvement in the business.

“The first-half results for the 2018 financial year show the early signs that the transition of Cash Converters to deliver long-term, sustainable growth is working,” he said

“The significant expansion in the total loan book supports this and provides a leading indicator for anticipated revenue growth in the second half of the 2018 financial year and beyond.

“The NPAT result, exceeding our original guidance, demonstrates the strength of the new leadership team in delivering on our objectives and our dedicated focus on putting the customer at the centre of everything we do.”

Shares in Cashies finished up 4 per cent at 39 cents each.