ANNUAL
REPORT
2024
30 June 2024
Cash Converters International Limited
1
Cash Converters International Limited
ABN 39 069 141 546
Annual Report – 30 June 2024
Table of Contents
Appendix 4E – Results for announcement to the market ...................................................................................... 2
Corporate directory ................................................................................................................................................ 4
Letters to Shareholders .......................................................................................................................................... 5
Operating and financial review............................................................................................................................... 7
Directors’ report ................................................................................................................................................... 19
Remuneration Report (Audited) ........................................................................................................................... 28
Auditor’s independence declaration .................................................................................................................... 49
Corporate governance statement ........................................................................................................................ 50
Financial statements ............................................................................................................................................. 51
Independent auditor’s report to the members .................................................................................................. 126
Shareholder information .................................................................................................................................... 131
Appendix 4E
30 June 2024
Cash Converters International Limited
2
Cash Converters International Limited
ABN 39 069 141 546
Appendix 4E
Preliminary Financial Report for the year ended 30 June 2024
(previous corresponding period 30 June 2023)
Appendix 4E – Results for announcement to the market
30-Jun
30-Jun
Change
2024
2023
$'000
$'000
$'000
%
Revenue from ordinary activities
382,563
302,697
79,866
26%
Profit / (Loss) from ordinary activities after tax attributable to
members
17,397
(97,155)
114,552
nm
Significant items 1
18
4,670
(4,652)
(100%)
Significant items 2
3,295
110,481
(107,186)
(97%)
Significant items 3
(805)
(644)
(161)
25%
Significant items 4
965
2,752
(1,787)
(65%)
Operating profit from ordinary activities after tax
20,870
20,104
766
4%
Net profit / (loss) for the period attributable to members
17,397
(97,155)
114,552
nm
Basic earnings / (losses) per fully paid ordinary share
2.78
(15.54)
cents per share
Net tangible asset backing per ordinary share 5
28.40
29.11
cents per share
1
The operating profit for FY2024 excludes reversal of Store Operations segment non-cash impairment expense of $0.636 million
after tax effect and Cash Converters New Zealand impairment expense of $0.654 million after tax effect. The operating profit for
FY2023 excludes non-cash impairment expense of $4.670 million after tax effect on the carrying value excluding goodwill of
individual corporate store assets due to Australian legislative changes which came into effect on 12 June 2023, affecting lending
volumes of the individual corporate stores.
2
The operating profit for FY2024 excludes $3.295 million non-cash goodwill impairment in the New Zealand segment. FY2023
operating profit excludes $110.481 million non-cash goodwill impairment in the Personal Finance and Store Operations
segments.
3
The operating profit for FY2024 excludes an indirect tax recovery, net of consulting fees, of $0.805 million after tax effect from
a historical class action settlement. (FY2023 : $0.644 million after tax effect)
4
The operating profit for FY2024 excludes non-operating costs of $0.965 million after tax effect related to ongoing merger and
acquisition (M&A) due diligence for FY2024 and potential future acquisitions. (FY2023 : $2.752 million after tax effect)
5
The calculation of net tangible assets per ordinary share includes right-of-use assets and lease liabilities.
nm
Not meaningful.
This report should be read in conjunction with any announcements made by the Company in accordance with
the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules.
Additional Appendix 4E disclosure requirements can be found in the directors’ report and the 30 June 2024
financial statements and accompanying notes.
Appendix 4E
30 June 2024
Cash Converters International Limited
3
Dividends per ordinary share / distributions
Amount per
security
(cents)
Franked
amount per
security
Record date
Paid / payable
date
2023 final dividend
1.00
100%
15-Sep-23
13-Oct-23
2024 interim dividend
1.00
100%
26-Mar-24
12-Apr-24
Dividends
The directors of the Company have declared a final dividend of 1.00 cent per share with the release of the final
year end results and reporting date of 29 August 2024. The dividend will be 100% franked and will be paid on 11
October 2024 to those shareholders on the register at the close of business on 13 September 2024.
With the declaration of this dividend, the Company’s Dividend Reinvestment Plan (“DRP”) remains suspended.
There is no provision for a final dividend in respect of the year ended 30 June 2024. Provisions for dividends to
be paid by the Company are recognised in the Consolidated Statement of Financial Position as a liability and a
reduction in retained earnings once the dividend has been declared.
Financial statements
Released with this Appendix 4E report are the following statements:
Consolidated statement of profit or loss and other comprehensive income together with the notes to the
Statement
Consolidated statement of financial position together with the notes to the Statement
Consolidated statement of changes in equity together with the notes to the Statement
Consolidated statement of cash flows together with the notes to the Statement
Consolidated Entity Disclosure Statement
This report is based on consolidated financial statements which have been audited.
Details of entities over which control has been gained or lost
On 6 July 2023, the Group acquired 100% of the issued capital of Cash Converters (UK) Stores Pty Ltd (formerly
Capital Cash Limited (“Capital Cash”)). Prior to its acquisition, Cash Converters (UK) Stores Pty Ltd (“CCUKS”) was
the largest franchise group in the United Kingdom (“UK”) operating under the Cash Converters Master Franchisor
arrangement, with 42 Cash Converters franchise stores in the United Kingdom. CCUKS contributed $3.423 million
profit before tax to the Group’s profit from ordinary activities during the period (FY2023: nil).
On 1 June 2024, the Group acquired 100% of the issued capital of Themedawn Limited (“Themedawn”), a
franchise group within the UK, which includes a network of 5 stores. Themedawn contributed profit before tax
of $0.056 million to the Group for the period from 1 June 2024 to 30 June 2024 (FY2023: nil).
During the period, the Group acquired the trade and other assets of three Cash Converters franchised stores in
Australia: Penrith in New South Wales on 2 November 2023, Ipswich in Queensland on 8 November 2023 and
Belmont in Western Australia on 12 December 2023. The stores contributed profit before tax of $0.269 million
to the Group for the periods from their respective dates of acquisition to 30 June 2024 (FY2023: nil).
Corporate directory
30 June 2024
Cash Converters International Limited
4
Corporate directory
Directors
Auditors
Mr Timothy Jugmans
Non-Executive Chairman
Deloitte Touche Tohmatsu
Mr Sam Budiselik
Chief Executive Officer & Managing Director
Brookfield Place, Tower 2
Mr Peter Cumins
Executive Deputy Chairman
123 St Georges Terrace
Mr Lachlan Given
Non-Executive Director
Perth WA 6000
Mr Robert Hines
Independent Non-Executive Director
Australia
Mr Henry Shiner
Independent Non-Executive Director
Mr Mark Ashby
Independent Non-Executive Director
Mr Andrew Spicer
Independent Non-Executive Director
Company Secretaries
Stock Exchange
Ms Meagan Hamblin
Ms Kelly Moore
Australian Securities Exchange
Level 40, Central Park
Registered and principal office
152-158 St Georges Terrace
Perth WA 6000
Level 11, 141 St Georges Terrace
Australia
Perth WA 6000
Australia
ASX code:
CCV
Tel:
+61 (8) 9221 9111
Web:
www.cashconverters.com
Share registrar
Computershare Investor Services Pty Ltd
Level 17
221 St Georges Terrace
Perth WA 6000
Australia
Tel:
1300 850 505
Letters to Shareholders
30 June 2024
Cash Converters International Limited
5
Letters to Shareholders
Chairman’s Shareholder Letter
Cash Converters delivered a strong year of operating and financial results for its stakeholders in FY2024. We are
particularly pleased to report strong top line revenue growth, driven by robust demand for our core loan
products, outstanding results in-store primarily through improved customer service and a relentless focus on
operational execution, an expanded product suite and the continued scaling of our store base through
disciplined acquisitions across the geographies in which we operate.
Operational Results
Throughout the year, we saw robust customer demand for our core lending products, growing the consolidated
loan book significantly. As already announced to the market, we continue to rebalance this book by moving away
from short-term Small Amount Credit Contract (“SACC”) loans and vehicle finance and growing the
Medium Amount Credit Contract (“MACC”) loans and Line of Credit (“LOC”) products. Costs were well
managed, and our loss rates remained in line with prior periods.
Strategy
Our strategy remains straightforward – to recruit and retain the very best people to serve our large and growing
customer base, with responsible and compliant lending products, and to provide those customers with value-
for-money retail alternatives. The Cash Converters brand is a household name in the markets in which we
operate and we intend to continue scaling our store base while further leveraging this great brand through
disciplined franchise buybacks (focusing on Australia and the UK where we have company owned stores).
Industry Dynamics
The consumer lending industry continues to evolve in terms of products and regulation. We are a respected
responsible lender in our sector and play an important role in serving customers who may have difficulty in
accessing traditional funding from a bank. We offer customers an industry-leading experience as they journey
from loan inception through to servicing their repayment, resulting in a high number of repeat customers. Our
stores are a major player in the circular economy, repurposing 1.7 million pre-owned goods in FY2024 in
Australia alone. Our shopfronts continue to evolve, and we have introduced luxury goods in some demographic
areas to further optimise product market fit and expand margins.
Governance, liquidity and capital management
During the financial year, the Board welcomed Mark Ashby and Andrew Spicer as Non-Executive Directors. Both
have significant experience, including in the areas of public company governance, financial services, retail, and
in building strong, sustainable businesses.
We recently announced the renewal of an expanded $200 million securitisation facility to support further growth
in our lending business. Our balance sheet remains strong, and our liquidity will continue to be enhanced
through operating cashflow from both our organic business and new acquisitions
The Board is pleased to confirm the payment to our shareholders of a final 1.00 cent per share fully franked
dividend for the year ended 30 June 2024. This is the eighth straight half yearly interval dividend payment of this
amount.
I thank my fellow Board members for their contributions throughout the year, as well as all Cashies team
members, including an outstanding leadership team led by Sam Budiselik, for serving our customers with
passion, dignity and respect.
Finally, I would like to acknowledge and thank our shareholders for their continued support and look forward to
working together on delivering a strong performance in FY2025.
Timothy Jugmans
Non-executive Chairman
Letters to Shareholders
30 June 2024
Cash Converters International Limited
6
Managing Director’s Shareholder Letter
With consumers experiencing the difficulties of an inflationary economic cycle, our business continued to serve
a substantial number of customers who used our lending products or had touch points with our store network.
As we celebrate our 40th year of operation in Australia, our offering remains as relevant as ever as we sit central
to the circular economy and remain focused on pursuing a world free from financial bias, providing choice and
opportunity for all.
Financial Highlights
Cash Converters delivered strong results in FY2024 with strong contributions from both store and lending
operations. Key achievements were (vs prior year):
Revenue up 26% to $382.6m
Operating EBITDA up 21% to $69.1m
Statutory NPAT $17.4m (prior year -$97.2m)
Gross loan book up 6% to $288.0m
Renewal of securitisation facility, increasing size to $200.0m and on attractive terms.
Growing Store Network
Our company owned store network continued to grow following franchise store acquisitions (becoming
corporate owned) across Australia and the UK. We acquired 3 stores in Australia and saw international store
growth in the UK with the strategic acquisition of Cash Converters (UK) Stores Pty Ltd (formerly Capital Cash
Limited (“Capital Cash”)) (42 stores) and 5 additional franchise store acquisitions following. The UK acquisitions
contributed to earnings delivering $3.479 million profit before tax. A pipeline of further franchise store
acquisition opportunities has been identified in both local and international markets.
Lending
The gross loan book continued to grow, up 6% year-on-year. This comes off the back of a number of portfolio
shaping initiatives. As already evidenced in the prior year, we continued to lower our exposure to small (SACC)
loans which now represent 19% of the total loan book, while the medium loan book continued to grow. Ongoing
product innovation saw the launch and rising contribution from the new Line of Credit (LOC) product which
approached 5% of the overall loan book at the end of FY2024.
We scored and assessed over 780,000 Australian loan applications in FY2024 as our integrated and proprietary
machine learning based credit risk models continue to evolve and power our lending platform. We continue to
enhance our technology platforms increasingly leveraging customer data insights to drive efficiency gains,
control loss rates, and improve our customer experience. In FY2024, we successfully began using Open Banking
technology to acquire bank statements from select loan applicants with plans to accelerate the adoption of Open
Banking technology in FY2025.
As previously announced, the vehicle lending business (Green Light Auto) has ceased lending operations and we
expect the run-down of this book to be substantially completed over the coming 24 to 36 months, freeing up
capital for investment in other core growth initiatives.
People and culture
We have engaged with our colleagues over the course of FY2024 developing a new Vision, Values and Purpose
program that will be deployed throughout FY2025. Employee engagement is taken seriously with a number of
our leadership team members having associated KPIs focused on engagement scores, ensuring our values
continue to deliver excellent customer service results and foster a cohesive and collaborative working
environment.
Outlook
We are excited to continue building on the operating momentum across our global business acquiring franchise
stores and growing our personal finance product loan books. We strongly believe that this strategy is delivering
results and is demonstrating excellent prospects for continued earnings growth over time.
Sam Budiselik
Chief Executive Officer & Managing Director
Operating and financial review
30 June 2024
Cash Converters International Limited
7
Operating and financial review
Cash Converters International Limited (“Cash Converters” or “the Company”) and entities controlled by the
Company and its subsidiaries (“the Group”) is diverse, predominantly generating earnings from its network of
retail stores, buying and selling pre-owned goods and a burgeoning personal finance business.
Over time the Company has grown its store network by leveraging a franchising model, generating fees from
licensing its brand and intellectual property globally. In more recent years the Company has embarked on a
program to purchase these franchise stores back in Australia, New Zealand and the United Kingdom, operating
the acquired stores under a Company controlled store network.
The business has established onshore operations in each of the markets where it directly owns stores, has built
a sophisticated technology platform to offer products and services online and is supported by a corporate head
office in Perth, Western Australia.
Business Model
The Company operates the largest global network of stores facilitating the circular economy, buying and selling
pre-owned inventory. In FY2024 the Company conducted over 600,000 retail transactions selling over 1,000,000
individual items throughout its network of Australian corporately owned stores.
As one of the largest non-bank lenders in our customer segment, the Company also provides small personal
loans as a cash solution for borrowers, with a number of products offered to a growing customer segment. In
Australia alone the Company processed over 780,000 applications for personal finance during FY2024 and
currently has over 93,000 active borrowers in its personal finance loan book.
Global network
Across Australia, New Zealand and the United Kingdom, Cash Converters operates corporate owned stores and
is the Master Franchisor of a franchise network of stores. The balance of the international operations are run by
Master Franchisors that pay a royalty for the right to the intellectual property and brand to operate a network
of Cash Converters stores.
Operating and financial review
30 June 2024
Cash Converters International Limited
8
In total, as at the date of this report, there are 669 stores operating across 17 countries.
Key financial performance highlights
The strength of the Company’s diversified and integrated business model has continued to underpin the
customer service proposition with physical store assets complementing industry-leading online digital assets.
The business generates multiple revenue streams with a significant portion of its profit derived from its personal
lending products and company owned store operations. Additional profit is generated from franchise operated
store operations.
Operating and financial review
30 June 2024
Cash Converters International Limited
9
A strong operating result was achieved in the financial year, compared to the previous corresponding year, as
outlined in the table below:
As reported
Operating 1
2024
2023
2024
2023
$’000
$’000
$’000
$’000
Total Revenue
382,563
302,697
382,563
302,697
Profit / (loss) after tax
17,397
(97,155)
20,870
20,104
Profit / (loss) before tax
26,864
(91,019)
30,310
28,804
EBIT 2
49,312
(75,019)
52,758
44,804
EBITDA 2
65,708
(62,587)
69,154
57,236
1
The operating results are presented excluding non-cash impairment expense after tax of $3.295 million against goodwill (FY2023:
$110.481 million), a non-cash impairment expense after tax of $0.018 million (FY2023: $4.670 million) on the carrying value
excluding goodwill of the assets of certain individual corporate stores and before the recognition of a net $0.160 million after
tax on a non-recurring indirect tax recovery as well as merger and acquisition costs (FY2023: $2.108 million).
The operating result is presented to aid the comparability and usefulness of the financial information reflecting the underlying
performance of the business. This information should be considered in addition to, but not instead of or superior to, the Group’s
financial statements prepared in accordance with IFRS. The operating results presented may be determined or calculated
differently by other companies, limiting the usefulness of those measures for external comparative purposes.
2
The Company reports EBIT calculated as earnings before interest expense and tax and EBITDA calculated as EBIT before
depreciation and amortisation. EBIT and EBITDA are non-IFRS measures and are alternative performance measures reported in
addition to but not as a substitute for the performance measures reported in accordance with IFRS. These measures focus directly
on operating earnings and enhance comparability between periods. The non-IFRS measures calculated and disclosed have not
been audited in accordance with Australian Accounting Standards although the calculation is compiled from financial information
that has been audited.
Revenue growth in the period was up 26% on the prior period. This was driven by strong trading activity in our
Australian business and a growing contribution from our new UK corporate store network, following the
successful integration over the period of the franchise network acquisition previously announced.
On 6 July 2023, the Group acquired 100% of the issued capital of Cash Converters (UK) Stores Pty Ltd (formerly
Capital Cash Limited (“Capital Cash”)). Prior to its acquisition, Cash Converters (UK) Stores Pty Ltd (CCUKS) was
the largest franchise group in the United Kingdom (“UK”) operating under the Cash Converters Master Franchisor
arrangement, with 42 Cash Converters franchise stores in the United Kingdom. CCUKS contributed $3.423 million
profit before tax to the Group’s profit from ordinary activities during the period (30 June 2023: nil).
1 June 2024, the Group acquired 100% of the issued capital of Themedawn Limited (“Themedawn”), a franchise
group within the United Kingdom, which includes a network of 5 stores. Themedawn contributed profit before
tax of $0.056 million to the Group for the period from 1 June 2024 to 30 June 2024 (30 June 2023: nil).
See note 14 in the accompanying Financial Report for additional information on the business combinations.
Our business remains well positioned to thrive amid a growing international emphasis on the circular economy
and the repurposing of pre-owned goods, particularly as mainstream finance becomes increasingly challenging
to access.
The operating profit increase reflects underlying earnings momentum increasing as the loan book continues to
grow and bad debt levels are managed. The prior year statutory profit was impacted by one-off non-cash
impairments resulting from legislative changes (1HFY2023).
Operating and financial review
30 June 2024
Cash Converters International Limited
10
Non-cash impairment to goodwill
FY2024
A one-off non-cash impairment charge of $3.295 million before tax was recognised by the Company in 2HFY2024
related to the New Zealand operating segment. The impairment recognised is as a result of legislative changes
to the New Zealand Credit Contracts and Consumer Finance Act (NZ CCF Act) resulting in reduced lending
volumes for the New Zealand Cash Generating Unit (CGU) as well as reduced establishment fees charged.
The impairment charge was one-off, non-cash in nature and a non-operating item. Therefore, underlying EBITDA
and net profit after tax have been adjusted in FY2024. Going forward, these changes will impact the forecast for
New Zealand related earnings in future financial years.
FY2023
A one-off non-cash impairment charge of $110.481 million before tax was recognised by the Company in
1HFY2023. This was made up of $90.561 million against the Personal Finance cash generating unit and $19.920
million against the Store Operations group of cash generating units. The impairment recognised was as a result
of legislative changes impacting the SACC product.
The Financial Sector Reform Act 2022 (“the Act”) which was passed by the Senate in December 2022 contained
a number of Financial Services legislative changes that focus on the enhanced regulation of the SACC loan
products offered by the Company. The most material impact resulting from these changes is the extension of
the Protected Earnings Amount (“PEA”) cap requirement, which determines how much of a consumer’s income
can go towards repaying SACC loans. This applies to all consumers (including those fully employed) and lowers
it from 20% to 10% of a consumer’s net income. Previously, the PEA cap only applied to Centrelink recipients.
The PEA cap change came into effect for loans advanced from 12 June 2023.
Responding to legislative changes is a complex process that requires the application of significant judgement to
estimate the reduction in SACC loan volumes due to the PEA cap amendment, requiring an estimation of
customer behaviour and estimating the discount rate to the forecast cash flows to determine net present value.
Impairment testing completed by the Company has supported the conclusion that there was a requirement for
a goodwill impairment charge as a result of the legislative changes. The impairment charge is one-off, non-cash
in nature and a non-operating item. Therefore, underlying EBITDA and net profit after tax have been adjusted
in FY2023. Going forward, these changes will impact the forecast for SACC related earnings in future financial
years. The management team remains focused on delivering an exciting new product pipeline, in addition to
executing on organic and inorganic strategic initiatives as outlined in previous market updates, to ensure the
Company remains in the best possible position to assist customers who are impacted by these changes and to
address the expected earnings impact.
See note 5 in the accompanying Financial Report for additional information on the impairment.
Operating and financial review
30 June 2024
Cash Converters International Limited
11
Summary of consolidated revenues and results by significant segment
Operating basis 1
As reported basis
Segment revenues
Segment EBITDA 2
Segment EBITDA 2
30-Jun-24
30-Jun-23
30-Jun-24
30-Jun-23
30-Jun-24
30-Jun-23
$’000
$’000
$’000
$’000
$’000
$’000
Personal Finance
106,783
114,032
44,658
50,564
45,808
(39,997)
Vehicle Financing
18,556
15,048
8,183
6,078
8,109
6,078
Store Operations
150,084
142,045
24,255
20,575
25,144
(5,097)
New Zealand
25,100
13,810
2,066
(833)
(2,138)
(833)
UK
74,849
11,404
12,805
3,339
11,743
741
Total
375,372
296,339
91,967
79,723
88,666
(39,108)
Head Office & Eliminations
7,191
6,358
(22,813)
(22,487)
(22,958)
(23,479)
Total
382,563
302,697
69,154
57,236
65,708
(62,587)
Depreciation and amortisation expense
(16,396)
(12,432)
Finance costs
(22,448)
(16,000)
Profit / (loss) before tax
26,864
(91,019)
Income tax expense
(9,467)
(6,136)
Profit / (loss) for the period
17,397
(97,155)
1
The operating results are presented excluding non-cash impairment expense after tax of $3.295 million against goodwill (FY2023:
$110.481 million), a net non-cash impairment expense after tax of $0.018 million (FY2023: $4.670 million) on the carrying value
excluding goodwill of the assets of certain individual corporate stores and before the recognition of a net $0.160 million after
tax on a non-recurring indirect tax recovery as well as merger and acquisition costs (FY2023: $2.108 million).
The operating result is presented to aid the comparability and usefulness of the financial information reflecting the underlying
performance of the business. This information should be considered in addition to, but not instead of or superior to, the Group’s
financial statements prepared in accordance with IFRS. The operating results presented may be determined or calculated
differently by other companies, limiting the usefulness of those measures for external comparative purposes.
2
The Company reports EBIT calculated as earnings before interest expense and tax and EBITDA calculated as EBIT before
depreciation and amortisation. EBIT and EBITDA are non-IFRS measures and are alternative performance measures reported in
addition to but not as a substitute for the performance measures reported in accordance with IFRS. These measures focus directly
on operating earnings and enhance comparability between periods. The non-IFRS measures calculated and disclosed have not
been audited in accordance with Australian Accounting Standards although the calculation is compiled from financial information
that has been audited.
Operating and financial review
30 June 2024
Cash Converters International Limited
12
Key segment financial performance
As illustrated in the table above, revenue growth across the various business segments reflected the appeal of
our unique business model to a growing number of customers, offering cash solutions that include unsecured
personal loans through our Personal Finance segment, store based second-hand retail trading and pawnbroking
loans, and Franchise royalty collection (globally).
Inflationary pressures increasing the cost of living are resulting in an increase in overall demand for the
Company’s products and services. Through FY2024, the gross loan book has grown 6% on FY2023 to a record
$288.004 million (FY2023: $271.355 million) with principal advanced increasing 8% on the prior year.
The Personal Finance segment currently reflects earnings from three types of unsecured loans; Small1, Medium2
and Line of Credit3 loans, distributed online and instore. Small loans consist of SACC loans and PayAdvance
product.
We continue to make significant progress executing on the strategic product transition away from the SACC
Small loan product segment (down to 19% of the consolidated loan book) offering customers greater flexibility
and lower cost loan options where suitable. Reflecting the success of this product strategy was the Medium loan
book growth, up 7% on FY2023 closing the period at $106.900 million. We are also excited by the release and
performance of other new loan products enabling this customer transition. Whilst in its infancy, the new Line of
Credit product is forecast to grow strongly.
As a result of a change of focus to longer term, lower cost loan products such as the Medium loan and Line of
Credit loan products, and due to the Small loans representing a declining proportion of the overall loan book,
the Company will cease splitting the loan books out and consolidate to report on ‘Personal Loans’ going forward.
As announced in June 2024, following a comprehensive review of the Company’s capital allocation strategy a
conclusion was reached that the capital currently utilised in the auto finance segment can be more effectively
deployed to support executing other opportunities previously outlined in the company’s strategic plan.
Specifically, Cash Converters plans to focus on expanding its footprint through franchise store acquisitions and
accelerating the growth of its personal finance products.
Operating and financial review
30 June 2024
Cash Converters International Limited
13
As part of the review, the Company evaluated options for a market sale of the auto finance portfolio. The
company determined that it can achieve a better result by running down the book using its in-house collections
team and advanced technology. This approach ensures greater control over the process and optimises recovery
outcomes.
1 Small loans include: Small Amount Credit Contract (“SACC”): a regulated unsecured personal loan product,
transacted in-store and online, up to $2,000 and up to 12 months; PayAdvance: has a one-off fee of 5% applied
upon repayment, to an advance on earned, but not yet received salary or wages, with no other fees or charges
applied; 2 Medium loans include: Medium Amount Credit Contract (“MACC”): a regulated unsecured personal
loan product, transacted in-store and online, up to $5,000 and up to 24 months. 3Line of Credit (“LOC”): a
regulated unsecured personal loan product, transacted in-store and online, up to $10,000 and up to 36
months. Approved credit limit can be accessed by the customer during the life of the loan.
30-Jun-24
30-Jun-23
Variance
$’000
$’000
Principal advanced1
Personal Finance
204,311
228,582
(11%)
Vehicle Finance
28,504
34,107
(16%)
Store Operations
62,338
71,002
(12%)
New Zealand
22,684
14,348
58%
UK
57,063
-
100%
Total
374,900
348,039
8%
1
Principal advanced represents the cash amount of loan funding disbursed to customers.
30-Jun-24
30-Jun-23
Variance
$’000
$’000
%
Gross loan books
Personal Finance
175,331
178,328
(2%)
Vehicle Finance
72,194
62,914
15%
Store Operations
18,290
17,628
4%
New Zealand
11,766
12,485
(6%)
UK
10,423
-
100%
Total
288,004
271,355
6%
Loan book performance
Two loan book loss related expenses impact the profit or loss statement:
1. Net bad debt expense: net bad debt expense for the period was $48.825 million, down from $49.312 million
in the prior period. Whilst the bad debt written off has increased in line with the larger loan books, the net
loss rate has improved from 11.0% at 2HFY2023 down to 8.0% at 2HFY2024.
2.
Expected credit loss allowance (“ECL”): success in growing the loan book will result an ECL expense in the
same accounting period (up front expense) whilst deteriorating loans written in a prior period (e.g., due to
missed payments) may see adjustments made. The ECL allowance model is forward-looking, requiring
significant judgement and does not require evidence of an actual loss event for an allowance to be
recognised.
The overall blended ECL allowance as a percentage of the gross loan book for the year ending 30 June 2024
is 17.1% (FY2023: 17.2%). Appropriate reserves have been incorporated including for an assessment of
economic risk and the impact of modelling risk.
Operating and financial review
30 June 2024
Cash Converters International Limited
14
The improved movement in the ECL is due to reduced year on year loan book growth when compared to
FY2023.
30-Jun-24
30-Jun-23
Variance
$’000
$’000
%
Bad debts written off
57,694
55,483
4%
Recovery of bad debts written off
(8,869)
(6,171)
44%
Net bad debt expense
48,825
49,312
(1%)
Movement in expected credit loss allowance
1,931
5,071
(62%)
Total loan related bad debts and allowances
50,756
54,383
(7%)
Key financial position highlights
30-Jun-24
30-Jun-23
Variance
$’000
$’000
%
Cash and cash equivalents
56,289
71,565
(21%)
Net loan receivables
238,712
224,729
6%
Trade and other receivables
17,929
12,763
40%
Inventories
33,036
26,493
25%
Intangible assets
25,171
20,543
23%
Goodwill
7,950
3,279
142%
Right of use assets
56,930
47,046
21%
Tax assets
31,299
29,669
5%
Plant & equipment
10,722
6,582
63%
Total Assets
478,038
442,669
8%
Borrowings
144,085
136,991
5%
Lease liabilities
70,989
63,742
11%
Other liabilities
51,598
35,442
46%
Total Liabilities
266,672
236,175
13%
Total Equity
211,366
206,494
2%
The Group closed the reporting period with a strong balance sheet. Net tangible asset per share was 28.40 cents
per share (FY2023: 29.11 cents per share).
Since 30 June 2023, the net loan book has grown by 6% and Corporate Store inventory has increased by 25%,
assisted by the acquisition of several franchises during the period.
Operating and financial review
30 June 2024
Cash Converters International Limited
15
The Group’s cash and cash equivalent carrying value is $56.289 million (FY2023: $71.565 million) after funding
loan book growth, several franchise acquisitions and funding additional drawdowns of the loan to the master
franchisor in Spain.
The Group reported a net cash decrease of $15.270 million (FY2023: $12.848 million increase). Net operational
cash inflow from operating activities was $38.453 million (FY2023: $11.536 million outflow). Financing activities
included dividend payments of $12.550 million (FY2023: $12.550 million). Cash outflows from investing activities
of $33.057 million (FY2023: $22.628 million) included $2.282 million (FY2023: $4.679 million) to fund a loan to
the Spain master franchisor and $24.345 million (FY2023: $13.798 million) invested in business combination
acquisitions.
The undrawn securitisation facility funding line is $10.000 million (FY2023: $11.750 million) and the Group is in
compliance with the requirements of the facility.
The disciplined evaluation of investment opportunities and allocation of capital continues and with a strong
balance sheet in place the Board has, with the results release, declared a fully franked final dividend of 1.00 cent
per fully paid ordinary share.
Execution on strategy
Growth strategy
As previously advised, select domestic and international franchise acquisition targets remain a focus. The
objective is to acquire earnings accretive store networks, based on sensible valuation metrics, which will
accelerate Group earnings in the longer term. Growing loan books are also an area of focus contributing to
growth in Company earnings.
Where the Company is the Master Franchisor (at present in Australia, UK and NZ) our primary focus remains on
acquiring franchise stores and growing our personal finance product loan books. Beyond the three core markets
identified, established franchise partnerships in other jurisdictions also offer unique growth optionality for the
Company over time, with the potential to continuing buying back the stores operated by franchisees.
Customer demand is growing as cost-of-living pressures continue to impact consumers and traditional finance
providers reduce risk appetite, leaving a growing pool of under serviced borrowers coming to Cash Converters.
Further regulatory reform over time, particularly of the Buy Now Pay Later sector, will also benefit the Company
with consumers hopefully driven back to the safety of regulated credit providers such as Cash Converters.
The unique nature of the Company’s business model, with a global network of established stores and digital
assets at the centre of a growing circular economy, and proprietary underwriting and credit risk technology
enabling the servicing of borrowers in a responsible manner, provides excellent prospects for continued earnings
growth over time.
