Cash Converters International (ASX:CCV) has delivered positive Q1 results for FY2025, highlighting growth in its core segments. The company, well-known for its network of pawn shops, retail outlets, and consumer finance offerings, saw total revenue increase to $95.8m for the quarter ending 30 September 2024 — a 1% rise compared to the same period last year. Key to this performance was a boost in retail sales, with UK operations seeing a 17.7% revenue jump and Australian retail growing by 5.9%.
Cash Converters operates over 700 stores globally, providing a range of services from buying and selling second-hand goods to offering personal loans. Recently, the company has shifted its focus away from short-term, small loans — often criticised for high interest rates — in favour of longer-term, lower-cost lending options. “Our emphasis on quality lending and providing accessible personal finance aligns with our goal of sustainable growth,” said Managing Director Sam Budiselik. The company’s Gross Loan Book saw a slight decline to $273.6m, reflecting its decision to move away from small loans and reduce its Green Light Auto portfolio. (The GLA division provides financing options for customers purchasing vehicles.)
Despite this strategic shift, the lending sector remains robust. In Q1, Cash Converters processed 236,000 loan applications, indicating steady demand for its financial products. The introduction of the Line of Credit product has been particularly successful, experiencing 29% growth in the quarter, signalling customer interest in more flexible and affordable finance solutions.
In the retail sphere, Cash Converters continues to expand. Recent acquisitions of franchise stores in Australia and the UK have bolstered its retail footprint, particularly in the UK, where franchises now generate 20% of the group’s consolidated revenue.
