7 Jun 2019 07:00
7 June 2019
ThinkSmart Limited
("ThinkSmart" or the "Company")
Business Update
ThinkSmart is pleased to note Afterpay Touch Group's ("APT") recent announcement that it is now live and transacting in the UK under the ClearPay name, following ThinkSmart's sale of 90% of ClearPay Finance Ltd (ClearPay) to APT.
Australian listed APT, currently valued at AU$5.6bn, is a global leader in online payments, and has launched in the UK using the ClearPay company and name.
ThinkSmart's sale in August 2018 of 90% of ClearPay to APT marked an important strategic milestone for the Company, following the migration of its listing from the Australian Stock Exchange to the London Stock Exchange's AIM late in 2016.
ThinkSmart maintains 10% carriage of APT in the UK through its retained holding in ClearPay and also provides an outsourced customer service centre to ClearPay to support the product in the UK. A proportion of the 10% retained shareholding (up to 3.5% of the total share capital of ClearPay) will be made available to employees of ClearPay under an employee share ownership plan.
Current trading for ThinkSmart's leasing business continues broadly in line with the performance for continuing activities as announced in the Interim Results on 6 March 2019, with business volumes down year on year, mainly as a result of the lower margin Flexible Leasing product. ThinkSmart has adjusted its cost base to align to these volumes and is currently reviewing the ongoing strategy of the leasing arm of its business.
The leasing business currently has c. 30,500 (36,400 at 31 December 2018) active customer contracts and deals almost exclusively with Dixons Carphone plc, with retail distribution contracts due to end their minimum terms between January 2020 and November 2021. Secure Trust Bank remains ThinkSmart's key partner, funding the Leasing business volumes.
In March 2019, ThinkSmart returned AU$8m (c. £4.3m GBP) via a Return of Capital and Dividend to its shareholders, whilst maintaining a healthy cash position of c. £7m GBP as at 30 April 2019. In addition, the Company continues to hold 250,000 APT shares, valued at c. £3.5m GBP at 30 April 2019 (based on APT share price of AUD$25.59 and 1.8379 AUD:GBP at that time), which were received as part of the sale consideration for ClearPay.
At 30 April 2019, the Company's consolidated net assets (unaudited) stood at c. £17m GBP representing c. 16 pence per share versus its current share price of 5.75 pence per share (at 5 June 2019).
For further information contact:
ThinkSmart Limited Via Instinctif Partners
Ned Montarello
finnCap Ltd (Nominated Adviser and Joint Broker) +44 (0)20 7220 0500
Jonny Franklin-Adams, Anthony Adams (Corporate Finance)
Tim Redfern, Richard Chambers (ECM)
Canaccord Genuity (Joint Broker) +44 (0)20 7523 8350
Sunil Duggal
David Tyrrell
Instinctif Partners +44 (0)20 7457 2020
Catherine Wickman
Kaj Sahota