Point-of-sale financing group ThinkSmart has beaten its guidance for the six months to June 30, rebounding from a $1.5 million loss in the previous half year to lodge a net profit of $700,000.
The Perth-based company’s profit came on less revenue than the previous financial year, which was down to $17.5 million, from $18 million in FY2012.
ThinkSmart predicted it would lodge a net profit of $500,000 at its annual meeting in May.
Chief executive Ned Montarello said the company made significant progress in FY2013, and flagged further sales and earnings growth for the next financial year.
Operating expenses were down 15 per cent on the first half of FY2012, including a 30 per cent drop in corporate overheads.
The company’s UK division exhibited particularly strong growth, with its profits rising by 35 per cent.
ThinkSmart’s Australian division recorded volume growth of 31 per cent, Mr Montarello said, with strong sales of the company’s Fido payment system, which allows customers to pay off purchases progressively with no interest.
“The performance of the Australian business continues to improve, driven by building Fido volumes, lower costs and improving asset quality,” he said.
“Fido sales were solid and our medium-term goals are unchanged as the pipeline for growth is strong.”
At 2:00PM, WST, ThinkSmart shares were down 7.8 per cent, at 35.5 cents.