As Retravision Southern goes bust, Thorn Group has reported strong trading results for the full year ended March 2012.
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.
The company’s core business Radio Rentals was a significant contributor to its results.
The company indicated furniture continues to be the strongest growth area and clearly shows that there is significant demand for quality products. Installation volumes grew 32 per cent compared with the prior year and now accounts for some 29 per cent of installation of new customers – equivalent to whitegoods.
White flat panel TVs and PCs softened with a decline of 4 per cent to 3 per cent respectively in installation volumes and some 10 per cent and 4 per cent in installation revenues, this is still an outstanding achievement compared to other market participants. Impacts have been minimised due to customer demand to larger flat panel screens, higher specification personal computers and the success of the Thorn branded direct import program.
Customer retention also improved with new product installations to those completing a Rent, Try, $1 Buy! contract rising from 42 per cent to 44 per cent, indicating a very positive attitude toward this offering. Over 40,000 items are now purchased by customers completing a Rent, Try, $1 Buy! contract per year.
In addition, the Radio Rentals and Rentlo websites, which generate almost a million visits a year and account for some 30 per cent of installations, are being upgraded to enable further enhancements for customer interaction and service.
“We highly value the loyalty of our customers and see this as another important part of our Responsible Rental Policy,” John Hughes, managing director, said.
“It is very pleasing to see the consumer rental business continue to perform strongly, particularly in comparison with industry trends and this again reinforces the strength of the offering and resilient positioning in the market.”