TGA - Thorn Group Ltd

[macduffy]

Here's an Aussie industrial company that's turning out good results in difficult economic conditions.

Essentially an appliance rental outfit under the brand names Radio Rentals and Rentlo although they have branched out into debt collection and recovery and small consumer lending in recent years. These latter activities, operated through subsidiaries National Credit Management and CashFirst, respectively, still comprise only a small part of the total business. The company trades in NZ under the DTR brand which my contemporaries will remember as "Dominion TV Rentals".

NPAT in the latest half year to 30 Sept increased by 30% and an increased dividend was declared. At $1.70 the shares trade at an historic P/E of 9 and a divvy yield of 5.3%. Market Cap of $247m. Management are forecasting "substantial" growth in the current year which appears to be on track at this stage.

I've recently taken a small position so DYOR.

Footnote: When searching for references to "Thorn" on Sharetrader, the only link was to a brief thread in 2004 lamenting Brad Thorn's move back to the Brisbane Broncos. The last post was something along the lines of "Don't they make TV's?"
"They" did, of course, and interestingly, TGA announced recently that they intend to resurrect the brand for their TV rental business.

[steve fleming]

MNY (Money3) offer a cheaper (but riskier) exposure to consumer lending / appliance rentals (but more skewed to lending as they are still ramping up their rental operations).

Currently MNY is on a 11% div yeild; 5.5 x trailing NPAT and 3 x trailing EBITDA

CCV also offers a cheap exposure to the low end consumer finance market.

[ENP]

A steal at a P/E of 8. I bought some on Friday.

[macduffy]

A steal at a P/E of 8. I bought some on Friday.

Yes, the shareprice has been under a bit of pressure lately. This may be one factor:

http://www.macquarie.com.au/dafiles/Internet/mgl/au/apps/retail-newsletter/docs/2012-03/TGA150312e.pdf

[macduffy]

Update on TGA. Trading around 12 month highs at $1.975 on a forward PE of about 10 if consensus forward earnings of 20.5c are near the mark. Interim result due to be announced 20 November.

I hold and have added a few more recently.

[Joshuatree]

Interim out NPAT down 2% to 414 mill
Rev up 4% to $100.5 mill
EPS 9.57cps down 5%
Interim div 4.5cps 13% increase

Shareprice down 10% atm $1.78 !!

[macduffy]

TGA SP has made a good recovery from that temporary small setback.

Now at a 12 month high of $2.17.

:cool:

[Joshuatree]

Broken Down from nov uptrend (from re$1.78), can't see a reason. MD promised not to sell any more shares, hee. Got as low as $1.90 $1.94 atp On Historic PE re 8 ,div re 5%

[macduffy]

A flat profit result from Thorn but the market liked it - SP up 13c to $2.26.

Dividend increased, so presumably its being sought for its solid yield.

I hold.

[macduffy]

......and up another 8c to $2.34.

:)

[macduffy]

Report on TGA's profit announcement from ShareCafe:

Thorn Group Upbeat, Market Gives Tick

BY GLENN DYER - 22/05/2013


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Get More Commentary, Dicussion & Market Information On -
• TGA - THORN GROUP LIMITED



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Still in retailing and Thorn Group (TGA), the rental and credit provider has reported flat earnings at $28 million, despite recording a record level of rentals and revenue in the year to March 31.

The company reported a 12% jump in revenues to $2-3 million for the year, but the cost of new product development meant profit growth was non-existent.

Despite that the market liked the result (which was a contrast to the update from Fantastic) and the shares jumped more than 6% or 13c to $2.26.

TGA YTD - Market Ticks Result



CEO John Hughes says the rental side of the business continued its strong performance.

"A lot of our customers may have a blemish on their credit history, which means they can't get other means of credit," he said in yesterday's announcement.

"It could mean their circumstances are changing and they need the flexibility, particularly if they're going through a change in their relationship or they've had to readjust because of a loss of a job."

Mr Hughes said furniture was its most popular product, especially bedroom and lounge pieces, with the number of rentals increasing by 46%.

Overall, Radio Rentals increased its number of rentals by 6% in the year.

Looking to the coming year, the company said it was "positive Thorn will deliver future profit growth. This is based on an expected continuation of a solid performance of its core rental business as well as growing returns from investments and initiatives as the Company evolves into a broader based financial services organisation."

