ThinkSmart Limited Settlement of legal proceedings (5640V)

TIDMTSL

RNS Number : 5640V

ThinkSmart Limited

10 August 2020

10 August 2020

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

ThinkSmart Limited

("ThinkSmart" or the "Company" which together with its subsidiaries is the "Group")

Settlement of legal proceedings

ThinkSmart Limited (AIM: TSL), a leading digital payment solutions provider, announces that its subsidiary, RentSmart Ltd (RentSmart), has reached a settlement agreement in relation to the legal proceedings issued against The Carphone Warehouse Ltd (CPW), a company within the Dixons Carphone plc group (DC), as announced on 29 November 2019.

RentSmart issued a claim against CPW in November 2019 in respect of the Flexible Leasing contract and its predecessor Upgrade Everytime contract. The Group is pleased to announce that it has agreed a settlement in relation to these contracts of GBP1.45m inclusive of costs. Legal proceedings were not issued in relation to other contracts with the Dixons Carphone plc group (SmartPlan and Upgrade Anytime). As part of this settlement, RentSmart has agreed with DC to the orderly winding up of all its agreements with DC including Flexible Leasing, SmartPlan and Upgrade Anytime.

In the year to 30 June 2020, all of ThinkSmart's new business volumes were generated from its agreements with DC. The Group will continue to service its existing customer base ensuring the fair treatment of customers, along with any new volumes generated during the orderly winding up of the three contracts and will continue to benefit from the cash generated from this business. ThinkSmart anticipates its cash reserves will continue to build over the next few years.

ThinkSmart also retains a 10% share of the UK Afterpay business, which continues to trade as Clearpay, inclusive of 3.5% being made available to the Afterpay UK employee share ownership scheme. In addition, ThinkSmart provides an outsourced call centre customer support service for Clearpay.

For further information please contact:

 
ThinkSmart Limited                                  Via Buchanan 
Ned Montarello 
 
                                                    [phone] 
Canaccord Genuity ( Nominated Adviser and Broker)    8350 
Sunil Duggal 
David Tyrrell 
Tom Diehl 
 
 
                                                    [phone] 
Buchanan                                             5000 
Giles Stewart 
Victoria Hayns 
Toto Berger 
 
 

About ThinkSmart Limited

ThinkSmart Limited is a specialist digital payments platform operator and investor. In 2018 ThinkSmart sold 90% of its Clearpay subsidiary to Afterpay Ltd and retains the 10% holding. ThinkSmart's operating business provides retail finance solutions for both consumers and businesses, underpinned by its innovative and scalable proprietary technology platform, 'SmartCheck'. Since it commenced operations in the UK in 2003, the Group has processed in excess of 350,000 individual applications.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

MSCEAAPXEEAEEAA

(END) Dow Jones Newswires

August 10, 2020 02:00 ET (06:00 GMT)