Perth-based office equipment financing firm ThinkSmart will put its United States ambitions on hold as it forecasts a 32 per cent increase in earnings.
The company today said it will focus on growth opportunities within its "profitable" operations in Europe and Australia in order to sustain a solid earnings performance for 2009.
"Uncertainty about the length and depth of the US downturn, restrictive credit conditions and the continuing volatility of currency exchange rates has led up to the decision to cease to write any new business in the US for the time being," chief executive Ned Montarello said.
"Our relationships remain open in the US with a view to re-engaging when trading conditions improve.
Providing guidance on ThinkSmart's financial year ending December 31, Mr Montarello said the business expected to achieve a 32 per cent like-for-like increase in earnings before interest, tax, depreciation and amortisation for FY08 of $11 million, before allowing for operating costs of $2.7 million and exit costs of $790,000 associated with the US operations.
In the half year to the end of June 2008, ThinkSmart reported a 39 per cent lift in EBITDA of $5.7 million, up from $4.1 million in the previous corresponding period.