Listed payment processor SmartPay has recorded a loss of $12.1 million after tax for the year to March, down from a $100,000 profit the previous year.
Shares rose 4c to 13c as investors digested the completion of a major restructuring programme under new chief executive Bradley Gerdis.
''The result announced today was simply a necessary conclusion to the previous model to enable the positive re-launch of the business,'' Gerdis said.
In its 2012 result the eftpos network operator's revenue plummeted 39 per cent to $28.9m and produced an ebitda loss of $1.95m.
The restructure included $6.1m worth of balance sheet write-downs, such as $1.5m in write-offs of stock, $1.6m in write-offs of items including capital raising and legal and consulting fees, $1.4m worth of software, $500,000 worth of Wifi assets and $1.1m in finance charges.
Without those non-cash adjustments it would have reported an ebitda profit and a much lower bottom line loss, Smartpay said.
Another factor behind the loss was a maturing of the growth in the New Zealand terminal market following the completion of an industry-wide terminal upgrade, it said.
Previously revenue from rental contracts was securitised to third party financiers and recognised at the time contracts were signed, which generated significant revenue when the market was growing strongly. But once growth slowed dramatically it was difficult to generate the level of new contracts necessary to maintain that.
The company was using new capital to buy back the rental contracts and would be changing its accounting policy to recognise rental revenue when it was received, Gerdis said.
SmartPay recently raised $13m of equity and extended its bank debt to $25m.
The new system would produce a stable revenue and earnings base for the future, he said.
Under the new model revenue for 2013 is expected to be $17.5m, generating ebitda of $7.5m.
Smartpay has appointed Ivan Hammerschlag, the Australian owner of Freedom Furniture before it listed on the ASX, as chairman of its board.
Although growth in the Australian market was weaker than expected, its revenue across the Tasman rose 105 per cent to $6.3m.
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