SmartPay turns in 'milestone' result

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 yesterday said the first quarter net profit was $224,000, compared to a $1.02 million loss a year earlier. The result was achieved before acquisition of ProvencoCadmus.

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 lower revenues but better overall margins. That reflected a focus on being a better margin business, as well as the removal of several non-performing customers, 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, Bailey said.

SmartPay's share price closed up 1.1c to 4c.

- NZPA