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SmartPay’s $4.5m swing into profit

Four months after it completed the purchase of ProvencoCadmus' assets, eftpos company SmartPay has lifted its operating profit guidance to between $1.5 million and $2.0 million.The $4.5 million shift in profit for the year to March comes after a loss of $

Robert Smith
Thu, 04 Mar 2010

Four months after it completed the purchase of ProvencoCadmus’ assets, eftpos company SmartPay has lifted its operating profit guidance to between $1.5 million and $2.0 million.

The $4.5 million shift in profit for the year to March comes after a loss of $2.52 million last year and follows the company’s return to profitability in September.

Last year the company purchased the ProvencoCadmus payments division, while also launching a restructuring programme that saw its make a profit for the first quarter of the year.

The profit guidance issued today includes the “considerable” one-off costs relating to the acquisition of ProvencoCadmus.

Managing director Ian Bailey said the market guidance was given with only six months’ trading of the ProvencoCadmus business included.

The company recently announced ebitda guidance for the 2010 - 2011 financial year of between $7 million and $10 million.

Holland Corporate – which carried out the independent review – was also involved in the identification and management of the debt raising required to complete the ProvencoCadmus acquisition as well as obtaining short term debt to fund working capital.

Mr Bailey said the review and guidance showed the potential success of the company’s business model.

“Until we could show banks that we have a successful and repeatable financial plan and business model, which we now believe we are on course to achieve, finding the funds necessary to complete the purchase of ProvencoCadmus and allow adequate working capital required the company to look towards third party mezzanine funders.

Mr Bailey added that SmartPay was also working with Holland Corporate to refinance existing debt facilities into traditional bank arrangements during this year.

“It is anticipated that as SmartPay continues to demonstrate that it is delivering on its plans this will have the added benefits of lowering interest rates and importantly establishing a relationship with organisations that understand and support our business and will assist SmartPay to implement its growth plans.”

Robert Smith
Thu, 04 Mar 2010
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SmartPay’s $4.5m swing into profit
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