ThinkSmart : 2016 ThinkSmart FY Profit Guidance on Strong UK Growth

ThinkSmart FY Profit Guidance on Strong UK Growth

ThinkSmart Limited (ASX: TSM), a financial technology company and leader in digital, paperless, retail point of sale finance, is pleased to announce a guidance update for Group Operating Net Profit after Tax (NPAT)* for the year ending 30 June 2016, due to strong first-half growth from its UK operations.

ThinkSmart estimates that Group Operating NPAT* will be in the range of $4.5 million to $5.5 million for the full year to 30 June 2016 based on average exchange rate of 2.1 AUD:GBP for the remainder of the financial year. ThinkSmart posted Group NPAT of $3.5 million in the 12 months ended 30 June 2015.

ThinkSmart's UK operations delivered unaudited EBITDA of 3 million GBP for the 6 months to 31 December 2015, up from 2 million GBP in the previous corresponding period.

'The strong first half UK performance has been largely delivered by double digit year-on-year growth in business volumes in our established SmartPlan product, together with reduced funding costs and ongoing systemic improvements in bad debt management,' said ThinkSmart Executive Chairman Ned Montarello.

'The business continues to invest in its digital, online and mobile products and platform alongside its people, processes and systems,' said Mr Montarello.
ThinkSmart's unaudited first-half Group Operating NPAT* (including benefits of FX) was $3.1 million.

'These results are clear evidence that our investment strategy embarked upon during 2015 is positively impacting profitability ahead of further diversification and investment into new sectors and categories.'

As previously announced, ThinkSmart has appointed Canaccord Genuity as strategic advisor to the Board to assist in continuing to unlock value in the UK business for shareholders and this activity remains ongoing.

ThinkSmart will update the market with more detail on the first-half performance and outlook for the full year at its interim results presentation on February 24, 2016.

* Group Operating NPAT excludes any exceptional items arising from non-operating activities including costs arising from the ongoing strategic review activity.

ENDS

Further information:
www.thinksmartworld.com
Ned Montarello, Executive Chairman
[phone]
Neil Hackett, Company Secretary
[phone]
Michael Mullane, Cannings Corporate Communications
[phone]

ABOUT THINKSMART:

ThinkSmart Limited (ASX: TSM) a Financial Technology company and leader in digital, paperless, retail point of sale finance which processes high volumes of transactions quickly and efficiently through its SmartCheck proprietary technology. This enables online credit approval in just a few minutes whether customers are online or in store. Our products are executable throughout today's complex retail channel, creating additional revenue and enhanced margin performance - on and off line.

For over 12 years, ThinkSmart has been an exclusive partner to Dixons Retail, now the newly merged Dixons Carphone Group Plc, where we have developed compelling Business and Consumer lease finance propositions, most recently introducing Upgrade Anytime - a first to market offer which enables consumers to upgrade to the very latest computing and vision products, bringing more technology to more customers more often.