ThinkSmart Revenue Up 30% – On Track To Achieve Full Year Prospectus Forecasts

ThinkSmart Revenue Up 30% – On Track To Achieve Full Year Prospectus Forecasts

ThinkSmart Limited (ASX:TSM) today reported a half year profit before tax for the six months ended June 2007 of $3.4m after allowing for IPO costs and amortisation of intangibles totalling $4.7 million, up from $0.1m, which sees it on track to  achieve its full year prospectus forecasts.

A strong performance from existing territories in the UK, Australia and Spain saw a combined growth on a normalised basis on the previous corresponding period in settled volumes of 20.2% with total revenue increasing 30.4% to deliver an EBITDA margin growth of 400%.

ThinkSmart’s sales and marketing strategies with its retail partners are driving increased penetration results across all territories with volumes from its new relationship with JB Hi-Fi in Australia continuing to be strong and at the upper end of expectations.

Margin improvements have been driven by increasing inertia revenues from the UK operations as well as increased insurance sales revenues in the UK and Australia.

“Better than expected volumes together with expense management have offset the earnings        impact of a strong Australian dollar,” said Ned Montarello, managing director and  CEO.

“With trading conditions in all markets continuing to perform in line with our expectations, the Board remains confident that we will deliver our full year prospectus forecasts.”

In Europe, ThinkSmart remains on track to launch into the Italian market in Q4 2007 having secured a funding agreement with Banco Santander for a scheduled roll out to DSG International’s 12 PC City stores.

It is also in negotiations with a number of retailers in France that are expected to result in re-opening of that territory in 2008.

In Australia, ThinkSmart secured a new three year deal with the Officeworks group which should see increased volume contributions from September 2007 onwards. In addition it is planning to launch in the New Zealand market with JB Hi-Fi in late Q4 2007. Neither of these opportunities were included in its prospectus forecasts.

US negotiations with both funders and retailers continue to progress well with in principle agreement reached with funders and a major US retailer.

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