Cash Converters is hunting for acquisitions after the pawnbroking chain enjoyed a solid lift in quarterly revenues.
The franchise's latest trading update shows revenue rose 26.2 per cent to $97.2 million in the September quarter, driven by rising demand for personal loans.
The personal loans business involves small cash advances and unsecured loans to customers.
Cash Converters' loan book in Australia expanded by 23.4 per cent to $105 million in the quarter, with online personal loans doubling to $13.1 million.
The company expects strong demand for its loans to continue during its traditionally busy Christmas season.
This pleased investors, with Cash Converters' shares closing nine cents higher, or nine per cent, at $1.09.
Managing director Peter Cumins says the company's financial performance has improved, with earnings before interest, taxes, depreciation, and amortization up 61 per cent.
"In addition, we are considering opportunities across the Cash Converters network for further acquisitions," he said.
However, bad debt levels increased slightly to 7.2 per cent from 6.6 per cent in the previous three months.
Mr Cumins said this was within the historical range for the business.
The company's store network in the UK and Australia has seen revenue lift 15.4 per cent to $45.9 million in the first quarter compared to the same period a year ago.
Share
