ThinkSmart Signs 5 Year Agreement To Provide Consumer Rental In UK

19 May ThinkSmart Signs 5 Year Agreement To Provide Consumer Rental In UK

ThinkSmart Signs Five-Year Exclusive Consumer Rental Agreement With UK’s Largest Electrical Retailer

• DSG International is UK’s largest electrical retailer with over 700 stores and $7bn turnover in FY2009.
• Exclusive five-year Consumer agreement builds on ThinkSmart’s established business-to-business operations with DSG in the UK
• Extends relationship with DSG to 2015

ThinkSmart Limited (ASX:TSM), a leading international computer and office equipment financing company, has signed an exclusive five-year agreement with DSG International, the UK’s largest consumer electrical retailer, to offer rental finance to UK consumers.

The new agreement will open up both the consumer customer base in DSG’s PC World stores, plus introduce ThinkSmart to the 500+ store Currys chain for the first time.

ThinkSmart has been providing business-to-business rental finance through the 180+ PC World stores for more than seven years.

“The entry into consumer rental in the UK is a major milestone for ThinkSmart,” said ThinkSmart Executive Chairman and CEO, Ned Montarello.  “We see this having the potential to increase our market opportunity four fold based on our experience in Australia and the strong consumer customer mix for our retail partner in the UK.

Mr Montarello said the timing of the launch will be dependent on securing a consumer funder, with the business targeting to rollout initially through the PC World chain late in the second half of this year.

“We will be looking to establish a panel of consumer funders to manage the targeted volumes, and are confident of securing the right supportive partners to capture the opportunity,” Mr Montarello said.

ThinkSmart has been running a successful consumer proposition in Australia since 2004, and has delivered a 51% CAGR in local consumer volumes over the last 4 years.  Consumer rental now accounts for more than 70% of the Australian new business.

To service the consumer market opportunity, ThinkSmart is currently working on a project with DSG to integrate its products into DSG’s checkout system known as Eclipse.  Delivery through Eclipse will bring significant operating cost efficiencies for ThinkSmart in the UK.  The integration is on track to be complete in September 2010.

PC World and Currys had sales in the UK of over A$7bn in 2009 (£4.2bn) and dominate the high street with over 700 stores.