2014 Full Year Results Announcement

2014 Full Year Results Announcement

Thinksmart Reaffirms Guidance; Positive Results for 6 Months to 30 June; Focuses on
UK Growth Opportunities

Key highlights for the 6 month financial period ended 30 June 2014 *

  • Group financial results for 6 month period strong with NPAT of $11.3m resulting from Group operations and sale of Australia and New Zealand businesses (includes $9.8m after tax for discontinued operations)
  • 7.06 cents earnings per share, (1.45 cents 2013), fully franked dividend of 3.6 cents per share paid on 19 February 2014
  • $38.5m available cash assets, no corporate debt
  • NPAT Guidance: 1 July 2014 to 31 December 2014 of $1.5m

Continuing UK Operations

  • Solid performance – $1.6m NPAT from continuing activities, up on same period 2013
  • Group corporate costs reduced $0.5m
  • $0.4m interest earned on high cash balance
  • Successful transition of Group functions (IT and Finance) from Perth to the UK
  • Invested in capabilities for growth, including recruitment of additional Executive Management and SmartCheck in-house UK Development team

Australian and New Zealand Operations Sold 31 January 2014

  • $15.7m gain on sale before associated costs and tax
  • $9.8m NPAT from discontinued operations
  • $32m generated in net cash
  • Review and rationalisation of Australian cost structures

*On 24 June 2014 ThinkSmart Limited (ASX: TSM) announced that, as part of rationalisation of its business, it has changed its financial year-end from 31 December to 30 June.

ThinkSmart Limited (ASX: TSM), a leading provider of fast finance solutions for retailers, today reported a six-month profit after tax to 30 June 2014 of $11.3 million resulting from Group operations and the sale of the Australian and New Zealand businesses for $43 million to FlexiGroup Limited. The Group also reaffirms guidance for 2014.

The successful sale of the Australian and New Zealand businesses generated $32 million in net cash and provided for a fully franked special dividend of 3.6 cents per share paid on 19 February 2014. ThinkSmart said it expects Net Profit after Tax for the 6 month period to 31 December 2014 to be in the region of $1.5 million based on business generated from existing relationships in the UK.

“The Group has commenced delivering long term value in the UK,” said ThinkSmart Executive Chairman Ned Montarello.

“Following the sale of the Australian and New Zealand operations completed on 31 January 2014 we have successfully grown our 10+year relationship with Dixons, the UK’s leading electrical retailer, invested in our UK capabilities and are now extremely well placed to capitalise on growth opportunities in the UK market.”

Chief Executive Officer Keith Jones said: “We have expanded our important and mutually beneficial partnership with Dixons and our propositions continue to create competitive advantage and build long term customer value in ‘Business to Business’ and ‘Business to Consumer’ markets of scale. We are working with our partners and looking to extend the model to new categories, sectors and distribution whilst improving our efficiency.”

ThinkSmart has no debt, cash assets of $38.5 million and continues to deliver fast finance solutions in today’s complex retail channel.

Further information:


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

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

Neil Hackett, Company Secretary
+61 (0) 403 535 391

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 in store. 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, now the newly merged Dixons Carphone Group Plc, where we have developed compelling Business and Consumer lease finance propositions, most recently introducing Upgrade Anytime – a first to market offer which enables consumers to upgrade to the very latest computing and vision products, bringing more technology to more customers more often.


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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