Summary Outlook – Growth Drivers:
Proven track record of acquiring franchise stores (50 purchased in FY2024), demonstrated profit
contribution;
Forward pipeline of franchise store acquisitions under review in UK and Australia, excellent growth
optionality;
Organic loan book growth with increasing demand for personal loans;
New loan product released (LoC) and loan book growing;
Funding headroom and strong Balance Sheet underpinning further investment.
Operating and financial review
30 June 2024
Cash Converters International Limited
16
Cyber security
The cyber security landscape continues to evolve rapidly, and Cash Converters acknowledges the level of cyber
risk associated with our operations, particularly given the nature of the sensitive customer information we
handle in delivering our consumer financial services at high volumes in Australia, the United Kingdom, and New
Zealand. This sensitive data, if compromised, could have profound implications for our customers, business
reputation, and financial performance.
Recognising the criticality of this risk, Cash Converters is committed to safeguarding our customers, stakeholders
and the data we manage. We have already embarked on significant investments in cyber-security and have an
established information security function that makes continuous risk-prioritised improvements to our digital
infrastructure, cyber resilience and exposure to cyber threats. We remain vigilant and dedicated to upholding
the trust our shareholders and customers have placed in us.
Cash Converters utilises global third-party security providers to ensure an ongoing program of monitoring,
testing and remediation. Working in conjunction with regulators and considering best practices globally, the
Group is proactive in its approach to ensuring cyber security.
Culture and people
The values and culture of Cash Converters are the foundation of its success and the reason it has continued to
operate for almost 40 years. The Company recognises the importance of its reputation and standing within the
community and with its key stakeholders, such as customers, employees, suppliers, creditors, law makers and
regulators.
Employees are encouraged to embrace our Cash Converters values, which are introduced during induction and
kept alive through ongoing training programs, internal communications and recognition schemes. Behaviours
consistent with our values are measured annually as a part of our KPIs, performance reviews and are
acknowledged through our recognition programs.
FY2024 saw the commencement of a refresh and update to our vision, purpose and values, and we look forward
to the rollout and engagement in the refreshed program during FY2025.
Business Risk Assessment
Like all businesses, Cash Converters faces uncertainty and the ability to understand, manage and mitigate risk
provides a competitive advantage.
The Company’s ability to accurately assess value, purchase and sell quality consumer goods at appropriate prices
is influenced by many factors. Our depth of skill and experience in this specialist area is a source of competitive
advantage for Cash Converters.
During a period of rising interest rates and continued inflationary pressure the ability to service the circular
economy though provision of recycled goods is a competitive advantage. The business process has focussed on
ensuring the customer’s buying process, which has not suffered from supply chain disruption, is convenient and
competitive and results in a continued ability to generate an appropriate margin.
Operating and financial review
30 June 2024
Cash Converters International Limited
17
As a responsible provider of personal finance products there is an inherent risk that customers may not meet
their expected repayments as they manage their financial commitments. A continued discipline remains in both
the management of credit risk as well as commitment to the highest possible responsible lending standards.
Cash Converters’ success in working with customers over time is based on many factors that mitigate compliance
risk and risk of default with those who may subsequently experience financial difficulty. These include:
•
Treating customers with empathy, care, and respect;
•
Investing in engagement methods to provide customers with freedom of choice;
•
Efficient and thorough understanding and assessment of customer eligibility prior to origination; and
•
A value-driven culture where a premium is placed on customer service and unlocking possibilities
together.
Whilst the aim of responsible lending policies and a customer-first approach is to minimise risk, credit risk is
influenced by factors outside the control of Cash Converters such as unemployment, relative income growth,
consumer confidence and interest rates. The risk of default is ever-present. Cash Converters often has the
advantage in offering credit products to customers that it has served over many years and knows well, affording
a unique opportunity to provide a high level of service.
Cash Converters welcomes the industry emphasis towards non-financial risk, including conduct and culture as
well as detecting, deterring, and disrupting criminal abuse of the financial system. The Company views these
commitments as an area of continuous improvement and continues to strengthen its risk management and
compliance capabilities while engaging transparently with financial service sector regulators (ASIC and
AUSTRAC).
In January 2024, AUSTRAC accepted the outcome of the External Auditors Final Report, which confirmed all
commitments under the Enforceable Undertaking had been completed and considered the matter finalised. This
reflects the work undertaken by the Company to uplift its Anti-Money Laundering and Counter-Terrorism
Financing (“AML/CTF”) program and confirms the Company’s commitment (across all levels of the organisation)
to the continued strengthening of its relationship with AUSTRAC and to being a leader in our sector on AML/CTF
compliance.
There has been a marked increase in cyber-criminal activities globally impacting all companies, large and small,
but which also pose a greater risk to those companies with a large online customer base. This is reflected in the
Company’s enterprise-wide risk register. The Company’s cyber defences continue to be enhanced with a focus
on educating team members on the threats of cyber-crime activities and the strengthening of its cybersecurity
controls which include multifactor authentication, incident response, end point detection, network
segmentation, third party governance amongst others.
Outside of these, exists the accepted risks resulting from regulatory change, poorly executed strategy, failure to
respond appropriately to changes in technology and the threat posed through competitor behaviours, all of
which are a source of constant consideration and review by the Company’s management team and Board of
Directors.
Operating and financial review
30 June 2024
Cash Converters International Limited
18
Outlook
As demand for our products remains strong and our loan books continue to grow rapidly, we remain committed
to maintaining a culture of robust risk management and compliance as a central strategic pillar across the
business.
From a position of balance sheet strength, closing the financial year with $56.289 million in Cash and cash
equivalents, we remain focused on executing strategic initiatives across the business.
Throughout the financial year these initiatives have begun delivering revenue growth, as illustrated by the
growing contribution from the UK segment. Our digital platforms are reaching a growing number of new younger
customers, new product innovation such as the Line of Credit are delivering new growing loan books and value
accretive franchise store and network acquisitions continue. Additionally, the renewal of the Fortress facility
provides room and flexibility to continue to grow our loan portfolio as well as delivering material cost savings.
Leveraging our scale to drive our Company provides an exciting opportunity to consolidate our position as the
largest and most recognised lender in our markets, with the strategic building blocks for the future era of Cash
Converters now in place.
Due to the confidence the Board has in our balance sheet strength and earnings runway, a final 1.00 cents per
share fully franked dividend was declared for our shareholders. This is the eighth straight half yearly interval
dividend payment of this amount. The Board and management team are excited to be in a strong position to
drive the Company forward.
Directors’ report
30 June 2024
Cash Converters International Limited
19
Directors’ report
The Directors of Cash Converters International Limited submit the following report of the Company for the
financial year ended 30 June 2024. To comply with the provisions of the Corporations Act 2001, the Directors
report as follows:
Information about Directors
The following persons held office as Directors of the Company during the whole of the financial year and until
the date of this report unless otherwise stated:
Mr Timothy Jugmans – Non-Executive Chairman
Appointed Director and Chairman 1 April 2022
Mr Jugmans is the Chief Financial Officer (“CFO”) of EZCORP Inc (“EZCORP”). Mr Jugmans joined EZCORP in
December 2016 as Vice President, Treasury and M&A, having served as a consultant performing similar duties
since March 2015. He was appointed CFO in May 2021 after serving as interim CFO since September 2020.
Mr Jugmans has 25 years’ experience providing strategic and financial services advice for a variety of companies,
including seven years with Lexicon Partners Pty Limited, an independent corporate advisory and consulting firm
based in Sydney, Australia. From January 2015 to December 2016, Mr Jugmans was a principal of Selene Partners
Inc., a financial consulting firm providing strategic advice and other business services to a variety of clients,
including the Company and Morgan Schiff & Co., Inc. He served as the CFO of Morgan Schiff from April 2013 to
December 2014, and was CFO of ShippingEasy, Inc. from July 2011 to April 2013.
From April 2015 to April 2021, Mr Jugmans served as a non-executive Board member and Chairman of Ratecity
Pty Ltd, which operates one of Australia’s leading financial comparison sites.
Mr Jugmans has a Bachelor of Business degree with a major in Finance and a minor in Mathematics from the
University of Technology in Sydney.
Mr Jugmans is on the Company’s Board as a nominee of significant shareholder, EZCORP and as Chairman,
pursuant to the Subscription Agreement dated 17 August 2009 between EZCORP and the Company (released to
ASX on 9 November 2009). Accordingly, he is not considered to be an independent Director.
Over the past 3 years Mr Jugmans has not held any Directorships with other listed companies.
Mr Lachlan Given – Non-Executive Director
Appointed Director 22 August 2014
Mr Given is the Chief Executive Officer (“CEO”) of EZCORP, Inc. (appointed April 2022) and was reappointed as
a Director of the EZCORP Board in March 2022, having previously served as non-executive Chairman of the
EZCORP Board of Directors from July 2014 to September 2019. Before joining EZCORP, Mr Given provided
financial and advisory services to EZCORP through his own business and financial advisory firm.
Mr Given is a member of the Board of Directors of The Farm Journal Corporation, a preeminent US agricultural
media company established in 1877. Mr Given is also a Director of encryption solutions company Senetas
Corporation Limited; and leading financial services rating and research firm CANSTAR Pty Ltd.
Directors’ report
30 June 2024
Cash Converters International Limited
20
Mr Given began his career working in the investment banking and equity capital markets divisions of Merrill
Lynch in Hong Kong and Sydney, Australia, where he specialised in the origination and execution of a variety of
M&A, equity and equity linked and fixed income transactions.
Mr Given graduated from the Queensland University of Technology with a Bachelor of Business, majoring in
Banking and Finance (with distinction).
Mr Given is on the Company’s Board as a nominee of significant shareholder, EZCORP, pursuant to the
Subscription Agreement dated 17 August 2009 between EZCORP and the Company (released to ASX on 9
November 2009). Accordingly, he is not considered to be an independent Director.
Over the past 3 years Mr Given has held Directorships with the following listed companies:
Company
Commenced
Ceased
Senetas Corporation Limited
20 March 2013
-
EZCORP Inc
3 March 2022
-
Mr Sam Budiselik – Chief Executive Officer & Managing Director
Appointed Managing Director 18 December 2020
Mr Budiselik was appointed CEO in February 2020 and Managing Director in December 2020 and has been with
the Company since 2016 serving as Chief Operating Officer (“COO”) and interim CEO. Before joining Cash
Converters, he was COO for Australia at the stockbroking and wealth management firm Patersons Securities
(now Canaccord Genuity).
Prior to returning to Australia, Mr Budiselik spent a total of 12 years abroad working for investment banks UBS
and Barclays Capital in London, New York and Singapore.
Mr Budiselik has completed a Bachelor of Commerce and an MBA at the University of Western Australia, a
Graduate Diploma in Applied Finance (Securities Institute of Australia) and the Australian Institute of Company
Directors course (GAICD).
Over the past 3 years Mr Budiselik has not held any Directorships with other listed companies.
Mr Peter Cumins – Executive Deputy Chairman
Appointed Director April 1995
Appointed Executive Deputy Chairman 23 January 2017
Mr Cumins joined the Company in August 1990 as Finance and Administration Manager when the Company had
23 stores, becoming General Manager in March 1992. He became Managing Director in April 1995. Mr Cumins
moved from this role to the role of Executive Deputy Chairman on 23 January 2017.
Mr Cumins is a qualified accountant and has overseen the major growth in the number of franchisees in Australia
as well as the international development of the Cash Converters franchise system. His experience in the
management of large organisations has included senior executive positions in the government health sector.
Over the past 3 years Mr Cumins has not held any Directorships with other listed companies.
Directors’ report
30 June 2024
Cash Converters International Limited
21
Mr Robert Hines – Non-Executive Director
Appointed Director 14 April 2020
Mr Hines brings over 30 years’ experience in banking and finance services, agriculture and energy sectors with
senior executive roles focusing on finance, retail and operations.
Mr Hines has held executive positions of CFO and/ or COO at some of Australia’s leading companies; Queensland
Sugar Limited, QIC Limited, Bank of Queensland Limited, Energex Retail Limited, Tarong Energy Limited and
Suncorp Group Limited. In addition, Mr Hines served as Group CFO for NatWest Markets and was a Director CFO
Advisory with KPMG. Mr Hines joined the Board of Humm Group Limited in September 2022, was appointed as
a Director of Mackay Sugar Limited in August 2022 and Raiz Investment Limited in November 2023.
Mr Hines brings extensive operational and financial expertise to the Board. He is a senior fellow of FINSIA and a
fellow of the Australian Institute of Company Directors, Chartered Accountants Australia and New Zealand and
CPA Australia.
Mr Hines is the chair of the Company’s Audit and Risk Committee and a member of the Governance,
Remuneration and Nomination Committee. Mr Hines also chaired the Board Investment Committee until the
Committee was dissolved on 1 April 2024
Over the past 3 years Mr Hines has held a directorship with the following listed companies:
Company
Commenced
Ceased
Humm Group Limited
29 September 2022
-
Raiz Investment Limited
28 November 2023
-
Mr Henry Shiner – Non-Executive Director
Appointed Director 1 July 2021
Mr Shiner has accumulated experience over many years of Senior Executive Management and Strategic
positions, most recently in the Quick Service Restaurant industry, where he held the positions of Vice President,
Chief Information Officer of McDonald’s APAC and then as Vice President Global Financial Transformation – IT,
at McDonald’s Corporation. Mr Shiner is currently part of the Global Mentors Personal Board of Directors as part
of 24 global experts in their field to provide mentorship to Company Executives through defined programs across
many industries. He is also on the Advisory Board for Guroo Producer Pty Ltd.
Previously Mr Shiner has held Non-Executive Director roles on the National Board of Ronald McDonald Charities,
Craveable Brands, DragonTail Systems, NoahFace, Slikr, AirService and Advisory Board roles with numerous
other companies
Prior to McDonald’s, Mr Shiner held Senior Executive positions in Norske Skog, Fletcher Challenge Paper,
Honeywell Ltd and AGL. His experience across these markets have included leading strategic planning,
technology strategy and development, franchising, cyber security, large manufacturing operations and
governance and quality management.
In addition to an honours degree in Chemical Engineering, Mr Shiner has graduated in Management Studies
focused on Global Strategy execution from the IMD School in Lausanne, Switzerland and is a member and
graduate of the Australian Institute of Company Directors.
Mr Shiner is a member of the Company’s Governance, Remuneration and Nomination and Audit and Risk
Committees. Mr Shiner was also a member of the Board Investment Committee until it was dissolved on 1
April 2024.
Over the past 3 years Mr Shiner has held a Directorship with the following listed company:
Company
Commenced
Ceased
Dragontail Systems Limited*
13 May 2020
13 September 2021
*Dragontail System Limited is no longer a listed entity however it was at one point during the prior 3 years.
Directors’ report
30 June 2024
Cash Converters International Limited
22
Mr Mark Ashby – Non-Executive Director
Appointed Director 6 October 2023
Mr Ashby is an experienced executive, Board member and Board advisor, with over 30 years of experience in
senior executive roles in listed and private companies in both Australia and the United States (‘USA’). Mr Ashby’s
recent board advisory experience has focused on working with companies to create and grow shareholder value
and has included US expansion, refinancing and balance sheet restructuring as well as advising on corporate
governance and accountabilities.
Mr Ashby is currently a Director for Sydney-based Direct Group Pty Ltd, a private equity owned catalogue sales
business and television shopping network and is Chairman of Office Choice Ltd. Mr Ashby has recently been a
member of Advisory Boards for retail businesses in both luxury and accessory segments. Prior to the
establishment of his Board advisory business in 2017, Mr Ashby was the CFO for Myer Holdings Ltd from 2008
to 2015, leading the IPO on the ASX in 2009. Whilst overseas, Mr Ashby held the role of CFO of EZCORP, Inc. in
the USA from 2015 to 2017.
Mr Ashby holds a Bachelor of Business (Accounting) from Swinburne University of Technology, is a graduate of
the Australian Institute of Company Directors (GAICD) and is a Fellow of the Australian Society of CPAs (FCPA).
Mr Ashby was appointed as a member of the Company’s Governance, Remuneration and Nomination and Audit
and Risk Committees on 6 October 2023. Mr Ashby was appointed as chair of the Governance, Remuneration
and Nomination Committee on 22 May 2024. Mr Ashby was also a member of the Board Investment Committee
from 6 October 2023 until the Committee was dissolved on 1 April 2024.
Over the past 3 years Mr Ashby has not held any Directorships with other listed companies.
Mr Andrew Spicer – Non-Executive Director
Appointed Director 22 May 2024
Mr Spicer was appointed as an Independent Non-Executive Director in May 2024, bringing a depth of experience
in financial services, strategy, brand building, digital transformation and leadership.
Prior to commencing a Board career, Mr Spicer was the Chief Executive Officer & Managing Director of Canstar
Pty Ltd (“Canstar”) for the past 16 years. Under his leadership, Canstar evolved into one of Australia’s most
trusted brands, with over 2 million online monthly visitors.
Prior to Canstar, Mr Spicer played a pivotal role in the listing of WebCentral on the ASX and under his leadership,
WebCentral grew into Australia’s largest web and application hosting company. Mr Spicer’s corporate
experience also includes executive roles at Suncorp Group and consulting roles for Ernst & Young and McKinsey
& Co, where he led major strategic, operational and performance improvement assignments for financial
services and resource companies.
Mr Spicer graduated from the Queensland University of Technology with a Bachelor of Engineering and holds an
MBA from the University of New South Wales. Mr Spicer is also a graduate of the Australian Institute of Company
Directors and has completed a leadership program at the Harvard Business School.
Mr Spicer was appointed a member of the Company’s Governance, Remuneration and Nomination and Audit
and Risk Committees on 22 May 2024.
Over the past 3 years Mr Spicer has not held any Directorships with other listed companies.
Directors’ report
30 June 2024
Cash Converters International Limited
23
Ms Susan Thomas – Non-Executive Director
Appointed Director 1 April 2022 and resigned effective 30 September 2023
Ms Thomas has over 30 years’ experience in the financial services and information technology sectors, having
founded and acted as Managing Director of FlexiPlan Australia Limited, which was subsequently sold to
MLC/NAB.
Ms Thomas is an experienced company Director and risk committee chair with expertise in technology and law.
Ms Thomas holds a Bachelor of Law and Bachelor of Commerce from the University of New South Wales and
has received a diploma from the Australian Institute of Company Directors.
Ms Thomas was a member of the Governance, Remuneration and Nomination, Audit and Risk and Board
Investment Committees until her resignation on 30 September 2023.
Over the past 3 years Ms Thomas has held Directorships with the following listed companies:
Company
Commenced
Ceased
Fitzroy River Corporation Limited
26 November 2012
-
Temple and Webster Group Limited
23 February 2016
30 November 2022
Nuix Limited
18 November 2020
18 October 2023
Maggie Beer Holdings Limited
1 July 2022
-
Ms Julie Elliott – Non-Executive Director
Appointed Director 14 April 2020 and resigned effective 22 May 2024
Ms Elliott has over 30 years’ experience in both executive and Director roles across banking, financial services
and government. In her executive career she held the role of CEO of Bank of Sydney, as well as senior leadership
roles at Westpac, NAB and KPMG with experience in strategy, marketing, product, finance, audit and sales.
Ms Elliott is a Director and the chair of the Governance and Remuneration Committee of Police and Nurses
Limited, a Director of Grow Finance Limited and EBA Foundation. Ms Elliott is also a chair and member on several
NSW Government Audit and Risk Committees including chair of NSW Treasury. She has previously held the role
of Chair of State Trustees Limited and Metropolitan Fire and Emergency Services Board.
Ms Elliott brings extensive operational, financial and Board experience. She is a fellow of FINSIA, the Australian
Institute of Company Directors and Chartered Accountants Australia and New Zealand. She holds an MBA and a
Bachelor of Economics.
Ms Elliott was the Chair of the Company’s Governance, Remuneration and Nomination Committee, and a
member of the Audit and Risk and Board Investment Committees until her resignation on 22 May 2024.
Over the past 3 years Ms Elliott has not held any Directorships with other listed companies.
Directors’ report
30 June 2024
Cash Converters International Limited
24
Directors’ shareholdings
The following table sets out each Director’s relevant interest in shares and options in shares of Cash Converters
International Limited as at the date of this report:
Directors
Fully paid ordinary shares
Number
Share options
Number
Mr T Jugmans
-
-
Mr L Given
-
-
Mr S Budiselik
9,087,490
11,601,846
Mr P Cumins
10,310,694
-
Mr R Hines
822,000
-
Mr H Shiner
-
-
Mr M Ashby
-
-
Mr A Spicer
-
-
Company Secretaries
Ms Kelly Moore and Ms Meagan Hamblin
Appointed Joint Company Secretaries with effect from 12 April 2023
Ms Moore is a Fellow of Chartered Accountants Australia and New Zealand and Company Secretary with
extensive experience in providing accounting and secretarial advice to public companies. Ms Moore is a Director
of Meridian Corporate Consultants and holds a Bachelor of Commerce degree from the University of Western
Australia. Ms Moore is a graduate of the Australian Institute of Company Directors and an associate member of
the Governance Institute of Australia.
Ms Hamblin is a Fellow of Chartered Accountants Australia and New Zealand and is a graduate of the Governance
Institute of Australia. Ms Hamblin is a Director of Meridian Corporate Consultants specialising in providing
financial reporting, corporate governance and advisory services for both public and private companies. Ms
Hamblin has previously worked in the statutory reporting team at Wesfarmers Ltd and in the audit and advisory
team at Deloitte Perth. Ms Hamblin holds a Bachelor of Commerce degree from the University of Western
Australia.
Principal activities
The principal activity of Cash Converters International Limited and its subsidiaries (“the Group”) is that of a
franchisor, retailer of second-hand goods and financial services, a provider of secured and unsecured loans and
the operator of corporate stores in Australia, New Zealand and United Kingdom, all of which trade under the
Cash Converters name.
Country master franchise licences are also sold to licensees to allow the development of the Cash Converters
brand but without the need for support from Cash Converters International Limited.
Directors’ report
30 June 2024
Cash Converters International Limited
25
Review of operations
The Group’s net profit attributable to members of the parent entity for the year ended 30 June 2024 was $17.397
million (FY2023: $97.155 million loss) after an income tax charge of $9.467 million (FY2023: $6.136 million). A
review of the Group’s operations and financial performance has been provided on pages 7 to 18.
The Group reported an operating profit after tax of $20.870 million (FY2023: $20.104 million). A reconciliation
of reported profit after tax to operating profit after tax is provided below.
30-Jun-24
30-Jun-23
Change
$'000
$'000
$'000
%
Reported profit / (loss) after tax
17,397
(97,155)
114,552
nm
Non-operating adjustments
Impairment1
3,313
115,151
(111,838)
(97%)
GST refunds net of consulting fees2
(805)
(644)
(161)
25%
M&A costs3
965
2,752
(1,787)
(65%)
Operating profit after tax
20,870
20,104
766
4%
1.
Comprised of non-cash impairment expense after tax of $3.295 million against goodwill (FY2023 : $110.481 million), and non-
cash impairment expense after tax of $0.018 million (FY2023: $4.670 million) on the carrying value excluding goodwill of the
assets of certain individual corporate stores.
2.
Comprised of non-recurring indirect tax recovery, net of consulting fees, of $1.150 million ($0.805 million after tax effect) on
a historical class action settlement (FY2023 : $0.920 million ($0.644 million after tax effect)).
3.
Comprised of non-operating professional, employee and administrative costs of $1.301 million ($0.965 million after tax
effect) directly attributable to merger and acquisition (“M&A”) due diligence (FY2023: $3.590 million ($2.752 million after tax
effect))
nm = Not meaningful
Changes in state of affairs
During the financial year there were no significant changes in the state of affairs of the Company other than
those referred to elsewhere in this financial report and the notes thereto.
Subsequent events
As announced to the market on 27 August 2024 a renewal of the securitisation facility with Fortress
Investment Group was completed.
The following key terms were agreed as part of the renewed facility:
Facility size increased to $200 million from $150 million.
Pricing based on a margin over the Bank Bill Swap Rate (BBSW).
Provides growth capital for the personal finance lending business including new products.
Availability period extended for a further three years to 27 August 2027 and maturity date extended to
27 August 2028.
Future developments
Likely developments in expected results of the Group’s operations in subsequent years and the Group’s business
strategies are referred to elsewhere in this report.
Directors’ report
30 June 2024
Cash Converters International Limited
26
Dividends
The Board of Directors of the Company have declared a final dividend of 1.00 cent per share with the release of
the final year end results and reporting date of 29 August 2024. The dividend will be 100% franked and will be
paid on 11 October 2024 to those shareholders on the register at the close of business on 13 September 2024.
With the declaration of this dividend, the Company’s Dividend Reinvestment Plan (“DRP”) remains suspended
and will not apply to this dividend.
Shares under option or issued on exercise of options
Details of unissued shares or interests under option as at the date of this report are:
Issuing entity
Number
of
shares under
option
Class
of
shares
Exercise price
of option
Measurement
Date
Cash Converters International Limited
7,556,388
Ordinary
Nil
30 Jun 2024
Cash Converters International Limited
10,022,679
Ordinary
Nil
30 Jun 2025
Cash Converters International Limited
16,063,180
Ordinary
Nil
30 Jun 2026
The performance rights above are in substance share options with an exercise price of nil, which vest and may
potentially be exercised into ordinary shares once certain performance / vesting conditions are met.
The holders of these performance rights do not have the right, by virtue of the performance right, to participate
in any share or other interest issue other than bonus share issues of the Company or of any other body
corporate.
Performance rights are managed through the Group’s Equity Incentive Plan. Shares are acquired on market and
held as treasury shares when it is probable that the vesting conditions will be achieved.
During the period 5,525,046 shares (acquired in FY2023) were issued through the Company’s Employee Share
Trust to eligible participants. The measurement date of these vested rights was to 30 June 2023.
Indemnification and insurance of Directors and officers
During the financial year, the Company paid a premium in respect of a contract insuring the Directors of the
Company, the Company Secretaries and all executive officers of the Company and of any related body corporate
against a liability incurred as such a Director, secretary or executive officer to the extent permitted by the
Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the
amount of the premium.
The Company has not otherwise, during or since the end of the financial year, except to the extent permitted by
law, indemnified or agreed to indemnify an officer or auditor of the Company or of any related body corporate
against a liability incurred as such an officer or auditor.
Directors’ report
30 June 2024
Cash Converters International Limited
27
Directors’ meetings
The number of meetings of Directors and meetings of committees of Directors held during the year and the
number of meetings attended by each Director were as follows:
Directors
Board of
Directors
Audit and Risk
Committee
Governance,
Remuneration and
Nomination Committee
Board Investment
Committee
E
A
M
E
A
M
E
A
M
E
A
Mr T Jugmans
9
9
No
7
7
No
6
6
No
3
3
Mr S Budiselik
9
9
No
7
7
No
6
5
No
3
3
Mr P Cumins
9
9
No
7
7
No
6
5
No
3
3
Mr M Ashby¹
3
3
Yes
5
5
Yes
3
3
Yes
2
2
Mr L Given
9
7
No
7
2
No
6
3
No
3
1
Mr R Hines
9
9
Yes
7
7
Yes
6
6
Yes
3
3
Mr H Shiner
9
9
Yes
7
6
Yes
6
5
Yes
3
3
Mr A Spicer²
1
1
Yes
-
-
Yes
1
1
No
-
-
Ms S Thomas³
3
3
Yes
2
2
Yes
6
2
Yes
1
1
Ms J Elliott⁴
7
7
Yes
7
7
Yes
5
5
Yes
3
2
E: Number eligible to attend | A: Number attended | M: Member of Committee
¹ Mr M Ashby was appointed on 6 October 2023
² Mr A Spicer was appointed on 22 May 2024
³ Ms S Thomas resigned effective 30 September 2023
⁴ Ms J Elliott resigned effective 22 May 2024
Non-audit services
The Board of Directors are satisfied that the provision of non-audit services during the year by the auditor did
not compromise the auditor independence requirements of the Corporations Act 2001, as the nature of the
services was limited to income tax and indirect tax compliance, transaction/compliance related matters and
generic accounting advice. All non-audit services have been reviewed and approved to ensure they do not
impact the integrity and objectivity of the auditor, and none of the services undermine the general principles
relating to auditor independence as set out in Code of Conduct APES 110 Code of Ethics for Professional
Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing
the auditor’s own work, acting in a management or decision-making capacity for the Company, acting as
advocate for the Company or jointly sharing economic risks and rewards.
Details of the amounts paid or payable to the auditor for non-audit services provided during the year by the
auditor are outlined in note 21 to the financial statements.
Rounding of amounts
The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financials / Directors’
Reports) Instrument 2016/191, dated 24 March 2016, and in accordance with that Corporations Instrument,
amounts in the Directors’ report and the financial statements are rounded off to the nearest thousand dollars,
unless otherwise indicated.
Auditor’s independence declaration
The auditor’s independence declaration is included on page 49
Directors’ report
30 June 2024
Cash Converters International Limited
28
Remuneration Report (Audited)
Letter from the Chair of the Governance, Remuneration and Nomination Committee
Dear shareholders,
On behalf of the Board, I am pleased to present the Cash Converters Limited (“Cash Converters”, or “the
Company”) Remuneration Report (“Report”) for the Financial Year to 30 June 2024 (“FY2024”).
FY2024 saw the Executive Team effectively deliver against defined strategic objectives. From a lending
perspective and following the business response to the Financial Sector Reform Act in FY2023, the shift away
from short-term small (SACC) loans progressed resulting in responsible growth across the medium (MACC) loans
and Line of Credit (LOC) products. Across the network, the store acquisition strategy delivered earnings growth
with franchise store acquisitions in Australia and the United Kingdom.
Along with the development of a refreshed Vision, Purpose and Values framework in FY2024, Cash Converters’
saw strong results from the Employee Engagement Survey. This delivered 83% participation rates and a solid
overall engagement score across key focus areas including connectedness to brand, team culture, wellness,
career development, reward and recognition, communication and working environment. The team is committed
to addressing feedback received in the survey to deliver ongoing improvements to the Employee Experience
across the organisation.
Looking forward, the Board and the Executive Team is confident that the strategy will deliver continued earnings
growth and ongoing value to our customers and shareholders.
Remuneration Outcomes for FY2024
In recognition of Cash Converters’ revised organisational structure designed to:
Continue growth in the existing business portfolio
Support expansion of corporate operations into both New Zealand and the United Kingdom through the
strategic focus on acquiring franchise stores in core markets,
Navigate the increased complexity of varying and evolving regulatory frameworks.
The Board considers it critical to ensure executives are appropriately remunerated to support attraction
and retention. Within this context, reviews of, and appropriate amendments to Fixed remuneration and the
short-term incentive plan were introduced.
Fixed Remuneration
An executive remuneration review was conducted assessing each incumbent against relevant external market
comparators whilst considering the role impact on key areas. As a result, fixed remuneration increases were
applied for executives ranging from approximately 5% to 15% to ensure appropriate alignment with the desired
market relativity settings.
Short-Term Incentive
Changes to the short-term incentive (STI) were introduced in FY2024 to recognise individual performance,
reward organisational financial outperformance whilst strengthening alignment with market practice. These
changes included a revision of the key performance indicator (KPI) scorecard for each executive and a “stretch”
profit gate.
