Record full-year result for ThinkSmart

21/02/2011 - 12:25

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Computer and office equipment financiers ThinkSmart has lodged a 31 per cent rise in full-year profit on the back of lowered business costs and a 14 per cent increase in sales.

Computer and office equipment financiers ThinkSmart has lodged a 31 per cent rise in full-year profit on the back of lowered business costs and a 14 per cent increase in sales.

Perth-based ThinkSmart's net profit rose to a record $6.8 million in the year to December 31, up from $5.2 million in the previous corresponding period.

ThinkSmart said in a statement that revenue from sales increased to $42.1 million, up 14 per cent from the $36.7 million recorded the previous year.

Ongoing improvements in operational efficiencies saw the company lower its cost of business by 17 per cent, primarily though its newly patented QuickSmart operating platform.

ThinkSmart will pay a final partly franked dividend of 3.5 cents a share.

Shares in ThinkSmart have risen sharply, gaining 13.2 per cent to trade at $0.77 at 12:15PM (WST).

Thinksmart chief executive Ned Montarello said the earnings growth was particularly pleasing as it was achieved despite cautious consumer sentiment following extreme weather conditions in Europe in November and December, and the strength of the Australian dollar, which appreciated 18 per cent.

"We are very well positioned," he said.

"We experienced strong growth in Australia in 2010 and our UK operations are wll placed following our entry into the consumer market in November 2010.

"The combined $160 million in new bank facilities announced last week as part of our global funding transformation program means we have never been better positioned to capture this growth."

Also, last week ThinkSmart announced it had deals in place for $160 million in new finance facilities.

ThinkSmart said it signed an operating agreement for a £40 million revolving facility with Secure Trust Bank to finance its business-to-business and consumer rental contracts in the United Kingdom through to 2014.

ThinkSmart has been operating in the UK for more than eight years, providing business-to-business rental finance through PC World stores.

And it also said final approval had been obtained from a major Australian bank for a $100 million securitisation facilty, expected to be available from the second quarter of this year.

"We transformed our funding program to be in a stronger position to capture growth opportunities," ThinkSmart chief executive Ned Montarello said.

"Our strategy is to establish scalable funding platforms in our major territories supported by multiple funder relationships.

"The funding platform we have created will support our projected growth well into the future and will have a positive impact on operating margins over the medium term through lower funding costs."

 

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