Sells receivables management business.
Thorn Group Limited has executed a share sale agreement to sell its wholly owned business, NCML, which provides services in receivables management. The sale is expected to be complete within a week and will enable the Group to focus on its two primary businesses, Radio Rentals and business finance. Proceeds from the sale will be reinvested in these operations which deliver higher returns on capital.
NCML has been sold to a specialist in debt purchasing and contingency and agency services, Credit Corp Group, for approximately $22.6 million subject to working capital adjustments and on standard terms including appropriate warranties. This value approximates to net asset value but before transaction costs, tax consequences and provisions meaning a small loss is anticipated to be recorded on sale.
NCML employees will transfer to Credit Corp and Thorn acknowledged the service of the management and staff of NCML during its ownership by Thorn.
Thorn Group managing director, James Marshall (pictured above) told Appliance Retailer, “The reallocation of capital into our consumer leasing business, Radio Rentals and Business Finance businesses, Thorn Equipment Finance and Thorn Trade & Debtor Finance aligns with Thorn’s investment strategy to meet strong demand in these underserviced market sectors.
“Demand for effective financial products that support the needs and growth of small and medium sized businesses across Australia remains strong and Thorn continues to experience record growth in this area.
“As Thorn looks to take a market leading position in adopting recommendations from the recent Treasury review into consumer leasing, the business anticipates strong demand for its products and unique service model to continue and this warrants further investment for growth.”