Cash Converters International Limited (ASX:CCV) Reports Strong 1H FY25 Results
Financial Performance
Cash Converters International Limited reported revenue of $192.1 million and an operating EBITDA of $36.5 million for the first half of FY25. The company achieved a statutory NPAT of $12.1 million and maintained a gross loan book of $277.4 million. The dividend declared is 2.0 cents per share, yielding 8.3%.
Strategic Shifts and Acquisitions
The company is transitioning to longer-term, lower-cost lending solutions, reducing its focus on small and vehicle loans. Cash Converters acquired 15 Australian stores and 7 UK franchise stores, expanding its network to 153 stores in Australia and 192 in the UK. These acquisitions are priced at less than 5 times EBITDA with an expected internal rate of return over 15%.
Operational Initiatives
Cash Converters leverages AI-driven credit models, processing approximately 780,000 loan applications annually, and has reduced the net loss rate to 7.3%. The focus on repurposing pre-owned goods supports the circular economy, with over 1.7 million items repurposed annually in Australia. The company also emphasises luxury inventory with new stores, including a successful launch in Bondi Junction.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.
