By Chris Nicholls
SYDNEY: Radio Rentals has announced it expects a 50 per cent increase in net sales over last year for the 2007 calendar year.
The company said October to December trading had "met expectations", and the company should produce a net income of $10 million for the 2007 calendar year.
While the rest of the industry said recent interest rate rises would have a negative effect on their sales, Radio Rentals managing director John Hughes said they stood to profit from any economic woes.
“Whilst most of our customers are financially constrained, the impact of any interest rate rise is expected to be minimal given that the majority of them do not have a mortgage.
“Being somewhat anti-cyclical in nature, any downturn in the economy should produce further positives for us by creating growth in our market segment,” he said.
Hughes said the company’s “considerable” rental base meant it had access to recurring revenue streams and only two per cent in debt.