- Financial services company Thorn Group (TGA) has reported a severely deepened net loss over its last financial year
- The company lost $81.1 million over the 12 months to March 31, compared to the $15 million loss the year before
- The loss was underpinned by a 7.9 per cent decline in revenue over the year
- Thorn blamed the COVID-19 pandemic for a big chunk of the loss as the company had to close 62 of its Radio Rental stores permanently due to the virus
- The company was also impacted by a $26 million class-action settlement
- Shares in Thorn Group closed almost four per cent lower today, worth 12 cents each
Financial services company Thorn Group (TGA) has reported a severely deepened net loss over its last financial year.
For the full year to March 31, the company recorded a net loss of $81.1 million — 441.7 per cent heavier than the $15 million loss the year before.
The loss was underpinned by a 7.9 per cent fall in revenue, coming in at $204 million for the full year.
Moreover, Thorn Group recorded an earnings before interest and tax (EBIT) loss of $62 million over the last year compared to the $9.8 million over the previous corresponding period.
Thorn Group said there were several contributing factors to the tough business year.
Firstly, the company said the COVID-19 pandemic and subsequent Radio Rentals' store closure program impacted business to the tune of $35.6 million.
Radio Rentals is an electronic leasing division of Thorn Group's business. The company closed 62 Radio Rentals stores due to the pandemic.
On top of this, Thorn Group said the full-year result was impacted by a $26 million charge from a class action settlement and $12.8 million of debts being either written off or fully provided for.
To navigate the tough economic climate, the company said it has cut costs across all divisions and head office. Thorn Group had a cash balance of $40 million at the end of March but said it is still in no position to be giving any profit guidance for the next financial year.
Shares in Thorn Group declined by 3.85 per cent today, closing worth 12 cents each. This time last year, company shares were trading for 46 cents each, marking a 73 per cent decline over the past 12 months.
Thorn Group has a market cap of $40.29 million.