Full Year 2026 Cash Converters International Ltd Earnings Call

August 24, 2026

Speaker #2: Good morning, everyone. Thank you for joining the FY2026 Cash Converters Earnings Call. By way of introduction, we will run through our investor presentation, which hopefully you can see on screen.

Sam Budiselik: Good morning, everyone. Thank you for joining the FY 2026 Cash Converters earnings call. By way of introduction, we will run through our investor presentation, which hopefully you can see on screen. In the room with me today, it is myself, Sam Budiselik, CEO and Managing Director of Cash Converters, David Rose, CFO of Cash Converters, and some of the management team. I guess just before I do start on the presentation, it has been a big 18 to 24 months for the company. The investors that are on the call that have followed our story will recall that we signaled that period ago that we were making a significant strategic change in terms of our lending business, ultimately exiting the Small Amount Credit Contract loan space, commonly referred to as payday loans in the market.

Sam Budiselik: Good morning, everyone. Thank you for joining the FY 2026 Cash Converters Earnings Call. By way of introduction, we will run through our investor presentation, which hopefully you can see on screen. In the room with me today, it is myself, Sam Budiselik, CEO and Managing Director of Cash Converters, David Rose, CFO of Cash Converters, and some of the management team. I guess just before I do start on the presentation, it has been a big 18 to 24 months for the company. The investors that are on the call that have followed our story will recall that we signaled that period ago that we were making a significant strategic change in terms of our lending business, ultimately exiting the Small Amount Credit Contract loan space, commonly referred to as payday loans in the market.

Speaker #2: In the room with me today are myself, Sam Yudaselic, CEO and Managing Director of Cash Converters; David Rose, CFO of Cash Converters; and some members of the management team.

Speaker #2: I guess, just before I do start on the presentation, it's been a big 18 to 24 months for the company. The investors that are on the call that have followed our story will recall that we signaled that period ago that we were making a significant strategic change in terms of our lending business.

Speaker #2: Ultimately, exiting the small amount loan space—commonly referred to as payday loans—in the market, and with that book at that period over $100 million in size, was a substantial contributor to our earnings profile.

Sam Budiselik: With that book, at that period, over AUD 100 million in size, a substantial contributor to our earnings profile, and fairly well established through our franchise and corporate store network, it was a huge move strategically. As a result, there are many different outcomes that have played through, pleasingly as predicted, and we will talk about that as we move through the earnings call. Some short-term headwinds as a result of that product change will hopefully lead the company to a position where we can refinance our securitization and banking facilities. We do still remain unbanked, largely as a function of historically offering that product.

Speaker #2: And fairly well established through our franchise and corporate store network. It was a huge move strategically, and as a result, there are many different outcomes that have played through.

Speaker #2: Pleasingly, as predicted—and we'll talk about that as we move through the earnings call—some short-term headwinds as a result of that product change will, hopefully, lead the company to a position where we can refinance our securitization and banking facilities.

Speaker #2: We do still remain unbanked largely as a function of historically offering that product. As we look forward—well, as we sort of touched on the strategy and look forward—we did communicate that we were hoping to offset some of the short-term earnings impact of the lending product change by acquiring our franchise stores in the core markets of Australia and the UK.

Sam Budiselik: As we look forward, well, as we sort of touch on the strategy and look forward, we did communicate that we were hoping to offset some of the short-term earnings impact of the lending product change by acquiring our franchise stores in the core markets of Australia, the UK, and also New Zealand. Those three core markets we operate as the master franchisor, and we are very much committed to really corporatizing those markets and growing those markets. With the change to the small loan product, we also executed a series of other changes that meant that we really focus now on a single personal loan product. We are on the slide showing now hopefully the Cash Converters now. On the lending side, it is a single personal loan product that we offer in Australia, rates ranging from 19.95% per annum up to loan sizes of about AUD 10,000.

Speaker #2: And also New Zealand. Those three core markets, we operate as the master franchisor, and we're very much committed to really corporatizing those markets and growing those markets.

Speaker #2: With the change to the small loan product, we also executed a series of other changes that mean we really focus now on a single personal loan product.

Speaker #2: We're on the slide showing now, hopefully, the Cash Converters now. On the lending side, it's a single personal loan product that we offer in Australia.

Speaker #2: Rates ranging from 19.95% per annum, up to loan sizes of about $10,000. And this loan product is very different, not only from a regulatory perspective, but from a credit risk perspective.

Sam Budiselik: This loan product is very different, not only from a regulatory perspective but from a credit risk perspective. We have much lower loss rates, a very different-looking loan book due to a very different customer now that we are focused on, and we will talk about that as we move through the presentation. That has been a terrific outcome for our business as we have executed what is a significant pivot. Like I say, I think the core benefit of refinancing our lending facilities is still to come. The retail network pleasingly, the earnings mix of the business in the short term has balanced a bit more where retail has had a terrific 12 months. We have acquired stores, like I say, predominantly in the UK and Australia, our franchise stores.

