When it comes to small caps that have lost their way, it’s all too easy for investors to banish them from their portfolios and move to fresher pastures. In fact it’s quite cathartic. But don’t be so hasty: enterprises rarely evolve in a neat linear fashion.
Shares in Thorn Group have surged after an announcement to the market confirmed that the long-running class-action lawsuit against the company's Radio Rentals’ controversial ‘Rent, Try, $1 Buy’ program has been settled for a total of $29 million.
Shares in consumer finance group, Thorn Group (TGA) fell 8.7% to $1.365 yesterday on news of a class action being launched against the company by customers who were part of its Radio Rentals “Rent, Try $1 Buy” scheme.
The company’s guidance for FY18 signals net profit will be down -27% from the FY17 result. Radio Rentals installation volumes have been affected by the implementation of the new online origination and credit assessment platform.