Directors’ report
30 June 2024
Cash Converters International Limited
29
Long-Term Incentive
The FY2022 LTI award three-year performance period ended on 30 June 2024. As a result of performance testing
undertaken in July 2024, the Board approved vesting of this award at 40.81%. This was based on the achievement
of 81.62% for the relative TSR hurdle (weighted 50%) and 0% for the EPS hurdle (weighted 50%).
For further details see Section 3: Executive remuneration strategy and components for FY2024 and Section 4:
FY2024 Executive KMP remuneration outcomes.
Non-Executive Director fees
Board and Committee fees for Non-Executive Directors remained unchanged for FY2024.
For further details see Section 5: Non-Executive Director.
Looking forward
With positive shareholder support we continue to review our remuneration programs to further align
incentive programs with performance in an increasingly complex environment, improving remuneration
disclosure and deliver against desired market practices.
I invite you to review our Remuneration Report. We look forward to your ongoing feedback and continued
discussions with our shareholders on our remuneration approach.
Mark Ashby
Non-executive Director and Chair of the Governance, Remuneration and Nomination Committee
Directors’ report
30 June 2024
Cash Converters International Limited
30
Table of contents
This Remuneration Report forms part of the Directors’ report for the year ended 30 June 2024 and has been
prepared in accordance with section 300A of the Corporations Act 2001 (Cth) (“Act”), applicable regulations and
the Company’s policies regarding Key Management Personnel (“KMP”) remuneration governance. The
remuneration report has been audited as required by section 308(3C) of the Act.
The Report contains the following main sections:
1
Who is covered in this Remuneration Report ......................................................................................... 30
2
Remuneration governance ...................................................................................................................... 31
3
Executive remuneration strategy and components for FY2024 .............................................................. 32
4
FY2024 Executive KMP remuneration outcomes .................................................................................... 39
5
FY2024 non-executive Director (NED) remuneration .............................................................................. 43
6
Statutory remuneration tables and supporting disclosures .................................................................... 45
1) Who is covered in this Remuneration Report
For the purposes of this Report, KMP is defined as those persons who have authority and responsibility for
planning, directing and controlling the major activities of the Company, including any Director (whether
Executive KMP or Non- Executive Director (“NED”) of Cash Converters).
The following were the KMP of the Company during the year ended 30 June 2024, and unless otherwise
indicated, served as KMP for the entire period:
Committee Membership
Name
Role
Term as KMP
ARC⁷
GRNC⁷
BIC⁷ ⁸
NED
Timothy Jugmans
Chairman and Non-Executive Director
Full year
Lachlan Given
Non-Executive Director
Full year
Robert Hines
Non-Executive Director
Full year
C
C
Henry Shiner
Non-Executive Director
Full year
Mark Ashby
Non-Executive Director
Part year2
C
Andrew Spicer
Non-Executive Director
Part year3
Susan Thomas
Non-Executive Director
Part year4
Julie Elliott
Non-Executive Director
Part year1
PC
Executive Directors
Sam Budiselik
Chief Executive Officer (“CEO”) &
Managing Director (“MD”)
Full year
Peter Cumins
Executive Deputy Chairman
Full year
Executive KMP
Lisa Stedman
Chief Operating Officer (“COO”)
Full year
James Miles
Chief Information Officer (“CIO”)
Full year
Jonty Gibbs
Chief Financial Officer (“CFO”)
Full year
Luis San Martin
Chief Risk Officer (“CRO”)
Part year5
Andrew Kamp
Chief of Strategy and Commercial
Development (“CSCDO”)
Part year6
1.
Resigned as Director and Chair of the GRNC 22 May 2024.
2.
Appointed 6 October 2023 and appointed Chair of the GRNC on 22 May 2024.
3.
Appointed 22 May 2024
4.
Resigned 30 September 2023
5.
Appointed 1 March 2024
6.
Appointed 7 August 2023
7.
ARC = Audit & Risk Committee, GRNC = Governance, Remuneration & Nomination Committee, C = Chair of Committee, = Member
of Committee, PC = Previous Chair of Committee
8.
BIC = Board Investment Committee. The BIC was dissolved on 1 April 2024 with responsibilities reverting to the full Board from that
date.
Directors’ report
30 June 2024
Cash Converters International Limited
31
2) Remuneration governance
The following sets out the Company’s governance framework for remuneration setting and decision making, and
responsibilities of various parties.
Board
The Board takes an active role in the governance and oversight of the Company’s KMP
remuneration strategies and has overall responsibility for ensuring the effectiveness of
remuneration arrangements. This is in consideration of remuneration outcomes that align with
the Company’s strategic objectives and risk management framework, and shareholder value over
the long term.
Governance
Remuneration
and Nomination
Committee
(‘GRNC or the
Committee’)
The GRNC sets and reviews the remuneration framework, policies, delegations and practices on
behalf of the Board. The Committee reviews remuneration strategy and levels annually,
considering business context, remuneration guiding principles and external market conditions,
and makes relevant recommendations to the Board on:
remuneration strategy to attract and retain talent to drive long term sustainable results;
recruitment, retention, and termination policies and procedures for KMP;
base salaries for KMP and Board and Committee fees for NEDs;
short term incentives for KMP;
equity-based incentive remuneration plans; and
governance matters including delegations, disclosures, conflicts of interest and
independence.
Note the performance review of the CEO&MD is undertaken by the Chairman of the Board and
the Chairman of GRNC, reviewed by the GRNC, and approved by the Board. The performance
reviews of KMP and other direct reports are undertaken by the CEO & MD, reviewed by the
GRNC and approved by the Board.
The Corporate Governance Statement and the GRNC Charter provide further information on the
role of this Committee. These documents and related policies and practices are available on the
Company website at https://www.cashconverters.com/governance.
External
Remuneration
Advisors
To ensure the Board and the GRNC are fully informed when making remuneration decisions, it
may seek additional market insights and advice from external, independent remuneration
consultants (as endorsed by the GRNC, and approved by the Board).
During the year, the Committee engaged The Reward Practice Pty Ltd (“TRP”) to provide market
insights and advice on various remuneration-related matters including remuneration and
incentive review and remuneration report drafting. No remuneration recommendations were
received during the year.
Share Trading
Policy
The Company’s share trading policy prohibits KMP (who are granted equity-based payments as
part of their remuneration) from:
dealing in any securities where the person dealing in the securities has inside
information in relation to those securities;
passing on inside information to others who may deal in securities;
applying to participate in an Employee Share Plan while in possession of inside
information; and
entering into contracts to hedge their exposure to any securities held in the Company.
The Company’s Securities Trading Policy is available at
https://www.cashconverters.com/governance.
Directors’ report
30 June 2024
Cash Converters International Limited
32
3) Executive remuneration strategy and components for FY2024
3.1) Remuneration philosophy and principles
The Company’s remuneration philosophy is to ensure that the alignment of remuneration structures and
outcomes with the long-term success of the Company as indicated by the achievement of sustained growth in
earnings and shareholder return, and adherence to sound risk management and governance principles.
The remuneration design and decision making are guided by the following principles:
attract and retain talent to drive long term sustainable results;
align remuneration with customer and shareholder interests;
support an appropriate risk culture and exemplary employee conduct;
differentiate pay for behaviour and performance in line with our vision and strategy;
provide market competitive and fair remuneration;
remunerate responsibly and in a manner that promotes the Company’s commitment to building a diverse
and inclusive workforce;
recognise the role of critical and non-financial generating roles in long term value creation;
enable recruitment and retention of talented employees; and
be simple, flexible and transparent.
3.2) Executive remuneration structure
Remuneration strategy
The Executive remuneration structure for FY2024 remains consistent with prior years and comprises fixed and
variable remuneration (including short and long-term incentive opportunities). The following table provides an
overview of the remuneration structure.
Fixed Remuneration (FR)
Short-Term Incentive (STI)
Long-Term Incentive (LTI)
Purpose
Attract and retain high quality
executives through market
competitive and fair
remuneration
Ensure a portion of
remuneration is variable, at-risk
and linked to the delivery of
agreed plan targets for financial
and non-financial measures
that support strategic priorities
Align executive accountability and
remuneration with the long-term
interests of shareholders by
rewarding the delivery of sustained
Company performance over the long
term
Delivery
Base salary, superannuation as
per the Superannuation
Guarantee (Administration) Act
1992.
Awarded in cash based on an
assessment of performance
against a mix of individual KPIs
over the preceding year subject
to financial and risk-related
gateways.
Awarded in performance rights which
potentially vest after three years,
based on earnings per share (“EPS”)
and total shareholder return (“TSR”)
relative to a relevant peer group of
ASX companies over a three-year
performance period.
Alignment to performance
Set with reference to
comparable industry market
benchmarks as well as the size,
responsibilities, and complexity
of the role, and skills and
experience. Individual
performance impacts fixed
remuneration adjustments
Performance is assessed using a
scorecard comprising financial
and non-financial measures
linked to the key strategic
priorities for the performance
year.
If the Company under-performs
on its earnings and / or risk
targets, no short-term incentive
Performance is assessed against
EPS and TSR which are aligned to
shareholder wealth creation over the
long term. The Board believes this
structure provides a balance between
alignment of shareholder returns
whilst mitigating the risk of excessive
focus on share price performance.
Directors’ report
30 June 2024
Cash Converters International Limited
33
28.6%
42.4%
28.6%
18.6%
42.8%
39.0%
MD
Other Executive KMP
FY2024 remuneration mix (at target opportunity)
Fixed Remuneration
STI
LTI
CEO&
award will be payable to
Executive KMP.
Under-performance over the longer-
term may also result in no vesting of
long-term incentive awards (e.g.,
performance rights).
Approach to setting remuneration
In FY2024, the executive remuneration framework consisted of fixed remuneration and short and long-term
incentives as outlined above.
The Company aims to reward executives with a level and mix of remuneration appropriate to their position,
responsibilities and performance aligned with market practice.
The Company’s policy is to position fixed remuneration (“FR”) around the median of our direct industry peers
and other Australian listed companies of a similar size and complexity. Total remuneration opportunities (FR +
STI + LTI) are intended to provide the opportunity to earn top quartile rewards for outstanding performance
against the stretch targets set. Remuneration levels are considered annually through a remuneration review
that considers market data, insights into remuneration trends, the performance of the Company and individual,
and the broader economic environment. These factors are considered in relation to the complexities of the
global business model and the specialised conditions and opportunities that the business must navigate.
The following chart illustrates the mix of fixed and “at risk” remuneration for Executive KMP at target
opportunity level for FY2024.
Directors’ report
30 June 2024
Cash Converters International Limited
34
3.3) Executive KMP service agreements
The remuneration and other terms of employment for executive KMP are formalised in their service
agreements of an ongoing nature. All employees are entitled to receive pay in lieu of any accrued but untaken
annual and long service leave on cessation of employment. However, amounts payable will be limited to the
terms of Part 2D.2 of the Corporations Act 2001.
A summary of contract terms is presented below:
Name
Position held
at close of FY2024
Period of notice
From
Company
From
KMP
Sam Budiselik
Chief Executive Officer & Managing Director
12 months
12 months
Peter Cumins
Executive Deputy Chairman
12 months
6 months
Lisa Stedman
Chief Operating Officer
6 months
6 months
James Miles
Chief Information Officer
6 months
6 months
Jonty Gibbs
Chief Financial Officer
6 months
6 months
Luis San Martin
Chief Risk Officer
6 months
6 months
Andrew Kamp
Chief of Strategy & Commercial Development
6 months
6 months
All KMP are employed by Cash Converters Pty Ltd, a 100% owned subsidiary of Cash Converters International
Ltd.
Chief Executive Officer (“CEO”) & Managing Director (“MD”)
Mr Budiselik commenced as CEO on 26 February 2020 on a permanent basis with the termination notice
periods as outlined above and was appointed, on the same remuneration terms, as CEO & MD on 18
December 2020. The MD receives fixed remuneration (including superannuation) of $727,399 per annum and
participates in the STI and LTI plan outlined at the discretion of the Board with a target STI set as 100% of base
salary (maximum 150%) and LTI opportunity set as 150% of base salary. In addition, Mr Budiselik also received
non-monetary benefits of $36,900 in FY2024.
Other Executive KMP
Executive KMP participation in the incentive programs is at the discretion of the Board. The Executive Deputy
Chairman did not participate in any incentive plans in FY2024.
Sections 3.4 and 3.5 disclose the STI and LTI arrangements respectively for Executive KMP over FY2024.
3.4) FY2024 short term incentive (STI) plan
A description of the STI structure applicable for FY2024 is set out below:
What is the purpose?
Ensure a portion of remuneration is variable, at-risk and linked to the delivery
of agreed plan targets for financial and non-financial measures that support the
Company’s strategic priorities over the year.
How is it paid?
Awarded in cash on completion of the external audit, approval by the GRNC
and Board and subsequent release of the Annual Report.
Directors’ report
30 June 2024
Cash Converters International Limited
35
Who are eligible to
participate?
Eligibility to participate in the STI is at the recommendation of the GRNC and
approval of the Board. Over FY2024, Executive KMP and senior management
are eligible for participating the STI. LTI’s issued to the Managing Director are
subject to shareholder approval.
What is the STI
opportunity?
The STI target opportunity is set as a percentage of fixed remuneration and is
determined annually as part of the remuneration review process considering
market practice of comparable companies to Cash Converters:
CEO & MD: target 100% (maximum: 150%)
Other Executive KMP: target 20-50% (maximum: 30-75%)
What is the performance
period?
The financial year of the company (1 July 2023 – 30 June 2024).
What is the gateway?
A minimum gateway performance must be achieved before participants
receive any award under the STI plan for the year.
The gateway measures are set and reviewed by the Board annually. For FY2024
STI the measures include:
85% of budget Operating Earnings Before Interest and Taxes (“EBIT”); and
Risk gateway linked to global enterprise-wide risk register.
How is performance
assessed?
STI payments are not guaranteed and are linked to the achievement of a mix of
company and individual performance metrics as approved by the Board for the
year. The KPIs set for FY2024 awards include Operating EBIT (Company
Performance) and Individual Performance:
Operating EBIT: as set and approved by the Board at the start of year*.
*Note the Company reports EBIT calculated as earnings before interest expense and
tax and EBITDA calculated as EBIT before depreciation and amortisation. EBIT and
EBITDA are non-IFRS measures and are alternative performance measures reported
in addition to but not as a substitute for the performance measures reported in
accordance with IFRS. These measures focus directly on operating earnings and
enhance comparability between periods. The non-IFRS measures calculated and
disclosed have not been audited in accordance with Australian Accounting
Standards although the calculation is compiled from financial information that has
been audited.
The EBIT is set at various performance levels resulting in different
outcomes (as per the schedule below):
Performance level
(% of EBIT budget)
STI Outcome *
(% of Target Opportunity)
85%
50%
100%
100%
120% or above
150%
* pro-rata applies between each level.
Individual Performance: assessed via a balanced scorecard approach, with
a mix of financial and non-financial KPIs as approved by the Board. KPIs
vary depending on individual executive roles and responsibilities, and may
be in relation to international business, strategy, funding, investors, new
product development, risk management, and mergers/acquisitions.
Executive performance against their scorecard is assessed via a five-point
rating scale (1 to 5) with different ratings resulting in various STI outcomes.
A minimum of 3 is required to receive any STI.
Directors’ report
30 June 2024
Cash Converters International Limited
36
Subject to satisfaction of gateways, the individual STI award is determined
based on the following multiplicative model:
How is the STI award
treated at cessation of
employment?
Unless the Board determines otherwise, if a participant’s employment with the
Company is terminated during the performance period as a ‘good leaver’, they
will be entitled to receive a pro-rata amount of their STI. If a participant’s
employment with the Company is terminated in circumstances in which they
are not considered a “good leaver” their STI will immediately lapse.
How is the STI award
treated upon a change of
control?
If a change of control event occurs with respect to the Company, the Board may
determine, in its discretion, the manner in which all incentives will be dealt
with.
What is malus and
clawback provision over
STI awards?
The Board may determine at its discretion to apply clawback and malus in some
situations depending on the terms of the relevant award.
Board discretion
The Board reserves the right to amend, vary or revoke the terms of any
incentive plan from time to time, at its sole and absolute discretion.
3.5) FY2024 long term incentive (LTI) plan
A description of the LTI structure applicable for FY2024 is set out below:
What is the purpose?
Recognise ongoing participant contribution to the achievement by the Company
of its long-term strategic goals, and to provide a means of attracting and retaining
skilled and experienced employees.
Align the interests of shareholders and executive KMP by motivating and
rewarding participants to achieve compound annual earnings growth and
produce strong shareholder returns over the medium- to long-term.
How is it paid?
The LTI award is made in the form of performance / indeterminate rights
(rights) in accordance with the Cash Converters Rights Plan Rules (Plan Rules)
which can reviewed online via (https://www.cashconverters.com/wp-
content/uploads/2021/06/Cash-Converters-Rights-Plan-Rules.pdf). The Plan
was approved by shareholders at the Annual General Meeting held on 26
October 2021.
Subject to the achievement of performance conditions, performance rights may
vest into shares or the Board, in their absolute and unfettered discretion, make a
cash payment equivalent to the number of vested rights multiplied by the then
value of the Company’s share price.
Who are eligible to
participate?
Eligibility to participate in the LTI is at the recommendation of the GRNC and
approval of the Board. For FY2024, Executive KMP and approved leadership team
are eligible for participating in the LTI.
STI
outcome
Individual
Target
Opportunity
EBIT
Outcome
Individual
KPI
Outcome
Directors’ report
30 June 2024
Cash Converters International Limited
37
What is the LTI
opportunity?
The LTI target opportunity is set as a percentage of fixed remuneration and is
determined annually as part of the remuneration review process considering
market practice of comparable companies to Cash Converters:
CEO & MD: up to 150% of fixed remuneration
Other Executive KMP: up to 100% of fixed remuneration
What is the
performance period?
The FY2024 grant of performance rights is subject to performance conditions
measured over a performance period of three years commencing 1 July 2023 and
ending on 30 June 2026.
How is performance
assessed?
The LTI is assessed based on the following hurdles over the performance period:
Relative Total Shareholder Return (TSR) (50%) assessing the Company’s TSR
performance relative to constituents of the S&P/ASX Small Ordinaries Index
excluding materials, utilities, and real estate investment trusts over the
Performance Period (the Index); and
Normalised Earnings Per Share (EPS) (50%) measuring the profit generated
by the Company attributable to each share on issue, adjusted for certain
Board approved transactions.
For each LTI hurdle, performance level is set at various target levels resulting in
different vesting outcomes as per the schedules below:
Relative TSR vesting schedule*:
Performance Level
Percentage of rTSR Rights
Less than 50th percentile of Index**
Nil
Target: at 50th percentile of Index
50%
Between 50th and 100th percentile of
Index***
Straight line pro-rata vesting
between 50% and 100%
Stretch: at 100th percentile of Index
100%
*The Relative TSR calculates the return shareholders would earn if they held a
notional number of shares over a period and measures the change in the
Company’s share price together with the value of dividends during the period,
assuming that all those dividends are re-invested into new shares.
**The Index is designed to measure companies included in the S&P/ASX300 but
not in the S&P/ASX100.
***It is proposed that shareholder approval will be sought at the 2024 Annual
General Meeting to correct an error in the documentation for the relative total
shareholder return (“rTSR”) vesting schedule for the FY2023 and FY2024 LTI
awards, so that 100% vesting of any performance rights subject to the rTSR
measure will occur if the Company achieves an outcome at or above the 75th
percentile of the comparator group (rather than 100th percentile of the
comparator group). Further information will be included in the 2024 Annual
General Meeting Notice of Meeting.
Directors’ report
30 June 2024
Cash Converters International Limited
38
EPS (cents per share) vesting schedule*:
Performance
Level**
Percentage of Rights that vest (%)
Less than 3.450
Nil
Threshold: 3.450
25%
3.450 to 3.700
Straight line pro-rata vesting between 25% and 50%
Target: 3.700
50%
3.700 to 4.260
Straight line pro-rata vesting between 50% and 100%
Stretch: 4.260
100%
*For the purposes of assessing performance against the EPS target, the Board
will consider whether any adjustments to statutory earnings are appropriate on
a case-by-case basis to ensure that inappropriate outcomes are avoided. The
EPS hurdle was set by calculating a required range of the Company’s EPS.
**While the Board has set the EPS targets at a level that it considers would
reflect performance levels that align with appropriate returns to shareholders,
these are targets only and are not forecasts of future results and should not be
considered or treated as guidance.
Calculation of the achievement against the performance conditions will be
determined by the Board of the Company in its absolute discretion at the
conclusion of the performance period, having regard to any matters that it
considers relevant.
In line with the Plan rules, unless otherwise determined by the Board, the
performance rights will lapse, where the vesting conditions applicable to the
award cannot be satisfied as at the end of the performance period.
How is the LTI award
treated at cessation of
employment?
For all participants, termination of employment will trigger a forfeiture of all
unvested awards except under certain limited circumstances defined in the Plan
Rules (e.g., good leavers).
Amounts that are not forfeited will be tested and potentially awarded or paid
based on actual performance relative to the performance goals, following the end
of the performance period.
The Board retains discretion to trigger or accelerate payment or vesting of
incentives, provided that the limitations on termination benefits as outlined in
the Corporations Act 2001 are not breached.
How is the LTI award
treated upon a change
of control?
If a change of control event occurs with respect to the Company, the Board may
determine, in its discretion, the manner in which all incentives will be dealt with.
What is Malus and
clawback provision over
LTI awards?
The Board may determine at its discretion to apply clawback and malus in some
situations depending on the terms of the relevant award.
Board discretion
The Board also retains overall discretion to determine whether vesting of
performance rights is appropriate considering, a number of other relevant factors
including company performance from the perspective of Shareholders.
Directors’ report
30 June 2024
Cash Converters International Limited
39
4) FY2024 Executive KMP remuneration outcomes
4.1) Company performance over the past five years
As outlined above, in setting the Company’s remuneration strategy, the GRNC makes recommendations which
demonstrate clear and strong correlation between performance and reward and align the interests of executive
KMP with those of the Company’s shareholders.
The following table shows the statutory key performance indicators of the Group over the last five years:
Company performance over the past five years
FY2024
FY2023
FY2022
FY2021
FY2020
$’000
$’000
$’000
$’000
$’000
Revenue from continuing operations
382,563
302,697
245,937
201,346
262,021
Net profit /(loss) before tax from
continuing operations
26,864
(91,019)
15,385
21,454
(22,416)
Net profit /(loss) after tax
- continuing operations
17,397
(97,155)
11,177
20,704
(16,872)
- discontinued operations
-
-
-
-
-
Profit /(Loss) after tax
17,397
(97,155)
11,177
20,704
(16,872)
Share price
Cents
Cents
Cents
Cents
Cents
- beginning of year
22.5
23.0
22.0
17.5
16.0
- end of year
22.0
22.5
23.0
22.0
17.5
Change in share price
(0.5)
(0.5)
1.0
4.5
1.5
Fully franked dividend
Cents
Cents
Cents
Cents
Cents
- interim
1.0
1.0
1.0
1.0
-
- final dividend
1.0
1.0
1.0
1.0
-
Change in Shareholder Wealth
- share price change + dividend
1.5
1.5
3.0
6.5
1.5
Earnings /(losses) per share from
continuing and discontinued operations
Cents
Cents
Cents
Cents
Cents
- basic
2.78
(15.54)
1.80
3.35
(2.74)
In considering the STI and LTI awards for FY2024, the Board has in addition to the profitability performance and
positive risk culture, been cognisant of the continuing challenging economic environment and complex
international regulatory regimes. Consistent with performance incentives awarded across the broader business
the Board has recognised executive performance and the delivery of operating earnings growth. The awards
continue to reflect the need to attract and retain the team in a period of tight labour markets and ongoing
regulatory scrutiny. The following disclosures (Sections 4.2 and 4.3) are intended to assist in demonstrating the
link between Cash Converters’ strategy, performance and executive KMP STI and LTI awards for the FY2024
period.
Directors’ report
30 June 2024
Cash Converters International Limited
40
4.2) FY2024 STI outcomes
Gateway performance
An STI payment will only be payable to the extent the overarching EBIT and risk gateways are satisfied. The
following outlines the outcomes in relation to the measures.
Gateway
Actual outcome
Operating EBIT meeting 85% of budget
$52.76m (122% of budget)
Delivery of a global enterprise-wide risk register by 30 June 2024
Met
Both STI gateways were satisfied
In accordance with the FY2024 STI assessment approach, the achievement of 122% of EBIT budget resulted in a
150% of STI pool opportunity subject to Executive scorecard performance.
With the satisfaction of STI gateways, the awarding of STI’s to Executive KMP is determined based on an
assessment of their FY2024 performance scorecard as set at the commencement of the financial year.
CEO & MD scorecard KPIs
The following sets out the STI scorecard for CEO & MD.
Scorecard KPI and weighting
Performance outcomes
Further details
International (25%)
Develop a strategic plan and execute
acquisition opportunities to establish an
International Board and Governance
framework.
The International strategic plan was well
developed and executed with acquisitions
successfully identified and executed. Budgets
were exceeded and a management team
established to capitalise on future investment
opportunities.
Strategy (40%)
Continue to drive the delivery of the
Strategic Plan by sourcing and evaluating
opportunities within Australia.
Strategic plan has been developed and endorsed
by the Board, strategic objectives delivered, and
budget exceeded.
Funding (25%)
Review of securitisation facility funding
options with a view to finding an improved
securitisation facility.
Progressed detailed due diligence with funders by
engaging an Advisor to seek expressions of
interest. Ensured new product growth funded and
overall support for growth of loan books achieved
with better pricing and flexibility going forward.
Investors (10%)
Deliver on shareholder strategy, to engage a
wide range of potential shareholders
throughout the course of the year.
Shareholder engagement demonstratable, with
conferences and results briefing calls delivered
and a significant change in register composition
well managed.
Resulting STI payout (individual scorecard component):
98%
Target
Target
Target
Target
Directors’ report
30 June 2024
Cash Converters International Limited
41
STI outcomes by Executive KMP
The following outlines the assessment outcomes by Executive KMP:
Overall STI outcomes for FY2024 are determined through the Board’s assessment of actual performance
against expectations, as outlined below.
Executive
STI Opportunity
(as % of Base Salary)
STI Outcome
(% of STI Target)
STI Awarded ($)
% Maximum STI
Maximum
(at 150% of
Target)
Target
Company
EBIT
Individual
Scorecard
Total
Awarded
%
Forfeited
%
Sam
Budiselik
150%
100%
150%
98%
147.0%
$1,029,000
147.0%
3.0%
Lisa
Stedman
75%
50%
150%
97%
145.5%
$327,375
145.5%
4.5%
James
Miles
75%
50%
150%
97%
145.5%
$291,000
145.5%
4.5%
Jonty
Gibbs
75%
50%
150%
97%
145.5%
$240,075
145.5%
4.5%
Andrew
Kamp 1
75%
50%
150%
97%
145.5%
$218,250
145.5%
4.5%
Luis San
Martin 1,2
20%
20%
N/A
100%
$20,000
100%
0%
1
Total STI awarded for Mr Andrew Kamp and Mr Luis San Martin has been pro-rated to reflect their period of service within the
role for FY2024.
2
Mr Luis San Martin was appointed KMP in March 2024 and did not participate the “stretch” STI programme in FY2024.
4.3) LTI vesting outcomes (FY2022 LTI grants)
LTI performance
Following the assessment of relevant performance hurdles for the FY2022 LTI grants over the three years
ended 30 June 2024, the Board approved a total of 40.81% vesting for Executive KMP in accordance with Plan
Rules. The following outlines the assessment outcomes for the FY2022 grants.
FY22 LTI Performance Hurdles and Outcomes
KPI
Weighting
Performance Outcomes
LTI Outcomes
Relative TSR (against
the S&P/ASX Small
Ordinaries index
excluding materials,
utilities, and REITs)
50%
81.62%
achieved
(66th percentile)
40.81%
EPS
50%
0%
achieved
0%
LTI performance outcome:
40.81%
50th Percentile
(50%)
3.291
3.872
4.453
75th Percentile
(100%)
Directors’ report
30 June 2024
Cash Converters International Limited
42
LTI outcomes by Executive KMP
The following table provides a summary of the Company’s performance and vesting outcomes for each of the
Executive KMP.
Incumbent
Sam Budiselik
Lisa Stedman
James Miles
Jonty Gibbs
Role
Chief Executive Officer
& Managing Director
Chief Operating Officer
Chief Information
Officer
Chief Financial Officer
Tranche
31
32
31
32
31
32
31
32
Weighting
50.0%
50.0%
50.0%
50.0%
50.0%
50.0%
50.0%
50.0%
Vesting
Condition
TSR
EPS
TSR
EPS
TSR
EPS
TSR
EPS
Number
Eligible to
Vest¹
1,628,289
1,628,289
620,301
620,301
563,910
563,910
75,188
75,188
% of Tranche
Vested
81.6%
0.0%
81.6%
0.0%
81.6%
0.0%
81.6%
0.0%
Number
Vested
1,329,009
-
506,290
-
460,263
-
61,368
-
Grant Date
Valuation²
0.162
0.213
0.162
0.213
0.162
0.213
0.162
0.213
Value of LTI
that Vest³
$215,432
-
$82,070
-
$74,609
-
$9,948
-
1
Number eligible to vest following FY2024 Completion.
2
Grant Date Valuation is determined by the application of AASB 2 Share-based payment and the share price at the time of grant.
³
Value of LTI that vest as per Grant Date Valuation.
Directors’ report
30 June 2024
Cash Converters International Limited
43
5) FY2024 non-executive Director (“NED”) remuneration
On appointment to the Board, all NEDs enter into a service agreement with the Company in the form of a
letter of appointment. The letter summarises the Board policies and terms, including remuneration relevant to
the office of the Director and does not include a notice period.
5.1) NED policy fees
The Company’s NED fee policy is designed to support the attraction, retention and engagement of the high
calibre of NED required for it to meet its strategic objectives and in accordance with the Boards skills matrix.
The Board is responsible to ensure the NED fee arrangements are reasonable and appropriate producing
outcomes that fall within the fee limit, at each point of being assessed.
The following outlines the elements of the NED fee policy applicable for FY2024:
There has been no change to the NED or Board fees in FY2024 and the following outlines the
Board fees applicable at the end of FY2024:
Committee fee
Role/Function
Base fee
ARC1
GRNC1
BIC1,2
Chair
$170,000
$15,000
$15,000
$15,000
Member
$95,000
$5,000
$5,000
$5,000
1
ARC = Audit & Risk Committee, GRNC = Governance, Remuneration & Nomination Committee, BIC = Board
Investment Committee
2. The BIC was disbanded on 1 April 2024 with responsibilities reverting to the full Board from that date.
All fees are inclusive of any applicable superannuation.
Feel pool
NED fees are managed within the current Annual Fees Limit (“AFL” or “fee pool”) of
$1,000,000 which was approved by shareholders on 25 October 2022. Actual fees (inclusive
of superannuation) paid to NEDs for FY2024 was $725,146 (FY2023: $735,000).
Other
arrangements
NEDs may be entitled to fees or other amounts, as the Board determines, where they
perform duties outside the scope of the ordinary duties of a Director. They may also be
reimbursed for out-of-pocket expenses incurred.
NEDs do not participate in, or receive, any performance-based remuneration as part of their
role and do not participate in any equity plans that operate within the Company, in order to
support their independence and impartiality.
