Portfolio changes: Mr Rental Limited
An investment in Mr Rental Limited, in the form of a high-yield convertible bond, was added to clients' Equity portfolios.
Mr Rental is a franchise that rents home appliances, white goods, electronic goods, furniture and computers to consumers and small businesses. The franchise offers a number of rental products providing customers with flexibility. Each franchisee is responsible for the operation of their store within the franchise system and for the acquisition and management of their pool of rental assets.
Mr Rental grew from the rental of VCRs and TVs at a Queensland video store established by Glen and Kerrianne Hickman in 1983. Demand for the rental of these electronic goods grew quickly and the video store was sold so that the Hickmans could concentrate on building the rental business.
The first Mr Rental store was established in 1991. The Hickmans built the business very successfully through to 2001 when they made the strategic decision to franchise the business. Within two years the franchise had over 30 territories throughout Australia and New Zealand. In 2014 the Mr Rental brand grew to 69 territories in Australia and 25 territories in New Zealand.
As the franchise grew it has developed more robust governance and management structures. The Board now includes an independent Chairman and a professional management team with significant expertise in retailing and franchising has been developed, operating from the National Support Office in Brisbane. Mr Rental has consistently been recognised as a leader within the franchise industry in Australia and New Zealand.