Cash Converters Limited (ASX:CCV) announced that the company has made three key changes to its management and strategy. Going forward to company hopes the changes will put it in a strong position to tackle a rapidly changing market.
Cash Converters stated that whilst FY15 presented several operational and regulatory challenges, the company’s Australian business operations still managed to generate revenue growth and a strong underling profit. With a strong market position, a well-established store network, a rapidly growing online business and a product range that allows for future growth. However keeping that in mind, the company recognises that the market is changing and it needs to review how it manages itself and continue to evolve, therefore the company has announced three key changes.
Cash Converters Chairman since 2015, Mr Reginald Webb, has announced that he intends to retire following the completion of FY16. To help with the transition, Mr Stuart Grimshaw has been appointed as interim Non-Executive Chairman and will immediately undertake a review of the Company’s Board structure and composition. Mr Grimshaw joined the board in November 2014, and according to the company, is a very experienced financial services executive with over 30 years’ experience in the industry.
The company also announced the appointment of Mr Mark Reid to the position of Australian CEO, to replace Mr Ian Day who is retiring after 23 years with the Company. According to Cash Converters, Mr Reid is a highly experienced banking and finance executive, having held senor roles at BankWest, including CEO retail banking, and recently as CEO of Greenstone Financial Services.
Strategically the company has appointed consulting group, CACE Partners, to conduct a full review of the business across geographies, distribution channels and product lines. Following the review, CACE Partners and the company will formulate its three year strategic growth plan, expecting it to take approximately 16 weeks to complete.
The company has indicated that it aims to provide a market update on the outcomes of the review and the forward strategic plan around January 2016.
Author: Ben Visser
Sep 10, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.