Burn rate quickens at Cash Store

Accumulated losses piled up at an even more rapid rate for Cash Store Australia over the March 2012 quarter, as the financier - one that specialises in payday loans - adjusted to regulations due to come into force soon.

Canadian-headquartered Cash Store Australia reported a loss of C$3.1 million for the quarter. Its loss for the nine months to March was C$6.1million.

Accumulated losses for the firm are now C$9.2 million.

Cash Store Australia operates 81 shopfronts in Australia. It is based in Edmonton, Canada, and is listed on the Toronto-based TSX Venture Exchange.

The firm suspended lending from March 17 to April 14 "while revisions to procedures and IT systems were implemented", according to the quarterly disclosure.

The firm's solvency is dependent on funding (at an effective interest rate of 17.5 per cent) from a third party that the company's financial disclosures do not identify.