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.
Thorn Group (TGA) continues to expect receivables expansion will be the basis for growth in all parts of the business. The company intends to review acquisition opportunities as it progresses a strategy of diversifying operations.
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.