NEDs are not eligible to receive termination payments under the terms of the appointments.
Directors’ report
30 June 2024
Cash Converters International Limited
44
5.2) NED statutory remuneration for FY2024
The following table outlines the statutory and audited remuneration of NEDs:
Name
Year
Board Fees
Super
Total
$
$
$
Timothy Jugmans
FY2024
169,223
777
170,000
FY2023
169,522
478
170,000
Lachlan Given
FY2024
94,899
101
95,000
FY2023
95,000
-
95,000
Robert Hines
FY2024
113,739
12,511
126,250
FY2023
117,647
12,353
130,000
Henry Shiner
FY2024
97,973
10,777
108,750
FY2023
99,547
10,453
110,000
Mark Ashby 1
FY2024
72,274
7,950
80,224
FY2023
-
-
-
Andrew Spicer 2
FY2024
9,589
1,055
10,644
FY2023
-
-
-
Susan Thomas 3
FY2024
24,775
2,725
27,500
FY2023
99,547
10,453
110,000
Julie Elliott 4
FY2024
96,196
10,582
106,778
FY2023
108,597
11,403
120,000
Total
FY2024
678,668
46,478
725,146
FY2023
689,860
45,140
735,000
1 Appointed 6 October 2023
2 Appointed 22 May 2024
3 Resigned 30 September 2023
4 Resigned 22 May 2024
Directors’ report
30 June 2024
Cash Converters International Limited
45
6) Statutory remuneration tables and supporting disclosures
6.1) Executive KMP statutory remuneration for FY2024
The following table outlines the statutory remuneration of Executive KMP:
Name
Year
Salary
Non-monetary
benefits
Super
Other
long-
term
benefits
Termination
benefits
Cash STI
LTI
Total
Remuneration
Package (TRP)
Variable
Remuneration
as % of TRP
$
$
$
$
$
$
$
$
Sam Budiselik
FY2024
701,973
36,900
27,399
33,743
-
1,029,000
268,252
2,097,267
62%
FY2023
613,908
27,975
25,292
21,189
-
605,000
362,221
1,655,585
58%
Peter Cumins
FY2024
454,654
10,560
27,399
8,943
-
-
-
501,556
0%
FY2023
415,958
10,365
25,292
8,372
-
-
-
459,987
0%
Lisa Stedman
FY2024
462,039
28,714
27,399
1,521
-
327,375
116,948
963,996
46%
FY2023
394,548
27,754
25,292
-
-
195,000
120,914
763,508
41%
James Miles
FY2024
403,865
29,542
27,399
8,154
-
291,000
105,861
865,821
46%
FY2023
357,703
27,975
25,292
1,018
-
180,000
113,498
705,486
42%
Jonty Gibbs 1
FY2024
338,797
22,581
27,399
962
-
240,075
59,393
689,207
43%
FY2023
160,688
5,451
12,646
-
-
76,875
5,678
261,338
32%
Andrew Kamp 2
FY2024
271,235
10,083
25,176
-
-
218,250
41,794
566,538
46%
FY2023
-
-
-
-
-
-
-
-
0%
Luis San Martin 3
FY2024
113,137
3,576
10,632
820
-
20,000
9,041
157,206
18%
FY2023
-
-
-
-
-
-
-
-
0%
Total
FY2024
2,745,700
141,956
172,803
54,143
-
2,125,700
601,289
5,841,591
47%
FY2023
1,942,805
99,520
113,814
30,579
-
1,056,875
602,311
3,845,904
43%
1 Appointed Interim Chief Financial Officer from 1 January 2023 and appointed Chief Financial Officer from 1 April 2023
2 Appointed 7 August 2023
3 Appointed 1 March 2024
Notes:
The cash STI values reported in the above table include the STIs awarded for the performance period, which will be paid in the financial year following the year to which they relate (i.e. the value shown for FY2024 is
the value earned and accrued for in FY2024 and will be paid during FY2025).
The LTI value reported in the table above is the accounting charge of all grants, recognised over the vesting period. Where a market-based measure of performance is used as a vesting condition, such as comparison
to a TSR index, no adjustments can be made to the profit or loss to reflect rights that lapse unexercised due to measurement conditions not having been met. However, in relation to non-market vesting conditions,
such as EPS, adjustments have been made to the profit or loss to reverse amounts previously expensed for rights that have lapsed during the period due to not meeting measurement conditions.
Variances in the accounting charge reported arise where a lapse or performance rights occurs in one reporting period but not another. In additional each reporting period accounting charge considers the probability
of future vesting of grants held by participants. Where the probability is below 100% in one period this results in a reduced accounting charge which may be subsequently required to be caught up in subsequent
periods where the probability rises due to an improved performance outlook.
Directors’ report
30 June 2024
Cash Converters International Limited
46
6.2) KMP equity interests and changes during FY2024
Movements in equity interests held by executive KMP during the reporting period, including their related
parties, are set out below:
Opening
Balance
Granted
Rights Lapsed /
Forfeited
Rights Vested /
Exercised
Ending
Balance
Name
Year
Number
Date Granted
Number
Number 3
Number 1 4
Number
Sam Budiselik
FY2024
11,485,472
23-Nov-23
4,729,730
(1,153,339)
(3,460,017)
11,601,846
FY2023
13,249,032
25-Oct-22
3,615,538
-
(5,379,098)
11,485,472
Lisa Stedman
FY2024
3,848,869
08-Nov-23
2,027,028
(263,620)
(790,862)
4,821,415
FY2023
2,295,084
04-Oct-22
1,553,785
-
-
3,848,869
James Miles
FY2024
3,616,565
08-Nov-23
1,801,802
(263,620)
(790,862)
4,363,885
FY2023
2,182,302
04-Oct-22
1,434,263
-
-
3,616,565
Jonty Gibbs 2
FY2024
522,009
08-Nov-23
1,486,486
-
-
2,008,495
FY2023
522,009
-
-
-
522,009
Andrew Kamp 2
FY2024
-
08-Nov-23
1,351,352
-
-
1,351,352
FY2023
-
-
-
-
-
Luis San Martin 2
FY2024
628,051
-
-
-
628,051
FY2023
-
-
-
-
-
Total
FY2024
20,100,966
11,396,398
(1,680,579)
(5,041,741)
24,775,044
FY2023
18,248,427
6,603,586
-
(5,379,098)
19,472,915
1 A total of 5,379,098 performance rights granted to Mr Budiselik in FY2020 vested and were exercised on 6 September 2022.
2 Opening balance at date of becoming KMP
3 A total of 1,680,579 performance rights issued in FY2021 did not vest and subsequently lapsed on 1 September 2023
4 A total of 5,041,741 performance rights issued in FY2021 vested and were exercised on 1 September 2023.
Directors’ report
30 June 2024
Cash Converters International Limited
47
Terms and conditions of share-based payment arrangements affecting remuneration of KMP in the current or
future financial years are set out below:
Tranche
Grant date
Grant date fair
value 1
Exercise price
Measurement
date
Expiry date
$
$
Tranche 31
26-Oct-21
0.162
-
30-Jun-24
30-Sep-24
Tranche 32
26-Oct-21
0.213
-
30-Jun-24
30-Sep-24
Tranche 33
04-Oct-22
0.119
-
30-Jun-25
30-Sep-25
Tranche 34
04-Oct-22
0.170
-
30-Jun-25
30-Sep-25
Tranche 35
25-Oct-22
0.127
-
30-Jun-25
30-Sep-25
Tranche 36
25-Oct-22
0.180
-
30-Jun-25
30-Sep-25
Tranche 37
08-Nov-23
0.092
-
30-Jun-26
30-Sep-26
Tranche 38
08-Nov-23
0.162
-
30-Jun-26
30-Sep-26
Tranche 39
23-Nov-23
0.085
-
30-Jun-26
30-Sep-26
Tranche 40
23-Nov-23
0.155
-
30-Jun-26
30-Sep-26
1
The grant date fair value is calculated as at the grant date using a Monte Carlo pricing model for tranches 31, 33, 35, 37 and 39
and tranches 32, 34, 36, 38 and 40 use a trinomial model.
There has been no alteration of the terms and conditions of the above share-based payment arrangements since
the grant date.
Fully paid ordinary shares of Cash Converters International Limited
Balance at 1
July 2023
Granted as
remuneration
Rights
exercised1
Other
changes
during the
year
Balance at
30 June
2024
Nominally
held 30 June
2024
Number
Number
Number
Number
Number
Number
Directors
Timothy Jugmans
-
-
-
-
-
-
Lachlan Given
-
-
-
-
-
-
Robert Hines
822,000
-
-
-
822,000
822,000
Henry Shiner
-
-
-
-
-
-
Mark Ashby
-
-
-
-
-
-
Andrew Spicer
-
-
-
-
-
-
Susan Thomas
613,985
-
-
(613,985)
-
-
Julie Elliot
61,379
-
-
(61,379)
-
-
Sam Budiselik
5,627,473
-
3,460,017
-
9,087,490
1,568,375
Peter Cumins
9,810,694
-
-
500,000
10,310,694
6,937,226
16,935,531
-
3,460,017
(175,364)
20,220,184
9,327,601
Executive KMP
Lisa Stedman
-
-
790,862
-
790,862
-
James Miles
-
-
790,862
(347,979)
442,883
-
Jonty Gibbs
10,000
-
-
-
10,000
-
Luis San Martin
-
-
-
-
-
-
Andrew Kamp
-
-
-
-
-
-
10,000
-
1,581,724
(347,979)
1,243,745
-
Total
16,945,531
-
5,041,741
(523,343)
21,463,929
9,327,601
1 A total of 5,041,741 of performance rights granted to KMP in FY 2021 vested and exercised on the 1 September 2023.
Directors’ report
30 June 2024
Cash Converters International Limited
48
The following outlines the accounting values and potential future costs of equity remuneration granted during
FY2024 for Executive KMP:
Name
Tranche 3
Number of
rights
Grant Date
Value per
right $
Total Value
at Grant $
Value
expensed in
FY2024
Value to be
expensed in
future
years
Sam
Budiselik
39 (TSR)
2,364,865
23-Nov-23
0.085
201,014
46,551
154,463
40 (EPS)
2,364,865
23-Nov-23
0.155
366,554
84,886
281,668
Lisa
37 (TSR)
1,013,514
08-Nov-23
0.092
93,243
22,707
70,536
Stedman
38 (EPS)
1,013,514
08-Nov-23
0.162
164,189
39,984
124,205
James Miles
37 (TSR)
900,901
08-Nov-23
0.092
82,883
20,184
62,699
38 (EPS)
900,901
08-Nov-23
0.162
145,946
35,541
110,405
Jonty Gibbs
37 (TSR)
743,243
08-Nov-23
0.092
68,378
16,652
51,726
38 (EPS)
743,243
08-Nov-23
0.162
120,405
29,321
91,084
Andrew
Kamp 1
37 (TSR)
675,676
08-Nov-23
0.092
62,162
15,138
47,024
38 (EPS)
675,676
08-Nov-23
0.162
109,460
26,656
82,804
Luis San
Martin 2
37 (TSR)
169,703
08-Nov-23
0.092
15,613
3,802
11,811
38 (EPS)
169,703
08-Nov-23
0.162
27,492
6,695
20,797
Total
11,735,804
1,457,339
348,117
1,109,222
1 Appointed 7 August 2023
2 A total of 339,406 rights were issued to Mr San Martin in FY2024 prior to his appointment as KMP.
3 TSR: vesting conditions based on Relative Total Shareholder Return, EPS: vesting conditions based on Normalised Earnings Per Share
The minimum value to be expensed in future years for each of the above grants made in FY2024 is nil. A reversal
of previous expense resulting in a negative expense in the future may occur in the event of an executive KMP
departure or failure to meet nonmarket-based conditions including failure for gate to open.
6.3) Other statutory disclosures
Loans to KMP and their related parties
During the financial year and to the date of this report, the Company made no loans to Directors and other
KMP and none were outstanding as of 30 June 2024 (FY2023: nil).
Other transactions with KMP
During the financial year and to the date of this report, the Company made no other transactions with KMP.
This Directors’ report is signed in accordance with a resolution of Directors made pursuant to s298(2) of the
Corporations Act 2001.
On behalf of the Directors
Sam Budiselik
Chief Executive Officer & Managing Director
Perth, Western Australia
29 August 2024
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Dear Directors
Auditor’s Independence Declaration to Cash Converters International Limited
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of
independence to the directors of Cash Converters International Limited.
As lead audit partner for the audit of the financial statements of Cash Converters International Limited for the financial
year ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been no contraventions
of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
Yours sincerely
DELOITTE TOUCHE TOHMATSU
Peter Rupp
Partner
Chartered Accountants
Deloitte Touche Tohmatsu
ABN 74 490 121 060
477 Collins Street
Melbourne, VIC, 3000
Australia
Tel: +61 3 9671 7000
Fax: +61 3 9671 7001
www.deloitte.com.au
The Board of Directors
Cash Converters International Limited
Level 11, 141 St Georges Terrace
Perth WA 6000
29 August 2024
49
Corporate governance statement
30 June 2024
Cash Converters International Limited
50
Corporate governance statement
The statement outlining Cash Converters International Limited’s corporate governance framework and practices
in the form of a report against the Australian Securities Exchange Corporate Governance Principles and
Recommendations, 4th Edition, is available on the website, https://www.cashconverters.com/governance,
under Corporate Governance in accordance with ASX Listing Rule 4.10.3.
Financial statements
30 June 2024
Cash Converters International Limited
51
Cash Converters International Limited
ABN 39 069 141 546
Annual Financial Report - 30 June 2024
Financial statements
Contents
Consolidated statement of profit or loss and other comprehensive income ....................................................... 52
Consolidated statement of financial position ....................................................................................................... 53
Consolidated statement of changes in equity ...................................................................................................... 54
Consolidated statement of cash flows ................................................................................................................. 55
Notes to the financial statements ........................................................................................................................ 56
Consolidated Entity Disclosure Statement ......................................................................................................... 123
Directors’ declaration ......................................................................................................................................... 125
These financial statements are consolidated financial statements for the group consisting of Cash Converters
International Limited and its subsidiaries. A list of major subsidiaries is included in note 15.
The financial statements are presented in the Australian currency.
Cash Converters International Limited is a company limited by shares, incorporated and domiciled in Australia.
Its registered office and principal place of business is:
Cash Converters International Limited
Level 11, 141 St Georges Terrace
Perth, Western Australia
6000
The financial statements were authorised for issue by the Directors on 29 August 2024. The Directors have the
power to amend and reissue the financial statements.
All press releases, financial reports and other information are available at our Investor Centre on our website:
https://www.cashconverters.com/
Consolidated statement of profit or loss and other comprehensive income
30 June 2024
Cash Converters International Limited
52
Consolidated statement of profit or loss and other comprehensive income
Notes
30-Jun-24
30-Jun-23
$’000
$’000
Continuing operations
Franchise fee revenue
16,185
16,289
Financial services interest revenue
201,833
184,847
Retail sales
155,252
96,707
Other revenues
9,293
4,854
Total revenue
3
382,563
302,697
Financial services cost of sales
4
(53,670)
(56,913)
Cost of goods sold
(90,845)
(55,894)
Other cost of sales
(5,163)
(3,002)
Total cost of sales
(149,678)
(115,809)
Gross profit
232,885
186,888
Employee expenses
4
(118,930)
(93,565)
Administrative expenses
4
(13,170)
(11,200)
Advertising expenses
(11,828)
(12,355)
Occupancy expenses
4
(6,175)
(3,094)
Depreciation and amortisation expense
4
(16,396)
(12,432)
Other expenses
4
(13,779)
(12,359)
Finance costs
4
(22,448)
(16,000)
Impairment of goodwill
5
(3,295)
(110,481)
Impairment non-current assets
5
-
(6,672)
Share of net profit of equity accounted investments
-
251
Profit / (loss) before income tax
26,864
(91,019)
Income tax expense
6
(9,467)
(6,136)
Profit / (loss) for the year
17,397
(97,155)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations
(134)
1,591
Total comprehensive profit / (loss) for the year
17,263
(95,564)
Profit / (loss) per share
Basic (cents per share)
22(a)
2.78
(15.54)
Diluted (cents per share)
22(a)
2.65
(15.54)
The accompanying notes form an integral part of the consolidated statement of profit or loss and other
comprehensive income.
Consolidated statement of financial position
30 June 2024
Cash Converters International Limited
53
Consolidated statement of financial position
Notes
30-Jun-24
30-Jun-23
$’000
$’000
Current assets
Cash and cash equivalents
7.a
56,289
71,565
Trade and other receivables
7.b
4,652
3,570
Loan receivables
7.c
180,549
182,069
Inventories
8.a
33,036
26,493
Prepayments
3,948
2,544
Total current assets
278,474
286,241
Non-current assets
Trade and other receivables
7.b
9,329
6,649
Loan receivables
7.c
58,163
42,660
Property, plant and equipment
8.b
10,722
6,582
Right-of-use assets
8.c
56,930
47,046
Deferred tax assets
8.f
31,299
29,669
Goodwill
5, 8.d
7,950
3,279
Other intangible assets
8.e
25,171
20,543
Total non-current assets
199,564
156,428
Total assets
478,038
442,669
Current liabilities
Trade and other payables
7.d
27,249
18,984
Lease liabilities
8.c
8,541
7,276
Current tax payable
3,920
338
Borrowings
7.e
103,960
109,044
Provisions
8.g
11,987
11,780
Total current liabilities
155,657
147,422
Non-current liabilities
Lease liabilities
8.c
62,448
56,466
Borrowings
7.e
40,125
27,947
Provisions
8.g
8,442
4,340
Total non-current liabilities
111,015
88,753
Total liabilities
266,672
236,175
Net assets
211,366
206,494
Equity
Issued capital
9
250,541
249,860
Reserves
9,179
9,806
Retained loss
(48,354)
(53,172)
Total equity
211,366
206,494
The accompanying notes form an integral part of the consolidated statement of financial position.
Consolidated statement of changes in equity
30 June 2024
Cash Converters International Limited
54
Consolidated statement of changes in equity
Notes
Issued
capital
Foreign
currency
translation
reserve
Share-
based
payment
reserve
Retained
(loss) /
earnings
Total
$’000
$’000
$’000
$’000
$’000
Balance at 1 July 2022
249,663
5,938
2,495
57,256
315,352
Loss for the year
-
-
-
(97,155)
(97,155)
Exchange differences arising
on translation of foreign
operations
-
1,591
-
-
1,591
Total comprehensive loss for
the year
-
1,591
-
(97,155)
(95,564)
Share-based payments
-
-
807
-
807
Treasury shares acquired by
employee share trust
9
(1,353)
-
-
-
(1,353)
Treasury shares issued by
employee share trust
9
1,550
-
(1,550)
-
-
Transfer reserve balance to
retained earnings
-
-
723
(723)
-
Transfer of modified awards
to provisions
8.g
-
-
(198)
-
(198)
Dividends paid
13.b
-
-
-
(12,550)
(12,550)
Balance at 30 June 2023
249,860
7,529
2,277
(53,172)
206,494
Balance at 1 July 2023
249,860
7,529
2,277
(53,172)
206,494
Profit for the year
-
-
-
17,397
17,397
Exchange differences arising
on translation of foreign
operations
-
(134)
-
-
(134)
Total comprehensive profit
for the year
-
(134)
-
17,397
17,263
Share-based payments
-
-
831
-
831
Treasury shares acquired by
employee share trust
9
(672)
-
-
-
(672)
Treasury shares issued by
employee share trust
9
1,353
-
(1,353)
-
-
Transfer reserve balance to
retained earnings
-
-
29
(29)
-
Dividends paid
13.b
-
-
-
(12,550)
(12,550)
Balance at 30 June 2024
250,541
7,395
1,784
(48,354)
211,366
The accompanying notes form an integral part of the consolidated statement of changes in equity.
Consolidated statement of cash flows
30 June 2024
Cash Converters International Limited
55
Consolidated statement of cash flows
Notes
30-Jun-24
30-Jun-23
$’000
$’000
Cash flows from operating activities
Receipts from customers
286,738
201,412
Payments to suppliers and employees
(253,807)
(189,805)
Interest received
1,375
858
Interest received from personal loans
79,878
85,428
Net increase in personal loans advanced
(44,107)
(82,632)
Interest and costs of finance paid
(22,142)
(15,856)
Income tax paid
(9,482)
(10,941)
Net cash flows from / (used in) operating activities
10.a
38,453
(11,536)
Cash flows from investing activities
Payment for business combinations, net of cash acquired
14.b
(24,345)
(13,798)
Acquisition of intangible assets
(1,874)
(1,505)
Purchase of plant and equipment
(4,586)
(2,971)
Instalment credit loans repaid by franchisees
30
325
Loan funding to external parties
(2,282)
(4,679)
Net cash flows used in investing activities
(33,057)
(22,628)
Cash flows from financing activities
Proceeds from borrowings
202,250
222,750
Repayment of borrowings
(200,500)
(154,750)
Repayment of lease liabilities
(9,194)
(7,085)
Dividends paid
13.b
(12,550)
(12,550)
Employee share trust funding
9
(672)
(1,353)
Net cash flows (used in) / from financing activities
(20,666)
47,012
Net (decrease) / increase in cash and cash equivalents
(15,270)
12,848
Cash and cash equivalents at the beginning of the year
71,565
58,085
Effects of exchange rate changes on the balance of cash held in
foreign currencies
(6)
632
Cash and cash equivalents at the end of the year
7.a
56,289
71,565
The accompanying notes form an integral part of the consolidated statement of cash flows.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
56
Notes to the financial statements
Contents
1.
Basis of preparation ................................................................................................................................. 57
2.
Segment information ............................................................................................................................... 58
3.
Revenue ................................................................................................................................................... 62
4.
Expense items .......................................................................................................................................... 63
5.
Impairment of non-current assets ........................................................................................................... 65
6.
Income tax ............................................................................................................................................... 71
7.
Financial assets and financial liabilities ................................................................................................... 73
8.
Non-financial assets and liabilities .......................................................................................................... 86
9.
Issued capital ........................................................................................................................................... 95
10.
Cash flow information ............................................................................................................................. 96
11.
Critical estimates and judgements .......................................................................................................... 98
12.
Financial risk management ...................................................................................................................... 99
13.
Capital management ............................................................................................................................. 103
14.
Business combination ............................................................................................................................ 104
15.
Interests in other entities ...................................................................................................................... 107
16.
Contingent liabilities .............................................................................................................................. 110
17.
Commitments ........................................................................................................................................ 111
18.
Events occurring after the reporting period .......................................................................................... 111
19.
Related party transactions .................................................................................................................... 112
20.
Share-based payments .......................................................................................................................... 113
21.
Remuneration of auditors ..................................................................................................................... 116
22.
Earnings / (loss) per share ..................................................................................................................... 116
23.
Assets pledged as security ..................................................................................................................... 116
24.
Parent entity financial information ....................................................................................................... 117
25.
Summary of other material accounting policies .................................................................................... 118
Notes to the financial statements
30 June 2024
Cash Converters International Limited
57
1. Basis of preparation
Cash Converters International Limited is a for-profit company limited by shares, incorporated and domiciled in
Australia. Its shares are publicly traded on the Australian Securities Exchange.
The financial report of Cash Converters International Limited (the “Company”) for the year ended 30 June 2024
was authorised for issue in accordance with a resolution of Directors dated 29 August 2024. The financial report
comprises the consolidated financial report of Cash Converters International Limited and its subsidiaries (the
“Group”, as outlined in note 15).
The financial report complies with Australian Accounting Standards. Compliance with the Australian Accounting
Standards ensures that the financial statements and notes of the Group comply with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
The financial report is a general-purpose financial report which has been prepared in accordance with the
requirements of the Corporations Act 2001 and Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. The financial report has been prepared on a
historical cost basis, except where noted. The financial report is presented in Australian dollars.
Certain classifications on the consolidated statement of comprehensive income, consolidated balance sheet,
consolidated statement of changes in equity, consolidated statement of cash flows and notes to the
consolidated financial statements have been reclassified. The Group believes that this will provide more relevant
information to stakeholders. The comparative information has been reclassified accordingly.
The accounting policies adopted are consistent with those of previous financial years and the corresponding
interim reporting period, except where changes are called out in these accounts.
The financial statements have been prepared on a going concern basis.
1.a) New and amended standards adopted by the Group
The Group has adopted all the new and revised Standards and Interpretations issued by the Australian
Accounting Standards Board (“AASB”) that are relevant to its operations and effective for an accounting period
that begins on or after 1 July 2023. The application of these amendments has not resulted in any significant
changes to the Group’s accounting policies nor any material effect on the measurement or disclosure of the
amounts reported for the current or prior periods.
New and amended Accounting Standards that are effective for the current period and are relevant to the
Group include:
Pronouncement
Impact
AASB
2021-2
Amendments
to
Australian
Accounting
Standards
Disclosure of Accounting Policies and
Definition of Accounting Estimates
Requires the disclosure of material accounting policy information
and clarifies how entities should distinguish changes in accounting
policies and changes in accounting estimates.
The application of the amendments did not have a material impact
on the Group’s consolidated financial statements but has changed
the disclosure of accounting policy information in the financial
statements.
New and revised Australian Accounting Standards and Interpretations on issue but not yet effective
At the date of authorisation of the financial statements, the Group has not applied the following new and revised
Australian Accounting Standards, Interpretations and amendments that have been issued but are not yet
effective:
Notes to the financial statements
30 June 2024
Cash Converters International Limited
58
Standard / amendment
Effective for annual reporting
periods beginning on or after
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or
Contribution of Assets between an Investor and its Associate or Joint
Venture (as amended)
1 July 2025
AASB 2020-1 Amendments to Australian Accounting Standards –
Classification of Liabilities as Current or Non-current
1 July 2024
AASB 2022-6 Amendments to Australian Accounting Standards – Non-
current Liabilities with Covenants
1 July 2024
AASB 2022-5 Amendments to Australian Accounting Standards – Lease
Liability in a Sale and Leaseback
1 July 2024
AASB 2023-1 Amendments to Australian Accounting Standards – Supplier
Finance Arrangements
1 July 2024
AASB 2023-5 Amendments to Australian Accounting Standards – Lack of
Exchangeability
1 July 2025
AASB 2024-2 Amendments to Australian Accounting Standards –
Classification and Measurement of Financial Instruments
1 July 2026
AASB 18 Presentation and Disclosure in Financial Statements
1 July 2027
1.b) Rounding of amounts
The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191, dated 24 March 2016, and in accordance with that Corporations Instrument
amounts in the financial report are rounded off to the nearest thousand dollars, unless otherwise indicated.
2. Segment information
2.a) Description of segments and principal activities
The Group’s operating segments are organised and managed separately according to the nature of their
operations. Each segment represents a strategic business unit that provides different services to different
categories of customer. The Chief Executive Officer and Managing Director (chief operating decision-maker)
monitors the operating results of the business units separately for the purpose of making decisions about
resource allocation and performance assessment. The Group’s reportable segments under AASB 8 Operating
Segments are therefore as follows:
Australia
Personal Finance
This segment comprises the Cash Converters Personal Finance personal loans business.
Vehicle Finance
This segment comprises Green Light Auto Group Pty Ltd, which provides motor vehicle finance.
Store Operations
This segment involves the retail sale of new and second-hand goods and personal lending including cash advance
and pawnbroking operations at corporate-owned stores in Australia.
Head Office & Eliminations
This segment comprises the sale of franchise licenses within Australia. It also involves the sale of master licenses
for the development of franchises in countries around the world. Included within this segment are certain group
consolidation eliminations, central administration costs, Director remuneration, interest income and expenses
in relation to corporate head office operations.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
59
International
New Zealand
This segment comprises the operations of the New Zealand Cash Converters network, including the retail sale
of new and second-hand goods, and personal lending including personal loan and pawnbroking operations at
corporate-owned stores in New Zealand as well as the collection of franchise income from the New Zealand
franchisee network.
United Kingdom
This segment comprises all operations within the United Kingdom, including the acquisition of the Cash
Converters (UK) Stores Pty Ltd network in July 2023 and Themedawn Limited in June 2024. The operations in the
United Kingdom include the retail sale of new and second-hand goods at corporate-owned stores, pawnbroking
operations as well as the collection of franchise income from the United Kingdom franchisee network.
The accounting policies of the reportable segments are the same as the Group’s accounting policies except
where otherwise stated in the notes to the accounts.
The following is an analysis of the Group’s revenue and results by reportable operating segment for the periods
under review.
Segment profit represents the profit earned by each segment without the allocation of central administration
costs and Directors’ salaries, interest income and expense in relation to corporate facilities and tax expense. This
is the measure reported to the Chief Executive Officer and Managing Director (chief operating decision-maker)
for the purpose of resource allocation and assessment of segment performance.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
60
Personal
Finance
Vehicle
Financing
Store
Operations
New
Zealand
UK
Head office
&
Eliminations
Total
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Year ended 30 June 2024
Interest from external customers 1
118,092
18,556
36,121
11,943
17,374
1,121
203,207
Other revenue
-
-
102,042
13,157
57,475
6,682
179,356
Transactions with other segments
(11,309)
-
11,921
-
-
(612)
-
Segment revenue
106,783
18,556
150,084
25,100
74,849
7,191
382,563
EBITDA2 – operating
44,658
8,183
24,255
2,066
12,805
(22,813)
69,154
Impairment of non-current assets
-
-
909
(4,204)
-
-
(3,295)
Other non-operating costs3
1,150
(74)
(20)
- (1,062)
(145)
(151)
EBITDA2
45,808
8,109
25,144
(2,138)
11,743
(22,958)
65,708
Depreciation and amortisation
(1,034)
(487)
(8,025)
(1,556)
(4,064)
(1,230)
(16,396)
EBIT
44,774
7,622
17,119
(3,694)
7,679
(24,188)
49,312
Interest expense
(12,821)
(3,753)
(4,211)
(1,509)
(2,249)
2,095
(22,448)
Profit / (loss) before tax
31,953
3,869
12,908
(5,203)
5,430
(22,093)
26,864
Income tax expense
(9,467)
Profit for the period
17,397
Personal
Finance
Vehicle
Financing
Store
Operations
New
Zealand
UK
Head office
&
Eliminations
Total
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Year ended 30 June 2023
Interest from external customers 1
126,224
15,048
37,111
6,315
253
754
185,705
Other revenue
-
-
91,569
7,495
11,151
6,777
116,992
Transactions with other segments
(12,192)
-
13,365
-
-
(1,173)
-
Segment revenue
114,032
15,048
142,045
13,810
11,404
6,358
302,697
EBITDA2 – operating
50,564
6,078
20,575
(833)
3,339
(22,487)
57,236
Impairment of non-current assets
(90,561)
-
(26,592)
-
-
-
(117,153)
Other non-operating costs3
-
-
920
- (2,598)
(992)
(2,670)
EBITDA2
(39,997)
6,078
(5,097)
(833)
741
(23,479)
(62,587)
Depreciation and amortisation
(1,340)
(647)
(7,701)
(770)
(260)
(1,714)
(12,432)
EBIT
(41,337)
5,431
(12,798)
(1,603)
481
(25,193)
(75,019)
Interest expense
(8,265)
(2,667)
(4,248)
(711)
(18)
(91)
(16,000)
Profit / (loss) before tax
(49,602)
2,764
(17,046)
(2,314)
463
(25,284)
(91,019)
Income tax expense
(6,136)
Loss for the period
(97,155)
1
Interest revenue comprises personal loan interest, cash advance fee income, pawnbroking interest from customers,
commercial loan interest from third parties and interest received on bank deposits
2
EBITDA is earnings before interest, tax, depreciation and amortisation
3
Other non-operating costs comprised of impairment charges, indirect tax recovery and merger and acquisition costs
Notes to the financial statements
30 June 2024
Cash Converters International Limited
61
2.b) Other segment information
Personal
Finance
Vehicle
Financing
Store
Operations
New
Zealand
UK
Head office
&
Eliminations
Total
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Year ended 30 June 2024
Segment assets
172,749
60,411
91,537
39,948
62,610
50,783
478,038
Segment liabilities
112,145
35,396
64,892
8,201
26,182
19,856
266,672
Additions to non-current assets
4,868
5
7,793
-
23,785
-
36,451
Personal
Finance
Vehicle
Financing
Store
Operations
New
Zealand
UK
Head office
&
Eliminations
Total
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Year ended 30 June 2023
Segment assets
182,247
53,745
91,186
27,204
15,997
72,290
442,669
Segment liabilities
114,878
29,726
63,482
7,528
4,835
15,726
236,175
Profit on interest in associate
-
-
-
251
-
-
251
Additions to non-current assets
104
-
4,202
16,424
100
1,574
22,404
2.c) Geographic information
The Group operates in three principal geographical areas – Australia (country of domicile), New Zealand and the
United Kingdom. The Group’s revenue from continuing operations from external customers and information
about its non-current assets by geographical location are detailed below.
