Merchant services company Smartpay has confirmed plans to list on the Australian Stock Exchange (ASX) by the middle of next year.
The listing is expected to open up a new pool of capital as the company looks to grow its share of the eftpos and electronic payment systems market across the Tasman.
Smartpay managing director Ian Bailey said the Australian market was opening up as a result of banking changes and the need to replace many of the 600,000 eftpos terminals in use.
“We already have significant customers in Australia and many of our New Zealand corporate customers either operate trantasman or are owned by Australian entities, making it possible for us to further expand our reach.”
Already, Smartpay provides direct payment equipment to about 15% of the taxi industry in Australia, he said.
Listing would open up a greater pool of capital and joint ventures would also be considered, provided they met growth objectives and increased shareholder value.
Smartpay's shares, which traded at 27c each on the NZX this morning, will be consolidated to facilitate the ASX listing.
In October, SmartPay signalled it was on track to hit the lower end of its gross profit guidance range, now narrowed to between $7 million and $7.5 million, after revealing a 125% boost in first-half profit to $9 million.
Outgoing chairman John Seton will be replaced by SmartPay’s Sydney-based director Wayne Johnson at the end of the month.
“Having stepped into the role of chairman when the company was making a loss and struggling to establish itself in the industry I am proud to leave it after a successful turnaround,” said Mr Seton.
John Nimmo, who resigned as commercial manager from Cadmus Technology in 2007 before it merged with Provenco, will join the board as an independent director.
Another Australia-based director would also being sought to balance the board’s transtasman interests.
Smartpay said a New Zealand chief executive would be appointed as part of a management review, to be joined by an Australian-based chief executive as the Australian market grew.
Georgina Bond
Mon, 06 Dec 2010