Winning Big on SMP Shares Analysis Highlight
Today we take a look at SMP shares and see what’s in store next.
Smartpay Share Price
Smartpay closed off the week with a share price of $0.76. Up a decent 43.4% from our BUY recommendation. At it’s current share price SMP shares are up 60% over the course of a year, and an amazing 360% over a 5-year period. Smartpay ASX has a current market capitalization of $182.2 million. In January SMP shares set an all-time high of 0.985.
About Smartpay ASX
SMP Holdings are a payments terminal business based out of Auckland, New Zealand. Smartpay is Australia and New Zealand’s largest independent full-service EFTPOS provider. They service over 25,000 merchants with approximately 35,000 secure and feature-rich EFTPOS terminals.
Preliminary Final Report
On the 27th of May, Smartpay ASX released its preliminary final report. In this report we saw excellent results from SMP shares. Overall revenues were $33.8m, up 19.7% from the prior year $28.3m with strong growth from Australian Revenues.
Smartpay have mentioned that they expect the Australian side of the business to be running at breakeven when EBITDA rises to between $10-12m.
Highlights:
- Revenue $33.8m, a 19.7% increase on the prior year $28.3m
- Australian acquiring transactional revenue:
- $17.1m, an 80.0% increase on the prior year $9.5m
- Monthly acquiring revenue grew to $2.2m / month
- EBITDA* $7.6m, a 2.7% increase YOY $7.4m. Run-rate EBITDA at March 2021 $9.8m
- Australian transacting terminals fleet grew to 6,754 at March 2021
- Continued increase in acquiring margin through the year
- Net debt, excluding convertible notes, reduced to $4.7m, $19.4m at March 2021
- After Tax Loss of ($15.2m)
What Can We Expect As Revenue Going Forwards?
We expected AU revenue to surpass that of NZ revenue in less than a year. As promised in Q4FY21 SMP shares reached our expectation. The business also boasts a large Gross Margin of ~30%, with no debt, growing revenues and a large margin we expect SMP to continue to perform well.
Full analysis: https://prophet-invest.com/smartpay-share-price-2021
