Smartpay Holdings Limited Analysis

Overview

SmartPay Holdings Limited is the NZX listed Company Trading as Smartpay ("NZX:SPY") which is an innovative merchant services company providing merchants with the opportunity to better market themselves, increase revenue or save costs.

SmartPay delivers a range of managed merchant services allowing merchants to deal with one organization but realize many benefits.

The SmartPay offer to merchants uses the latest technology to bring them a range of services that is unmatched by any other single company.

Smartpay listed in March 1987.

Performance

The following information was extracted from SmartPay Holdings Limited's full year results, released 27 May 2024:

Full Year Financial Highlights

• Normalised profit before tax of $9.8m**, compared to the prior year of $7.6m
• Revenue $96.5m, a 24% increase on the prior year $77.8m
• Australian acquiring transactional revenue:
• $79.0m, a 30.6% increase on the prior year $60.5m
• Monthly acquiring revenue grew to $7.2m per month
• Normalised EBITDA* $22.3m**, a 21% increase on the prior year $18.4m
• Australian transacting terminal fleet grew to 18,400+ at 31 March 2024, up from 15,700 for the prior year
• Net cash increased to $2.2m

Operating Results

The 2024 financial year has seen us continue to deliver on stage 1 of our strategic plan of growth in the Australian market, whilst preparing for our entry into the New Zealand market as an acquirer in financial year 2025.

The financial performance for the 31 March 2024 financial year reflects ongoing growth into our Australian opportunity, continued measured investment in this growth, and further improvement in our operating leverage and ultimate profitability. The headline results include revenues of $96.5m, normalised EBITDA* of $22.3m**, and normalised net profit before taxation of $9.8m**.

Overall revenues were $96.5m, up 24% on the prior year of $77.8m with our Australian revenues showing continued growth throughout the reporting period.

Australian acquiring transactional revenues grew to $79.0m, a 30.6% increase on the prior year.

Normalised EBITDA* grew to $22.3m**, up 21% on the prior year of $18.4m, reflecting the measured approach we take and our ability to leverage our operating base to deliver growth.

Normalised profit before taxation of $9.8m**, up 29% on the prior year of $7.6m is a pleasing result.

Continued investment in terminals and an increased investment in platform and product development has been funded from operating cashflows whilst debt has continued to decrease