Office equipment financing company ThinkSmart says a new product has the potential to increase its UK footprint four-fold as it today posted a record cash net profit of $7.5 million for calendar 2009.
Office equipment financing company ThinkSmart says a new product has the potential to increase its UK footprint four-fold as it today posted a record cash net profit of $7.5 million for calendar 2009.
In a statement today, the West Perth-based company said its full-year cash net profit had surged 54 per cent on the previous corresponding period.
Earnings before interest, tax, depreciation and amortisation - excluding no-recurring items, grew 8 per cent to $12.2 million from a gross margin increase of 4 per cent and 22 per cent EBITDA margin improvement, driven by significant sustainable improvements in operational efficiencies.
ThinkSmart will pay a final fully franked dividend of 2 cents taking full-year dividends to 3.5 cents.
"This is a strong result during a globally challenging period, proving the resilience of our product and business model," said ThinkSmart executive chairman Ned Montarello.
"The Group has delivered a 21% compound annual growth rate over the last 3 years. We've maintained dividends and been able to continue to grow without the need to access new debt or equity, and to this end we remain net debt free.
"Our Australian business posted 61% growth in EBITDA and our UK operations delivered 5% growth despite a very repressed trading period. Our Spanish business returned to growth in the second half. This momentum, along with significantly improved fundamentals and reduced costs of doing business, positions the Group well for continued growth in 2010.
"We are targeting 20% growth in EBITDA this year and have seen all the positive early signs with our new product proposition helping deliver an encouraging increased growth result in January in the Australian business.
With similar new products going to market in the UK and Spain this month we are optimistic of the same outcome there."
In January 2010, ThinkSmart launched a suite of enhancements for its successful RentSmart finance product, aimed at growing its share of customers in the Australian market.
The enhancements included the provision of online data back-up and remote data access for the duration of customers' rental contracts at no extra cost as well as the provision of a loan laptop if their's breaks down or is stolen.
Mr Montarello said the retail market in the UK in 2009 had been tough but he was encouraged by the continued improving fortunes of the DSGi retail group, the dominant retailer in the UK.
"We are targeting growth weighted towards second half of 2010 coming from both the new services based business product launched this month and the recovery in trading conditions.
"We're also planning to significantly expand our market footprint in the UK through the introduction of a consumer rental product which, as has been the case in Australia, has the opportunity to increase our market in the UK four fold which would be game changing for us."
