ThinkSmart Commences Funding Under New Model

03 Jun ThinkSmart Commences Funding Under New Model

ThinkSmart Announces Completion Of New Multi-Funder Platform

• New funding platform to boost ‘over-life’ revenue in Australia by approximately 25% • New funding platform to boost capacity to fund growth initiatives

ThinkSmart Limited (ASX:TSM), a leading international computer and office equipment financing company, said revenue over the life of a customer’s contract in Australia will rise by approximately 25% in coming years following the completion today of its new multi-funder securitisation platform launched with a $100M facility provided by Westpac.

ThinkSmart Executive Chairman and CEO Ned Montarello said “the new, lower-cost funding platform, aside from delivering increased revenue, will also significantly boost capacity to fund growth opportunities as they arise.”

”The new funding platform will be fully implemented from July. The incremental profits arising from this new lower cost, higher yielding model will become evident in 2012, with full benefits of an approximate 25% increase in “over life” revenue being realised from 2013 and 2014,” he said.

The new model will mean that income will be booked throughout the life of a lease rather than up front.  To establish the new Westpac facility, $36 million of leases will be assigned from the existing Bendigo and Adelaide Bank (“Bendigo”) facility, effectively freeing up funding capacity with Bendigo, reducing funding costs and offsetting any short term impact from the move away from an upfront income recognition model in the Australian business.

 

“Revenue in future years will be materially higher as a result of our new funding model which delivers incremental revenue over and above normal volume growth,” said Mr Montarello. “We are well placed for continued growth in 2011 and beyond.”

 

About ThinkSmart: ThinkSmart is a leading international financial services company in the delivery of point of sale finance products through the retail in store and online environment. The business currently operates with market leading retailers and financial institutions in the UK and Australia, as well as operations in Spain, Italy and New Zealand where it has built a reputation for processing high volumes of low value business finance transactions both quickly and efficiently.

Further information:

Investors:	Media:
Neil Barker, Group CFO	Michael Mullane / Luis Garcia
ThinkSmart Limited	Cannings Corporate Communications
+61 (0)8 9463 7500	+61 (0)2 8284 9990