Revenue from external
customers
Non-current assets
30-Jun
30-Jun
30-Jun
30-Jun
2024
2023
2024
2023
$'000
$'000
$'000
$'000
Australia
282,004
276,906
179,352
132,887
New Zealand
25,100
13,810
1,140
9,526
United Kingdom
74,849
11,404
19,072
14,015
Rest of world
610
577
-
-
Total
382,563
302,697
199,564
156,428
Notes to the financial statements
30 June 2024
Cash Converters International Limited
62
3. Revenue
30-Jun
30-Jun
2024
2023
$'000
$'000
Franchise fee revenue
16,185
16,289
Financial services interest revenue
Personal loan interest and establishment fees
124,945
128,865
Pawnbroking and buyback fees
54,643
34,818
Cash advance fee income
2,738
5,863
Vehicle loan interest and establishment fees
18,556
15,048
Other financial services revenue
951
253
201,833
184,847
Retail sales
155,252
96,707
Other revenues
Bank interest
1,375
858
Webshop revenue
4,046
3,112
Other revenue
3,872
884
9,293
4,854
Total revenue
382,563
302,697
Franchise fees
Franchise fees and levies in respect of particular services are recognised as income when they become due and
receivable and the costs in relation to the income are recognised as expenses when incurred.
Personal loan, cash advance, vehicle finance loan, pawnbroking and buyback fees
Interest revenue is accrued on a time basis by reference to the principal outstanding (inclusive of commissions
paid to originate the loan) at the effective interest rate applicable. The effective interest rate is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s
net carrying amount.
Loan establishment fee revenue
Establishment fees are deferred and recognised over the life of the loans at the effective interest rate applicable
so as to recognise revenue at a constant rate to the underlying principal over the expected life of the loan.
Retail sales
The retail sale of new and second-hand goods, in store and online are recognised when the Group has
transferred control of the goods to the buyer or when the services are provided.
Other categories of revenue
Other categories of revenue, such as webshop commissions, are recognised when the Group has transferred
control of the goods to the buyer or when the services are provided. Bank interest is recognised as earned on
an accruals basis.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
63
4. Expense items
30-Jun
30-Jun
2024
2023
$'000
$'000
Financial services cost of sales
Bad debts written off
57,694
55,483
Recovery of bad debts written off
(8,869)
(6,171)
Net bad debt expense
48,825
49,312
Movement in expected credit loss allowance
1,931
5,071
Total loan related bad debts and allowances
50,756
54,383
Other financial services cost of sales
2,914
2,530
53,670
56,913
Employee expenses
Employee benefits
110,031
85,712
Share-based payments
831
807
Superannuation expense
8,068
7,046
118,930
93,565
Administrative expenses
General administrative expenses
4,909
4,362
Communications expenses
1,579
1,303
IT expenses
5,417
4,372
Travel costs
1,265
1,163
13,170
11,200
Occupancy expenses
Rent
651
298
Outgoings
3,566
2,247
Lease modifications
(1,447)
(1,780)
Other - cleaning, repairs, security, electricity
3,405
2,329
6,175
3,094
Notes to the financial statements
30 June 2024
Cash Converters International Limited
64
30-Jun
30-Jun
2024
2023
$'000
$'000
Depreciation and amortisation expense
Depreciation of property, plant and equipment
2,609
1,758
Depreciation of right-of-use assets
9,965
7,109
Amortisation of other intangible assets
3,692
3,549
Loss on write down of assets
130
16
16,396
12,432
Other expenses
Legal fees
1,104
306
Professional and registry costs
5,920
3,409
Auditing and accounting services
1,525
1,322
Bank charges
1,472
1,247
Other expenses from ordinary activities
3,891
3,405
13,912
9,689
Indirect tax recovery (net)
(1,150)
(920)
Merger and acquisition (“M&A”) costs
1,017
3,590
13,779
12,359
Finance costs
Interest
16,687
10,755
Interest expense on lease liabilities
5,761
5,245
22,448
16,000
Notes to the financial statements
30 June 2024
Cash Converters International Limited
65
5. Impairment of non-current assets
The Group conducts regular impairment tests on its non-current assets, including property, plant and
equipment, goodwill, intangibles and right-of-use assets.
1. Annual Testing: Indefinite life intangibles and goodwill are tested at least annually.
2. Indication of Impairment: If there is any indication that an asset may be impaired, it is assessed at each
reporting date.
3. Changes in previously recognised impairment: If there is an indication that previously recognised
impairment (excluding goodwill) may have changed, it is assessed at each reporting date, for a
potential reversal.
5.a) Impairment recognised
Impairment losses recognised FY2024 - goodwill
Operating segments were tested for impairment at 30 June 2024 using cashflow forecasts reflective of the
assumptions disclosed below (section Key Assumptions).
As a result of this testing, a goodwill impairment of $3.295m (FY2023: nil) was identified in the New Zealand
operating segment. There were no impairments to goodwill identified in any of the other operating segments
as part of the testing. In FY2023, the Personal Finance and Store Operations reportable segment CGUs were
impaired to their recoverable amount of $67.745 million and $25.061 million respectively and a goodwill
impairment expense of $90.561 million and $19.920 million were recognised for the Personal Finance and Store
Operations segments respectively.
A Goodwill impairment is not able to be reversed in future accounting periods. No amount of goodwill
recognised or impaired is expected to be deductible for tax purposes.
The impairment recognised during the period results in the following changes in goodwill:
Personal
Store
New
Finance
Operations
Zealand
UK
Total
30-June-2024
$'000
$'000
$'000
$'000
$'000
Balance at the beginning of the year
-
-
3,279
-
3,279
Recognition on business combinations
-
549
-
7,397
7,946
Impairment of goodwill
-
-
(3,295)
-
(3,295)
Foreign currency exchange differences
-
-
16
4
20
Balance at the end of the year
-
549
-
7,401
7,950
Personal
Store
New
Finance
Operations
Zealand
UK
Total
30-June-2023
$'000
$'000
$'000
$'000
$'000
Balance at the beginning of the year
90,561
19,920
-
-
110,481
Recognition on business combinations
-
-
3,315
-
3,315
Impairment of goodwill
(90,561)
(19,920)
-
-
(110,481)
Foreign currency exchange differences
-
-
(36)
-
(36)
Balance at the end of the year
-
-
3,279
-
3,279
Refer to note 8.d for further information supporting the changes in the goodwill balances.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
66
Impairment losses recognised FY2024 – other non-current assets
Individual stores that had impairment triggers within Australia, New Zealand and the UK were tested for
impairment of other non-current assets at 30 June 2024 using cashflow forecasts reflective of the assumptions
disclosed below (section Key Assumptions).
As a result of this testing the following impairment or impairment reversals were identified:
-
impairment expense of $0.909m (FY2023: nil) across several of the individual store CGUs in the New Zealand
operating segment.
-
impairment reversal of $0.909m (FY2023: $6.672m impairment expense) across several of the individual
store CGUs in the Store Operations operating segment.
As a result of this impairment, an impairment loss of other non-current assets has been recognised in the
financial year as outlined below.
Store Operations
New Zealand
Total
30-Jun
30-Jun
30-Jun
30-Jun
30-Jun
30-Jun
2024
2023
2024
2023
2024
2023
$'000
$'000
$'000
$'000
$'000
$'000
Impairment of non-current assets
Plant and equipment
83
608
159
-
242
608
Right-of-use assets
(1,060)
5,610
750
-
(310)
5,610
Other intangible assets
68
454
-
-
68
454
(909)
6,672
909
-
-
6,672
5.b) Australia
The Group is required to perform an annual impairment test on operating segments, which contain goodwill and
indefinite life intangible assets, some of which arose through the acquisition of several Australian franchise
stores during FY2024, as well as an impairment test on individual store CGUs, where external and/or internal
indicators of impairment exist.
In the year ending 30 June 2024, the Group identified the following indicators of impairment or impairment
reversal:
Segment CGUs:
Market Capitalisation versus Net Assets: The Group's market capitalisation remained lower than its net
assets.
Vehicle Finance (GLA) segment: The Group has plans to restructure/wind-down the vehicle financing
operation in FY2025 and beyond, which has been considered as an indicator for impairment in that
CGU.
Individual store CGUs:
Impairment indicators: recent history of trading behind budget, presenting as loss making and/or with
a noticeable decline in their forecasts.
Impairment reversal indicators: store with prior impairment that has a recent history of trading ahead
of budget and is presenting with significantly improved forecasts.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
67
As identified above, indicators of impairment are considered to exist in both the segments and the individual
store CGUs for the year ended 30 June 2024. Determination of the recoverable amount has been performed at
both the individual store CGU level and segment CGUs, using a value in use model, consistent with 30 June 2023.
The Vehicle Finance segment was tested for impairment and its recoverable amount based on discounted
forecast cashflows was found to support the carrying value of the assets in the CGU. Hence no impairment was
recognised.
A net impairment reversal of $0.909 million (FY2023: $117.153 million impairment expense) of other non-
current assets has been identified through this testing, as outlined below:
30-Jun
30-Jun
2024
2023
$'000
$'000
Impairment of non-current assets
Plant and equipment
83
608
Right-of-use assets
(1,060)
5,610
Other intangible assets
68
454
Goodwill
-
110,481
(909)
117,153
Store Operations and Personal Finance segment CGUs
As reported in the FY2023 annual report the Group operates in a regulated industry.
On 3 March 2016, the Small Amount Credit Contracts Review Final Report (“the Final Report”) was delivered by
the Review Panel to the Minister for Small Business and Assistant Treasurer. The Final Report outlined proposed
regulatory requirements relating to the Protected Earnings Amount (“PEA”) cap that had the potential to
significantly impact SACC lending volumes, namely the Group’s Personal Loan and Cash Advance products. One
of the recommendations was to extend the SACC PEA cap requirement to all consumers and lowering it to 10%
of the consumer’s net income.
Since 30 June 2022, the Financial Sector Reform Act 2022 (“the Act”) was introduced to the House of
Representatives. The Act stated, “It is expected that the regulations will provide a protected earnings amount
of 10 percent of a person's net (after tax and other deductions) income for all consumers”. In effect, the
regulations stipulated by the Act will cap repayments on certain loan products to 10% of a consumer’s net
income and apply to all consumers (previously the PEA cap only applied to Centrelink recipients).
The Act was passed by the Senate and ultimately received royal assent on 12 December 2022. The sections of
the legislation that introduce the amendments to the PEA cap had an effective date 6 months post royal assent,
being 12 June 2023.
Regulatory impact
As reported in the FY2023 annual report modelling was performed on the SACC lending volumes in FY2022 as if
the PEA cap had applied. The reduction to SACC lending volumes was estimated to be a 44.3% reduction in the
Personal Finance and a 68.7% reduction in the Store Operations segments. This estimated reduction in lending
volumes was effective from the date of the PEA cap, being 12 June 2023.
SACC loan volume reductions were expected to have the following impact:
decrease in financial services interest revenue in the Personal Finance segment and Store Operations
segment;
decrease in commissions paid from the Personal Finance segment (to Corporate stores and franchise stores);
decrease in intercompany commission revenue earned by Corporate stores; and
decrease in commission revenue earned by franchisees.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
68
5.c) New Zealand
The Group is required to perform an annual impairment test on goodwill and indefinite life intangible assets, as
well as an impairment test on the NZ segment and individual store CGUs, where external and/or internal
indicators of impairment exist.
In the year ending 30 June 2024, the Group identified the following indicators of impairment:
Segment CGUs:
•
Market Capitalisation versus Net Assets: The Group's market capitalisation remained lower than its net
assets.
•
Regulatory Changes and underperformance: The New Zealand Credit Contracts and Consumer Finance
Act (NZ CCCF Act) introduced regulatory changes in December 2021, resulting in reduced lending
volumes for CCNZ. Despite partial repeal of the NZ CCCF Act changes in May 2023, lending volumes
have not returned to levels forecast.
•
Changes to establishment fees: following feedback from the NZ Commerce Commission, the Group
performed a comprehensive review of the establishment fee being charged on its NZ Better Personal
loan product. The outcome of this review was a reduction in the establishment fee being charged on
its loans. This change was formalised and implemented from 16 April 2024.
Individual store CGUs:
Impairment indicator: recent history of trading behind budget, presenting as loss making and/or with a
noticeable decline in their forecasts.
As identified above, indicators of impairment are considered to exist in both the NZ operating segment CGU and
the individual store CGUs in the year ending 30 June 2024. Determination of the recoverable amount has been
performed at both the segment CGU level and individual store CGU level, using a value in use model, consistent
with 30 June 2023.
The New Zealand segment CGU as well as a number of individual store CGUs were impaired to their recoverable
amount at 30 June 2024 and an impairment expense of $4.204 million (FY2023: nil) was recognised. The assets
were impaired to their recoverable amount based on the value in use of the CGU to which they relate.
The impairment at individual store level, which is not an impairment of goodwill, may reverse in future
accounting periods if the recoverable amount increases above the carrying value of the asset. The increased
amount cannot exceed the carrying value that would have been determined, net of depreciation or
amortisation, had no impairment loss been recognised for the asset in prior years.
The impairment losses of $4.204 million (FY2023: nil) of goodwill or other non-current assets identified through
this testing, is outlined below:
30-Jun
30-Jun
2024
2023
$'000
$'000
Impairment of non-current assets
Plant and equipment
159
-
Right-of-use assets
750
-
Other intangible assets
-
-
Goodwill
3,295
-
4,204
-
Notes to the financial statements
30 June 2024
Cash Converters International Limited
69
5.d) United Kingdom
The Group is required to perform an annual impairment test on goodwill and indefinite life intangible assets,
which arose through the acquisition of Cash Converters (UK) Stores Pty Ltd (formerly Capital Cash Limited
(“Capital Cash”)) and Themedawn Ltd during FY2024, as well as an impairment test on the UK segment and
individual store CGUs, where external and/or internal indicators of impairment exist.
In the year ending 30 June 2024, the Group identified the following indicators of impairment:
Segment CGUs:
•
Market Capitalisation versus Net Assets: The Group's market capitalisation remained lower than its net
assets.
Individual store CGUs:
Impairment indicator: recent history of certain stores trading behind budget, presenting as loss making
and/or with a noticeable decline in their forecasts
As identified above, indicators of impairment are considered to exist in both the UK operating segment CGU and
the individual store CGUs in the year ending 30 June 2024. Determination of the recoverable amount has been
performed at both the individual store CGU level and segment CGUs, using a value in use model, consistent with
the models used at 30 June 2023 for other jurisdictions.
No impairment loss of goodwill or other non-current assets has been identified through this testing (FY2023:
nil).
5.e) Key Assumptions
The key assumptions used in the impairment testing in the year ending 30 June 2024 are included in the table
below for the segments which either currently contain goodwill and/or contain individual store CGUs where
impairment indicators have been identified.
Assumption
Store
Operations
New
Zealand
UK
Forecast revenue 5-year compound annual growth rate
5.0%
6.9%
5.5%
Forecast expense 5-year compound annual growth rate
3.5%
4.2%
5.2%
Terminal growth rate > 5 years
2.5%
2.5%
2.5%
Post-tax discount rate applied to cash flows
10.2%
11.4%
10.2%
The key assumptions for budgeted revenue and expense growth rates in the prior period impairment tests are
included below for comparison. No comparatives are available for the UK as the acquisition of the store network
only occurred during FY2024.
Assumption
Store
Operations
New
Zealand
UK
Forecast revenue 5-year compound annual growth rate
3.2%
7.4%
Forecast expense 5-year compound annual growth rate
2.2%
1.7%
Terminal growth rate > 5 years
2.5%
2.5%
Post-tax discount rate applied to cash flows
10.4%
11.5%
Notes to the financial statements
30 June 2024
Cash Converters International Limited
70
5.f) Impairment sensitivity
The Group is required to make significant estimates and apply significant judgments in determining whether the
carrying amount of assets and/or CGUs have any indication of impairment. Such estimates and judgments are
subject to change as a result of changing economic and operational conditions. Actual cash flows may therefore
differ from forecasts and could result in changes in the recognition of impairment charges in future periods.
5.g) Significant accounting estimates and assumptions
The Group faces the challenge of making significant estimates and applying significant judgments in determining
whether the carrying amount of assets and / or CGUs indicates any impairment. Key assumptions in the cash
flow projections include growth rates which are based on corporate plans that take into consideration historic
performance, forecast macroeconomic conditions and the estimated effect of operational changes. These
estimates and judgments are subject to change due to shifting economic and operational conditions. Actual cash
flows may differ from forecasts, potentially leading to changes in the recognition of impairment charges in future
periods.
Significant management judgement is required with respect to estimating the timing and amount of forecast
cash flows including:
projecting loan origination volumes, customer repayments and the forecast expected credit losses;
specific to the vehicle financing segment, consideration of the impact of the Group’s decision to wind-down
the loan book in FY2025 and beyond;
specific to the CCNZ segment, consideration of the impact of regulatory changes embodied in the NZ CCCF
Act in December 2021 and the impact of changes made to the establishment fee charged on the loan product;
allocation of overheads on a reasonable apportionment basis; and
forecast working capital requirements.
Significant management judgement is required with respect to an appropriate discount rate to present value
the forecast cash flows in which the purpose is to estimate, as far as possible:
a market assessment of expectations about possible variations in the amount or timing of those cash flows;
the time value of money, represented by the current market risk-free rate of interest;
the price for bearing the uncertainty inherent in the asset; and
other, sometimes unidentifiable, factors (such as illiquidity) that market participants would reflect.
5.h) Impairment testing
Segment CGUs - Goodwill
Impairment modelling for each CGU or group of CGUs has been prepared separately based on a value in use
model which uses cash flow projections based on budgets approved by the Board and updated by management
to reflect current business performance, covering a five-year period. Cash flows beyond the five-year period are
estimated using industry growth rates and a terminal value calculated based on a terminal growth rate under
standard valuation principles.
Key assumptions are based on a combination of past experience for mature products and external sources
(market data) for less mature products and economic metrics such as interest rates.
Working capital requirements are factored into the modelling based on historic requirements for each CGU and
vary in line with earnings growth. Capital investment, required to run the business (i.e., replacement and non-
expansionary capital expenditure) has been included based on forecasted amounts for the next financial year
and incremental growth in subsequent years consistent with revenue trends.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
71
Individual store CGUs
A test for impairment of the carrying value of assets can be triggered by a change in several indicators, both
internal and external. During the reporting period, there were indicators of impairment or impairment reversal
in some stores due to changes to the forecasts, due to recent history of trading behind or ahead of budget.
Where indicators of impairment or impairment reversal exist, it remains a requirement to perform an
impairment test of the carrying amount of the individual store CGUs. Goodwill is not allocated to the individual
store CGUs as it is monitored by management at the respective operating segment levels.
An impairment loss is recognised for the amount by which the individual store CGU’s carrying amount exceeds
its recoverable amount. Recoverable amounts for individual store CGUs are calculated based on a value in use
model which uses cash flow projections based on budgets approved by the Board and updated by management
to reflect current business performance, covering a five-year period. Cash-flows beyond the five-year period are
calculated based on a terminal growth rate under standard valuation principles.
Key assumptions are based on a combination of past experience for mature products and external sources
(market data) for less mature products and economic metrics such as interest rates.
Working capital requirements are factored into the modelling based on historic requirements for each CGU and
vary in line with earnings growth. Capital investment, required to run the business (i.e., replacement and non-
expansionary capital expenditure) has been included based on forecast amounts for the next financial year and
incremental growth in subsequent years consistent with revenue trends.
Each individual store CGU carrying amount primarily comprises right-of-use assets, store fixtures and fittings as
well as other intangibles. Corporate assets such as software are allocated to the individual stores on a
proportionate basis and also tested for impairment.
6. Income tax
6.a) Income tax expense
30-Jun
30-Jun
2024
2023
$'000
$'000
Current income tax expense
Current year
11,908
8,677
Adjustment for prior years
(96)
688
Deferred income tax expense
Temporary differences
(2,745)
(2,798)
Adjustment for prior years
400
(431)
Income tax expense reported in income statement
9,467
6,136
Notes to the financial statements
30 June 2024
Cash Converters International Limited
72
6.b) Numerical reconciliation of income tax expense to prima facie tax payable
30-Jun
30-Jun
2024
2023
$'000
$'000
Tax reconciliation
Profit / (loss) before tax from continuing operations
26,864
(91,019)
Income tax at the statutory rate of 30% (2023: 30%)
8,059
(27,306)
Adjustments relating to prior years
304
257
Income tax rate differential
(167)
29
Other adjustments
348
53
Tax effect of share-based payment expense
-
(41)
Tax effect of goodwill impairment expense
923
33,144
Income tax expense on profit / (loss) before tax
9,467
6,136
6.c) Tax losses
A deferred tax asset in respect of carry forward losses of $7.684 million (FY2023: $8.607 million) is recognised
in relation to the Group’s UK operations. Profit has been achieved in the last three years with the FY2024 year
reflecting utilisation of the carry forward losses because of taxable profits arising. Ongoing taxable profit
forecasts have supported continued recognition in full of the deferred tax asset (“DTA”) that arises from unused
tax losses from previous years.
Carry forward losses of $628 thousand (FY2023: $899 thousand) have been recognised in relation to losses in
the Group’s New Zealand operations during the current year.
6.d) Uncertainty over income tax treatments
There were no adjustments to the amounts recognised in the financial report as a result of applying IFRIC 23
Uncertainty over Income Tax Treatments.
6.e) Relevance of tax consolidation to the Group
The Company and its wholly-owned Australian resident entities have formed a tax-consolidated group with
effect from 1 July 2003 and are therefore taxed as a single entity from that date. The head entity within the tax-
consolidated group is Cash Converters International Limited. The members of the tax-consolidated group are
identified in note 15.
6.f) Nature of tax funding arrangements and tax sharing agreements
Entities within the tax-consolidated group have entered into a tax funding arrangement and a tax sharing
agreement with the head entity. Under the terms of the tax funding arrangement, Cash Converters International
Limited and each of the entities in the tax-consolidated group has agreed to pay a tax equivalent payment to or
from the head entity, based on the current tax liability or current tax asset of the entity. Such amounts are
reflected in amounts receivable from or payable to other entities in the tax-consolidated group.
The tax sharing agreement entered into between members of the tax-consolidated group provides for the
determination of the allocation of income tax liabilities between the entities should the head entity default on
its tax payment obligation. No amounts have been recognised in the financial statements in respect of this
agreement as payment of any amounts under the tax sharing agreement is considered remote.
See note 8.f for deferred tax balances.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
73
7. Financial assets and financial liabilities
30-Jun
30-Jun
2024
2023
$’000
$’000
Financial assets
Cash and cash equivalents
56,289
71,565
Trade and other receivables
13,981
10,219
Loan receivables
238,712
224,729
308,982
306,513
Financial liabilities
Trade and other payables
27,249
18,984
Borrowings
144,085
136,991
171,334
155,975
7.a) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings
in current liabilities in the balance sheet.
30-Jun
30-Jun
2024
2023
$’000
$’000
Cash on hand
3,804
3,153
Cash at bank
52,485
68,412
Closing cash and cash equivalents
56,289
71,565
Unrestricted cash
43,450
55,668
Restricted cash
12,839
15,897
Closing cash and cash equivalents
56,289
71,565
Restricted cash at bank includes cash of $5.142 million (FY2023: $6.081 million) that is held in accounts
controlled by the CCPF Receivables Trust No 1 that was established to operate the Company’s securitisation
facility with Fortress Investment Group. The facility prescribes that cash deposited in this account can only be
used to fund new principal advances. Surplus funds at the end of the period are redistributed in keeping with
the terms of the securitisation facility. Restricted cash at bank includes a further $6.220 million (FY2023: $6.220
million) on deposit as security for banking facilities.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
74
7.b) Trade and other receivables
Trade receivables and other receivables that have fixed or determinable payments and that are not quoted in
an active market are classified as trade and other receivables and are measured at amortised costs using the
effective interest method, less any impairment. Interest income is recognised by applying the effective interest
rate, except for short-term receivables when the effect of discounting is immaterial.
The group applies the simplified approach to measuring expected credit losses which uses a lifetime expected
loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been
grouped based on shared credit risk characteristics and the days past due.
30-Jun
30-Jun
2024
2023
$’000
$’000
Current
Trade receivables
1,150
1,245
Allowance for expected credit losses
(328)
(485)
Trade receivables (net)
822
760
Other receivables
3,830
2,810
Total current trade receivables
4,652
3,570
Non-current
Loan to external parties
8,163
5,077
Allowance for expected credit losses
(735)
(254)
Loan to external parties (net)
7,428
4,823
Other receivables
1,901
1,826
Total non-current trade and other receivables
9,329
6,649
Trade receivables include weekly franchise fees and over the counter fees. Regardless of whether the collection
of the debtor is doubtful, an allowance for expected credit losses is recognised. The average credit period on
sales is 30 days. No interest is charged for the first 30 days from the date of the invoice. Thereafter, interest may
be charged on the outstanding balance.
Loan to external parties relates to a commercial loan advanced to Cash Converters Espana, S.L (Spain master
franchisor). Cash Converters Espana, S.L is neither a part of the consolidated Group nor is it a related party. An
initial loan of $4.679 million was advanced in April 2023, with an additional $1.787 million and $0.495 million
being advanced in December 2023 and April 2024 respectively. The Group is in the process of extending the
initial advance repayment date of 30 September 2024 to align with the repayment date of the additional
advances of 30 September 2025. Interest is charged monthly and is to be paid in a lump sum at the maturity
date.
This transaction is consistent with our ongoing commitment to support our franchise network in achieving their
strategic objectives. Under AASB 9 Financial Instruments, the Company has reassessed the expected credit loss
associated with this loan. Given the increase in the principal amount and the extended repayment period, the
expected credit loss allowance has been adjusted. The Company continues to monitor the recoverability of and
the performance of the loan and will change the expected credit loss as necessary in future reporting periods.
An allowance for expected credit losses of $0.735 million (2023: $0.254 million) has been recognised in relation
to this loan.
Other receivables include rental bonds, development agent fees outstanding, sub-master license sales, Mon-E
fees, financial commission, vendor finance loans and instalment credit loans.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
75
As at 30 June the ageing analysis of trade receivables was as follows:
30-Jun
30-Jun
2024
2023
$’000
$’000
0 to 30 days
634
613
31 to 60 days past due not impaired
71
48
61 to 90 days past due not impaired
22
7
90+ days past due not impaired
95
92
Stage 3 expected credit loss
328
485
Balance at end of year
1,150
1,245
Allowance for expected credit losses
As at 30 June 2024, trade receivables of $0.328 million (FY2023: $0.485 million) were considered to be in Stage
3 of expected credit losses as described in the accounting policy. Movements in the allowance for expected
credit losses of trade receivables were as follows:
30-Jun
30-Jun
2024
2023
$’000
$’000
Balance at beginning of year
485
308
Expected credit losses recognised on receivables
(157)
156
Foreign currency exchange differences
-
21
Balance at end of year
328
485
Notes to the financial statements
30 June 2024
Cash Converters International Limited
76
7.c) Loan receivables at amortised cost
Personal
Vehicle
Store
New
UK
Total
Finance
Financing
Operations
Zealand
30-June-2024
$’000
$’000
$’000
$’000
$’000
$’000
Current
Outstanding balance
149,735
27,471
18,290
10,700
10,423
216,619
Allowance for expected credit losses
(26,388)
(5,232)
(1,728)
(2,302)
(420)
(36,070)
Net
123,347
22,239
16,562
8,398
10,003
180,549
Non-current
Outstanding balance
25,596
44,723
-
1,066
-
71,385
Allowance for expected credit losses
(4,317)
(8,536)
-
(369)
-
(13,222)
Net
21,279
36,187
-
697
-
58,163
Personal
Vehicle
Store
New
UK
Total
Finance
Financing
Operations
Zealand
30-June-2023
$’000
$’000
$’000
$’000
$’000
$’000
Current
Outstanding balance
159,093
31,877
17,628
10,497
-
219,095
Allowance for expected credit losses
(25,965)
(6,094)
(1,839)
(3,128)
-
(37,026)
Net
133,128
25,783
15,789
7,369
-
182,069
Non-current
Outstanding balance
19,235
31,037
-
1,988
-
52,260
Allowance for expected credit losses
(2,985)
(5,928)
-
(687)
-
(9,600)
Net
16,250
25,109
-
1,301
-
42,660
The credit period provided in relation to personal unsecured loans varies from 7 days to 36 months. Interest is
charged on these loans at a fixed rate which, for Australian pawnbroking loans, varies dependent on the state
of origin. An expected credit loss allowance has been recognised for estimated unrecoverable amounts arising
from loans already issued, which has been determined by reference to past default experience. Before accepting
any new customers, the Group uses an internally developed scoring system, which uses available credit data, to
assess the potential customer’s credit quality and define credit limits by customer. There is no concentration of
credit risk within the personal loan book.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
77
Vehicle finance loans are secured loans advanced for financing the purchase of vehicles. The average remaining
term of these loans is 3.1 years (FY2023: 2.9 years) and the average interest rate is 23.7% (FY2023: 24.1%).
