Thorn : Half Yearly Report and Accounts

For personal use only

Thorn Group Limited

ABN 54 072 507 147

APPENDIX 4D

RESULTS FOR ANNOUNCEMENT TO THE MARKET

HALF-YEAR ENDED 30 SEPTEMBER 2021

This half-year information is the information required under ASX Listing Rule 4.2A and should be read in conjunction with the most recent financial report of Thorn Group Limited

Contents

1. Appendix 4D
2. Condensed consolidated financial statements for the six months ended 30 September 2021

For personal use only

Appendix 4D Half Year Report under ASX Listing Rule 4.2A.3

Current period:	1 April 2021 to 30	September 2021
Previous corresponding period:	1 April 2020 to 30	September 2020
RESULTS FOR ANNOUNCEMENT TO THE MARKET
Six months ended		30 Sep 2021	30 Sep 2020	% Change
			$'000s	$'000s
Revenue from ordinary activities -		30,007	58,791	Down 49.0%
Continuing operations
Profit/(loss) from continuing operations,		13,295	(1,083)	nm
net of tax
Profit / (loss) from discontinued			-	-	nm
operations, net of tax
Reported statutory profit / (loss) after tax		13,295	(1,083)	nm

An explanation of the above figures, a commentary on the financial performance and position, and other Appendix 4D disclosures can be found in the condensed consolidated financial statements for the six months ended 30 September 2021. This information should be read in conjunction with the 2021 Annual Financial Report of Thorn Group Limited.

	Amount per	Franked amount
DIVIDENDS	per ordinary
ordinary share
	share
2021 final dividend	1 cent	1 cent
2022 interim dividend (resolved, not yet provided at 30	Nil	Nil
September 2021)
NET TANGIBLE ASSETS	30 Sept 2021	30 Sept 2020
Net tangible assets per ordinary share	31 cents	33 cents

personal use only

Condensed Consolidated Financial Statements

for the six months ended 30 September 2021

ACN 072 507 147

For

CONTENTS

onlyDirectors' Report

Auditor's Independence Declaration

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Condensed Consolidated Statement of Financial Position

Condensed Consolidated Statement of Changes in Equity Condensed Consolidated Statement of Cash Flow Notes to the Consolidated Statements

useDirectors' Declaration Independent Auditor's Review Report

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Thorn Group Interim Report 2021/22

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DIRECTORS' REPORT

for the six months ended 30 September 2021

The directors present their report together with the condensed consolidated financial statements of Thorn Group Limited (the 'Company') and its controlled entities (together referred to as 'Thorn', the 'Group', or the 'consolidated entity') for the six months ended 30 September 2021 and the auditor's review report thereon.

onlyDIRECTORS

The directors of the Company at any time during or since the end of the interim period are:

Non-Executive

Warren McLeland

Paul Oneile

Allan Sullivan

useOPERATING AND FINANCIAL REVIEW

Thorn is a diversified financial services group providing financial solutions to consumers and businesses. Business activities are the leasing of household products to consumers and the provision of leasing and other financial services to small and medium enterprises. Other than the above, there were no other significant changes in the nature of the activities of the consolidated entity during the period.

Revenue from continuing operations fell 49% on the previous corresponding period ("pcp") from $58.8m to $30.0m, and the net profit after tax ("NPAT") improved from a $(1.1)m loss to a $13.3m profit.

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	Financial performance
	$m	Segment revenue		Segment EBIT to NPAT
	Half year ended 30 September	2022		2021	2022		2021
	Consumer Leasing	19.6		40.9	5.0		11.4
	Business Finance	10.4		17.9	15.6		(0.9)
	Corporate	-		-	(3.7)		(4.3)
	Significant items	-		-	-		(0.6)
	Sub-total	30.0		58.8	16.9		5.6
	Net interest expense				(3.6)		(6.7)
	Profit /(Loss) before tax				13.3		(1.1)
	Tax expense				-		-
	Profit /(Loss) after tax from continuing operations				13.3		(1.1)
	Profit /(Loss) from discontinued businesses after tax				-		-
	Net profit (loss) after tax				13.3		(1.1)

Consumer Leasing (Radio Rentals)

ForInstallation volumes for the half year of 4,284 units compared to 1,028 in the half year to 31 March 2021 and 4,318 units in the corresponding half year to 30 September 2020. Under the new dropship arrangements, gross sales revenue and cost of sales are no longer recognised. Instead, a net amount disclosed as a "net agency fee" is presented. This is equivalent to gross margin inclusive of direct costs such as any externally acquired warranties.

Interest revenue fell 49% from $33.6m to $17.1m as the receivables book continues to reduce.

The credit provision was $31.3m at 30 September 2020, $29.3m1 at 31 March 2021 and is now $18.5m1 at 30 September 2021. The result includes a $6.9m credit to the profit or loss statement from the COVID-19 provision as the provision unwinds with the reduction in the book. Arrears over 30 days outstanding finished at 9.3% compared to 15.0% at 31 March 2021 and 11.1% recorded on 30 September 2020.

In the face of reduced revenue, the costs of the division were reduced. Costs other than impairment reduced by $7.9m driven by a combination of reductions in the cost of goods sold (due to new accounting treatment), staff costs and other expenses.

EBIT was a $5.0m profit (pcp: $11.4m profit)

• The statutory credit provision in note 7 includes some other small sundry balances.

Thorn Group Interim Report 2021/22

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