By Martin Vedris
SYDNEY: Radio Rentals’ half year results showed an increase in both revenue and profit with sales up 19.4 per cent on the previous corresponding period as the company now looks to diversify into personal loans.
Total revenues for the period grew from $49.96 million to $59.2 million. The company stated that its customers’ demand for flat panel TVs and PCs accounted for 36 per cent of the company’s installation income and were reflected in an increase in the company’s 36 month Rent, Try Buy contracts.
The company also made a significant investment of $20,476,000 in assets during the six months to September.
In a statement to the Australian Stock Exchange, the Radio Rentals managing director, John Hughes, also indicated that the company is about to diversify into short-term personal loans with a trial to commence in Tasmania in January 2008.
Features of the loan products. according to the company, will be lower interest rates than statutory capped rates and competitors’ loan products. Radio Rentals believes that its current infrastructure and systems provide it with a distinct competitive advantage in this new market.