As at 30 June the ageing analysis of Personal Finance and Store Operations receivables was as follows:
30-Jun
30-Jun
2024
2023
$’000
$’000
0 to 30 days
144,736
148,867
31 to 60 days past due not impaired
7,953
8,391
61 to 90 days past due not impaired
4,862
4,866
90 + days past due not impaired
3,637
3,043
Loan receivables carrying value
161,188
165,167
Allowance for expected credit loss
32,433
30,789
Gross carrying value
193,621
195,956
As at 30 June the ageing analysis of Vehicle Financing loan receivables was as follows:
30-Jun
30-Jun
2024
2023
$’000
$’000
0 to 30 days
37,525
34,981
31 to 60 days past due not impaired
4,516
3,433
61 to 90 days past due not impaired
2,426
2,404
90 + days past due not impaired
13,959
10,074
Loan receivables carrying value
58,426
50,892
Allowance for expected credit loss
13,768
12,022
Gross carrying value
72,194
62,914
As at 30 June the ageing analysis of New Zealand loan receivables was as follows:
30-Jun
30-Jun
2024
2023
$’000
$’000
0 to 30 days
7,177
6,920
31 to 60 days past due not impaired
739
846
61 to 90 days past due not impaired
607
640
90 + days past due not impaired
572
264
Loan receivables carrying value
9,095
8,670
Allowance for expected credit loss
2,671
3,815
Gross carrying value
11,766
12,485
Notes to the financial statements
30 June 2024
Cash Converters International Limited
78
As at 30 June the ageing analysis of UK loan receivables was as follows:
30-Jun
30-Jun
2024
2023
$’000
$’000
0 to 30 days
3,978
-
31 to 60 days past due not impaired
1,919
-
61 to 90 days past due not impaired
1,039
-
90 + days past due not impaired
3,067
-
Loan receivables carrying value
10,003
-
Allowance for expected credit loss
420
-
Gross carrying value
10,423
-
Allowance for expected credit losses (“ECL”)
In determining the recoverability of a Personal Finance loan, the Group considers any change in the credit quality
of the receivable from the date credit was initially granted up to the reporting date. The concentration of credit
risk is limited due to the customer base being large and unrelated. Accordingly, the Directors believe that there
is no further credit loss allowance required in excess of the loss allowance.
The following table explains changes in the loss allowance between the beginning and end of the year:
Personal Finance and Store Operations receivables
Stage 1
Stage 2
Stage 3
Total
Loss allowance
12-month
ECL
Lifetime
ECL
Lifetime
ECL
$’000
$’000
$’000
$’000
Balance at 1 July 2023
7,168
9,416
14,205
30,789
Movements with P&L impact
Transfers
Transfers from Stage 1 to Stage 2
(759)
759
-
-
Transfers from Stage 1 to Stage 3
(648)
-
648
-
Transfers from Stage 2 to Stage 1
130
(130)
-
-
Transfers from Stage 2 to Stage 3
-
(1,565)
1,565
-
Transfers from Stage 3 to Stage 1
52
-
(52)
-
Transfers from Stage 3 to Stage 2
-
921
(921)
-
New financial assets originated from business combination
21
247
-
268
New financial assets originated
5,766
7,540
8,127
21,433
Changes in PDs/LGDs/EADs
(2,860)
(2,839)
2,316
(3,383)
Changes to model assumptions and methodologies
554
330
366
1,250
Written off and settled loans
(3,250)
(5,600)
(9,074)
(17,924)
Total net change during the period
(994)
(337)
2,975
1,644
Balance at 30 June 2024
6,174
9,079
17,180
32,433
Notes to the financial statements
30 June 2024
Cash Converters International Limited
79
The following table explains changes in the gross carrying amount of the loans and receivables to help explain
their significance to the changes in the loss allowance:
Personal Finance and Store Operations receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount
12-month
ECL
Lifetime
ECL
Lifetime
ECL
$’000
$’000
$’000
$’000
Balance at 1 July 2023
112,462
39,869
43,625
195,956
Movements with P&L impact
Transfers
Transfers from Stage 1 to Stage 2
(12,614)
12,614
-
-
Transfers from Stage 1 to Stage 3
(8,897)
-
8,897
-
Transfers from Stage 2 to Stage 1
986
(986)
-
-
Transfers from Stage 2 to Stage 3
-
(8,207)
8,207
-
Transfers from Stage 3 to Stage 1
288
-
(288)
-
Transfers from Stage 3 to Stage 2
-
4,382
(4,382)
-
New financial assets originated from business combination
634
401
-
1,035
New financial assets originated
98,562
36,077
20,169
154,808
Changes in outstanding balances
(8,188)
(12,772)
(5,032)
(25,992)
Written off and settled loans
(79,670)
(26,258)
(26,258)
(132,186)
Total net change during the period
(8,899)
5,251
1,313
(2,335)
Balance at 30 June 2024
103,563
45,120
44,938
193,621
The following table explains changes in the loss allowance between the beginning and end of the year:
Vehicle finance loans receivables
Stage 1
Stage 2
Stage 3
Total
Loss allowance
12-month ECL
Lifetime ECL
Lifetime ECL
$’000
$’000
$’000
$’000
Balance at 1 July 2023
1,606
3,140
7,276
12,022
Movements with P&L impact
Transfers
Transfers from Stage 1 to Stage 2
(485)
485
-
-
Transfers from Stage 1 to Stage 3
(189)
-
189
-
Transfers from Stage 2 to Stage 1
176
(176)
-
-
Transfers from Stage 2 to Stage 3
-
(1,339)
1,339
-
Transfers from Stage 3 to Stage 1
78
-
(78)
-
Transfers from Stage 3 to Stage 2
-
216
(216)
-
New financial assets originated
428
1,179
1,207
2,814
Changes in PDs/LGDs/EADs
(786)
(134)
2,346
1,426
Changes to model assumptions and methodologies
(38)
204
(242)
(76)
Written off and settled loans
(136)
(427)
(1,855)
(2,418)
Total net change during the period
(952)
8
2,690
1,746
Balance at 30 June 2024
654
3,148
9,966
13,768
Notes to the financial statements
30 June 2024
Cash Converters International Limited
80
The following table explains changes in the gross carrying amount of the loans and receivables to help explain
their significance to the changes in the loss allowance:
Vehicle finance loans receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount
12-month ECL
Lifetime ECL
Lifetime ECL
$’000
$’000
$’000
$’000
Balance at 1 July 2023
38,385
11,965
12,564
62,914
Movements with P&L impact
Transfers
Transfers from Stage 1 to Stage 2
(9,903)
9,903
-
-
Transfers from Stage 1 to Stage 3
(3,073)
-
3,073
-
Transfers from Stage 2 to Stage 1
901
(901)
-
-
Transfers from Stage 2 to Stage 3
-
(5,088)
5,088
-
Transfers from Stage 3 to Stage 1
169
-
(169)
-
Transfers from Stage 3 to Stage 2
-
468
(468)
-
New financial assets originated
20,316
6,597
2,116
29,029
Changes in outstanding balances
(5,209)
(2,845)
(925)
(8,979)
Written off and settled loans
(4,863)
(1,881)
(4,026)
(10,770)
Total net change during the period
(1,662)
6,253
4,689
9,280
Balance at 30 June 2024
36,723
18,218
17,253
72,194
In determining the recoverability of a Vehicle Financing loan, the Group considers any change in the credit
quality of the receivable from the date credit was initially granted up to the reporting date. The Group has made
an allowance based on known historical losses and a reasonable estimation of expected future losses. As these
loans are secured by the underlying vehicle financed, the total loss will be reduced by the recoverable amount.
Accordingly, the Directors believe that there is no further credit loss allowance required in excess of the loss
allowance for expected credit losses.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
81
The following table explains changes in the loss allowance between the beginning and end of the year:
New Zealand loans receivables
Stage 1
Stage 2
Stage 3
Total
Loss allowance
12-month ECL
Lifetime ECL
Lifetime ECL
$’000
$’000
$’000
$’000
Balance at 1 July 2023
1,435
2,101
279
3,815
Movements with P&L impact
Transfers
Transfers from Stage 1 to Stage 2
(339)
339
-
-
Transfers from Stage 1 to Stage 3
(74)
-
74
-
Transfers from Stage 2 to Stage 1
-
-
-
-
Transfers from Stage 2 to Stage 3
-
(218)
218
-
Transfers from Stage 3 to Stage 1
-
-
-
-
Transfers from Stage 3 to Stage 2
-
26
(26)
-
New financial assets originated
654
853
133
1,640
Changes in PDs/LGDs/EADs
(534)
(716)
(27)
(1,277)
Changes to model assumptions and methodologies
283
426
69
778
Written off and settled loans
(785)
(1,328)
(172)
(2,285)
Total net change during the period
(795)
(618)
269
(1,144)
Balance at 30 June 2024
640
1,483
548
2,671
The following table explains changes in the gross carrying amount of the loans and receivables to help explain
their significance to the changes in the loss allowance:
New Zealand loans receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount
12-month ECL
Lifetime ECL
Lifetime ECL
$’000
$’000
$’000
$’000
Balance at 1 July 2023
8,515
3,596
374
12,485
Movements with P&L impact
Transfers
Transfers from Stage 1 to Stage 2
(1,242)
1,242
-
-
Transfers from Stage 1 to Stage 3
(402)
-
402
-
Transfers from Stage 2 to Stage 1
-
-
-
-
Transfers from Stage 2 to Stage 3
-
(508)
508
-
Transfers from Stage 3 to Stage 1
-
-
-
-
Transfers from Stage 3 to Stage 2
-
58
(58)
-
New financial assets originated
7,041
2,450
297
9,788
Changes in outstanding balances
(513)
(603)
(74)
(1,190)
Written off and settled loans
(6,347)
(2,705)
(265)
(9,317)
Total net change during the period
(1,463)
(66)
810
(719)
Balance at 30 June 2024
7,052
3,530
1,184
11,766
In determining the recoverability of the New Zealand loan products, the Group considers any change in the credit
quality of the receivable from the date credit was initially granted up to the reporting date. The concentration
of credit risk is limited due to the customer base being large and unrelated. Accordingly, the Directors believe
that there is no further credit loss allowance required in excess of the loss allowance.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
82
The following table explains changes in the loss allowance between the beginning and end of the year:
UK receivables
Stage 1
Stage 2
Stage 3
Total
Loss allowance
12-month
ECL
Lifetime
ECL
Lifetime
ECL
$’000
$’000
$’000
$’000
Balance at 1 July 2023
-
-
-
-
Movements with P&L impact
Transfers
Transfers from Stage 1 to Stage 2
-
-
-
-
Transfers from Stage 1 to Stage 3
-
-
-
-
Transfers from Stage 2 to Stage 1
-
-
-
-
Transfers from Stage 2 to Stage 3
-
-
-
-
Transfers from Stage 3 to Stage 1
-
-
-
-
Transfers from Stage 3 to Stage 2
-
-
-
-
New financial assets originated from business combination
158
312
-
470
New financial assets originated
220
14
-
234
Balance changes within stages
20
140
-
160
Written off and settled loans
(146)
(298)
-
(444)
Total net change during the period
252
168
-
420
Balance at 30 June 2024
252
168
-
420
The following table explains changes in the gross carrying amount of the loans and receivables to help explain
their significance to the changes in the loss allowance:
UK receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount
12-month
ECL
Lifetime
ECL
Lifetime
ECL
$’000
$’000
$’000
$’000
Balance at 1 July 2023
-
-
-
-
Movements with P&L impact
Transfers
Transfers from Stage 1 to Stage 2
(291)
291
-
-
Transfers from Stage 1 to Stage 3
-
-
-
-
Transfers from Stage 2 to Stage 1
-
-
-
-
Transfers from Stage 2 to Stage 3
-
-
-
-
Transfers from Stage 3 to Stage 1
-
-
-
-
Transfers from Stage 3 to Stage 2
-
-
-
-
New financial assets originated from business combination
9,163
717
-
9,880
New financial assets originated
8,487
74
-
8,561
Changes in outstanding balances
276
95
-
371
Written off and settled loans
(7,717)
(672)
-
(8,389)
Total net change during the period
9,918
505
-
10,423
Balance at 30 June 2024
9,918
505
-
10,423
In determining the recoverability of the UK loan products, the Group considers any change in the credit quality
of the receivable from the date credit was initially granted up to the reporting date. The concentration of credit
risk is limited due to the customer base being large and unrelated. Accordingly, the Directors believe that there
is no further credit loss allowance required in excess of the loss allowance.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
83
Changes in the loss allowance between the beginning and end of the year are attributable to the following items:
Transfers to/(from) stages: movements due to transfers of credit exposures between Stage 1, Stage 2 and
Stage 3.
New financial assets originated: movements in credit exposures and provisions for impairment due to new
financial assets originated.
Changes in PDs/LGDs/EADs: movements due to changes in probability of default, loss given default and
exposure at default. Expected loss rates are based on payment profiles, age and expected lifetime of the
receivables, changes in underlying credit quality and historic loss experience.
Changes to model assumptions and methodologies: movements in provisions for impairment due to
adjustments reflecting forward-looking macro-economic information or other assumptions.
Written-off and settled loans: derecognition of credit exposures and provisions for impairment upon write-
off or repayment of receivables.
Accounting policy
Loan receivables that have fixed or determinable payments that are not quoted in an active market are classified
as loan receivables and are measured at amortised cost using the effective interest method including transaction
costs, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-
term receivables when the effect of discounting is immaterial.
Judgement – impairment of financial assets
Under AASB 9 Financial Instruments, a three-stage approach is applied to measuring ECL based on credit
migration between the stages as follows:
Stage 1
At initial recognition, a provision equivalent to 12 months ECL is recognised.
Stage 2
Where there has been a significant increase in credit risk (“SICR”) since initial recognition, a provision
equivalent to full lifetime ECL is required.
Stage 3
Lifetime ECL is recognised for loans where there is objective evidence of impairment.
ECL are probability weighted and determined by evaluating a range of possible outcomes, taking into account
the time value of money, past events, current conditions and forecasts of future economic conditions.
Probability of default
To measure the ECLs, loan receivables have been grouped based on shared credit risk characteristics and the
days past due. The expected loss rates are based on the payment profiles of loan receivables over a period prior
to 1 July 2024 and the corresponding historical credit losses experienced within this period. Default is defined
as 90 days past due. For personal loans, the days past due measure used to calculate probability of default is
based on days since last missed repayment and for vehicle finance loans, the days past due measure used to
calculate probability of default is based on contractual repayment arrears. The default definitions align with
definitions used for internal credit risk management purposes and reflect the unique customer repayment
behaviour, loan management and collections strategies applied to the different loan products.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
84
Macro-economic scenarios
The assessment of SICR and the calculation of ECL both incorporate forward-looking information. The Group has
performed historical analysis to identify key economic variables impacting credit risk and expected credit losses
for Personal Finance (Australia and New Zealand) and Vehicle Financing Loan (Australia only) receivables. ECLs
are a probability-weighted estimate of credit losses over the expected life of the financial instrument.
In compliance with AASB 9 and to account for additional risk, the ECL model is adjusted to reflect forward-looking
macro-economic information. Professional judgement is exercised in applying macro-economic adjustments. An
assessment was undertaken to determine the most relevant and reliable economic indicators on which to base
a forward-looking assessment of ECL.
For Australian loans, GDP Index and cash rate were chosen as key indicators of impairment levels for the
portfolios. For New Zealand loans, unemployment rate and percentage change in GDP were selected. Using
publicly available forecast rates for the indicators selected, alternate scenarios, outlined below, were
determined. Cost of living pressures were also a consideration.
The outcome of this macro-economic estimate is an additional $2.454 million (FY2023: additional $2.402 million)
provision for Australian personal loan receivables, an additional $0.193 million (FY2023: $0.278 million)
provision for New Zealand loan receivables and an additional $0.940 million (FY2023: $0.935 million) provision
for Vehicle Financing loan receivables.
The table below provides a summary of the macroeconomic variables used in the upside, baseline and downside
scenarios as at 30 June 2024.
Upside
Baseline
Downside
Financial year
Financial year
Financial year
2025
2026
2025
2026
2025
2026
AU Cash rate (%)
3.1
2.7
4.2
3.8
4.6
4.2
AU GDP index
116
122
114
119
104
109
NZ unemployment rate (%)
4.8
4.8
5.1
5.1
6.9
6.6
NZ percentage change in GDP (%)
1.7
3.1
1.1
2.4
0.0
1.7
Loss given default
Loss given default is estimated based on historical data related to amounts recovered post write off.
Write-off policy
The Group writes off financial assets in whole or in part on the following basis:
For Personal Finance loans, when payments on the loan reach 90 days past due, based on days since last
missed repayment, unless the loan is in a hardship arrangement or in dispute.
For NZ Personal Finance loans, when payments on the loan reach 90 days past due, based on days since last
repayment, unless the loan is in an arrangement with the customer.
For Vehicle Financing loans, the date on which all practical asset recovery efforts have been exhausted with
no reasonable expectation of further recoveries, if, prior to write off, a loan has reached 180 days in
contractual arrears and no payment has been received for 90 days it is subject to a specific provision for the
full outstanding balance.
Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity and (ii)
where the Group’s recovery method is foreclosing on collateral and the value of the collateral such that there is
no reasonable expectation of full recovery. Written off loans can subsequently be sent to third party collection
agents for recovery.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
85
7.d) Trade and other payables
30-Jun
30-Jun
2024
2023
$’000
$’000
Current
Trade payables
3,578
1,761
Accruals
23,671
17,223
27,249
18,984
The Group has financial risk management policies in place to ensure that all payables are paid within the allowed
credit period in order to avoid the payment of interest on outstanding accounts.
7.e) Borrowings
30-Jun
30-Jun
2024
2023
$'000
$'000
Current
Securitisation facility
102,289
109,044
Other borrowings
1,671
-
103,960
109,044
Non-current
Securitisation facility
37,065
27,947
Other borrowings
3,060
-
40,125
27,947
Total
144,085
136,991
The securitisation facility represents a liability owed by CCPF Receivables Trust No 1, a consolidated subsidiary
established as part of the borrowing arrangement with the Fortress Investment Group. This liability is secured
against eligible receivables (which includes Small and Medium Amount Credit Contracts issued by Cash
Converters Personal Finance and secured vehicle loans issued by Green Light Auto) which have been assigned
to the Trust. Collections from Trust receivables are used to pay interest of the securitisation facility, with the
remainder remitted to the Group twice per month. Receivables have maturities of up to 5 years and the facility
has accordingly been presented as current and non-current liabilities in line with the maturities of the underlying
receivables.
The Group renewed the loan securitisation facility with Fortress in June 2022. The facility has a three-year
availability period, with a four-year maturity term ending on 15 June 2026. The Group closed the year with
undrawn securitisation facility funding lines of $10.000 million (FY2023: $11.750 million). The Group is in
compliance with the requirements of the facility.
Subsequent to the year-end date the Group renewed the loan securitisation facility with Fortress on 27 August
2024. The facility has a three-year availability period, with a four-year maturity term ending on 27 August 2028.
Refer to note 18 for subsequent events information.
During the year Cash Converters (UK) Stores Ltd secured a new $1.910 million loan to finance the acquisition of
Themedawn Ltd. As part of the process it was necessary to refinance the 3 existing loans in line with their existing
terms and rates. All loans are structured with repayment schedules, with the initial refinanced loans of $2.824
million scheduled to be fully repaid by March 2026. The new $1.910 million loan is structured as interest-only
for the first year, with interest payments only due through to June 2025. Following this period, principal
repayments will commence over a three-year term, with the loan set to be fully paid by June 2028. Accordingly,
the loans are classified in the financial statements as both current and non-current liabilities based on their
respective maturities. These financing facilities are secured by the assets of Cash Converters (UK) Stores Ltd.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
86
Reconciliation of liabilities arising from financing activities – see note 10.c.
Financing arrangements
Unrestricted access was available at balance date to the following lines of credit:
30-Jun
30-Jun
2024
2023
$'000
$'000
Total facilities
Securitisation facilities
150,000
150,000
Used at balance date
Securitisation facilities
140,000
138,250
Unused at balance date
Securitisation facilities
10,000
11,750
Loan facility undertakings and review events
The Group’s borrowing facilities are subject to various undertakings. The securitisation facility has various
eligibility criteria which the receivables of the Group must meet to be funded under the facility. During the
reporting period there have been no events of default or potential events of default.
8. Non-financial assets and liabilities
8.a) Inventories
Inventories are valued at the lower of cost and net realisable value. Costs, including purchase costs are assigned
to individual inventory items on hand. Net realisable value represents the estimated selling price less all
estimated costs of completion and costs necessary to make the sale.
When determining the net realisable value of inventories, an estimation is made as to the costs necessary to
make the sale in the ordinary course of business. Judgement is applied to determine which costs are necessary
to make the sale considering the specific facts and circumstances, including the nature of the inventories.
30-Jun
30-Jun
2024
2023
$'000
$'000
New and pre-owned goods at cost
37,276
29,439
Provision for obsolete stock
(4,240)
(2,946)
New and pre-owned goods (net)
33,036
26,493
Notes to the financial statements
30 June 2024
Cash Converters International Limited
87
8.b) Property, plant and equipment
Leasehold
improvements
Plant and
equipment
Total
$'000
$'000
$'000
Cost
Balance at 1 July 2022
14,067
9,601
23,668
Additions
1,186
1,843
3,029
Additions from business combinations
3,035
1,496
4,531
Disposals
(1,720)
(641)
(2,361)
Foreign currency exchange differences
(33)
15
(18)
Balance at 30 June 2023
16,535
12,314
28,849
Additions
3,303
1,685
4,988
Additions from business combinations
4,365
2,203
6,568
Disposals
(785)
(897)
(1,682)
Foreign currency exchange differences
(6)
(7)
(13)
Balance at 30 June 2024
23,412
15,298
38,710
Depreciation
Balance at 1 July 2022
12,143
6,683
18,826
Disposals
(1,230)
(535)
(1,765)
Depreciation expense
702
1,056
1,758
Additions from business combinations
1,777
1,073
2,850
Impairment of non-current assets
319
289
608
Foreign currency exchange differences
(21)
11
(10)
Balance at 30 June 2023
13,690
8,577
22,267
Disposals
(543)
(440)
(983)
Depreciation expense
1,351
1,258
2,609
Additions from business combinations
2,862
1,171
4,033
Impairment of non-current assets
29
213
242
Foreign currency exchange differences
(135)
(45)
(180)
Balance at 30 June 2024
17,254
10,734
27,988
Net book value
Balance at 30 June 2023
2,845
3,737
6,582
Balance at 30 June 2024
6,158
4,564
10,722
An impairment of $0.242 million has been recognised in the year ended 30 June 2024 (FY2023: $0.608 million),
see note 5.
See note 25.c for the accounting policy.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
88
8.c) Leases
The Group’s weighted average incremental borrowing rates applied to the lease liabilities is 9.15% (FY2023:
8.26%) for leases in Australia, 8.61% (FY2023: 8.21%) for leases in New Zealand and 9.35% (FY2023: 7.33%) for
leases in the United Kingdom.
Right-of-use assets
30-Jun
30-Jun
2024
2023
$’000
$’000
Cost
Balance at beginning of year
88,687
82,151
Additions
5,207
1,579
Terminations
(3,396)
(3,012)
Other remeasurements
309
3,231
Additions from business combinations
11,293
5,602
Lease extensions
6,217
770
Lease reductions
(3,400)
(1,652)
Foreign currency exchange differences
(54)
18
Balance at end of year
104,863
88,687
Depreciation
Balance at beginning of year
41,641
31,930
Terminations
(3,329)
(3,012)
Depreciation expense
9,965
7,109
Impairment of non-current assets
(310)
5,610
Foreign currency exchange differences
(34)
4
Balance at end of year
47,933
41,641
Net book value
56,930
47,046
Amounts recognised in profit or loss
Depreciation expense on right-of-use assets
9,965
7,109
Interest expense on lease liabilities
5,761
5,245
Expense relating to short-term leases
651
298
Impairment of non-current assets
(310)
5,610
16,067
18,262
The Group right-of-use assets relate to property leases. The average remaining lease term is 5.48 years (FY2023:
5.95 years).
See note 25.b for the accounting policy.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
89
Lease liabilities
30-Jun
30-Jun
2024
2023
$'000
$'000
Current
8,541
7,276
Non-current
62,448
56,466
70,989
63,742
Maturity analysis
Year 1
14,485
12,215
Year 2
14,207
11,285
Year 3
12,733
10,783
Year 4
11,976
10,007
Year 5
10,951
9,758
Onwards
34,505
35,621
98,857
89,669
Less: unaccrued interest
(27,868)
(25,927)
70,989
63,742
The Group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are
monitored within the Group’s treasury function.
8.d) Goodwill
Net carrying amount
30-Jun
30-Jun
2024
2023
$'000
$'000
Balance at beginning of year
3,279
110,481
Recognition on business combinations
7,946
3,315
Impairment of goodwill
(3,295)
(110,481)
Foreign currency exchange differences
20
(36)
Balance at end of year
7,950
3,279
Goodwill related to the acquisitions of Cash Converters (UK) Stores Pty Ltd, Themedawn Limited (UK) and
Australian franchise stores during the period as disclosed in note 14 has been allocated to the relevant segments.
See note 5 relating to the impairment of non-current assets.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
90
Accounting policy
Goodwill arising on an acquisition of a business is carried at cost at the date of acquisition of the business less
accumulated impairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units
(“CGUs”) that are expected to benefit from the synergies of the combination. CGUs to which goodwill has been
allocated are tested for impairment annually, or more frequently when there is an indication that the unit may
be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is
allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets
of the unit pro rata based on the carrying amount of each asset in the CGU. An impairment loss recognised for
goodwill is recognised directly in profit or loss and is not reversed in subsequent periods.
On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the
profit or loss on disposal.
Allocation of goodwill to CGUs
Goodwill has been allocated for impairment testing purposes to the following CGUs or groups of CGUs:
30-Jun
30-Jun
2024
2023
$'000
$'000
Store Operations
549
-
New Zealand
-
3,279
UK
7,401
-
7,950
3,279
8.e) Intangible assets
Allocation of other intangible assets to CGUs
30-Jun
30-Jun
2024
2023
$'000
$'000
Personal Finance
5,037
4,395
Vehicle Financing
647
1,150
Store Operations
2,929
3,250
New Zealand
5,484
5,787
UK
6,201
1,283
Corporate Assets
4,873
4,678
25,171
20,543
Other intangible assets are allocated to their respective CGU and tested for impairment when impairment
indicators are identified. Intangible assets with indefinite lives included within other intangible assets are tested
for impairment annually. Refer to note 5 for details of impairment testing. The recoverable value of other
intangible assets is assessed using the same assumptions and methods as the goodwill for the related CGUs.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
91
Categories of other intangible assets
Reacquired
Rights
Trade names &
customer
relationships
Software
Total
$'000
$'000
$'000
$'000
Cost
Balance at 1 July 2022
9,573
17,463
22,175
49,211
Additions
-
-
1,539
1,539
Additions from business combinations
3,749
2,267
108
6,124
Foreign currency exchange differences
37
(25)
60
72
Balance at 30 June 2023
13,359
19,705
23,882
56,946
Additions
-
-
1,862
1,862
Additions from business combinations
6,533
-
-
6,533
Disposals
-
-
(29)
(29)
Foreign currency exchange differences
(8)
(9)
-
(17)
Balance at 30 June 2024
19,884
19,696
25,715
65,295
Amortisation
Balance at 1 July 2022
6,670
9,360
16,192
32,222
Amortisation expense
675
220
2,654
3,549
Additions from business combinations
-
-
108
108
Impairment of non-current assets
395
59
-
454
Foreign currency exchange differences
33
-
37
70
Balance at 30 June 2023
7,773
9,639
18,991
36,403
Disposals
-
-
(29)
(29)
Amortisation expense
1,772
212
1,708
3,692
Impairment of non-current assets
71
(3)
-
68
Foreign currency exchange differences
(9)
-
(1)
(10)
Balance at 30 June 2024
9,607
9,848
20,669
40,124
Net book value
Balance at 30 June 2023
5,586
10,066
4,891
20,543
Balance at 30 June 2024
10,277
9,848
5,046
25,171
Impairment of $0.068 million has been recognised in the year ended 30 June 2024 (FY2023: $0.454 million), see
note 5.
See note 25.d for the accounting policy.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
92
8.f) Deferred tax balances
30-Jun
30-Jun
2024
2023
$'000
$'000
Deferred tax assets
Allowance for expected credit losses
14,559
12,541
Accruals
1,138
371
Provisions
7,355
5,104
Leases
20,918
17,366
Other
526
144
Carry forward losses
8,312
9,506
52,808
45,032
Deferred tax liabilities
Fixed assets
(959)
(1,053)
Leases
(16,459)
(12,496)
Intangible assets
(3,750)
(1,112)
Other
(341)
(702)
(21,509)
(15,363)
Net deferred tax assets
31,299
29,669
Reconciliation of net deferred tax assets
Opening balance at beginning of period
29,669
26,089
Tax expense during period recognised in profit or loss
2,745
2,798
Tax on business combinations
(715)
(301)
Prior year adjustment
(400)
431
Other
-
652
Closing balance at end of period
31,299
29,669
A net deferred tax asset of $31.299 million (FY2023: $29.669 million) is recognised in the consolidated statement
of financial position. There is a critical accounting judgement with respect to the recognition of deferred tax
assets including where they arise from previous years losses and will be offset against any future taxes on profit.
In making this assessment, a forward-looking estimation of taxable profit was made, based on management’s
best estimate of future performance from continuing operations as at 30 June 2024.
This includes a deferred tax asset in respect of carry forward losses of $7.684 million (FY2023: $8.607 million)
recognised in relation to the Group’s UK operations. Profit has been achieved in the last three years with the
FY2024 year reflecting utilisation of the carry forward losses because of taxable profits arising. Ongoing taxable
profit forecasts have supported continued recognition in full of the deferred tax asset that arises from unused
tax losses from previous years. Also included, is a deferred tax asset in respect of carry forward losses of $0.628
million (FY2023: $0.899 million) recognised in relation to the Group’s NZ operations.