Speaker #2: We've got much lower loss rates, and a very different-looking loan book due to a very different customer that we're now focused on. We'll talk about that as we move through the presentation.

Speaker #2: So, that's been a terrific outcome for our business as we've executed what is a significant pivot. And, like I say, I think the core benefit of refinancing our lending facilities is still to come.

Speaker #2: The retail network, pleasingly, the earnings mix of the business in the short term has balanced a bit more, where retail has had a terrific 12 months.

Speaker #2: We've acquired stores, like I say, predominantly in the UK and Australia—our franchise stores. But we've also seen very strong same-store growth in Australia of around 13% year-on-year, and in the UK, 6%.

Sam Budiselik: We have also seen very strong same store growth in Australia of around 13% year on year and in the UK, 6%. I think if you look in the retail market at other listed retailers and performance, our same store growth rates are exceptionally strong. The mix of inventory and store type moving towards luxury higher end inventory has been terrific for our retail business and we will talk about that as we move through the results. In summary, that leaves us with 200 corporate stores across Australia and the UK predominantly. We still have 164 franchise stores in those markets, so we have a strong pipeline of potential acquisitions lined up in front of us. These stores are on our point of sale. They are branded Cash Converters. It is a simple operational integration of these acquisitions.

Speaker #2: And I think if you look in the retail market at other listed retailers and performance, our same-store growth rates are exceptionally strong. The mix of inventory and store type, moving towards luxury, higher-end inventory, has been terrific for our retail business, and we'll talk about that as we move through the results.

Speaker #2: In summary, that leaves us with 200 corporate stores across Australia and the UK, predominantly. We still have 164 franchise stores in those markets. So, we've got a strong pipeline of potential acquisitions lined up in front of us.

Speaker #2: These stores are on our point of sale; they're branded Cash Converters. It's a simple operational integration of these acquisitions, so we're pacing ourselves through that pipeline, and our strategy remains one of acquiring those franchise stores.

Sam Budiselik: We are pacing ourselves through that pipeline and our strategy remains one of acquiring those franchise stores where the seller has reasonable price expectations and we can reach a good outcome. Just to touch on a simplified business now. We sort of think about our customers in two kind of verticals. We have our personal loan customers, the Cashies Loan customers. That personal loan product, it is only offered in Australia. That loan book grew almost five times in the 12 months to in excess of AUD 110 million. That loan book is, I think, demonstrating strong brand reach and trust for the Cash Converters brand, both online and in stores. It is also symbolic of a non-bank lending market in Australia that is significant as the banks have really exited personal loan lending. But in general, really sort of taken a more risk off approach.

Speaker #2: Where the seller has reasonable price expectations and we can reach a good outcome. Just to touch on a simplified business now, we sort of think about our customers in two verticals.

Speaker #2: We've got our personal loan customers, the cashier's loan customers. That personal loan product is only offered in Australia. That loan book grew almost five times in the 12 months to in excess of $110 million.

Speaker #2: That loan book is, I think, demonstrating strong brand reach and trust for the Cash Converters brand, both online and in stores. And it's also symbolic of a non-bank lending market in Australia that is significant.

Speaker #2: As the banks have really exited personal loan lending but, in general, really sort of taken a more risk-off approach, non-bank lenders have really managed to sort of fill that space.

Sam Budiselik: Non-bank lenders have really managed to sort of fill that space. But we are different because we are very much focused on meeting our customers in store and online, and those customers are sub or near prime customers. That is typically customers with a credit score around 550, and for those who do follow their credit score closely, prime credit score is around 1,000. Our customers sort of sit a bit below that. Feel very comfortable serving a growing market there, and that based on our loss rates falling is working very well for us. On the retail side, so in Australia, the UK, and New Zealand where we have our corporate stores, we have seen just a general shift in that business. I think we have got a much better set of management reporting and operational reporting wrapped around that business now having invested in our technology.

Speaker #2: But we're different because we are very much focused on meeting our customers in-store and online. And those customers are sub-prime or near-prime customers.

Speaker #2: So that's typically customers with a credit score around 550, and for those who do follow their credit score closely, prime credit scores are around 1,000. Our customers sort of sit a bit below that.

Speaker #2: We feel very comfortable serving a growing market there, and that, based on our loss rates falling, is working very well for us. On the retail side—so in Australia, the UK, and New Zealand, where we have our corporate stores—we’ve seen just a general shift in that business.

Speaker #2: I think we've got a much better set of management reporting and operational reporting wrapped around that business now. Having invested in our technology, we are certainly leveraging AI and pricing technology to grow a new range in our stores.

