Aims to respond to challenges.

Thorn Group, parent company of Radio Rentals, has advised shareholders that the performance of its consumer leasing division continues to deteriorate and trading conditions are likely to be difficult in the medium term, further impacted by Thorn’s settlement with ASIC and the ongoing class action.

In a statement published to the Australian Stock Exchange (ASX), Thorn Group said, “Under the leadership of newly appointed CEO, Tim Luce, the company is responding to these challenges and is developing a refreshed and extended retail offering in Radio Rentals, further promotional activity and a strategic review to improve business performance.”

In its half year report, the company advised that full year cash profit after tax would be in the range of $17 million to $20 million. Thorn expects this to be around the lower end of this guidance for the year to 31 March, 2018.