ThinkSmart Reaffirms Profit Market Guidance

22 May ThinkSmart Reaffirms Profit Market Guidance

ThinkSmart Reaffirms Profit Guidance

– On track to achieve positive growth in 2009

– EBITDA moderately weighted to second-half of 2009

 – Secures new contracts with Officeworks in Australia and Phone House in Spain.

ThinkSmart Limited (ASX:TSM), an international computer and office equipment financing company, has reaffirmed its market guidance for the half-year to 30 June 2009.

ThinkSmart’s Executive Chairman and CEO, Ned Montarello, said the business’ year-to-date EBITDA performance was in line with the previous corresponding period in 2008, and ThinkSmart remained on track to achieve positive EBITDA growth in 2009, moderately weighted to the second half of the year.

“Trading in the Australian market place has been above expectation, offsetting our deeper recessionary hit territories in Europe,” said Mr Montarello. “We have been focused on growing our existing markets, both organically and through the establishment of new retail partnerships, and we are executing on this strategy.”

“We have a robust business model that’s performed well in unprecedented economic conditions, and delivered solid shareholder returns,” Mr Montarello said.

ThinkSmart boosted EBITDA by 36% to $11.3 million in 2008 and delivered EPS of 8.7 cents before amortisation and US costs.

Still, Mr Montarello said he remained disappointed in ThinkSmart’s current market valuation considering the success of the company’s business model.

“Our share price currently trades at about 4 times underlying EBITDA, compared with an average of 8 times in the diversified financial services sector. We remain committed to seeing that the group’s strong performance receives the recognition it deserves.”

In the last five days, ThinkSmart has extended its relationship with the Officeworks chain in Australia as well as broaden the Group’s Spanish business with the execution of a retail agreement with Best Buy Europe’s Phone House chain.