ThinkSmart lifted by first-half update

After reporting that pre-tax profits for the half year ended 31st December increased by 121%, shares in the AIM-listed digital payments platform ThinkSmart (LON:TSL) climbed by 5.14% to 18.40p (as of 13:00 GMT).

Executive Chairman Ned Montarello commented: “ThinkSmart’s successful sale of 90% of its Clearpay subsidiary to Afterpay in 2018 continues to generate considerable value for shareholders as evidenced by the £3.2 million December 2019 special dividend/capital return and £16.4 million revaluation gain in the value of its retained shareholding in Clearpay.

“The operating performance of the Clearpay business since its launch in the UK in May 2019 on the Afterpay platform has been highly impressive. This momentum has a direct read through to the value of our Clearpay holding and we see significant future valuation upside potential.

“Within our wider core leasing business, we continue to review our diversification strategy and work to maximise our relationship with Dixons Carphone as we look to improve volume performance. The business continues to generate positive cashflow while rightsizing its operations to current volumes.

“ThinkSmart’s legal claim against Carphone Warehouse for breaches of contract with regard to the Upgrade Everytime and Flexible Leasing products is ongoing“.