Hi asf the effect is $1.2m NPAT.This article from 20/2/08 from current.com.au may shed some more light
SYDNEY: International computer and office equipment financing company ThinkSmart and The Warranty Group have won a joint tender to supply warranty products and services to Woolworths’ consumer electronics arm.
The contract means the two companies will supply products and services to the approximately 400 Dick Smith Electronics, Powerhouse and Tandy chain stores across Australia. The warranty services will give customers a range of protection, including full replacement for faulty products under $400.
ThinkSmart will handle all in-store staff training and development, as well as motivation and marketing related to product warranty delivery. It will receive a commission on the ‘risk premium’ from The Warranty Group for this work.
The Warranty Group will provide the core services and handle all administration and customer service issues. They will be underwritten by affiliate the Virginia Surety Company.
The two companies will begin providing their respective services from the start of the second quarter this year.
TSM Price at posting:
32.0¢ Sentiment: None Disclosure: Not Held