Sam Budiselik: We are certainly leveraging AI and pricing technology to grow a new range in our stores. We have always had the capability to really buy and sell across a vast line of inventory. AI has helped us establish a new line of handbags and high-end shoes and higher end inventory through the stores. The two pillars of the business operate well. They are slightly different in terms of, like I say, the personal lending in Australia complementing the store network, whereas in the UK it is a retail buy, sell, and pawn broking network that we have got. Some metrics down the bottom, we just call out that we are a large business dealing with a lot of customers and we retain a lot of data that we then use to feed our credit models in particular. We have included some visuals of the new luxury store in Perth City.

Speaker #2: So we've always had the capability to really buy and sell across a vast line of inventory. AI has helped us establish a new line of handbags, high-end shoes, and higher-end inventory through the stores.

Speaker #2: So the two pillars of the business operate well. They’re slightly different in terms of, like I say, the personal lending in Australia complementing the store network.

Speaker #2: Whereas in the UK, it's a retail buy-sell and pawn-broking network that we've got. And for metrics down the bottom, we just call out that we are a large business dealing with a lot of customers, and we retain a lot of data that we then use to feed our credit models in particular.

Speaker #2: We've included some visuals of the new luxury store in Perth City. So, this store concept we piloted in Bondi about two years ago now.

Sam Budiselik: This store concept we piloted in Bondi about 2 years ago now. That first pilot was extremely successful, and we have ended up expanding across the major capital cities in Australia. The store format obviously looks very different. It is a higher end fit-out. The inventory is different. It is only high-end luxury, whether that is handbags, watches, jewelry, or high-end consumer electronics. The mix of inventory is obviously different. These stores do acquire a lot of inventory that we can put out into the suburban stores. I think as flagship stores, we are getting a lot of really strong customer feedback about the look, the feel, and the service offering. It is so unique to have a repurpose reseller of our size and scale, with our brand strength operating in the capital cities now, and that is doing a lot of good for us, winning new customers into both parts of our business.

Speaker #2: That first pilot was extremely successful, and we've ended up expanding across the major capital cities in Australia. The store format, obviously, looks very different.

Speaker #2: It's a higher-end fit-out. The inventory is different. It's only high-end luxury, whether that's handbags, watches, jewellery, or high-end consumer electronics. The mix of inventory is obviously different.

Speaker #2: So these stores do acquire a lot of inventory that we can put out into the suburban stores. But I think it's the flagship stores where we're getting a lot of really strong customer feedback about the look, the feel, and the service offering.

Sam Budiselik: I think as flagship stores, we are getting a lot of really strong customer feedback about the look, the feel, and the service offering. It is so unique to have a repurpose reseller of our size and scale, with our brand strength operating in the capital cities now, and that is doing a lot of good for us, winning new customers into both parts of our business.

Speaker #2: It's so unique to have a repurpose reseller of our size and scale, with our brand strength, operating in the capital cities now. And that's doing a lot of good for us, winning new customers into both parts of our business.

Sam Budiselik: We did just add a snapshot of some of the inventory available online, too. I think there is a perception that Cashies is still really just predominantly focused on tools and some of the traditional product lines that we have been known for. Some of these unique pieces that we are now getting and the availability, new is sometimes almost impossible to acquire. We have got these items available. This is just a standard snapshot off the website. This is not an AI-generated image. It is stuff that we have got now that we are selling through our stores and all the stock that is in stores is available online. I think just trying to summarize what is still a little bit of a washing machine in terms of our earnings as we finalize our transition.

Speaker #2: We did just add a snapshot of some of the inventory available online, too. I think there is a perception that Cash Converters is still really just predominantly focused on tools and some of the traditional product lines that we've been known for.

Speaker #2: But some of these unique pieces that we're now getting and the availability now is sometimes almost impossible to acquire. We've got these items available.

Speaker #2: It's just a standard snapshot off the website. This is not an AI-generated image. It's stuff that we've got now that we're selling through our stores.

Speaker #2: And all of the stuff that's in stores is available online. So I think, just trying to summarise what is still a little bit of a washing machine in terms of our earnings, as we finalise our transition.

Speaker #2: We've really thought about this financial year as a strategic reset year, so we're very excited about what we've achieved, considering the large strategic changes that we've made—that we touched upon at the start of the call.

Sam Budiselik: We have really thought about this financial year as a strategic reset year, so we are very excited about what we have achieved considering the large strategic changes that we have made that we touched upon at the start of the call. FY27, it is really a matter of powering up and investing and scaling in our core product and market mix and continuing to execute our strategy. I think the acquisition of the stores we always thought was important because we have got an intent to corporatize our network. They immediately add some earnings cover for the underlying personal finance changes that we have made. As we grow the new personal finance book, the nature of the ECL, the upfront loss provisioning means that we are expensing upfront for future losses. The growth of that book comes with a bit of drag.

