Allocation of goodwill to cash-generating units
Goodwill has been allocated for impairment testing purposes to the following cash-generating units:
• Financing - MON-E
• Financing - Safrock
• Corporate Stores (Australia)
• Corporate Stores (UK)
This segment incorporates MON-E Pty Ltd which was acquired by Cash Converters International on 13 October 2006, Safrock
Finance Group, acquired on 29 September 2006 and Cash Converters Finance Corporation Limited.
Safrock provides loans to customers through the Australian Cash Converters Network. Franchisees act as agents for Safrock and
receive commissions for all personal loans transacted through Safrock. At the 30 June 2008 the loan book stood at $13.8 million
with a provision against bad debts of $1.9 million.
A total of 20,558 (2007: 16,012) loans were approved and a total principal amount of $28,540,000 (2007: $23,500,000) was lent out
during the period.
Safrock net profit before tax for the year was $8,219,381 (2007: $5,805,058).
MON-E operates the internet platform and the software for Cash Converters franchisees and corporate stores who ultimately provide
cash advances to their customers. The total commissions received by MON-E increased by 9.3% over the corresponding period last
year. The total principal loaned was up 7.4% and customer numbers increased by 18.7%. Currently 100 stores use the MON-E
software. The stores in South Australia operate under the “Quickdraw” software from which Cash Converters receive a commission.
MON-E net profit before tax for the year was $9,014,306 (2007: $7,992,806).
Cash Converters Finance Corporation Limited (CCFCL) provides working capital loans to the Australian franchise network only. The
average loan is for $150,000 with an interest rate of 12% to 13%. The loan is secured against the assets of the franchised store.
During the period CCFCL made a net profit before tax of $66,193 (2007: $92,420).