Report
David Ellis
EUR 101.80 For Business Accounts Only

Thorn’s Stressed Balance Sheet, Goodwill Write-Off, Covenant Breach. FVE Cut and Extreme Uncertainty

As reported on Oct. 16, 2017, we plan to cease coverage on no-moat Thorn Group in mid-December. Thorn’s first-half fiscal 2018 cash profit of AUD 11 million was completely overshadowed by the perilous state of the balance sheet. Debt covenants were breached, goodwill of AUD 20.7 million written off, and assets need to be sold to remain a going concern. We are increasingly concerned with increased operational, regulatory and earnings risk and uncertainty. Deteriorating operating conditions, the p...
Underlying
Thorn Group

Thorn Group is a financial service provider. Co. has four reportable segments: Consumer Leasing, which leases household products; Business Finance, which provides financial products to small and medium enterprises including equipment leasing, trade finance and invoice discounting; Receivables Management, which provides receivables management, debt recovery, credit information services, debt purchasing and other financial services; and Consumer Finance, which provides personal loans.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
David Ellis

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