Thorn Group, owners of the Radio Rentals appliances and consumer electronics chain, has announced a 5 per cent decline in net profit after tax.
Thorn Group-owned business Cashfirst is expanding its online financial services business with the opening of its first pilot store in Campbelltown, Sydney.
Thorn Group, parent company of Radio Rentals and Rentlo, has used its annual report to comment on "poor" retail conditions and the tough times consumers are facing. Despite this, the company has found success with a new format.
Thorn Group is strengthening its management team with a number of appointments that will help drive its planned growth strategies.
Radio Rentals, a brand of Thorn Group, achieved record installations and earnings, driving an increase in the company's revenue results.
Thorn Group recorded a 26.4 per cent increase in net profit after tax to $27.8 million and an increase of 34 per cent in cash net profit after tax to $29 million.
Speaking about the results, Thorn Group managing director John Hughes said the success of the company’s core rental businesses was a key factor in the strong profits.
ernard Carrasco announced that he will step down as chairman of the board on 30 September 2011, and will retire as a director in March 2012.
Radio Rentals' findings support suggestions that the tough economic conditions of recent years are having an impact on consumer spending and people are turning to rental agreements.
A spokesperson for Thorn Group welcomed the figures, saying they had been driven by a 7.5 per cent customer growth in the Radio Rentals and Rentlo businesses.
Thorn Group has upgraded its underlying period profit tax range to $22 million to $23 million for the full year ending 31 March, which is a 34 per cent to 40 per cent increase.
Owner of Radio Rentals, Thorn Group, has announced it will be strategically moving its investment elsewhere after deciding to exit its online retail venture BigBoxBrown.com.au, as a result of "difficult trading conditions".
The company has received a licence that applies to all of its brands including Radio Rentals, Rentlo, Thorn Business Services and Cashfirst.