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Thorn increases profit despite tough retail conditions

Thorn Group, the parent company of Radio Rentals and Rentlo, increased its profit for the half year to September, despite soft retail conditions.

The retail and financial services company increased profit to $14.3 million, up 30 percent compared with a year earlier.

The company benefited from positive contributions from its growth initiatives, providing a sound base for future expansion

Revenue for the half year grew 20 percent to $96 million with earnings per share up to 10.08 cents, interim dividend increasing to four cents and debt to equity remaining conservative at eight percent.

Furniture was the major seller with a volume growth of 26 percent over the prior half year and both flat panel television sets and whitegoods also achieved solid growth.

Thorn Group’s Radio Rentals Rent, Try, $1 Buy offer continues to attract and retain customers, combining rent with the potential ownership of products, allowing flexibility for financially strained consumers.

Combined with the company’s responsible rental policy, it’s experienced an increase in the average contract life by 17 percent from 23 to 27 months over the past 4 years.

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Maree Sorbello

Maree Sorbello

Maree is a first year student at Sydney's University of Technology, and is one of Dynamic Business' star interns.

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