fy result

Close to $3m Net Profit. Major turnaround from previous period.

From The Age....

"Second-hand goods seller and pawnbroker Cash Converters International is predicting a bright future after turning around a previous heavy loss to post a net profit of $2.8 million for 2002-03.

The company said that earnings for the year to June 30, compared with a $15.5 million loss in the previous year, reflected progress made in stabilising the core business and introducing new income streams. "The Australian network has continued to be a solid performer and after some considerable time Cash Converters UK has also recorded a net profit, contributing $527,930 to the group's profit," said chairman Brian Cummins.

He said that the board's decision in September 2001 to buy back shares when they were trading at 3.7¢ had delivered an excellent result for shareholders.

Shares in the Perth-based Cash Converters improved 1¢ yesterday to close at 15¢. Mr Cummins said there had been no costly court cases during the year, which demonstrated Cash Converters' sound relationship with its franchisees.

"The future is bright," he said.

"The company has very little debt, a strong cash flow, a stable franchise chain, substantial growth opportunities in commissions from financial services, increasing stock sales and new store openings."

The company said 12 more stores had been opened in Britain, taking the total to 96 with a further 15 to 20 stores expected to open this financial year.

In the US, Cash Converters said, an investment group that had been due to pay an option fee of $US250,000 ($A385,700) on December 31, 2002 to expand their territory on the east coast, had pulled out.

"The directors remain confident that the US still offers considerable scope for franchise development in the future, either with the existing operators or a new investment group," Mr Cummins said.

No dividend was announced. Cash Converters last paid a dividend in November 1998."