ThinkSmart profit grows 31%
- 21 February, 2011 20:30
IT equipment financing company ThinkSmart (ASX:TSM) said its 2010 net profit grew 31% to a record $6.8 million.
The company recorded a 14% increase in sales to $42.1 million, while simultaneously slashing its operating costs by 17%.
TSM shares grew 14.1% to $0.780 during Monday's trading following the announcement.
Full-year ebitda grew 12% to $13.3 million, at the top end of its forecasts for the year, while ebitda from the company's Australian operations grew 39% in the second half.
But ThinkSmart, which operates in Australia and the UK, said sales were weaker in the latter market following the extreme European weather conditions of November and December. The strength of the Australian dollar also affected income from the UK.
ThinkSmart CEO Ned Montarello said the company was “very well positioned” going into the future, with its entry into the UK consumer PC rental market forecast to reverse the downturn in that country.
The company last week announced it had secured $160 million worth of credit facilities in Australia and the UK, to help finance the loans it offers to these consumers, and to fund its more established operations.