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The post What’s lifting the Cash Converters (ASX:CCV) share price today? appeared first on The Motley Fool Australia. –
The Cash Converters International Ltd (ASX: CCV) share price is charging higher, up more than 3% in afternoon trading.
Below we take a look at what’s driving investor interest.
What update did Cash Converts provide?
Cash Converters’ share price is gaining today after the company reported strong growth rates in its personal lending outgoings, with its loan books growing.
The company’s total gross loan books increased by 14% over the half year to 31 May to $176.6 million. That’s up from $151.1 million as of 31 December.
Cash Converters also said it had re-launched its vehicle finance product, with the recent months seeing outgoings growing.
In an update on its corporate and franchise store network acquisitions, Cash Converters reported it acquired (or entered into arrangements to acquire) 6 franchise stores during the 2021 financial year. The company plans to maintain its focus on “disciplined growth” as it continues to expand its physical footprint to reach new customers.
The Cash Converters’ share price may also have received a boost from the company’s reiteration that it’s committed to resuming sustainable dividend payments. It reported a May 2021 cash balance of $73.3 million, along with an undrawn funding facility line of $79.8 million.
Commenting on the performance update, Cash Converters’ managing director, Sam Budiselik, said:
The performance of our underlying business throughout FY 2021 has been extremely impressive considering the substantial impact of COVID-19 on our loan books, with government stimulus payments impacting borrower demand and accelerating loan book repayments in the first half of FY 2021.
Whilst borrower demand and business activity throughout the second half of FY 2021 has largely recovered, the expectation of a softer second half earnings result is due to these COVID-19 related factors.
Budiselik added that “borrowing demand continues to recover and loan book growth is forecast to continue” in the 2022 financial year.
Cash Converters’ full 2021 financial year results will be released to the market by 30 August.
Cash Converters share price snapshot
Over the past 12 months, Cash Converters’ shares have gained 41%, handily outpacing the 31% gains posted by the All Ordinaries Index (ASX: XAO).
Year-to-date the Cash Converters share price is up a more modest 5%.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.