Continuing operations in Australia made a taxable profit during the current year and is expected to be profitable
in future years, therefore supporting the recognition of net deferred tax assets arising from temporary
differences in Australia.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
93
A summary of the Group’s net deferred tax asset position by geographic location is below:
30-Jun
30-Jun
2024
2023
$'000
$'000
Australia
22,933
20,954
New Zealand
698
413
United Kingdom
7,668
8,302
31,299
29,669
8.g) Provisions
30-Jun
30-Jun
2024
2023
$'000
$'000
Current
Employee benefits
10,953
10,419
Fringe benefits tax
87
87
Make good obligation of property leases
717
633
Other
230
641
11,987
11,780
Non-current
Employee benefits
784
490
Make good obligation of property leases
7,658
3,850
8,442
4,340
Notes to the financial statements
30 June 2024
Cash Converters International Limited
94
Movements in the provisions were as follows:
Employee
benefits
Fringe
benefits tax
Make good -
leases
Other
Total
$'000
$'000
$'000
$'000
$'000
2024
Carrying amount at start of year
10,909
87
4,483
641
16,120
Acquired through business
combinations
496
-
3,628
-
4,124
Transfer from share-based
payment reserve
-
-
-
-
-
Remeasurements and additions
-
-
1,133
-
1,133
Charged to profit or loss
623
16
(370)
28
297
Utilised during the year
(287)
(16)
(497)
(440)
(1,240)
Foreign currency exchange
differences
(4)
-
(2)
1
(5)
Carrying amount at end of year
11,737
87
8,375
230
20,429
2023
Carrying amount at start of year
9,360
37
2,099
921
12,417
Acquired through business
combinations
677
-
461
-
1,138
Transfer from share-based
payment reserve
-
-
-
198
198
Remeasurements and additions
-
-
2,046
-
2,046
Charged to profit or loss
897
55
101
-
1,053
Utilised during the year
(19)
(5)
(221)
(501)
(746)
Foreign currency exchange
differences
(6)
-
(3)
23
14
Carrying amount at end of year
10,909
87
4,483
641
16,120
Notes to the financial statements
30 June 2024
Cash Converters International Limited
95
9. Issued capital
Total issued capital
30-Jun
30-Jun
30-Jun
30-Jun
2024
2023
2024
2023
Number
Number
$’000
$’000
Balance at beginning of period
627,545,015
627,545,015
251,213
251,213
Issued during the period
-
-
-
-
Balance at end of period
627,545,015
627,545,015
251,213
251,213
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Issued capital excluding treasury shares
30-Jun
30-Jun
30-Jun
30-Jun
2024
2023
2024
2023
Number
Number
$’000
$’000
Balance at beginning of period
622,019,969
621,285,981
249,860
249,663
Treasury shares acquired by employee share
trust
(3,230,154)
(5,525,046)
(672)
(1,353)
Treasury shares issued by employee share trust
5,525,046
6,259,034
1,353
1,550
Balance at end of period
624,314,861
622,019,969
250,541
249,860
Treasury shares
30-Jun
30-Jun
30-Jun
30-Jun
2024
2023
2024
2023
Number
Number
$’000
$’000
Balance at beginning of period
5,525,046
6,259,034
1,353
1,550
Treasury shares acquired
3,230,154
5,525,046
672
1,353
Treasury shares issued
(5,525,046)
(6,259,034)
(1,353)
(1,550)
Balance at end of period
3,230,154
5,525,046
672
1,353
Shares issued to employees are recognised on a first-in-first-out basis. The shares may be acquired on market
and are held as treasury shares until such time as they are vested. Forfeited shares are reallocated in subsequent
grants. Under the terms of the trust deed, Cash Converters is required to provide the employee share trust with
the necessary funding for the acquisition of shares.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
96
10. Cash flow information
10.a) Reconciliation of profit after income tax to net cash inflow from operating activities
30-Jun
30-Jun
2024
2023
$’000
$’000
Profit / (loss) after tax
17,397
(97,155)
Non-cash adjustment to reconcile profit after tax to net cash flows:
Loss on disposal of non-current assets
130
16
Amortisation
3,692
3,549
Depreciation
12,574
8,867
Movement in expected credit loss provision
1,931
5,071
Impairment of goodwill
3,295
110,481
Impairment of non-current assets
-
6,672
Share-based payments
831
807
Lease modification
(1,447)
(1,780)
Share of net profit of equity accounted investment
-
(251)
Changes in assets and liabilities:
Trade and loan receivables
(6,026)
(44,892)
Inventories
2,574
(1,093)
Other assets
(428)
(642)
Trade and other payables
3,760
1,279
Provisions
185
2,340
Income tax payables
(15)
(4,805)
Net cash provided by / (used in) operating activities
38,453
(11,536)
Cash flows are included in the cash flow statement on a net basis. The GST component of cash flows arising from
investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as
operating cash flows.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
97
10.b) Non-cash investing and financing activities
30-Jun
30-Jun
2024
2023
$'000
$'000
Net recognition of right of use asset and liability
6,799
2,162
Share based payment reserve transferred to retained earnings
29
723
Share based payment reserve transferred to provisions
-
198
10.c) Reconciliation of liabilities arising from financing activities
Opening
Net
Non-cash
Closing
cashflows
transaction
costs
$'000
$'000
$'000
$'000
2024
Borrowing facilities
138,250
1,750
4,241
144,241
Transaction costs and other
(1,259)
-
1,103
(156)
Lease liabilities
63,742
(15,247)
22,494
70,989
200,733
(13,497)
27,838
215,074
2023
Borrowing facilities
70,250
68,000
-
138,250
Transaction costs and other
(1,885)
-
626
(1,259)
Lease liabilities
64,817
(12,233)
11,158
63,742
133,182
55,767
11,784
200,733
Notes to the financial statements
30 June 2024
Cash Converters International Limited
98
11. Critical estimates and judgements
In applying the Group's accounting policies, management continually evaluates judgements, estimates and
assumptions based on experience and other factors, including expectations of future events that may have an
impact on the Group. All judgements, estimates and assumptions made are believed to be reasonable based on
the most current set of circumstances available to management. Actual results may differ from the judgements,
estimates and assumptions. Significant judgements, estimates and assumptions made by management in the
preparation of these financial statements are outlined below.
Significant accounting judgements
In the process of applying the Group’s accounting policies, management has made the following judgements,
apart from those involving estimations, which have the most significant effect on the amount recognised in the
financial statements:
Recoverability of deferred tax assets – see note 6.c
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions
of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of certain assets and liabilities within the next annual reporting period are:
Impairment of goodwill and other intangible assets – see note 5 and 8.d
Incremental borrowing rate used in calculating lease asset and liability values – see note 8.c
Useful lives of property, plant and equipment – see note 25.c
Useful lives of other intangible assets – see note 25.d
Impairment of financial assets (including loan receivables) – see note 7.b and 7.c
Impairment for inventory – see note 8.a
What constitutes a business combination – see note 14
Fair value of performance rights granted – see note 20.b
Notes to the financial statements
30 June 2024
Cash Converters International Limited
99
12. Financial risk management
The Group’s activities expose the Group to a variety of financial risks: market risks (including currency risk and
interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on financial performance.
Financial risk and capital management is carried out in accordance with policies approved by the Board. The
Board reviews and approves written principles of overall risk management, as well as written policies covering
specific areas such as managing capital, mitigating interest rates, liquidity, foreign exchange and credit risk. The
Audit and Risk Committee assists the Board in monitoring the implementation of risk management policies.
The Group’s treasury function provides services to the business, co-ordinates access to domestic and
international financial markets, and manages the financial risks relating to the operations of the Group. The
Group does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes.
12.a) Categories of financial instruments
30-Jun
30-Jun
2024
2023
$'000
$'000
Financial assets
Cash and cash equivalents
56,289
71,565
Trade and other receivables
13,981
10,219
Loan receivables
238,712
224,729
308,982
306,513
Financial liabilities
Trade and other payables
27,249
18,984
Borrowings
144,085
136,991
171,334
155,975
The Group has no material financial assets or liabilities that are held at fair value.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
100
12.b) Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. The types of market risks to which the Group is exposed and the manner in which it manages and
measures the risk remain consistent with the previous period.
12.b) i) Foreign exchange risk
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange
rate fluctuations arise. As a result of operations in New Zealand and the United Kingdom, the Group’s balance
sheet can be affected by movements in the AUD/NZD and AUD/GBP exchange rates. Spot exchange rates are
normally used to translate transactions into the reporting currency.
12.b) ii) Cash flow and fair value interest rate risk
The Company and the Group are exposed to interest rate risk as entities in the consolidated Group borrow funds
at variable rates and place funds on deposit at variable rates. Loans issued by the Group are at fixed rates.
Interest rate risk is managed by the Group through monitoring interest rates and detailed forecasting of the
operating cashflows of the underlying businesses.
The Company and the Group’s exposures to interest rates on financial assets and financial liabilities are detailed
in note 12.e and 12.f.
12.b) iii) Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates at the reporting
date and the stipulated change taking place at the beginning of the financial year and held constant throughout
the reporting period. A 50-basis point increase or decrease is used because this represents management’s
assessment of the possible change in interest rates.
At reporting date, if interest rates had been 50 basis points higher or lower and all other variables were held
constant, the Group’s net profit would increase/decrease by approximately $0.561 million (FY2023:
increase/decrease by approximately $0.613 million).
12.c) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group does not have any significant credit risk exposure to any single counterparty or any
group of counterparties having similar characteristics, other than its franchisees. Refer to note 7.b and 7.c. The
Group has a policy of obtaining sufficient collateral or other securities from franchisees. Most loans within the
financing divisions relate to loans made by Cash Converters Personal Finance and Green Light Auto which may
be both secured and unsecured loans. Credit risk is present in relation to all loans made, which is managed within
an agreed corporate policy on customer acceptance and ongoing review of recoverability. For secured loans, the
credit risk considers the underlying value of the collateral against the loan.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
101
12.d) Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have established a
comprehensive liquidity risk management framework to address the Group’s short, medium, and long-term
funding and liquidity needs. The Group manages liquidity risk by maintaining adequate cash reserves, banking
facilities, and reserve borrowing facilities, including the availability of a warehouse securitization facility. This
facility allows the Group to securitize loan portfolios, providing an additional source of liquidity.
The Group continuously monitors forecasted and actual cash flows, ensuring that financial assets and liabilities
are matched in terms of maturity profiles. To further reduce liquidity risk, the Group also has access to
additional undrawn facilities, as detailed in note 7.e.
12.e) Remaining contractual maturity for its financial liabilities
The following table details the Group’s remaining contractual maturity for its financial liabilities. The table has
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Group can be required to pay. The table includes both interest and principal cash flows.
To the extent that interest flows are at floating rates, the undiscounted amount is derived from interest rate
curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the
Group may be required to pay.
1 year or
less
1 to 5
years
More than
5 years
Total
Carrying value
30 June
$'000
$'000
$'000
$'000
$'000
2024
Non-interest bearing
27,249
-
-
27,249
27,249
Variable interest rate instruments
16,300
156,300
-
172,600
144,085
43,548
156,300
-
199,848
171,334
2023
Non-interest bearing
18,984
-
-
18,984
18,984
Variable interest rate instruments
14,262
166,228
-
180,490
136,991
33,246
166,228
-
199,474
155,975
The amounts included above for variable interest rate instruments are subject to change if actual rates differ
from those applied in the above average calculations.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
102
12.f) Financial assets
The following table details the Group’s expected maturity for its financial assets. The table below has been drawn
up based on the undiscounted contractual maturities of the financial assets including interest that will be earned
on those assets except where the Group anticipates that the cash flow will occur in a different period.
1 year or
less
1 to 5
years
More than
5 years
Total
$'000
$'000
$'000
$'000
2024
Non-interest bearing
28,651
-
-
28,651
Fixed interest rate instruments
7,426
7,709
-
15,135
Variable interest rate instruments
27,878
-
-
27,878
63,955
7,709
-
71,664
2023
Non-interest bearing
54,926
-
-
54,926
Fixed interest rate instruments
7,071
5,008
-
12,079
Variable interest rate instruments
15,693
-
-
15,693
77,690
5,008
-
82,698
The amounts included above for variable interest rate instruments are subject to change if actual rates differ
from those applied in the above average calculations.
12.g) Fair value of financial instruments
The fair value of the Group’s financial assets and liabilities are determined on the following basis:
Financial assets and financial liabilities that are not measured at fair value on a recurring basis (but where fair
value disclosures are required)
At 30 June 2024 and 30 June 2023, the carrying amount of financial assets and financial liabilities for the Group
is considered to approximate their fair values.
The fair value of the monetary financial assets and financial liabilities is based upon market prices where a
market price exists or by discounting the expected future cash flows by the current interest rates for assets and
liabilities with similar risk profiles.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
103
Financial assets and financial liabilities that are measured at fair value on a recurring basis
Subsequent to initial recognition, at fair value financial instruments are grouped into Levels 1 to 3 based on the
degree to which the fair value is observable. Levels are defined as follows:
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for
identical assets or liabilities.
Level 2 fair value measurements are those derived from inputs other than quoted prices included with
Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived
from prices).
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the
asset or liability that are not based on observable market data (unobservable inputs).
At 30 June 2024 and 30 June 2023, the Group has no material financial assets and liabilities that are measured
on a recurring basis at fair value.
13. Capital management
13.a) Risk management
The Board determines the appropriate capital structure of the Group, specifically how much is raised from
shareholders (equity) and how much is borrowed from financial institutions and capital markets (debt), in order
to finance the Group’s activities both now and in the future.
The Board considers the Group’s capital structure and its dividend policy at least twice a year ahead of
announcing results, in the context of its ability to continue as a going concern, to execute the strategy and to
deliver its business plan.
Financial risk and capital management is carried out in accordance with policies approved by the Board. The
Board reviews and approves written principles of overall risk management, as well as written policies covering
specific areas such as managing capital, mitigating interest rates, liquidity, foreign exchange and credit risk. The
Audit and Risk Committee assists the Board in monitoring the implementation of risk management policies.
13.b) Dividends
Year ended
Year ended
30-June-2024
30-June-2023
Cents per
share
$'000
Cents per
share
$'000
Recognised amounts on fully paid ordinary shares
2022 Final dividend
Paid
14-Oct-22
1.00
6,275
2023 Interim dividend
Paid
14-Apr-23
1.00
6,275
2023 Final dividend
Paid
13-Oct-23
1.00
6,275
2024 Interim dividend
Paid
12-Apr-24
1.00
6,275
12,550
12,550
Unrecognised amounts on fully paid ordinary shares
2023 Final dividend
Paid
13-Oct-23
1.00
6,275
2024 Final dividend
To be paid
11-Oct-24
1.00
6,275
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the
reporting period.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
104
Franking credits
30-Jun
30-Jun
2024
2023
$'000
$'000
Franking credits available on a tax paid basis
74,544
72,531
14. Business combination
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration
for each acquisition is measured at the aggregate of the fair values (at the date of exchange) of assets given,
liabilities incurred or assumed, and equity instruments issued by the consolidated entity in exchange for control
of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, the consolidated entity reports provisional amounts for the items for which the accounting
is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or
liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of
the acquisition date that, if known, would have affected the amounts recognised as of that date. The
measurement period is the period from the date of acquisition to the date the consolidated entity obtains
complete information about facts and circumstances that existed as of the acquisition date – and is subject to a
maximum of one year.
During the period the Group acquired:
Cash Converters (UK) Stores (formerly Capital Cash Limited (“Capital Cash”)), previously the largest franchise
group in the United Kingdom, which includes a network of 42 stores, for a total consideration of $23.072
million ($20.355 million, net of cash acquired)
Themedawn Limited (“Themedawn”), a franchise group within the United Kingdom, which includes a
network of 5 stores, for a total consideration of $1.591 million ($1.462 million, net of cash acquired)
The trade and other assets of three Cash Converters franchised stores in Australia (listed below) for total
consideration of $2.586 million ($2.528 million, net of cash acquired)
Store
State
Acquisition date
Penrith
NSW
2 November 2023
Ipswich
QLD
8 November 2023
Belmont
WA
12 December 2023
These acquisitions support the ongoing Group objective to acquire earnings accretive store networks, based on
sensible valuation metrics, which will accelerate Group earnings.
The values identified in relation to the Cash Converters (UK) Stores (“CCUKS”) and Australian franchise
acquisitions during the current period are final as at the reporting date.
The values identified in relation to the Themedawn acquisition during the current period are provisional as at
the reporting date, as the allocation of fair values to the individual assets and liabilities has yet to be finalised.
This includes the identification and valuation of separately identifiable intangible assets and the recognition of
any deferred tax balances arising on acquisition.
The New Zealand Cash Converters (“CCNZ”) network, consisting of 11 Corporate stores and the rights to
franchise fees of 11 franchise stores was acquired in the comparative year ended 30 June 2023.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
105
14.a) Summary of acquisition
The determined fair values of the assets and liabilities acquired during the periods as at the date of acquisition
are as follows, along with finalised fair values of the assets and liabilities acquired during the prior comparative
period:
Themedawn
Australian
Franchises
CCUKS
New Zealand
1-Jun-24
FY2024
6-Jul-23
30-Nov-22
$'000
$'000
$'000
$'000
Net assets acquired
Cash and cash equivalents
129
58
2,717
1,593
Trade and other receivables
16
10
1,197
556
Prepayments
4
-
973
217
Loan Receivables
586
1,035
9,294
12,000
Provision for loan receivables
(25)
(268)
(445)
(3,298)
Inventories
347
595
8,175
1,456
Plant and Equipment
189
350
1,996
1,681
Other intangible assets
206
587
5,740
6,016
Right of use assets
1,161
2,185
7,947
5,602
Deferred tax liability
(30)
-
(685)
(301)
Borrowings
(82)
-
(4,159)
-
Trade and other payables
(125)
(9)
(5,536)
(1,282)
Provisions
(404)
(486)
(3,234)
(1,138)
Lease liabilities
(1,161)
(2,020)
(7,525)
(5,896)
811
2,037
16,455
17,206
Consideration satisfied in cash
1,591
2,586
23,072
15,391
Previously recognised equity interest
-
-
-
5,130
Goodwill arising on the acquisition
780
549
6,617
3,315
Goodwill arose in the business combinations because the cost of the combinations included a control premium
paid to acquire the CCUKS network, Themedawn network and Australian franchise stores. In addition, the
consideration paid for the combinations effectively included amounts in relation to the benefit of expected
synergies, revenue growth, future market development and the assembled workforce of the network. These
benefits are not recognised separately from goodwill as the future economic benefits from them cannot be
reliably measured.
No amount of the Goodwill recognised is expected to be deductible for tax purposes. Goodwill is tested annually
for impairment.
14.b) Purchase consideration – cash outflow
30-Jun-24
30-Jun-23
$'000
$'000
Cash outflow to acquire business combinations
Cash consideration
27,249
15,391
Less cash balances acquired
(2,904)
(1,593)
Net outflow of cash - investing activities
24,345
13,798
Notes to the financial statements
30 June 2024
Cash Converters International Limited
106
14.c) Revenue and profit or loss contribution
Cash Converters UK Stores (“CCUKS”)
The CCUKS business contributed revenues of $60.419 million and net profit before income tax of $3.423 million
to the Group for the period from 1 July 2023 to 30 June 2024.
Australian franchise store acquisitions
The acquired Australian franchise stores contributed revenues of $3.579 million and net profit before income
tax of $0.269 million to the Group for the periods from their respective dates of acquisition to 30 June 2024.
If the acquisitions had occurred on 1 July 2023, for the year ended 30 June 2024 consolidated pro-forma revenue
for the Group would include an additional $2.268 million and the consolidated pro-forma net profit before
income tax would include an additional profit of $0.138 million. These amounts have been calculated using the
data examined as part of the due diligence conducted prior to the Australian franchise acquisitions.
Themedawn Limited (UK)
Themedawn contributed revenues of $0.563 million and net profit before income tax of $0.056 million to the
Group for the period from 1 June 2024 to 30 June 2024.
If the acquisition had occurred on 1 July 2023, for the year ended 30 June 2024 consolidated pro-forma revenue
for the Group would include an additional $8.492 million and the consolidated pro-forma net profit before
income tax would include an additional profit of $0.225 million. These amounts have been calculated using the
May 2024 year-to-date trial balance provided as part of the purchase price accounting process.
New Zealand
The acquired business contributed revenues of $13.810 million and net loss before income tax of $2.566 million
to the Group for the period from 30 November 2022 to 30 June 2023.
If the acquisition had occurred on 1 July 2022, for the year ended 30 June 2023 consolidated pro-forma revenue
for the Group would include an additional $9.177 million and the consolidated pro-forma net profit before
income tax would include an additional profit of $0.783 million. These amounts have been calculated using the
monthly financials provided under the previously recorded equity accounting method.
14.d) Acquisition related costs
Acquisition related costs are included within the statement of profit or loss, operating cash flows and in the
statement of cash flows as summarised below:
Themedawn
Limited (UK)
Australian
Franchises
CCUKS
1-Jun-24
FY2024
6-Jul-23
$’000
$’000
$’000
Acquisition related costs
Administrative expenses
-
150
165
Other expenses
131
14.e) Prior period
The business combinations completed during FY2023 were all finalised as at 30 June 2023 and as such there are
no further changes to the accounting for those business combinations.
189
-
Notes to the financial statements
30 June 2024
Cash Converters International Limited
107
14.f) Significant accounting judgements, estimates and assumptions
The Group has applied judgement in determining what constitutes a business combination as well as applying
judgement to classify all aspects of CCUKS as a single business combination – that is, an aggregation of retail,
pawnbroking and general head office. This business combination is structured in a way that the acquired
business becomes a 100% owned subsidiary of Cash Converters UK Holdings Ltd, which itself is a 100% owned
subsidiary of CCIL.
The Group has applied judgement to classify the individual Australian franchise businesses acquired as
individually immaterial and as such has disclosed the business acquisitions in aggregate. This is consistent with
past acquisitions of Australian franchise stores.
The Themedawn acquisition has been provisionally accounted for as the allocation of fair value across the
separately identifiable intangible assets and the recognition of any deferred tax balances arising on acquisition
has yet to be completed and the harmonisation of accounting policies of UK franchise acquisitions with those of
the holding company is still in progress.
15. Interests in other entities
15.a) Subsidiaries
Controlled entities of Cash Converters International Limited:
Name of entity
Country of
incorporation
Ownership interest
2024
2023
Cash Converters (Cash Advance) Pty Ltd
1
2
Australia
100%
100%
Cash Converters (Stores) Pty Ltd
1
2
Australia
100%
100%
Cash Converters Personal Finance Pty Ltd
1
2
Australia
100%
100%
Finance Administrators of Australia Pty Ltd
1
2
Australia
100%
100%
Mon-E Pty Ltd
1
2
Australia
100%
100%
CCPF Receivables Trust No 1
2
Australia
100%
100%
Cash Converters Pty Ltd
1
2
Australia
100%
100%
Cash Converters Finance Corporation Pty Ltd
3 4
Australia
64.33%
64.33%
Cash Converters UK Holdings Ltd
UK
100%
100%
Cash Converters (UK) Stores Ltd
UK
100%
100%
Cash Converters (UK) Ltd
UK
100%
100%
Themedawn Limited (UK)
UK
100%
100%
Cash Converters (NZ) Pty Ltd
1
2
Australia
100%
100%
Cash Converters Holdings (NZ) Ltd
NZ
100%
100%
Cash Converters (NZ) Personal Finance Ltd
NZ
100%
100%
Cash Converters (NZ) Franchise Ltd
NZ
100%
100%
Cash Converters (NZ) Stores Ltd
NZ
100%
100%
Cash Converters USA Pty Ltd
3 4
Australia
99.285%
99.285%
CC Acquisitions Pty Ltd
2
Australia
100%
100%
Green Light Auto Group Pty Limited
1
2
Australia
100%
100%
Safrock Finance Corporation (QLD) Pty Ltd
2
Australia
100%
100%
Cash Converters Employee Share Trust
Australia
100%
100%
1
These companies are parties to the Deed of Cross Guarantee and members of the Closed Group as at 30 June 2024.
2
These companies are members of the Australian tax consolidated group.
3
Non-controlling interest is not considered material in these subsidiaries.
4
Converted from a public company limited by shares to a proprietary company limited by shares during the prior period.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
108
15.b) Deed of cross guarantee
Cash Converters International Limited and certain wholly-owned companies (“the Closed Group”), identified in
note 15.a) above, are parties to a Deed of Cross Guarantee (“the Deed”). The effect of the Deed is that members
of the Closed Group guarantee to each creditor payment in full of any debt in the event of winding up of any of
the members under certain provisions of the Corporations Act 2001. ASIC Corporations Instrument 2016/785,
issued on 28 September 2016, provides relief to parties to the Deed from the Corporations Act 2001
requirements for preparation, audit and lodgement of financial reports and Directors’ reports, subject to certain
conditions as set out therein.
Pursuant to the requirements of this Corporations Instrument, a summarised consolidated statement of profit
or loss and other comprehensive income for the year ended 30 June 2024 and consolidated statement of
financial position as at 30 June 2024, comprising the members of the Closed Group after eliminating all
transactions between members, are set out on the following pages.
Although CCPF Receivables Trust No 1 is not a party to the Deed, this entity facilitates the Fortress Investment
Group borrowings within the Group (note 7.e) and as a result, for transparency and consistency with prior
reporting periods, the Group has elected to include them within the Closed Group results below.
Summarised statement of profit or loss and comprehensive income
30-Jun
30-Jun
2024
2023
$'000
$'000
Profit / (loss) before income tax
21,443
(91,488)
Income tax expense
(8,048)
(5,657)
Total comprehensive income / (loss)
13,395
(97,145)
Summary of movements in Closed Group’s retained (losses) / earnings
30-Jun
30-Jun
2024
2023
$'000
$'000
Retained (losses) / earnings at beginning of year
(63,818)
46,600
Transfer reserve balance
(29)
(723)
Dividend paid
(12,550)
(12,550)
Net profit / (loss)
13,395
(97,145)
Retained losses at end of year
(63,002)
(63,818)
Notes to the financial statements
30 June 2024
Cash Converters International Limited
109
Statement of financial position
30-Jun
30-Jun
2024
2023
$'000
$'000
Current assets
Cash and cash equivalents
47,241
62,918
Trade and other receivables
4,617
2,750
Loan receivables
170,547
182,068
Inventories
22,969
26,494
Prepayments
2,494
2,365
Total current assets
247,868
276,595
Non-current assets
Trade and other receivables
21,788
1,739
Loan receivables
58,162
42,660
Plant and equipment
7,929
6,485
Right-of-use assets
48,741
46,858
Deferred tax assets
23,632
21,366
Goodwill
549
3,279
Other intangible assets
19,258
19,592
Total non-current assets
180,059
141,979
Total assets
427,927
418,574
Current liabilities
Trade and other payables
15,600
12,990
Lease liabilities
7,271
7,196
Current tax payable
3,212
338
Borrowings
102,289
109,044
Provisions
11,405
11,531
Total current liabilities
139,777
141,099
Non-current liabilities
Lease liabilities
55,889
56,301
Borrowings
37,065
27,948
Provisions
5,370
4,319
Total non-current liabilities
98,324
88,568
Total liabilities
238,101
229,667
Net assets
189,826
188,907
Equity
Issued capital
250,541
249,860
Reserves
2,287
2,865
Retained losses
(63,002)
(63,818)
Total equity
189,826
188,907
Notes to the financial statements
30 June 2024
Cash Converters International Limited
110
15.c) Interests in associates
Prior to 30 November 2022 the Group held an investment in the Cash Converters Holdings Limited Partnership,
the master franchisor in New Zealand. The company held a 25% equity interest (ownership and voting interest)
in all aspects of the New Zealand enterprise, including corporate stores, franchise contracts and financial
services. On 30 November 2022, the Group acquired the remaining 75% interest (refer to note 14). This business
combination is structured in such a way that the acquired business is now recognised as a 100% owned
subsidiary of CCIL.
A fair value assessment of the equity interest held by the business as at acquisition date was performed, based
on the total consideration paid for the acquisition. This assessment determined that the previously held equity
interest of $5.338 million was being held above fair value. As a result, an adjustment was made at acquisition
date to reduce the equity interest by $0.208 million, with an equivalent expense recognised through other
expenses in the statement of profit or loss and other comprehensive income in FY2023.
Summarised financial information
In FY2023, the Group ceased its holdings in Cash Converters Holdings Limited Partnership and consequently, no
assets or liabilities are reflected in the summary of financial information.
16. Contingent liabilities
The Group undertakes ongoing compliance activities including regular engagement with regulators, breach
reporting, reviews of product offerings and customer conduct and service delivery supervision. Where a breach
has occurred, regulators may impose or apply to a Court to seek fines and / or other sanctions. These matters
include investigations of a number of issues which were notified to, or identified by, regulators.
In the past some of these activities have resulted in remediation programs. Where required, the Group consults
with the relevant regulator on the proposed remediation action. It should be noted that, whilst no action is
currently underway, there are matters ongoing where the Group is providing information requested by
regulators to support its compliance with laws and regulatory obligations.
The Group occasionally receives claims and writs for damages and other matters arising from its operations.
Where in the opinion of the Directors it is deemed appropriate, a specific provision is made, otherwise the
Directors deem such matters are either without merit or of such kind or involve such amounts that would not
have a material adverse effect on the operating results or financial position of the economic entity if disposed
of unfavourably.
The Directors are not aware of any material contingent liabilities in existence as at 30 June 2024 requiring
disclosure in the financial statements.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
111
17. Commitments
The Group has services contracts on software subscriptions, marketing retainers and consulting services. The
minimum contractual commitments resulting from these agreements are outlined below.
Capital expenditure
As at 30 June 2024, capital expenditure commitments were $232 thousand (2023: nil).
Other contractual commitments
30-Jun
30-Jun
2024
2023
$'000
$'000
Within one year
4,094
3,094
One to five years
2,992
1,567
Longer than five years
109
225
7,195
4,886
As at 30 June 2024, revolving credit commitment on the Line of Credit loans to customers was 30 June 2024,
$1.543 million (FY2023: $0.510 million)
18. Events occurring after the reporting period
As announced to the market on 27 August 2024 a renewal of the securitisation facility with Fortress Investment
Group was completed.
The following key terms were agreed as part of the renewed facility:
Facility size increased to $200 million from $150 million.
Pricing based on a margin over the Bank Bill Swap Rate (BBSW).
Provides growth capital for the personal finance lending business including new products.
Availability period extended for a further three years to 27 August 2027 and maturity date extended to
27 August 2028.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
112
19. Related party transactions
19.a) Subsidiaries
The immediate parent and ultimate controlling party of the Group is Cash Converters International Limited.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and are not disclosed in this note.
19.b) Key management personnel compensation
Details of Directors and other members of KMP of Cash Converters International Limited during the year are:
Non-executive Directors
Mr Timothy Jugmans
Chairman and Non-Executive Director
Mr Lachlan Given
Non-Executive Director
Mr Robert Hines
Non-Executive Director
Chair of Audit and Risk Committee
Chair of Board Investment Committee
Governance, Remuneration and Nomination Committee member
Mr Henry Shiner
Non-Executive Director
Audit and Risk Committee member
Board and Investment Committee member
Governance, Remuneration and Nomination Committee member
Mr Mark Ashby
Non-Executive Director
Chair of Governance, Remuneration and Nomination Committee
(appointed 6 October 2023)
Mr Andrew Spicer
Non-Executive Director
(appointed 22 May 2024)
Ms Susan Thomas
Non-Executive Director
Audit and Risk Committee member
Board and Investment Committee member
Governance, Remuneration and Nomination Committee member
(resigned 30 September 2023)
Ms Julie Elliott
Non-Executive Director
Chair of Governance, Remuneration and Nomination Committee
Audit and Risk Committee member
Board and Investment Committee member
(resigned 22 May 2024)
Executive Directors
Mr Sam Budiselik
Chief Executive Officer & Managing Director
Mr Peter Cumins
Executive Deputy Chairman
Executive KMP
Ms Lisa Stedman
Chief Operating Officer
Mr James Miles
Chief Information Officer
Mr Jonty Gibbs
Chief Financial Officer
Mr Luis San Martin
Chief Risk Officer (appointed 1 March 2024)
Mr Andrew Kamp
Chief Strategy & Commercial Development Officer (appointed 7 August 2023)
Notes to the financial statements
30 June 2024
Cash Converters International Limited
113
The aggregate compensation of the KMP of the Group is set out below:
30-Jun
30-Jun
2024
2023
$
$
Short-term employee benefits
5,692,024
4,102,071
Post-employment benefits
219,281
177,923
Other long-term benefits
54,143
30,579
Share-based payments
601,289
621,934
Termination benefits
-
218,500
6,566,737
5,151,007
19.c) Transactions with other related parties
During the year an amount of $120,000 (FY2023: $120,000) was paid for consulting services to an entity
controlled by Mr P Cohen, the beneficial owner of EZCORP Inc, the Company’s largest shareholder.
Other than share-based payments (as disclosed in note 20) and shareholdings of KMP (as disclosed in the
remuneration report), the parent, its subsidiaries, associates and KMP made no other related party transactions
during the reporting period.
