Trafford tech finance firm plans IPO
A TECHNOLOGY finance firm that helps small companies pay for expensive IT equipment is planning to list on the stock market later this year.
Australian group ThinkSmart, whose market capitalisation stands at around AUS$47.5m, has announced plans to list its UK business ThinkSmart Europe, which is based in Old Trafford and employs around 100 staff.
The group’s latest full year results show that its UK arm delivered $7.6m pre-tax profit for the year to the end of June 2015, with a 33% growth in volumes and 14% increase in assets under management and active customers.
The UK and European operation was set up in 2003, and since then it has had an exclusive lease finance contract with Dixons. Its services are now offered through more than 150 PC World stores, the PC World website and also via Currys and Currys Digital.
The company has also just announced a five-year exclusive contract to provide Carphone Warehouse with multi-channel lease finance for mobile phones.
The product offering, which builds upon a 13-year commercial relationship between Dixons Carphone Group, is expected to be launched within Carphone Warehouse in the UK by the third quarter of this year.
The proposed IPO is likely to involve the sale of existing shares by ThinkSmart and a placing of new shares to be issued by ThinkSmart Europe. ThinkSmart would retain a majority shareholding in ThinkSmart Europe following the IPO.
The group said an IPO will maximise value for existing ThinkSmart shareholders and also raise the general profile of ThinkSmart Europe from both a commercial and capital markets perspective.
It said the UK business continues to perform in line with guidance, assisted by a strong UK economy with a positive outlook for continued growth in retail sales, consumer confidence and further reductions in unemployment.
It added that the announced introduction of a multi funder platform with Santander a year ago and the improvement in terms of the £60m funding with Secure Trust Bank to July 2018 is further testament to the growth potential inherent within the UK business model.
Ned Montarello, group executive chairman at ThinkSmart, said: “This new distribution contract adds to the existing platform for ThinkSmart Europe’s UK IPO. The board has conducted a comprehensive strategic review and is confident that the proposed IPO of ThinkSmart Europe provides optimal value for all shareholders and is the right strategic option to support further growth.”
