By Claire Reilly
Thorn Group Limited, parent company of Radio Rentals, today announced its full year results for the 12 months to 31 March 2013, reporting a 7.9 per cent increase in total revenue, up to $203.2 million and a 0.6 per cent increase in net profits up to $28 million.
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Speaking about the results was Thorn Group managing director, John Hughes.
“Thorn’s core Radio Rentals business continues to demonstrate its strength and resilience in the market and it has been an outstanding performer in recent years compared to other retailers,” said Hughes.
“This provides a very stable platform for investment in initiatives as we develop into a broader based financial services organisation and see other segments increase their contributions, particularly once they achieve the all-important critical mass.
“Thorn’s performance remained strong given ongoing challenges in the market with low levels of consumer confidence as they continue to be impacted by cost of living increases, particularly utility costs, along with uncertainty generated by the upcoming Federal election.”
The company cited the “successful introduction of Apple products” as one of the key factors behind Radio Rentals’ performance, with installation dues increasing by 6 per cent over the past year. The technology category as a whole, which accounts for 43 per cent of Radio Rentals’ installations, was steady. The furniture category was highlighted as being “the standout product group” of the Radio Rentals business.
Thorn Group also introduced a “hardship contract” to “assist customers during a time of need”, while the rental provider is also considering a 48-month “Rent, Try, $1 Buy” contract to meet growing demand for larger products and whole room packages.
In a similar vein, Thorn Goup launched a trial of a new “Rent Drive Buy” car rental business in February of this year. Described as an initiative that “offers customers an opportunity to rent a quality vehicle on a fully maintained basis, with the potential to obtain finance for purchase after a year of continuous payments,” the Rent Drive Buy program is set to be reviewed in the first half of the 2014 financial year.