Thorn lifts 2013-14 half-year performance
The ongoing diversification strategy to become a broader-based provider of alternative financial services outlined previously by the Thorn Group has met with some success in 2013.In the six months to 30 September 2013, the Thorn Group's revenue was at a record high, with the Radio Rentals business proving to be the mainstay of the group. Its new business grew on the back of a lift in sales of technology products, smartphones in particular.Underlying net profit after tax increased 2.9 per cent, to A$13.5 million.However, reported net profit after tax was five per cent lower, at $13.3 million ($14.0 million in the previous corresponding half year). The company said its improved result was due to two non-recurring items - the sale of a portion of debt by Radio Rentals and by NCML, the group's credit and receivables management services provider. These totalled $1.25 million in the previous year. There were also start-up costs of $300,000 for the car leasing business Rent Drive Buy in this period. The financial services division grew its loan book, and, with the launch of Thorn Money, broadened the target market for future growth. Thorn Money provides unsecured loans of up to $15,000 and secured loans up to $25,000, while another new business, Cashfirst, provides unsecured loans of between $2,000 and $5,000.A $50 million corporate debt facility and a $50 million securitisation fund for Thorn Equipment Finance provides the group with adequate capital for future growth. An interim dividend of 4.5 cents a share fully franked (4.5 cents fully franked in the previous corresponding period) will be paid on 17 January 2014 to shareholders registered on 27 December 2013. The dividend reinvestment plan will be active for the dividend and a discount of 2.5 per cent will apply.