Smartpay Holdings has announced its full year profit for the 12 months ended March 31.
Its revenue is $22.2 million, three per cent lower than the prior year at $22.9 million; its EBITDA $9.2 million, three per cent lower than the prior year at $9.4 million; its net profit after tax $1.6 million, 10 per cent lower than the prior year at $1.7 million; its diluted earnings per share (EPS) of 0.91 cents, 10 per cent lower than the prior year at 1.01 cents; and its growth in a new taxi business is under way.
While EBITDA of $9.2 million represents a five per cent decrease on the prior period result of $9.7 million, as reported at the time, the prior period result included a one off accounting benefit relating to the release of an accrual for communication costs, and the inclusion of a number of non-recurring costs relating to the ASX listing. When viewed in the context of the prior period’s normalised result of $9.4 million, the current period’s EBITDA of $9.2 was lower by three per cent.
Net profit after tax of $1.6 million and EPS of 0.91 cents are only marginally lower than the prior year net profit after tax of $1.7 million and EPS of 1.01 cents.
Notable achievements in the New Zealand business during the period include: a number of new distribution deals for its new mobile integrated payments terminals, including the provision of its mPos solution to ASB Bank announced in August last year; and the conclusion of the Epay deal announced in July last year, which has brought an immediate revenue contribution and offers ongoing potential to increase revenue per unit as Smartpay grows this new product in New Zealand.
Smartpay’s current business and opportunity set can be broadly divided into two main areas. It has a mature, stable New Zealand business with a significant market position which supports the development of its relatively new Australian business into what it believes is a market that offers significant growth potential.
The other area in which it sees significant opportunity is next generation integrated payments terminals for both larger retailers and the emerging mobile payment market. It has seen success with these products over the past year in its New Zealand business and based on the growing demand it is seeing from the Australian market for these products it expects to see significant growth in its Australian retail terminal numbers when it releases them into Australia later this year.
The primary contributor to the lower revenue and EBITDA was the cessation of its largest Australian taxi contract revenue at the end of December.
