Radio Rentals drives Thorn’s profit higher
The company behind the Radio Rentals business has posted a healthy rise in first half profit and expects solid earnings growth for the year.
Thorn Group’s net profit rose 14 per cent to $15.164 million in the six months to September 30, while revenue climbed by a third to $149.9 million.
Thorn expects its underlying net profit to rise above $30 million for the year, with its statutory result to be affected by costs relating to its recent acquisition of financial services company, Cash Resources Australia.
The company’s first half result was driven by a solid rise in earnings from its Radio Rentals business.
It said there had been strong demand from customers wanting to lease furniture and technology products, with high demand for quality smart enabled devices.
Earnings from the group’s financial services division also rose following an expansion of products available to customers.
Thorn said it was preparing to undertake several strategic initiatives in the second half, with new products being developed for Radio Rentals and Thorn Financial Services.
It is also developing a potential second rental brand, with a pilot program to be launched in Queensland before the end of 2014.
Earlier this week, Thorn Group appointed former Suncorp Bank CEO, David Foster, as a non-executive director.
Thorn lifted its interim dividend by half a cent to five cents, fully franked.
Its shares were 2.5 cents higher at $2.755 at 1124 AEDT.
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