Smartpay reports 'milestone' profit

Last updated 11:52 26/08/2009
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SmartPay, which is paying $6 million for the payments division of collapsed ProvencoCadmus, has reported it made a "milestone" net profit in the three months to June.

The Eftpos and payments processing provider today said the first quarter net profit was $224,000, compared to a $1.02 million loss a year earlier.

The result was achieved before the acquisition of ProvencoCadmus, announced last week.

SmartPay said it was confident of sustaining ongoing profitability in its own right, with the ProvencoCadmus payments business expected to add further profits.

SmartPay managing director Ian Bailey said the first quarter profit was made on slightly lower revenues but much better overall margins. That reflected SmartPay's focus on being a better margin business, as well as the removal of a number of non-performing customers, Mr Bailey said.

Other factors were consolidation of the company's operation, better product lines, new technology and the completion of acquisitions.

SmartPay's rapid expansion of scale had come through the key acquisitions of All Talk Communications, Merchant IP Services, FIVO and ProvencoCadmus following a clear growth strategy, Mr Bailey said.

SmartPay's share price was up 0.7c to 3.6c in late morning trading.

NZPA

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