ThinkSmart Limited Issue of legal proceedings (0660V)
29 Novembre 2019 - 8:01AM
UK Regulatory
TIDMTSL
RNS Number : 0660V
ThinkSmart Limited
29 November 2019
29 November 2019
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")
Issue of legal proceedings
ThinkSmart Limited (AIM: TSL), a leading digital payment
solutions provider, announces that its subsidiary, RentSmart Ltd
(RentSmart), has issued formal legal proceedings against The
Carphone Warehouse Ltd (CPW), a company within the Dixons Carphone
plc group, for damages for losses estimated at GBP20m.
In ThinkSmart's core leasing business, volumes from RentSmart's
Flexible Leasing contract with CPW remain significantly below the
numbers targeted within its contract with CPW. In the year to 30
June 2019 less than 10% of ThinkSmart's annual revenues were
generated from Flexible Leasing (as a result of low volumes
generated by CPW).
Under the relevant contract with RentSmart, CPW is under
obligation in respect of the marketing and promotion of the
relevant product. RentSmart's discussions with CPW in relation to
the low volumes generated, as a result of CPW's failure to comply
with its obligations, have proved unsuccessful. This has left
RentSmart with no alternative but to issue formal legal proceedings
for CPW's breaches under the Flexible Leasing contract, and its
predecessor Upgrade Everytime contract. Legal proceedings have not
been issued in relation to other contracts with the Dixons Carphone
plc group (SmartPlan and Upgrade Anytime).
RentSmart has therefore issued a claim against CPW for damages
for losses estimated at GBP20m (i.e. approximately GBP5.5m in
respect of Upgrade Everytime and approximately GBP14.5m in respect
of Flexible Leasing).
RentSmart will continue to fulfil its obligations under all of
its contracts including continuing to service its existing customer
base and any new volumes generated under the Flexible Leasing
contract and the separate SmartPlan and Upgrade Anytime
contracts.
For further information please contact:
ThinkSmart Limited Via Canaccord Genuity
Ned Montarello
+44 (0)20 7523
Canaccord Genuity (Nominated Adviser and Broker) 8350
Sunil Duggal
David Tyrrell
About ThinkSmart Limited
ThinkSmart Limited is a leading digital payments company and
provider of point of sale retail finance for both consumers and
businesses. ThinkSmart's solutions are 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 customer applications.
ThinkSmart's proprietary SmartCheck technology is easily
integrated and proven to deliver new innovative digital payment
solutions for retailers with high volume low value
transactions.
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END
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