In Thorn Group 1H results.
Thorn Group has reported net profit after tax (NPAT) of $3.8 million for the six months to September 2018, compared to a loss of $9.7 million in the previous corresponding period.
The group has attributed the results to an improved performance from its consumer leasing division, Radio Rentals, with an increase in installation volumes for the six month period.
Thorn CEO and managing director, Tim Luce commented, “As expected, the challenges facing Radio Rentals will take time to resolve, although we are encouraged by the early signs of improvement on the back of our renewed customer focus on providing more choice, more value and more convenience.”
Thorn said its financial performance reflects a marked reduction in installation volumes over the past two years in Radio Rentals. Further, pressure on consumers’ disposable incomes is driving price sensitivity and a rising arrears trend.
The business has responded with efficiency improvements and a coordinated marketing and promotional campaign offering customers a wider product range, trials of new store concepts, more flexible pricing and faster transaction processing.
These initiatives resulted in an increase in enquiries in the first half and will help position the division to return to growth in receivables over the longer term.