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Julian Urry, managing director, Cash Generator

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8:48 am, March 17, 2010
Cash Generator posts record results as consumers hunt bargains

Cash Generator Ltd, the second-hand goods, pawnbroking and money-lending chain, has reported a near threefold rise in earnings after annual turnover shot up nearly 35 per cent to a new high of £73.6m.

Pre-tax profits increased to £2m from £760,000 in the year to January 31 and operating profits were £30.1m, compared with £22.6m in the previous year.

The chain, based on the Express Trading Estate in Bolton, now trades from 115 outlets, having opened another 27 during the year. Stripping out the contribution from new openings, like for like sales were up 16.4 per cent and the first eight weeks of the current year showed an eight per cent gain.

Cash Generator was sold by founder Brian Lewis in April 2008 in a £4m management buyout which introduced 42 new shareholders assembled by London-based boutique New World Corporate Finance.

Now led by managing director Julian Urry, it hopes to open another 20 stores this year and to begin operating in continental Europe by franchising its business model, starting with Ireland where it hopes to have a chain of 15 stores. It is trying to recruit entrepreneurs who will pay in the region of £150,000 for a 15-year development licence allowing them to sell individual franchises within each country.

As well as buying and selling second consumer goods such as televisions and PCs, it buys gold and offers pawnbroking, cheque cashing and money lending services.

Urry said the company has gained from harder times, as people try look for a bargain and seek to turn unwanted goods into cash.

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