ThinkSmart on track early on

Perth based alternative finance group ThinkSmart, which listed in early June 2007, reported a half-year profit after tax of $2.3 million.

This places the company on target to meet the December 2007 prospectus forecast of $5 million. Given a $250,000, one-off payment from HBOS, ThinkSmart are aiming at a 50 per cent lift in six months.

ThinkSmart is a new breed of niche finance company targeting smaller businesses. The product is on the spot approval for IT financing transactions between $500 and $10,000. Brands include SmartPlan in Europe, RentSmart in Australia and SmartCheck, ThinkSmart's proprietary credit approval software.

ThinkSmart secured a new three-year deal with the Officeworks group, and is planning to launch in New Zealand with JB Hi-Fi in late 2007.

ThinkSmart has extended its existing funding relationship with Adelaide Bank for another five years, while also extending its Australian funding arrangements to include a new unnamed funding agreement with a leading international financier, announced by media release mid August.

The media release outlined that the terms of both contracts are reflective of ThinkSmart's existing agreements, highlighting long term relationships with Halifax Bank of Scotland, Banco Santander and Societe General, with terms extending out to 2010 - 2011.

The company was established in 1996 by Ned Montarello and operates in Australia via partners Dick Smith, Power House, JB Hi-Fi and next byte. International operations include the United Kingdom, Spain and France through partner PC City, with the UK also utilising the DSG International network.

Shares are currently trading at $1.75, well down on the $2.15 IPO price with the stock being trapped in a downward trend since trading around $2.40 when listed three months ago.

Market capitalisation is $166 million, based on the 95 million shares on offer and the market didn't particularly embrace the result with only 13,550 shares trading hands for the day.