Board
The Board restructure over the last couple of years has resulted in a strong, diversified and highly qualified Board, with skills across management, finance, strategy, law, retail and marketing. All directors have been actively involved in the difficult issues addressed during the year.
Resignation of managing director
In April 2017 the Board accepted the resignation of Managing Director, James Marshall. James served the company for 24 years, ultimately attaining the top managerial position. He brought his accumulated experiences to his role and was in charge during a difficult time for the business. A search for a new managing director is in progress. Meanwhile, our CFO, Peter Forsberg, is acting CEO. We thank him for stepping up to this role.
Dividend
Thorn’s approach to provisioning for the issues it has faced has been an important factor in keeping the group in sound shape with two profitable business streams. Consumer leasing will face ongoing issues in FY18 but beyond that will continue to be a strong contributor demonstrating market leadership.
The Board took into account many considerations in deciding on a reduced final dividend - higher expenses from regulatory and legal issues, tougher business conditions for Radio Rentals as well as the need to conserve capital to fund the ongoing growth of business finance. The 50 per cent payout of full year profit after tax represents 8 cents a share compared with 11.5 cents in the previous year, all fully franked. In May 2017, at the time of the full year results announcement, the share price of $1.25 equated to a yield of 6.4% (a gross 9.1% if the franking credit is taken into account).