Radio Rentals Australia has released its financial results for 2009 financial year. Despite the current economic climate it performed surprisingly well with a 13 per cent increase in profit from the previous year.
Radio Rentals which trades in all states and territories except South Australia, where it trades as Rentlo, recorded a Net Profit After Tax of $12.3 million.
According to the company the strong performance can be attributed to the development of its three strategic initiatives: the relaunch of Rentlo in South Australia, the roll-out of Cashfirst and the launch of BigBrownBox.com.au.
Total revenue for the period grew from $116.7 million to $127.4 million, which is a nine per cent lift.
“The company benefited from a continued high level of demand for flat panel TVs and PCs, which grew 18 per cent,” said John Hughes, managing director RR Australia.
“”In addition, furniture continued to generate solid gains with a 25 per cent increase, while fitness equipment grew a further 21 per cent.”
Due to the increase in revenue, gross profit increased by 6.8 per cent to $76.3 million, an 11 per cent rise.
Net cash from operating activities also increased by eight per cent, from $42.5 million to $46 million.
It also seems Radio Rentals is seeing a strong growth in customer levels with a 6.9 per cent increase, Hughes attributes this to the development of new sites.
“The two new Rentlo stores in Adelaide made a very positive contribution to this growth and their overall performance has led to approval for another two locations during the first half of 09/10 year,” he said.
Overall Hughes was very happy with the strong results of the company, “I am delighted to announce such a strong, positive result, especially by comparison to other businesses that are being impacted by some tough economic conditions”.
“The strength of our core business, coupled with the innovation that we are demonstrating through our strategic initiatives, places the company in a very strong position in the market, regardless of economic conditions, which explains why we have been around for 70 years.”