TGA - Thorn Group Ltd

[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/2014120...5xwxfpb1nc.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.