Radio Rentals, a brand of Thorn Group, achieved record installations and earnings, driving the company’s NPAT sound to $28 million while revenue up 8 per cent to $203 million for the full year to March 2013.
According to Thorn managing director John Hughes, there were a number of positive aspects to the year as the company continues to optimise shareholder returns.
“Thorn’s core Radio Rentals business continues to demonstrate its strength and resilience in the market and it has been an outstanding performer in recent years compared to other retailers,” he said.
“This provides a very stable platform for investment in initiatives as we develop into a broader based financial services organisation and see other segments increase their contributions, particularly once they achieve the all-important critical mass,” he said.
Radio Rentals performed strongly, with installation dues increasing 6 per cent over last year and this was assisted by the successful introduction of Apple products.
Furniture was again the standout product group with installations dues increasing 46 per cent, whilst other product categories remained relatively steady including technology products which accounts for some 43 per cent of installations.
Hughes also noted there was “a particularly pleasing aspect” in the increase in the customer retention rate from 44 per cent to 48 per cent.
Also, to assist customers during a time of need a hardship contract was introduced, which has also been successful in helping to maintain arrears and write-offs at a satisfactory level.
Hughes concluded the board and management are positive Thorn will deliver future profit growth. A complete strategic review of Radio Rentals is being undertaken with a focus on creating new products and propositions to appeal to a broader customer demographic.