Speaker #2: For FY27, it's really a matter of powering up, investing, and scaling in our core product and market mix, and continuing to execute our strategy.

Speaker #2: I think the acquisition of the stores, we always thought, was important because we've got an intent to corporatise our network. And they immediately add some earnings cover for the underlying personal finance changes that we've made.

Speaker #2: As we grow the new personal finance book, the nature of the ECO, the upfront loss provisioning, means that we're expensing upfront for future losses.

Speaker #2: The growth of that book comes with a bit of drag. So I think both of those strategies together have meant that we've actually delivered a really strong result, knowing that we have the benefit now of some clear air with our lending business.

Sam Budiselik: I think both of those strategies together have meant that we have actually delivered a really strong result, knowing that we have the benefit now of some clear air with our lending business. As we turn our minds to FY28, as that line of credit, that new line book grows and matures and seasons, the lending business should come back online and contribute to our overall earnings profile. Just to move forward to the financial highlights. I might just ask David to touch on a few key call-outs. Relatively new to the business, probably around for nearly 9 months now. It has been great having David on the team. David, if you would like to just carry us through the financial highlights.

Speaker #2: And then, as we turn our minds to FY28, as that line of credit—that new line book—grows and matures and seasons, the lending business should come back online and contribute to our overall earnings profile.

Speaker #2: So, just to move forward to the financial highlights, I might ask David to touch on a few key call-outs. He’s relatively new to the business, probably been around for nearly nine months now.

Speaker #2: It's been great having David on the team. And David, if you'd like to just carry us through the financial highlights.

Speaker #3: Yeah, thank you, Sam. And good morning to everybody. So just talking to slide eight at the moment in the deck and leading with a couple of record numbers: the record revenue of $429 million, up 11% on the prior period, and feeding into an operating EBITDA, which is a record number of $67 million, also up 11%.

David Rose: Yeah. Thank you, Sam, and good morning to everybody. Just on, I am talking to slide 8 at the moment in the deck, and leading with a couple of record numbers. The record revenue of AUD 429 million, up 11% on the prior period and feeding into an operating EBITDA, which is a record number of AUD 67 million, also up 11%. Showing how our expanded store network is now carrying our earnings in the business, as we have completed the lending change that Sam alluded to earlier on. The operating NPAT figure of 23.2, although down, is a deliberate impact of our strategic change rather than a deterioration. With our legacy books, running off faster than the new Cashies Loan scaled, and the increase of depreciation, amortization, and some more finance costs from the expanded store network.

Speaker #3: And showing how our expanded store network is now carrying our earnings in the business, as we've completed the lending change that Sam alluded to earlier on.

Speaker #3: The operating impact figure of $23.2 million, although down, is a deliberate result of our strategic change rather than a deterioration. With our legacy books running off faster than the new cashers' loans scaled, and the increase of depreciation, amortization, and some additional finance costs from the expanded store network.

Speaker #3: Statutory impact was at just a shade under 20 million dollars. And that includes a charge of three and a half million dollars in relation to transition and acquisition costs.

David Rose: Statutory NPAT was at just a shade under AUD 20 million, and that includes a charge of AUD 3.5 million in relation to transition and acquisition costs. If you strip those out and you add them back, you are at AUD 23.2 million of operating result. Those are the same items that we disclosed at the half. The Cashies Loan book, Sam has already touched on, at AUD 114 million, is up 5 times from where it was this time last year. That is the future growth engine, and it is in place and it is seasoning nicely. Cash of AUD 37.2 million is down, but simply reflects the cash that we deployed into the accretive store acquisitions, not any underlying cash burn issue. We are paying a sixth consecutive fully frank AUD 0.02 per shared dividend. For the whole year, we have undrawn facilities still in place on our securitization.

Speaker #3: If you strip those out and then add them back, you're at $23.2 million of operating result. And those are the same items that we disclosed at the half.

Speaker #3: The cashier's loan book—Sam's already touched on—at $114 million is up five times from where it was this time last year. That's the future growth engine.

David Rose: That is the future growth engine, and it is in place and it is seasoning nicely. Cash of AUD 37.2 million is down, but simply reflects the cash that we deployed into the accretive store acquisitions, not any underlying cash burn issue. We are paying a sixth consecutive fully frank AUD 0.02 per shared dividend. For the whole year, we have undrawn facilities still in place on our securitization.

Speaker #3: And it's in place, and it's seasoning nicely. Cash of $37.2 million is down but simply reflects the cash that we deployed into the accredited store acquisitions, not any underlying cash burn issue.

