29 Nov 2019 07:01
29 November 2019
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
ThinkSmart Limited
("ThinkSmart" or the "Company" which together with its subsidiaries is the "Group")
Issue of legal proceedings
ThinkSmart Limited (AIM: TSL), a leading digital payment solutions provider, announces that its subsidiary, RentSmart Ltd (RentSmart), has issued formal legal proceedings against The Carphone Warehouse Ltd (CPW), a company within the Dixons Carphone plc group, for damages for losses estimated at £20m.
In ThinkSmart's core leasing business, volumes from RentSmart's Flexible Leasing contract with CPW remain significantly below the numbers targeted within its contract with CPW. In the year to 30 June 2019 less than 10% of ThinkSmart's annual revenues were generated from Flexible Leasing (as a result of low volumes generated by CPW).
Under the relevant contract with RentSmart, CPW is under obligation in respect of the marketing and promotion of the relevant product. RentSmart's discussions with CPW in relation to the low volumes generated, as a result of CPW's failure to comply with its obligations, have proved unsuccessful. This has left RentSmart with no alternative but to issue formal legal proceedings for CPW's breaches under the Flexible Leasing contract, and its predecessor Upgrade Everytime contract. Legal proceedings have not been issued in relation to other contracts with the Dixons Carphone plc group (SmartPlan and Upgrade Anytime).
RentSmart has therefore issued a claim against CPW for damages for losses estimated at £20m (i.e. approximately £5.5m in respect of Upgrade Everytime and approximately £14.5m in respect of Flexible Leasing).
RentSmart will continue to fulfil its obligations under all of its contracts including continuing to service its existing customer base and any new volumes generated under the Flexible Leasing contract and the separate SmartPlan and Upgrade Anytime contracts.
For further information please contact:
ThinkSmart Limited | Via Canaccord Genuity |
Ned Montarello |
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Canaccord Genuity (Nominated Adviser and Broker) | +44 (0)20 7523 8350 |
Sunil Duggal |
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David Tyrrell |
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About ThinkSmart Limited
ThinkSmart Limited is a leading digital payments company and provider of point of sale retail finance for both consumers and businesses. ThinkSmart's solutions are underpinned by its innovative and scalable proprietary technology platform, 'SmartCheck'. Since it commenced operations in the UK in 2003, the Group has processed in excess of 350,000 customer applications.
ThinkSmart's proprietary SmartCheck technology is easily integrated and proven to deliver new innovative digital payment solutions for retailers with high volume low value transactions.