Final dividend is up 9% to 6c a share, making a total for the year of 10.5c after an interim of 4.5c a share was paid."


Anyone else invested here?

Edit: Apologies for the botched layout!

[Joshuatree]

Was targeting $1.90 as my entry and had an op a while back but didn't notice the dip at the time. Great company.

[macduffy]

Solid half year from TGA.

SP up to $2.85 today.

[Jay]

Yes good results
My second stab at this one - small profit first time, bigger one so far this time

[Jay]

Mr Market seems to like the results released today

NPAT up 14% to $15.2m
 Cash NPAT up 13% $16.1m
 Revenue up 33% to $149.9m
 Receivables up 42% to $307.6m
 EPS up 13% to 10.11cps
 Fully franked interim dividend increased to 5 cents per share


Discl: Still holding

[macduffy]

Yes, it was a good result - but announced on 18 November!

Today's announcement was a presentation of those numbers to the UBS Emerging Companies conference in Aussie.

http://www.asx.com.au/asxpdf/20141202/pdf/42v65xwxfpb1nc.pdf

[Jay]

Thought it was the same announcement - did the trick though !

[macduffy]

Lincoln Indicators have TGA as a BUY.

Thorn Group (TGA)

CHART

Chart: Share price over the year versus ASX200 (XJO)

Reported a strong interim result for fiscal year 2015 led by a solid performance in the Radio Rentals business and financial services division. Management has reiterated earnings guidance above $30 million for the full year. Key drivers going forward include a shift in the core business (Radio Rentals) towards longer term contracts, growth in receivables and acquisition growth. Future earnings growth will support cash flow and dividend growth, providing an attractive income stream for investors.

Edit. A pity about the non-appearing chart! Worth a look for anyone interested.

[macduffy]

I hold TGA and am guilty of taking my eye off the ball as the SP has been sold down. Clearly, there are problems - the company will probably call them "challenges" - but the RSI is as weak as its been in the last 10 years and at these levels, unless the challenges are terminal, I would expect some measure of recovery. I'll watch more carefully from here!

I posted the above on another thread three days ago. The first tentative signs of a recovery may be starting to show as the shareprice gains a few cents and the RSI claws its way above the 20 mark which has been a consistently reliable "low water mark" for this stock in the past. So far, so good!

[carrera]

i've held for a few years, bought when it was sold down and lumped in with retailers. more a finance company with a good dividend. like some good stocks it's really getting no coverage or sentiment at all.

[Joshuatree]

Download Document 85.91KB (https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvSDYL4w 65yBXwv%2BN%2B%2FrFiGug%3D)

Mkt cap now re $242 mill
NPAT now forecast to be $24-$26 mill. This is with $4 mill put aside to pay poss ASIC breaches. 2016 NPAT $20 mill
But div downgrade and s/p drops to $1.53 atm!

[Snow Leopard]

I have a contract note that says I bought a few today, so despite this not being a great share I appear to have added it to my portfolio.

Just need to hope that there is no more bad news round the corner and that they go up from here (in value and in share price).

Best Wishes
Paper Tiger

[Joshuatree]

Well done with the musical Glove(ping, ting and zing )​little knives. Good move i reckon with that pretty transparent announcement, conservative even.

[Joshuatree]

Hey wheres your glove....your arm.... you gone PT ;shredder time unfortunately. Possible class action and s/p down to re $1.36 where I have a buy set(Its ok I'm in a mini sub with a giant periscope might not see the depth charge in time tho):sleep:
http://www.abc.net.au/news/2017-03-...g-class-action-over-goods-loan-scheme/8394290 (http://www.abc.net.au/news/2017-03-29/radio-rentals-facing-class-action-over-goods-loan-scheme/8394290)

[Joshuatree]

TGA respond

Media Commentary on Potential Class Action

[Joshuatree]

Upon reading about the "Rent TRY $1 BUY " plan I'm not feeling too comfortable in this stock and have taken it off my longer term conviction list of holdings. Still holding as current mkt actions play out.

[dawb]

Good result compared to previous years. https://hotcopper.com.au/threads/ann-tga-announces-profit-in-fy21.6085802/