Speaker #3: We're paying six consecutive, fully-franked, two cent per share dividends for the whole year. We have all facilities still in place on our securitisation, and overall, that dividend leads to a 6.7% yield on the stocks at a 30% share price.

David Rose: Overall, that dividend leads to a 6.7% yield on the stocks at a 30% share price. Moving now to the next slide. Really this chart is the story of the year in a single chart. The rundown loan books were 40% of our revenue back in FY 2022, and they are now 15%, as you can see from the chart on the left. The UK and New Zealand have gone from 4% of our book to 30%, and the AU stores have similarly increased, now at 56% of the total from 49%. The Australian stores and the UK EBITDA has tripled since FY22. That is a broader high-quality base which has been deliberately built to replace that legacy lending runoff and the exit from payday. The EBITDA composition is now heavily weighted to Australian stores at AUD 46.8 million.

Speaker #3: Moving now to the next slide. And really, this story is the story of the year, in what this chart is—the story of the year in a single chart.

Speaker #3: The rundown loan books were 40% of our revenue back in FY2022, and they are now 15%, as you can see from the chart on the left.

Speaker #3: The UK and New Zealand have gone from 4% of our book to 30%. And the AU stores have similarly increased, now at 56% of the total, up from 49%.

Speaker #3: So, the Australian stores and the UK EBITDA have tripled since FY22. That's a broader, higher-quality base, which has been deliberately built to replace that legacy lending runoff.

Speaker #3: And the exit from payday. The EBITDA composition is now heavily weighted to Australian stores at $46.8 million. The PF, or personal finance, and the legacy lending is now under $20 million.

David Rose: The PF, or personal finance, and the legacy lending is now under AUD 20 million. UK and NZ stores are 26, and then you have the head office costs, which pleasingly you can see over the last five years are representing a very flat trend. So that legacy book now represents a relatively small proportion of the total gross loan book, meaning that the highest risk tail in our business is largely gone. The NPAT step down from the AUD 25.1 million peak last year, we believe is the near-term cost of that transition. The legacy runoff outpacing the realization of the new book earnings is simply a timing issue as we go through this year. Turning to the next slide 10 illustrates that transition really neatly. You will see, working from the left-hand side, the bridge in NPAT from last year to this year.

Speaker #3: UK and NZ stores are 26. And then you’ve got the head office costs, which, pleasingly, you can see over the last five years have represented a very flat trend.

Speaker #3: So, that legacy book now represents a relatively small proportion of the total gross loan book, meaning that the highest risk tail in our business has largely gone.

Speaker #3: And the impact step-down from the $25.1 million peak last year, we believe, is this sort of near-term cost of that transition. The legacy runoff outpacing the realisation of the new book earnings is simply a timing issue as we go through this year.

Speaker #3: Turning to the next slide, slide 10, illustrates that transition really neatly. And you'll see, working from the left-hand side, the bridge in NPAP from last year to this year, the store revenue and the lower bad debts largely offsetting the planned $18.1 million of financial services decline.

David Rose: The store revenue and the lower bad debts are largely offsetting the planned AUD 18.1 million of financial services decline. So net store revenue is nicely up. Really, really pleasingly, 10 points of that net store revenue that was up 35% came from existing stores, like-to-like basis, 25 points came from the new stores. Pawn income continues to be an important part of our business model and was up 31%, largely from the new stores, and helps to offset the personal finance and vehicle rundown on that payday vehicle lending exit. Employee costs were up, but the new stores add AUD 16.2 million of that because like-for-like costs in the stores dropped by AUD 2.8 million. So the existing base is getting more efficient. Bad debts were down 52% on those smaller legacy books and the improved credit quality, meaning our overall net loss rate was 11% versus the previous 16%.

Speaker #3: So net store revenue is nicely up, and really, really pleasingly, 10 points of that net store revenue that was up 35% came from existing stores, like for like.

Speaker #3: Basically, 25 points came from the new stores. Pawn income continues to be an important part of our business model and was up 31%, largely from the new stores.

Speaker #3: And helps to offset the personal finance and vehicle rundown on that payday vehicle lending exit. Employee costs were up, but the new stores add $16.2 million of that, because like-for-like costs in the stores dropped by $2.8 million.

David Rose: Employee costs were up, but the new stores add AUD 16.2 million of that because like-for-like costs in the stores dropped by AUD 2.8 million. So the existing base is getting more efficient. Bad debts were down 52% on those smaller legacy books and the improved credit quality, meaning our overall net loss rate was 11% versus the previous 16%.

Speaker #3: So the existing base is getting more efficient. Bad debts were down 52% on those smaller legacy books, and the improved credit quality meant our overall net loss rate was 11%, versus a previous 16%.

Speaker #3: And our finance costs increased on the cost of the Lloyds Bank facility in the UK, funding our new stores, and also largely on the UK facility.

