Thorn Group (TGA)

Shares / Stock Code

TGA

Stock Exchange / Sharemarket

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Thorn Group (TGA), previously known as RR Australia (RRA), is an operator in the Australian household goods rental markets that offers a wide range of audio visual products, kitchen and laundry appliances and computers along with a new range of furniture and gym equipment on a rental basis. RR Australia was formerly known as Radio Rentals Australia. Established in Sydney in 1937, TGA has a long history of renting electrical appliances to Australian consumers through 67 stores nationally. The company was originally listed as RR Australia Limited on 13 December 2006. Investors can trade Thorn Group shares on the Australian Stock Exchange (ASX).

RRA attempts to differentiate itself by its reputation, location, service (installation and maintenance), price and product range. The company's objective is to become a provider of financial services to the credit and cash constrained consumer markets. RRA's possible initiatives to meet its objective include: Store Expansion, Consumer finance, Third party network expansion, and Commercial division (marketing focus for the underdeveloped commercial customer base).

RRA's customers and target markets are consumers who are cash or credit constrained and to whom rental often provides an affordable solution for obtaining essential household goods. The company's target customers are often located in regional and rural areas. RRA's direct competitors are other household goods rental operators which include MR Rentals and Radio Rentals South Australia (not affiliated with RRA) as well as other traditional retailers.

Strength

Established with the opening of a store in Sydney in 1937, Thorn Group Limited has a long history of renting electrical appliances to Australian consumers. Today, Thorn Group Limited offers a full range of audio/visual products, kitchen and laundry appliances, computers, furniture and fitness equipment through its Radio Rentals and Rentlo national store network, making it a leading operator in the household goods rental market.

The underlying strength of the core rental business and associated positive operating cashflows has enabled Thorn Group Limited to achieve substantial growth in recent years and provides a sound platform for development of strategic initiatives.