(Alliance News) - ThinkSmart Ltd on Monday said it has reached a GBP1.5 million settlement agreement in its legal proceedings against Dixons Carphone PLC.
Digital payment solutions firm ThinkSmart said its RentSmart Ltd subsidiary had begun legal proceedings against Carphone Warehouse Ltd, part of Dixons Carphone, back in November 2019.
RentSmart's claim concerned a flexible leasing contract and its predecessor, an upgrade everytime contract, with Carphone Warehouse. The agreed settlement amounts to GBP1.5 million, including costs.
No legal proceedings were issued for any other contracts with Dixons Carphone.
Under the settlement agreement, RentSmart has agreed to an orderly wind-up of all its agreements with Dixons Carphone.
This is significant as, in its year ended June 30, all of ThinkSmart's new business volumes were generated from agreements with Dixons Carphone.
"The group will continue to service its existing customer base ensuring the fair treatment of customers, along with any new volumes generated during the orderly winding up of the three contracts and will continue to benefit from the cash generated from this business," the company said.
ThinkSmart added that it "anticipates its cash reserves will continue to build over the next few years".
Thinksmart noted that it also holds 10% share of a UK afterpay business that trades as Clearpay. ThinkSmart also provides an outsourced call centre customer support service for Clearpay.
Shares in ThinkSmart were up 6.7% at 32.00 pence in London at midday Monday, giving it a market capitalisation of GBP34.1 million. Shares in FTSE 250 constituent Dixons Carphone were up 1.9% at 84.45p.
By Anna Farley; annafarley@alliancenews.com
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