David Rose: Our finance costs increased on the cost of the Lloyds Bank facility in the UK funding our new stores, and also largely on the UK facility. Moving quickly to slide 11, the balance sheet. Loan receivables are flat on the year, but the composition has been transformed as part of this strategic pivot. The core loan book has increased 165% and has fully offset the rundown books, which are now sitting at AUD 72.8 million of our total book. Goodwill and intangible growth has been significant, and it is a direct result of the M&A work that we have done in the UK and Australian acquisitions. That same M&A lifted inventories, lifted PP&E and right-of-use assets. The cash, as I mentioned before, is down 50%, AUD 37.2 million, but is the mirror simply of the acquisition outlay. Borrowings are down very slightly.

Speaker #3: Moving quickly to slide 11, the balance sheet. Loan receivables are flat on the year, but the composition has been transformed as part of this strategic pivot.

Speaker #3: The core loan book has increased 165% and has fully offset the rundown books, which are now sitting at $72.8 million of our total book.

Speaker #3: Goodwill and intangible growth has been significant. It's a direct result of the M&A work that we've done and the UK and Australian acquisitions. That same M&A lifted inventories, lifted PP&E, and right-of-use assets.

Speaker #3: The cash, as I mentioned before, is down 50%—$37.2 million—but is simply the mirror of the acquisition outlay. Borrowings are down very slightly.

Speaker #3: The fortress facility reduced by a single percentage point to $140 million. And that's as the legacy SAC and vehicle finance transitions into the cashes loan.

David Rose: The Fortress facility reduced by a single percentage point to AUD 114 million, and that is as the legacy SACC and vehicle finance transitions into the Cashies Loan. All up, net assets increased to AUD 253.8 million, strengthening of the balance sheet through the transition, not a stretching of the balance sheet. Two more quick slides on the cash flow. Slide 12, the operating cash flow sat at AUD 33.5 million, and free cash flow, importantly, was AUD 20.3 million after allowing for our CapEx on our stores, meaning that the dividend is self-funded. Customer receipts increased, and the business acquisition outflow that I have referenced a couple of times there is clearly shown as the primary driver of the cash movement, a deliberate growth choice on our part. The net personal loans advanced were reduced by just under AUD 10 million, and that reflects the capital that is running into growing the new Cashies book.

Speaker #3: All-up net assets increased to $253.8 million. Strengthening of the balance sheet through the transition, not a stretching of the balance sheet. Two more quick slides.

Speaker #3: On the cash flow, slide 12, the operating cash flow was set at $33.5 million, and free cash flow—importantly—was $20.3 million, after allowing for our capex on our stores.

Speaker #3: Meaning that the dividend is self-funded. Customer receipts increased, and the business acquisition outflow that I've referenced a couple of times is clearly shown as the primary driver of the cash movement.

David Rose: Customer receipts increased, and the business acquisition outflow that I have referenced a couple of times there is clearly shown as the primary driver of the cash movement, a deliberate growth choice on our part. The net personal loans advanced were reduced by just under AUD 10 million, and that reflects the capital that is running into growing the new Cashies book.

Speaker #3: A deliberate growth choice on our part. The net personal loans advanced were reduced by just under $10 million, and that reflects the capital that's running into grey in the new cashes book.

Speaker #3: And financing was $24.1 million, which was the November 2025 raise to support the CCI IG acquisition in Australia, offset by dividends, offset by the borrowings, and the lease.

David Rose: Financing was AUD 24.1 million, which was the November 2025 raise to support the CCI IG acquisition in Australia, offset by dividends, offset by the borrowings and the lease, and you see the net cash position. The last slide I will touch on before I hand back to Sam is the segment performance. Store segments really have carried the group this year, as is the story. The Australian store's EBITDA is just a shade under 50%, the UK at 21.7%, and New Zealand at 4.4%. Same-store sales increased 13%. We have called this out a number of times, and I think it will come up further in our conversations. In the UK, up 6%. The growth is underlying in the business, not just acquired growth. Personal finance, as we have discussed, is the transition drag, with the revenue down 40% and EBIT down 60%.

Speaker #3: And you see the net cash position. The last slide I'll touch on before I hand back to Sam is the segment performance.

Speaker #3: So store segments really have carried the group this year, as is the story. The Australian stores’ EBITDA is just a shade under 50%, the UK at 21.7%, and New Zealand at 4.4%.

Speaker #3: Same store sales increased 13%. We have called this out a number of times, and I think we've come up further in our conversations. And in the UK, up 6%.

Speaker #3: So the growth is underlying in the business, not just acquired growth. Personal Finance, as we've discussed, is the transition drag with the revenue down 40% and PBIT down 60%.

