Radio Rentals currently has 67 stores in all
Australian states and
territories, except South Australia, with more than 200,000 BOR.
Australian Rent to Own company Radio Rentals Australia Ltd
filed for a December IPO. The company expects to raise $56 million
and will list on the Australian Stock Exchange.
Radio Rentals, which operates in all states except South
Australia, is being sold by UK private equity group, Terra
Radio Rentals will offer 113.4 million shares at 50 cents each
to raise $56.7 million; That's about 90 per cent of Terra
After the float, the company will have a market value of $63.7
The offer opens on next Monday, November 13.
Radio Rentals chairman Bernard Carrasco says in a statement the
float will allow the company to expand its business within the
Australian household goods market.
"Radio Rentals has a leading market position within the
Australian household rental market, a high profile brand name
and strong customer relationships," Mr. Carrasco said.
"The business is well positioned for future growth with high
levels of contracted rental revenues, strong risk management
practices and a senior management team that has great experience
in this industry."
Managing director Mr John Hughes said the company planned new
product offerings and a possible store expansion. Mr Hughes was
MD for a while back in the 90s, and came back a couple of months
ago for the float.
Radio Rentals currently has 67 stores in all states and
territories, except South Australia, with more than 200,000
The company also has a burgeoning Rent-Try-Buy program that it
says has increased the average length of
customer rental periods to 19 months, and represents around 60
per cent of its 2007 pro-forma revenue forecast.
"Core business growth in the short-term will be generated
through a continued roll-out of our successful furniture
offering, new technology products such as plasma televisions and
laptops, and ongoing segmentation targeting of key customer
demographics," Mr. Hughes said.
"Longer term strategic initiatives may include further store
expansion, development of consumer finance offerings and
increased targeting of our underdeveloped commercial customer
Radio Rentals directors expect to declare a dividend for 2007,
representing a 6.25 per cent full franked annualized yield on
the offer price.
Thorn Australia Pty Ltd trades as Radio Rentals, with their head
office situated in Regents Park, Sydney, Australia.
RTO Online is the official channel for Rent-to-Own Industry News and the
only independent source of news for the rent-to-own, rental-purchase,
lease-purchase trade. RTO Online (Rent to Own Online) represents the choice
of the entire RTO Industry for trusted information, as it happens.
Tell us what you think
Rate the article at the top of this page