• Successful execution of lending business transition in Australia
• Franchise store acquisition strategy in Australia and UK delivering growth
• Corporate same store performance remained strong across both markets

Cash Converters has delivered a strong first-half result following a period of significant strategic change. Operating net profit growth of 9% to $13.2m was achieved as the company shifted the Australian lending business to focus on higher quality, lower cost (and loss) lending, whilst continuing to acquire franchise stores in its core markets of Australia and the UK. With the payday loan book run-down largely complete, the new Cashies Loan book is growing strongly. At the same time, the store strategy continues to deliver results, as Cash Converters transitions to a 'hub and spoke' operating model, with a focus on pre-owned luxury goods, generating more inventory and improving transaction volumes and margins. Gold price strength has supported a strong segment result, with same-store revenue growth of 8% in both Australia and the UK. Franchise store acquisitions and store segment profitability were up significantly, with profit after tax up 28% in Australia and 91% in the UK, compared to the prior period. The UK now represents a meaningful and growing contribution to Group earnings, at 30% of Group operating EBITDA. The successful launch of a luxury-only store in Adelaide, alongside the Sydney store and pilot luxury store in the UK, is attracting a new customer demographic to the business, with further rollout planned. With $74.3m of undrawn facility capacity and net operational cash inflows of $27.3m, the company remains focused on investing for growth and is well positioned to access a large and growing international market.

The company remains confident in its outlook for quality earnings growth over time, as it continues to execute its strategic transition, with a simpler lending business and growing corporate store network in both Australia and the UK.