Speaker #3: But that is a deliberate legacy runoff of that book, and the earnings rebuild is expected in FY27 as the new cashes loan season continues to grow.

David Rose: That is a deliberate legacy runoff of that book and the earnings rebuild is expected in FY27 as the new Cashies Loan seasons and continues to grow. Vehicle financing revenue, that reduction is the tail of that strategic exit. The origination has actually ceased in June 2024. It is not any reflection of any demand issue. In New Zealand, we also ceased payday lending in Q4 of this year and are redeploying the capital. You will see a PBT swing of AUD 2 million. Group PBT at AUD 28.8 million includes AUD 2.2 million of that non-operating M&A and transition cost that I referred to earlier on. With that, I will hand back to Sam just to finish off with a view on growth prospects and outlook.

Speaker #3: Vehicle financing revenue—that reduction is the tail of that strategic exit. The origination was actually ceased in June 2024. It's not any reflection of any demand issue.

Speaker #3: In New Zealand, we also ceased payday lending in Q4 of this year and are redeploying the capital, so you'll see a PBT swing of $2 million.

Speaker #3: Group PBT, the $28.8 million, includes $2.2 million of that non-operating M&A and transition cost that I referred to earlier on. So, with that, I'll hand back to Sam just to finish off with a view on growth of cross space and outlook.

Speaker #1: Thank you, David. I think, as we touched upon on the way into the call, we're very confident in the strategy that we've executed to date, particularly over the last 12 months.

Sam Budiselik: Thank you, David. I think as we touched upon on the way into the call, we are very confident in the strategy that we have executed to date, particularly over the last 12 months. Our focus really remains on leveraging what is a uniquely positioned retail offering through our store network, as cost of living is increasing, and as the acceptance of repurposed inventory and the aspirational affluent segment that we service is growing. We remain committed to growing our store network. We target, we will be acquiring target store numbers of something around 15 to 20 stores in FY27 across the major markets of Australia and the UK. We look to open five to 10 greenfields across those markets. So, we still see strong store network growth this year occurring, off the 200 base, up 10 or 15, 20%, something like that.

Speaker #1: Our focus really remains on leveraging what is a uniquely positioned retail offering through our store network. As the cost of living is increasing, and as the acceptance of repurposed inventory among the aspirational affluent segment that we service is growing, we remain committed to growing our store network.

Speaker #1: So we target we'll be acquiring target store numbers of something around 15 to 20 stores in FY27 across the major markets of Australia and the UK.

Speaker #1: We look to open 5 to 10 greenfields across those markets, so we still see strong store network growth this year occurring—off the 200 base, up 10 or 15, 20%, something like that.

Speaker #1: In terms of the lending business, we do still carry some additional overheads compared to where we'll end up once we've fully exited the legacy book runoffs.

Sam Budiselik: In terms of the lending business, we do still carry some additional overheads to where we will end up once we have fully exited the legacy book run-offs, and we wind down the associated operations teams. Going forward, we will be talking solely about the Cashies Loan, the new flexible line of credit product that we are offering, with lower loss rates and a lower cost to serve over time as the customers that are won into that book, continue redrawing as they have needs of credit going forward. I think, overall, when we are looking at our loss rates, we are targeting obviously a reduction on where we were in the past. Whilst the SACC small loan product was high yield, it was high loss, and it brought, as I said at the start of the call, some other impediments such as funding onshore and accessing the banking system.

Speaker #1: And we wind down the associated operations teams, and going forward we'll be talking solely about the Cashes loan—the new flexible line of credit product that we're offering, with lower loss rates and a lower cost to serve over time, as the customers that are wanting to, that book, continue redrawing as they have need to credit going forward.

Speaker #1: I think overall, when we're looking at our loss rates, we're targeting, obviously, a reduction on where we were in the past. Whilst the SAC Small Line product was high yield, it was high loss, and it brought, as I said at the start of the call, some other impediments, such as funding onshore and accessing the banking system. So, with the exit of that line book now largely complete, we turn our minds to refinancing our business, optimizing our balance sheet, as David touched on, and really executing on the pipeline of franchise acquisitions that we've got in front of us, in terms of growing our loan book.

Sam Budiselik: With the exit of that loan book now largely complete, we turn our minds to refinancing our business, optimizing our balance sheet, as David touched on, and really executing on the pipeline of franchise acquisitions that we have in front of us in terms of growing our loan book. I think with the, we have had questions over time in terms of the metrics around the store acquisition, so we have added some slides. Slide 17 talks about some of the standard metrics across our store network. For those that are looking at the store network from a retail perspective, our inventory turnover at around 2.4 times in Oz is blended, with jewelry being a little bit lower and general merchandise being a little bit higher.

Speaker #1: I think we have had questions over time in terms of the metrics around the store acquisition, so we have added some slides.