20. Share-based payments
20.a) Employee rights plan
The Cash Converters rights plan (“the Plan”), which was approved by shareholders on 18 November 2015, allows
the Directors of the Company to issue performance rights which will vest into ordinary shares in the Company
upon the achievement of certain vesting conditions.
Each right entitles the holder to subscribe for one fully paid ordinary share in the Company at the exercise price
of nil. During the reporting period, a total of 16,460,478 performance rights were granted in Tranches 37, 38,
39, 40, 41 and 42 to eligible employees of the Company.
The following arrangements were in existence during the current reporting period, not adjusted for rights which
have forfeited or lapsed during the current or prior periods:
Tranche
Vesting
Conditions1
Grant date
Grant date fair
value
Exercise
price
Measurement
date
Number
31
TSR
26-Oct-21
$0.162
$0.00
30-Jun-24
4,642,856
32
EPS
26-Oct-21
$0.213
$0.00
30-Jun-24
4,642,856
33
TSR
4-Oct-22
$0.119
$0.00
30-Jun-25
4,223,496
34
EPS
4-Oct-22
$0.170
$0.00
30-Jun-25
4,223,485
35
TSR
25-Oct-22
$0.127
$0.00
30-Jun-25
1,807,769
36
EPS
25-Oct-22
$0.180
$0.00
30-Jun-25
1,807,769
37
TSR
8-Nov-23
$0.092
$0.00
30-Jun-26
5,813,572
38
EPS
8-Nov-23
$0.162
$0.00
30-Jun-26
5,813,572
39
TSR
23-Nov-23
$0.085
$0.00
30-Jun-26
2,364,865
40
EPS
23-Nov-23
$0.155
$0.00
30-Jun-26
2,364,865
41
TSR
1-Jan-24
$0.085
$0.00
30-Jun-26
51,802
42
EPS
1-Jan-24
$0.155
$0.00
30-Jun-26
51,802
1
TSR: vesting conditions based on Total Shareholder Return, EPS: vesting conditions based on normalised Earnings Per Share
Notes to the financial statements
30 June 2024
Cash Converters International Limited
114
20.b) Fair value of performance rights granted during the year
The weighted average fair value of the performance rights granted during the financial year is $0.12 (FY2023:
$0.15). Where relevant, the expected life used in the model is based on the earliest vesting date possible for
each tranche, based on the vesting conditions.
Tranche 37
Tranche 38
Tranche 39
Tranche 40
Tranche 41
Tranche 42
Grant date
8-Nov-23
8-Nov-23
23-Nov-23
23-Nov-23
1-Jan-24
1-Jan-24
Option pricing model
Hoadley 1
Hoadley 2
Hoadley 1
Hoadley 2
Hoadley 1
Hoadley 2
Grant date share price
$0.21
$0.21
$0.20
$0.20
$0.20
$0.20
Exercise price
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Expected volatility
35.00%
35.00%
35.00%
35.00%
35.00%
35.00%
Option life
2.64 years
2.64 years
2.60 years
2.60 years
2.50 years
2.50 years
Dividend yield
9.76%
9.76%
9.76%
9.76%
9.76%
9.76%
Risk-free interest rate
4.16%
4.16%
4.14%
4.14%
4.14%
4.14%
Hoadley Trading and Investment Tools
Hoadley 1
Hoadley Hybrid ESO Model - Relative TSR vs Peer Group Monte-Carlo simulation
Hoadley 2
Hoadley ESO2 trinomial model
20.c) Movement in performance rights during the year
The following table illustrates the number of, and movements in, performance rights during the year. The
performance rights were issued at no charge, and the weighted average exercise price is nil. No rights were
exercisable at the end of the current year. Certain performance rights may vest on the publication of these
results for FY2024.
2024
2023
Number
Number
Outstanding at beginning of year
27,183,147
26,863,552
Granted during year
16,460,478
12,062,519
Forfeited / lapsed during year
(2,764,875)
(3,431,814)
Exercised during year
(5,525,046)
(6,259,034)
Cash settled at vesting
(1,711,458)
(2,052,076)
Outstanding at end of year
33,642,246
27,183,147
To be cash settled
-
1,711,458
20.d) Share options exercised during the year
5,525,046 shares were issued as a result of the exercise of performance rights during the financial year. No
shares have been issued as a result of the exercise of share options or performance rights since the end of the
financial year. 6,259,034 of shares were issued as a result of the exercise of performance rights during the year
ended 30 June 2023.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
115
20.e) Share options forfeited / lapsed during the year
Tranche
Grant date
Number
Year ended 30 June 2024
30
29-Sep-20
1,841,682
33
4-Oct-22
262,948
34
4-Oct-22
262,947
37
8-Nov-23
198,649
38
8-Nov-23
198,649
2,764,875
Year ended 30 June 2023
29
29-Sep-20
169,461
30
29-Sep-20
169,461
31
26-Oct-21
789,474
32
26-Oct-21
789,474
33
4-Oct-22
756,972
34
4-Oct-22
756,972
3,431,814
20.f) Share options outstanding at year end
The total number of options outstanding at 30 June 2024 was 33,642,246 (FY2023: 27,183,147).
Tranche
Vesting
condition
Grant date
Grant
date fair
value
Exercise
price
Measurement
date
Number
31
TSR
26-Oct-21
$0.162
$0.00
30-Jun-24
3,778,194
32
EPS
26-Oct-21
$0.213
$0.00
30-Jun-24
3,778,194
33
TSR
4-Oct-22
$0.119
$0.00
30-Jun-25
3,203,570
34
EPS
4-Oct-22
$0.170
$0.00
30-Jun-25
3,203,570
35
TSR
25-Oct-22
$0.127
$0.00
30-Jun-25
1,807,769
36
EPS
25-Oct-22
$0.180
$0.00
30-Jun-25
1,807,769
37
TSR
8-Nov-23
$0.092
$0.00
30-Jun-26
5,614,923
38
EPS
8-Nov-23
$0.162
$0.00
30-Jun-26
5,614,923
39
TSR
23-Nov-23
$0.085
$0.00
30-Jun-26
2,364,865
40
EPS
23-Nov-23
$0.155
$0.00
30-Jun-26
2,364,865
41
TSR
1-Jan-24
$0.085
$0.00
30-Jun-26
51,802
42
EPS
1-Jan-24
$0.155
$0.00
30-Jun-26
51,802
33,642,246
The weighted average remaining contractual life for the options outstanding at 30 June 2024 was 1.3 years
(FY2023: 1.1 years).
Notes to the financial statements
30 June 2024
Cash Converters International Limited
116
21. Remuneration of auditors
The auditor of Cash Converters International Limited is Deloitte Touche Tohmatsu.
30-Jun
30-Jun
2024
2023
Audit / review of the financial report
-
Group
1,010,070
1,124,496
-
Subsidiaries
330,772
127,836
Other assurance and agreed-upon procedures under
other legislation or contractual arrangements
56,508
24,885
Other services
-
Taxation services
-
9,810
1,397,350
1,287,027
22. Earnings / (loss) per share
22.a) Earnings / (loss) per share
30-Jun
30-Jun
2024
2023
cents
cents
Basic
2.78
(15.54)
Diluted
2.65
(15.54)
Where EPS is negative, DEPS is reported at the same value as EPS.
22.b) Reconciliations of earnings / (loss) used in calculating earnings per share
30-Jun
30-Jun
2024
2023
$'000
$'000
Basic and diluted earnings / (loss) per share
Profit / (loss) attributable to shareholders of the Company used in
calculating earnings / (loss) per share
17,397
(97,155)
22.c) Weighted average number of shares used as the denominator
30-Jun
30-Jun
2024
2023
Number
Number
Weighted average number of shares - basic
626,559,867
625,253,983
Dilutive effect of performance rights
29,401,935
25,726,260
Weighted average number of shares - diluted
655,961,802
650,980,243
23. Assets pledged as security
See note 7.a for cash and cash equivalents designated as restricted cash to operate the securitisation facility and
for cash on deposit as security for banking facilities.
See note 7.e for the borrowing facility secured against eligible receivables.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
117
24. Parent entity financial information
The financial information of the parent entity, Cash Converters International Limited has been prepared on the
same basis as the consolidated financial report.
Statement of financial position
Restated
30-Jun
30-Jun
2024
2023
$'000
$'000
Assets
Current assets
153
40
Non-current assets
171,535
182,004
Total assets
171,688
182,044
Liabilities
Current liabilities
3,327
470
Net assets
168,361
181,574
Equity
Issued capital
250,541
249,860
Reserves
1,784
2,277
Profit reserve
304,086
316,636
Retained loss
(388,050)
(387,199)
Total equity
168,361
181,574
Comprehensive income
Restated
30-Jun
30-Jun
2024
2023
$'000
$'000
Loss for the year
(823)
(111,334)
Other comprehensive income
-
-
Total comprehensive loss
(823)
(111,334)
Notes to the financial statements
30 June 2024
Cash Converters International Limited
118
Restatement of parent entity comparative financial information
Within the parent entity statement of financial position and statement of comprehensive income above, the
Company has restated the following comparative balances to reflect the impairment of the Company’s
investment in subsidiaries as at 30 June 2023. There is no impact to the consolidated financial statements of
the Group:
As previously reported
Adjustment
As restated
30-Jun
30-Jun
30-Jun
2023
2023
2023
$'000
$'000
$'000
Non-current assets
292,485
(110,481)
182,004
Accumulated losses
(276,718)
(110,481)
(387,199)
Loss for the year
(853)
(110,481)
(111,334)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
Cross guarantees have been provided by the parent entity and its controlled entities as listed in note 15.
Cash Converters International Limited has provided a cross guarantee to HSBC for a BACS facility provided to
CCUK.
25. Summary of other material accounting policies
This note provides a list of other material accounting policies adopted in the preparation of these consolidated
financial statements to the extent they have not already been disclosed in the other notes above. These policies
have been consistently applied to all the years presented, unless otherwise stated. The financial statements are
for the group consisting of Cash Converters International Limited and its subsidiaries.
25.a) Principles of consolidation and equity accounting
The consolidated financial statements comprise the financial statements of Cash Converters International
Limited and entities controlled by the Company and its subsidiaries (the Group, as outlined in note 15(a)).
Control is achieved when the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control listed above.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when
the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive
income from the date the Company gains control until the date when the Company ceases to control the
subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company
and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of
the Company and to the non-controlling interests even if this results in the non-controlling interests having a
deficit balance.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
119
25.b) Leases
The Group assesses whether a contract is or contains a lease, at inception of the contract. A contract is, or
contains a lease, if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an identified
asset, the Group assesses whether:
The contract involves the right of use of an identified asset – this may be specified explicitly and should be
physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier
has a substantive substitution right, then the asset is not identified;
The Group has the right to obtain substantially all of the economic benefits from the use of the asset
throughout the period of use; and
The Group has the right to direct the use of the asset.
At inception or reassessment of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease component based on their relative stand-alone prices.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease i.e. the date the underlying
asset is available for use. Right-of-use assets are subsequently measured at cost, less any accumulated
depreciation and impairment losses and adjusted for any remeasurement of lease liabilities.
The cost of the right-of-use asset comprises the initial lease liability amount, initial direct costs incurred when
entering into the lease less lease incentives received and an estimate of the costs to be incurred in dismantling
and removing the underlying asset and restoring the site on which it is located to the condition required by the
terms and conditions of the lease.
Unless the Group is reasonably certain of obtaining ownership of the leased asset at the end of the lease term,
the recognised right-of-use asset is depreciated on a straight-line basis over the shorter of its estimated useful
life and the lease term.
An impairment review is undertaken for any right-of-use asset that shows indicators of impairment and an
impairment loss is recognised against any right-of-use asset that is impaired.
Lease liabilities
The lease liability is initially measured at the present value of the fixed and variable lease payments to be made
over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less
any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the exercise price of a
purchase option reasonably certain to be exercised by the Group. The lease payments are discounted using the
interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases
in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would
have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar
economic environment with similar terms, security and conditions.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
120
Lease payments to be made under reasonably certain extension options are also included in the measurement
of the liability.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease
liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments
made.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use
asset) whenever:
the lease term has changed or there is a significant event or change in circumstances resulting in a change in
the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting
the revised lease payments using a revised discount rate;
the lease payments change due to changes in an index or rate or a change in expected payment under a
guaranteed residual value, in which case the lease liability is remeasured by discounting the revised lease
payments using an unchanged discount rate (unless the lease payments change is due to a change in a
floating interest rate, in which case a revised discount rate is used); and
a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case
the lease liability is remeasured based on the lease term of the modified lease by discounting the revised
lease payments using a revised discount rate at the effective date of the modification.
The Group adjusts the lease liability due to changes in lease payments and lease terms during the period.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases i.e. those leases that have
a lease term of 12 months or less. It also applies the lease of low-value assets recognition exemption to leases
that are considered of low value (less than $7,500). Payments associated with short-term leases (buildings,
equipment and vehicles) and all leases of low-value assets are recognised on a straight-line basis as an expense
in profit or loss. Low-value assets comprise IT equipment and small items of office furniture.
Incremental borrowing rate
To determine the incremental borrowing rate, the Group:
where possible, uses recent third-party financing received by the individual lessee as a starting point,
adjusted to reflect changes in financing conditions since third party financing was received; and
uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by
the Group, which does not have recent third-party financing, and adjustments specific to the lease (e.g. term,
country, currency and security).
Extension and termination options
Extension and termination options are included in several property leases across the Group. These are used to
maximise operational flexibility in terms of managing the assets used in the Group’s operations. Most of the
extension and termination options held are exercisable only by the Group and not by the respective lessor.
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is reasonably certain to be extended
(or not terminated).
Notes to the financial statements
30 June 2024
Cash Converters International Limited
121
The lease term is reassessed if an option is exercised (or not exercised) or the Group becomes obliged to exercise
(or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant
change in circumstances occurs, which affects this assessment, and that is within the control of the lessee.
Where “make-good” obligations exist in leases, the amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at reporting date, taking into account the risks and
uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle
the present obligation, the carrying amount is the present value of those future cash flows. The assessment of
the present value of the future obligation requires the application of judgment.
25.c) Property, plant and equipment
Segments other than New Zealand and United Kingdom
Plant and equipment and leasehold improvements are stated at cost less accumulated depreciation and
impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. In the event
that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the
amounts payable in the future to their present value as at the date of acquisition.
Depreciation is provided on plant and equipment. Depreciation is calculated on a straight-line basis so as to write
off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual
value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever
is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation
method are reviewed at the end of each annual reporting period.
The following estimated useful lives are used in the calculation of depreciation:
Leasehold improvements
8 years
Plant and equipment
5 years
Fixtures and fittings
8 years
Computer equipment
3 years
New Zealand segment
Plant and equipment and leasehold improvements are stated at cost less accumulated depreciation and
impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. Assets are
depreciated from the date of installation/first use, whichever is sooner.
Depreciation is provided on leasehold improvements and plant and equipment. Depreciation is calculated on a
diminishing value basis in accordance with the rates set by the New Zealand Inland Revenue Department.
United Kingdom segment
Plant and equipment and leasehold improvements are stated at cost less accumulated depreciation and
impairment. Cost includes expenditure that is directly attributable to the acquisition of the item.
An estimated useful life of 4 years is used in calculating depreciation for plant and equipment and leasehold
improvements.
Notes to the financial statements
30 June 2024
Cash Converters International Limited
122
25.d) Intangible assets
Reacquired rights and customer relationships acquired through business combinations are recognised at fair
value at acquisition date less accumulated amortisation and impairment.
Trade names / brand names relating to repurchased sub-master licenses both overseas and in Australia are
recognised at cost less accumulated amortisation.
Software development expenditure is recognised as an asset when it is possible that future economic benefits
attributable to the asset will flow. Software assets are recognised at cost less accumulated amortisation.
Intangible assets are amortised as follows:
Asset
Amortisation period
Reacquired rights
The remaining life of each franchise agreement as at the acquisition date
Customer relationships
Useful life of 5 years based on historic average customer relationships
Trade names
Indefinite life intangible
Software
Useful life of 5 years based on historic experience
Key estimate – useful lives of other intangible assets
The Company reviews the estimated useful lives of other intangible assets at the end of each annual reporting
period. The estimation of the remaining useful lives of other intangible assets requires the entity to make
significant estimates based on both past performance and expectations of future performance.
Consolidated Entity Disclosure Statement
30 June 2024
Cash Converters International Limited
123
Consolidated Entity Disclosure Statement
The table below contains consolidated entity information required by section 295 of the Corporations Act 2001 (Cth) as at 30 June 2024.
Body corporates
Tax residency
Entity name
Entity type
Place
formed
or
incorporated
% of share
capital held
Australian
or
foreign
Foreign
jurisdiction
Cash Converters International Limited
Body corporate
Australia
N/A
Australia
N/A
Cash Converters Pty Ltd
Body corporate
Australia
100%
Australia
N/A
Cash Converters Finance Corporation Pty Ltd
Body corporate
Australia
64.33%
Australia
N/A
Cash Converters (Stores) Pty Ltd
Body corporate
Australia
100%
Australia
N/A
Cash Converters (Cash Advance) Pty Ltd
Body corporate
Australia
100%
Australia
N/A
Mon-E Pty Ltd
Body corporate
Australia
100%
Australia
N/A
Cash Converters Personal Finance Pty Ltd
Body corporate
Australia
100%
Australia
N/A
CCPF Receivables Trust No 11
Trust
N/A
N/A
Australia
N/A
Finance Administrators of Australia Pty Ltd
Body corporate
Australia
100%
Australia
N/A
Green Light Auto Group Pty Limited
Body corporate
Australia
100%
Australia
N/A
Safrock Finance Corporation (Qld) Pty Ltd
Body corporate
Australia
100%
Australia
N/A
Cash Converters USA Pty Ltd
Body corporate
Australia
99.285%
Australia
N/A
Cash Converters (NZ) Pty Ltd
Body corporate
Australia
100%
Australia
N/A
CC Acquisitions Pty Ltd
Body corporate
Australia
100%
Australia
N/A
Cash Converters Employee Share Trust2
Trust
N/A
N/A
Australia
N/A
Cash Converters UK Holdings Ltd
Body corporate
UK
100%
Foreign
UK
Cash Converters (UK) Stores Ltd
Body corporate
UK
100%
Foreign
UK
Cash Converters UK Ltd (CCUK)
Body corporate
UK
100%
Foreign
UK
Themedawn Limited (UK)
Body corporate
UK
100%
Foreign
UK
Newton Hayes Ltd (UK)
Body corporate
UK
100%
Foreign
UK
Cash Converters Holdings (NZ) Ltd
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters (NZ) Personal Finance Ltd
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters (NZ) Franchise Ltd
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters (NZ) Stores Ltd
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Holdings (NZ) Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters (NZ) Personal Finance Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters (NZ) Franchise Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters (NZ) Stores Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Next Pay New Zealand Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Capital Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Consolidated Entity Disclosure Statement
30 June 2024
Cash Converters International Limited
124
Cash Converters Corporate Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Digital Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Finance Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Franchising Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Henderson Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Linwood Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Manukau Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Otahuhu Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Otara Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Panmure Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Papakura Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Pukekohe Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Takanini Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Finance GP Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Glen Innes Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Mount Roskill Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Stores GP Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Cash Converters Holdings LP
Partnership
New Zealand
N/A
Foreign
New Zealand
Cash Converters Corporate NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
Cash Converters Franchising NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
Cash Converters Digital NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
Cash Converters Capital NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
Cash Converters Finance NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
Cash Converters Partners NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Glen Innes NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Henderson NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Linwood NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Manukau NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Mount Roskill NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Otahuhu NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Otara NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Panmure NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Papakura NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Pukekohe NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
CC Takanini NZ LP
Partnership
New Zealand
N/A
Foreign
New Zealand
1. FCCD (Australia) Nominee Pty Limited is the trustee for the CCPF Receivables Trust No 1
2. CPU Share Plans Pty Limited is the trustee for the Cash Converters Employee Share Trust
Directors’ declaration
30 June 2024
Cash Converters International Limited
125
Directors’ declaration
The Directors declare that:
a)
in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable;
b)
in the Directors’ opinion, the attached financial statements are in compliance with International Financial
Reporting Standards, as stated in note 1 to the financial statements;
c)
in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of
the financial position and performance of the Group;
d)
in the Directors’ opinion, the consolidated entity disclosure statement on pages 123 to 124 is true and
correct; and
e)
the Directors have been given the declarations required by s295A of the Corporations Act 2001.
At the date of this declaration the Company is within the class of companies affected by ASIC Corporations
(Wholly owned Companies) Instrument 2016/785. The nature of the deed of cross guarantee is such that each
company which is party to the deed guarantees to each creditor payment in full of any debt in accordance with
the deed of cross guarantee.
In the Directors’ opinion, there are reasonable grounds to believe that the Company and the companies to which
the ASIC Corporations (Wholly owned Companies) Instrument 2016/785 applies, as detailed in note 15 to the
financial statements will, as a group, be able to meet any obligations or liabilities to which they are or may
become subject, by virtue of the deed of cross guarantee.
Signed in accordance with a resolution of the Directors made pursuant to s295(5) of the Corporations Act 2001.
On behalf of the Directors
Sam Budiselik
Chief Executive Officer & Managing Director
Perth, Western Australia
29 August 2024
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Cash Converters International Limited (the “Company”) and its subsidiaries
(the “Group”) which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including material
accounting policy information and other explanatory information, the directors’ declaration and the consolidated
entity disclosure statement.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
•
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial performance
for the year then ended; and
•
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We
are independent of the Group in accordance with the auditor independence requirements of the Corporations Act
2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial report for the current period. These matters were addressed in the context of our audit of the financial report
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Deloitte Touche Tohmatsu
ABN 74 490 121 060
477 Collins Street
Melbourne, VIC, 3000
Australia
Tel: +61 3 9671 7000
Fax: +61 3 9671 7001
www.deloitte.com.au
Independent Auditor’s Report
to the members of
Cash Converters International Limited
126
Key Audit Matter
How the scope of our audit responded to the Key Audit
Matter
Allowance for expected credit loss – loan receivables
As disclosed in Note 7.c), the carrying value of loan
receivables as at 30 June 2024 was $238.7 million, net
of allowance for expected credit loss (‘ECL’) of $49.3
million.
Loans subject to the allowance for expected credit loss
include personal loans, pawnbroking loans and vehicle
finance loans.
Significant management judgement is necessary in
determining expected credit loss, including:
•
the identification of loans with significant increase
in credit risk to determine whether a 12 month or
lifetime ECL should be recognised;
•
assumptions used in the ECL models such as the
financial condition of the counterparty, repayment
capacity, any collateral value and forward-looking
macroeconomic factors disclosed in note 7.c) which
impact on the estimate of loss given default; and
•
management judgements used in the calculation of
overlays to the ECL models.
Our procedures included, but were not limited to:
•
obtaining an understanding of credit risk judgements made by
management in the ECL models;
•
understanding the key controls management have in place in
relation to loan originations, collections, arrears management
and the estimate of the expected credit loss;
•
challenging the assumptions and methodology used to
determine the timing of recognition of loss events and
significant increases in credit risk, valuation of collateral,
probability of default and loss given default;
•
testing on a sample basis the accuracy and completeness of the
historical data utilised in the models;
•
in conjunction with our credit modelling specialists,
o
developing an expected range of the allowance for
expected credit loss;
o
testing the mathematical accuracy of the ECL models
through reperformance;
o
assessing modelled base losses against actual
historical losses;
•
challenging management’s judgements in respect of overlays
recognised due to macroeconomic factors; and
•
assessing the adequacy of the disclosures in Note 7.c).
Impairment of goodwill and other non-current assets in
the New Zealand operating segment
Management undertakes impairment testing to test
the recoverability of goodwill and indefinite life
intangible assets annually.
As disclosed in Note 5 an impairment charge of $3.3
million was recorded in respect of goodwill in the New
Zealand operating segment. Goodwill is monitored and
tested for impairment at the operating segment level.
The assessment of the New Zealand operating
segments recoverable value requires significant
judgement in respect of assumptions and estimates in
preparing a value in use (‘VIU’) model such as:
•
discount rate;
•
forecast retail and pawnbroking growth rates;
•
forecast Better Personal Loan (‘BPL’) volumes
driving revenue increase; and
•
forecast bad debt levels.
Our procedures included, but were not limited to:
•
obtaining an understanding of the key judgements made by
management in the VIU model;
•
obtaining an understanding of the key controls management
has in place in relation to the estimate of the recoverable
amount of the goodwill, other intangible assets and other non-
current assets;
•
comparing the forecasts used in the impairment assessment to
the Board-approved business plan;
•
assessing historical forecasting accuracy by comparing actual
results to forecast;
•
assessing the appropriateness of the carrying amount,
including the allocation of corporate assets and liabilities;
•
in conjunction with our valuation specialist:
o
challenging the key assumptions and methodologies used,
in particular:
▪
the discount rate against that of comparable
companies;
▪
forecast BPL loan volume growth assumptions;
▪
forecast bad debt levels for BPL; and
▪
forecast retail and pawnbroking revenue growth
rates.
o
testing management’s model for mathematical accuracy;
and
•
assessing the adequacy of the disclosures in the Note 5.c)
127
Key Audit Matter
How the scope of our audit responded to the Key Audit
Matter
Loan to Cash Converters Espana, S.L (Spain master
franchisor)
As disclosed in Note 7.b) the carrying amount of loan to
external parties as at 30 June 2024 was $7.428 million,
net of allowance for ECL of $0.735 million.
The loan has been classified as non-current in the
financial statements on the basis that management
expects to extend the repayment terms.
Given the increase in the principal amount and the
extended
payment
period
management
has
determined that there has been an increase in credit
risk during the period.
Significant judgement is necessary in determining the
expected credit loss including estimates of the
probability of default and loss given default.
Our procedures included, but were not limited to:
•
reading and understanding the loan agreements;
•
assessing the likely methods and the timing of the expected
recovery of the loan;
•
assessing the most recent audited financial report of Cash
Converters Espana, S.L.;
•
obtaining an understanding of credit risk judgements made by
management in the ECL model;
•
challenging the assumptions and methodology used to
determine the probability of default and loss given default;
•
in conjunction with our credit modelling specialists, developing
an expected range of the allowance for expected credit loss;
•
assessing the non-current classification of the loan; and
•
assessing the adequacy of the disclosures in Note 7.b).
Acquisition of Capital Cash Limited
As disclosed in Note 14 the Group completed the
acquisition of Capital Cash Limited on 6 July 2023, for
total purchase consideration of $23.1 million which
includes goodwill and other intangible assets of $6.6
million and $5.7 million respectively.
Significant judgement was required in assessing the
appropriateness
of
the
acquisition
accounting,
including:
•
concluding on the date that control was obtained
by the Company under the Sale and Purchase
Agreement;
•
concluding on the determination of consideration
paid;
•
identifying and valuing the identifiable intangible
assets acquired, including reacquired franchise
rights; and
•
determining the impact of the transaction on
associated tax balances, including the deferred tax
impact on reset tax cost bases.
Our procedures included, but were not limited to:
•
reading and understanding the Sale and Purchase Agreement
to understand the nature of the transaction, and the
consideration;
•
assessing the acquisition date against the requirements of AASB
3, Business Combinations;
•
challenging the recognition and measurement of consideration
transferred;
•
understanding management’s controls over the valuation
process for the identification of the assets acquired and
liabilities assumed including consideration of contingent assets
or liabilities;
•
obtaining a copy of the management’s expert’s valuation report
that was commissioned to determine the fair values at
acquisition date of intangible assets acquired;
•
assessing the independence, competence and objectivity of
management’s expert;
•
assessing, in conjunction with our internal valuation specialists,
the identification of assets acquired and liabilities assumed, and
the appropriateness of the methodologies and assumptions
used by management and their experts, including the following:
o
reacquired franchise rights: assessing the methodologies
applied in valuing the rights, and the reasonableness of
critical assumptions including annual franchise fees and
assumed fee increases, agreement renewal periods, and
discount rate;
•
assessing the calculation and valuation of the deferred tax
balances arising on the transaction; and
•
assessing the adequacy of the disclosures in Note 14 to the
financial statements.
128
Other Information
•
The directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2024, but does not include the financial report and our
auditor’s report thereon.
•
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
•
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible:
•
For the preparation of the financial report in accordance with the Corporations Act 2001, including giving a true
and fair view of the financial position and performance of the Group in accordance with Australian Accounting
Standards; and
•
For such internal control as the directors determine is necessary to enable the preparation of the financial report
in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and
performance of the Group, and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian
Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
129
•
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significance in the
audit of the financial report of the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 28 to 48 of the Directors’ Report for the year ended 30
June 2024.
In our opinion, the Remuneration Report of Cash Converters International Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
DELOITTE TOUCHE TOHMATSU
Peter Rupp
Partner
Chartered Accountants
Melbourne, 29 August 2024
130
30 June 2024
Cash Converters International Limited
131
Shareholder information
As at 21 August 2024
Distribution of holders of equity securities
Holders
Fully paid ordinary shares
Number
Number
1 to 1,000
601
231,480
1,001 to 5,000
1,033
2,975,784
5,001 to 10,000
563
4,473,286
10,001 to 100,000
1,215
46,514,747
100,001 and over
463
573,349,718
3,875
627,545,015
Voting rights
Cash Converters International Limited fully-paid ordinary shares carry voting rights of one vote per share.
Less than marketable parcel of shares
There were 1,028 holders of less than a marketable parcel of ordinary shares.
Substantial shareholders
Ordinary shareholder
Number of shares
% of issued
shares
1
EZCORP Inc
273,939,157
43.65%
30 June 2024
Cash Converters International Limited
132
Twenty largest equity security holders
Ordinary shareholder
Number of shares
% of
issued
shares
1
EZCORP INC
273,939,157
43.65%
2
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
17,924,837
2.86%
3
CITICORP NOMINEES PTY LIMITED
13,233,277
2.11%
4
MR TIMOTHY JOHN HILBIG
20,070,000
3.20%
5
NGE CAPITAL LIMITED
10,733,752
1.71%
6
MR RAYMOND JAMES ALLAN
8,107,358
1.29%
7
MR SAM WILLIAM BUDISELIK
7,519,115
1.20%
8
RIOLANE HOLDINGS PTY LTD
6,937,226
1.11%
9
NSR INVESTMENTS PTY LTD
4,400,000
0.70%
10
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
3,922,647
0.63%
11
FISKE PLC
3,900,000
0.62%
12
MRS LILIAN JEANETTE WARMBRAND
3,785,234
0.60%
13
CASH CONVERTERS FRANCHISEES ASSOCIATION INC
3,662,205
0.58%
14
MR PETER CUMINS
3,373,468
0.54%
15
CPU SHARE PLANS PTY LIMITED
3,230,154
0.51%
16
BNP PARIBAS NOMS PTY LTD
3,002,849
0.48%
17
MR ALASTAIR EDWARD SCHWIER
3,000,000
0.48%
18
KAMALA HOLDINGS PTY LTD
2,904,896
0.46%
19
VADINA PTY LIMITED
2,718,750
0.43%
20
MR JAMES STANLEY LEHMAN
2,600,000
0.41%
398,964,925
63.58%
Australian Credit Licence 391436 | ABN: 75 009 288 804
PO Box 3151 Adelaide Terrace, Perth WA 6832 | Tel: 08 9221 9111 | cashconverters.com.au