Thinksmart back in black

19/02/2014 - 12:06

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Point of sale financing group ThinkSmart has returned to positive territory, posting a $2.3 million full-year net profit in 2013 after recording a loss in 2012.

ThinkSmart executive chairman Ned Montarello.

Point of sale financing group ThinkSmart has returned to positive territory, posting a $2.3 million full-year net profit in 2013 after recording a loss in 2012.

The result narrowly exceeds ThinkSmart's $2 million profit guidance and follows the company's $1.4 million loss the previous year.

However it is still well below the $6.8 million profit the company posted in 2011. 

The company's $37.7 million revenue was down 5 per cent but offset by a 16 per cent decrease in total expenses, which came in at $34.7 million.

ThinkSmart sold its Australian operations for $43 million to financial services company FlexiGroup in December last year, as it looks to focus its resources on its operations in the UK.

The sale, which was completed in January, delivered a pre-tax profit of about $16 million.

"The group has established a clear path for building long-term vaue in the UK," ThinkSmart executive chairman Ned Montarello said.

"We have a 10-year relationship with Dixons, the UK's leading electrical retailer, and we are extremely well placed to capitalise on growth opportunities in the UK."

ThinkSmart said it expects to record a net profit after tax of $3 million in 2014.

Its shares were trading almost 9 per cent lower at 40.5 cents at 12:03pm WST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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