Speaker #1: Slide 17 talks about some of the standard metrics across our store network. For those that are looking at the store network from a retail perspective, our inventory turnover is around 2.4 times, and ours is blended, with jewelry being a little bit lower and general merchandise being a little bit higher.

Speaker #1: And I think, as you see the mix of inventory changing to that higher-end, luxury inventory mix that we touched on, the turn rate will increase.

Sam Budiselik: As you see the mix of inventory changing to that higher-end luxury inventory mix that we touched on, the turn rate will increase. I think it is safe to say we have really got good scorecards in place now and a good view on the global store network. As we compare the stores across the network, we are seeing opportunity to continue to optimize, and in particular, the same-store sales growth is a strong lever for us across the network. We have on the next slide 18 included, just some general metrics to outline how we look about the acquisition pipeline. We are still buying in a very disciplined way when we are striking these deals, even for the bigger networks, which would be at the higher end of that multiple range.

Speaker #1: But I think it's safe to say we've really got good scorecards in place now, and a good view on the global store network as we compare the stores across the network.

Speaker #1: We're seeing opportunity to continue to optimize, and in particular, the same store sales growth is a strong lever for us across the network. And we have, on the next slide—slide 18—included just some general metrics to outline how we look at the acquisition pipeline.

Speaker #1: We're still buying in a very disciplined way when we're striking these deals, even for the bigger networks, which would be at the higher end of that multiple range.

Speaker #1: But they're pretty compelling opportunities when you think about the lower level of risk on integration, and obviously the view of the business that we have with those stores being on our platform.

Sam Budiselik: They are pretty compelling opportunities when you think about the lower level of risk on integration, and obviously the view of the business that we have with those stores being on our platform. So we do remain committed to focusing really predominantly on the AU and UK markets due to the size of the residual franchise networks. Just to close out, like we said with the outlook, we are very much focused on continuing to execute in 2027. We will be really starting now to turn our minds to funding and our balance sheet and ensuring we are well capitalized to continue, taking advantage of the opportunities that are in front of us. But doing so in a steady way, as we have done over the past few years. I think as we are looking through, whilst we are probably on a three-year timeline here in this slide.

Speaker #1: So, we do remain committed to focusing really predominantly on the AU and UK markets due to the size of the residual franchise networks.

Speaker #1: And then, just to close out, like we said with the outlook, we're very much focused on continuing to execute in '27. We will really be starting now to turn our minds to funding and our balance sheet, and ensuring we're well capitalized to continue taking advantage of the opportunities that are in front of us.

Speaker #1: But doing so in a steady way, as we have done over the past few years. And I think, as we're looking through, whilst we're probably on a three-year timeline here in this slide, we're very comfortable with the way that the new line book's growing. That's going to have a great future benefit for our business that we're not seeing in these numbers.

Sam Budiselik: We are very comfortable with the way that the new loan book is growing, that that is going to have a great future benefit for our business that we are not seeing in these numbers. So, we feel pretty comfortable. We have got a pretty good catalyst in our refinancing, and then we have got some great growth levers that are really yielding results. We finish on our investment highlight slide, which I think hopefully underlines all of that. So, we were planning on taking some questions. I do not think we have had any come through. I do appreciate everybody dialing in and listening to the call. We are obviously happy to take questions direct if you do have anything that comes up. Hopefully, we look forward to seeing many of you over the next week or two, either on investor calls through the brokers or at the meetings.

Speaker #1: So, we feel pretty comfortable. We've got a pretty good catalyst in our refinancing, and then we've got some great growth levers that are really yielding results.

Speaker #1: And we finish on our investment highlight slide, which I think hopefully underlines all of that. So we were planning on taking some questions. I don't think we've had any come through.

Speaker #1: I do appreciate everybody dialing in and listening to the call. We're obviously happy to take questions directly if you do have anything that comes up.

Speaker #1: And hopefully we look forward to seeing many of you over the next week or two, either on investor calls through the brokers or at the meetings.

Speaker #1: Thank you very much for your time, and we look forward to being in touch again soon.

Sam Budiselik: Thank you very much for your time, and we look forward to being in touch again soon. Thanks, Phil. That has been a really good overview through all that. But one of the things you raised there, which I found quite fascinating and

Sam Budiselik: Thank you very much for your time, and we look forward to being in touch again soon.

Speaker #2: Thanks, Phil. That's been really good. One of the things you raised then which I found quite fascinating in my view is you mentioned the US government is still very interested in that new edition of the but.

[Unknown Speaker]: Thanks, Phil. That has been a really good overview through all that. But one of the things you raised there, which I found quite fascinating and

Operator: Goodbye.

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Full Year 2026 Cash Converters International Ltd Earnings Call

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