Cashies lifts profit, sees growth
UPDATE 3.20pm: Payday lender Cash Converters has lifted its full-year statutory net profit by 27.6 per cent to $36.3 million.
The result was achieved on revenue of $272.7 million, up 16.4 per cent on the previous year.
Operating profit was up 11.7 per cent to $32.9 million.
The company will pay a final fully franked dividend of two cents a share, bringing its annual dividend to four cents a share, up 14 per cent on the previous year's 3.5 cents.
The result was driven by a strong growth in Cash Converters' personal loan and cash advance books in the UK and Australia, backed by new stores in both countries and the increasing popularity of the company's online lending platform.
However Cash Converters estimated it had taken a $1.1 million hit to its EBITDA in the period as the company and its customers adjusted to the requirements of the new responsible lending legislation in Australia which came into effect on March 1.
The company said it expected continued growth in its Australian and UK personal loan books in the 2014 year.
"The online lending platform will contribute greatly to this growth," Cash Converters said.
Cash advance volumes were expected to return to previous levels and beyond as customers became more familiar with the new lending procedures.
"From 1 July, the interest rate cap for these loans comes into effect and it will make the product even more attractive for customers with lower loan charges," the company said.
Shares in Cash Converters closed up five cents, or 4.17 per cent, at $1.25.