The owner of Radio Rentals, Thorn Group, is expanding its financial services platform with the acquisition of National Credit Management Limited (NCML) for $32.5 million.
According to Thorn Group, NCML has a “strong track record of growth” and generated revenue and EBIT in 2010 of $21.3 million and $6.2 million respectively.
Thorn Group said it will focus on third party, fee for service businesses with the opportunity to develop a comprehensive debt management offering to commercial clients.
“We see NCML as an excellent opportunity for development of another sound profit stream with strong returns on investment. Importantly, we feel that there is also a good cultural fit between Thorn and NCML and a shared vision of strategic growth opportunities,” John Hughes, Thorn Group managing director, said.
NCML comprises of three main business streams of commercial and consumer services, as well as purchased debt ledgers (PDLs)
“The acquisition will also enhance Thorn’s knowledge and competence in debtor assessment and management,” the company said.
Thorn Group also 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.