Losses leap at Cash Generator after investment

CASH Generator, the North West-based pawnbroker and second-hand retailer, has reported a surge in losses after ramping-up investment in new shops and infrastructure.

The Bolton company, said after investing nearly £3.3m its 2012 losses leapt from £231,000 to £5.9m.

Turnover surged 64% to £31.8m in the year to December 29, up from  £19.4m in the 11 months to December 31 2011. Employee numbers rose from 271 to 466 in the same period.

Founded in Bolton in 1994 Cash Generator now has more than 220 stores. It was acquired in late 2010 by CNG Holdings Inc of Cincinnati, Ohio. While the majority of its shops are operated under a franchise model, it also has a number of its own stores.

In a business review for 2012 director Roger Dean said the operating loss was “in line with directors’ expectations and was due to opening costs incurred for new stores and an increase in central costs to enable the company to service a larger network of stores.

“It is the intention in 2013 to drive performance of the store portfolio by focusing on growth through promotion of the brand and product ranges.”

In December 2012 managing director Julian Urry stepped down to be replaced by Allan May.