2013 Full Year Results Announcement

2013 Full Year Results Announcement

ThinkSmart Full Year Profit Ahead Of Guidance Reaffirms 2014 Profit Outlook

Key highlights for the year ended 31 December 2013

  • Group financial results improve significantly in 2013 with a profit of $2.3 million, up from a prior year loss of $1.4 million and up from guidance of $2 million
  • Outlook reaffirmed following the completion of the sale of the Australian operations for $43 million based on an improving economy in the UK
  • Cash assets total $49.4 million on 31 January 2014 following completion of sale of Australian operations and no corporate debt
  • Improved Group operational efficiency with enhanced asset quality and lower fixed costs
  • Consistent UK profit result of $7.8 million – new originations in H2 down

ThinkSmart Limited (ASX: TSM) today announced a return to profit and reaffirmed guidance for further growth in 2014. The Group reported a full year profit after tax in 2013 of $2.3 million, exceeding guidance of $2.0 million.

ThinkSmart said it expects 2014 Net Profit after Tax to be in the region of $3.0 million based on business generated from existing relationships in UK.

“The Group has established a clear path for building long term value in the UK,” said ThinkSmart Executive Chairman Ned Montarello. “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.”

Following a strategic review last year, ThinkSmart sold its Australian operations for $43 million cash, delivering a pre-tax profit on the sale of approximately $16 million. The transaction was completed 31 January 2014.

The sale allows ThinkSmart to focus on its successful UK operations.

As part of the sale, ThinkSmart plans to distribute 11 cents per share in total to shareholders via a fully franked special dividend and capital return. A special dividend of 3.6 cents per share fully franked has already been declared, and the buyback is expected to commence shortly.

The timing of the return of capital of 7.4 cents per share is dependent on the receipt of a favourable tax ruling and shareholder approvals, with expectation for payment, if approved, shortly after the Annual General Meeting in May 2014.

Profit from the UK operations rose 1% to $7.8 million. New originations and assets under management declined by 8% and 9% respectively on a constant currency basis. Cash flow generation rose 26% to $4.8 million and active customer base grew by 9%.

Chief Executive Officer, Keith Jones said: “We have an important and mutually beneficial partnership with Dixons. Like-for-like comparisons were in part negatively impacted by a very strong UK performance through the London Olympics in 2012, as well as a change in computing sales mix.

“We are working with our partner to refocus, realign and broaden our offer to be effective 2H2014. Our UK operating costs continue to improve as the business model becomes more efficient and leverages scalability.”

“The UK presents ThinkSmart with a market of 62 million consumers and an environment that is very supportive to business: it has the lowest company tax rate in the G7 and GDP growth in 2013 is estimated to be 1.9%, the fastest since 2007.”

ThinkSmart has no debt and cash assets immediately post the sale of the Australian business of $49.4 million.



Further information:


Ned Montarello, Executive Chairman
+61 (0)8 9389 4403

Keith Jones, Chief Executive Officer
+61 (0)8 9389 4403

Neil Barker, Company Secretary
+61 (0) 402 797 206

Michael Mullane, Cannings Corporate Communications
+61 (0)2 8284 9993



ThinkSmart Limited (ASX:TSM) processes high volumes of finance transactions quickly and efficiently through its QuickSmart proprietary technology. This enables online credit approval in just a few minutes whether customers are online or instore. Our products are executable throughout today’s complex retail channel, creating additional revenue and enhanced margin performance – on and off line.

For over 10 years, ThinkSmart has been an exclusive partner to Dixons Retail Plc, during which we have developed compelling Business and Consumer lease finance propositions, most recently introducing Infinity – a first to market offer which enables consumers to upgrade to the very latest Computer or Tablet every 2 years.



This announcement may contain forward-looking statements. Such statements are not guarantees of future conduct, results, performance or achievements and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of ThinkSmart. ThinkSmart cannot give any assurance that the conduct, results, performance or achievements expressed or implied by the forward-looking statements in this announcement will in fact occur. Investors are cautioned not to place undue reliance on the forward-looking statements in this announcement.

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