ThinkSmart Reaffirms 2009 FY Guidance

16 Nov ThinkSmart Reaffirms 2009 FY Guidance

ThinkSmart Reaffirms 2009 FY Guidance: Expects Strong Earnings Growth In 2010

– ThinkSmart reaffirms 2009 earnings guidance

– ThinkSmart expects strong EBITDA growth in 2010

– ThinkSmart cites continued strong growth in Australia

– ThinkSmart sees positive signs of recovery in European markets

ThinkSmart Limited (ASX:TSM), an international computer and office equipment financing company, today reaffirmed its profit guidance for 2009 and said it expected strong EBITDA growth in 2010.

“We are pleased to reaffirm profit guidance for 2009, and we are well positioned to achieve strongly positive EBITDA growth in 2010,” said ThinkSmart Executive Chairman and CEO, Ned Montarello. “We have no net debt and we are seeing new funding opportunities emerge as credit markets recover. Our growth targets are very achievable.”

Mr Montarello said the key drivers behind the group delivering on its guidance of positive EBITDA earnings growth in 2009 were the ongoing strength of the group’s Australian operations, led by ThinkSmart’s retail partners JB Hi-Fi and Dick Smith, and the improved performance of UK electrical retailing partner DSG international.

“Importantly, we are also seeing signs of recovery in most of our European markets so this further positions us for growth in 2010,” he said. In addition to the UK, ThinkSmart has long-term relationships with leading electrical retailers in Spain, Italy and France.

ThinkSmart plans to offer a new services based consumer rental product in Europe in 2010.

“Our consumer rental volumes have increased five-fold in the Australian market over the past four years,” said Mr Montarello. “It will be a simple process for us to provide a rental product to the European consumer, using the same in-store processes currently used for our small business customers.”

Mr Montarello said a key focus of the group in 2010 would be to continue to align with leading retailers, including developing products that fit neatly with the in-store services provided by those retailers. Identifying and operating multiple funding agreements in major territories would also be a priority of the group, he said.

ThinkSmart recently bolstered its Spanish distribution capability by adding Fnac, a leading European electrical retailer and part of the Paris-based PPR group. ThinkSmart already had distribution agreements in Spain through PC City and Phone House and has funding arrangements with Banco Santander and Societe Generale