Reid resigns as Cashies improves profit

Cash Converters International has posted a $22.5 million profit for the 2018 financial year, while also announcing the resignation of chief executive Mark Reid.

The company reported a 9.1 per cent increase in net profit, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 8.9 per cent to $49.8 million.

Revenue was down 4 per cent to $260.3 million.

EBITDA within Cashies’ franchise operations rose 18.2 per cent, driven by a turnaround in the company’s UK business.

Corporate store operations EBITDA fell 10 per cent, while personal finance earnings dropped 5.6 per cent, with both attributed to increased risk management being implemented.

The company’s corporate expenses fell 11.8 per cent to $27.7 million.

Mr Reid said the company had delivered a strong earnings performance.

“The turnaround taking place is a direct result of our efforts to enhance customer experience, improve our operational efficiency, broaden our revenue base creating sustainable, long-term shareholder value,” he said.

“I am very proud of the team for delivering such a strong financial result.

“We’ve laid the foundation to position the company for further growth as we look to become Australia’s most trusted personal finance provider and second-hand goods retailer.”

Cashies also announced Mr Reid’s resignation, after nearly three years at the helm.

Mr Reid has resigned effective immediately, with chief operating officer Sam Budiselik appointed as interim CEO.

“Mark has done a terrific job in evaluating the position of the company upon formally taking the role and then successfully moving the company in a direction that is reflected by the current strong financial results,” chairman Stuart Grimshaw said.

“It has taken a lot of time and energy and the commitment he has shown to the company has been first class.

“We are grateful to Mark for his contribution to the business over the past three years and wish him every success in his future endeavours.”

Shares in Cashies finished down 2.9 per cent at 34 cents each today.