In May 2017, at the release of its full year results, and again at its AGM on 30 August 2017, Thorn Group cautioned shareholders that it expected the profit outlook for the year ending 31 March 2018 would be subdued and subject to a number of variables.
Thorn Group now advises that it expects its half-year profit after tax to be around $11 million and its full year profit after tax to be in the range of $17 to $20 million. This guidance primarily reflects a decline in trading conditions in the Group’s Radio Rentals division and a poor month of trading in September which has continued into this month.
These forecasts represent an approximate 30% reduction from the prior year’s reported performance.
There continue to be a number of other variables which may have a material financial impact on Thorn’s business and financial performance in the short to medium term. These include the ongoing Australian Securities and Investment Commission investigation into Radio Rentals’ responsible lending practices (for which Thorn Group has already made certain provisions) and the class action launched by Maurice Blackburn.
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