Palamon selling Retail Decisions

Retail Decisions has the bulk of its Australian operations for sale, the Financial Review reported at its Dealbook site.

The AFR reported that the payments card business (the Motorcharge and Motorpass fuel cards) and the gift card business (in which it is the market leader) were for sale. The fraud screening operations are not part of the sale according to the AFR.

Retail Decisions last filed financial statements with ASIC in mid 2009 for the year to December 2008. They show revenue of $58 million (up 13 per cent) and a net profit of $19 million (up seven per cent).

Total equity in the business, mostly retained profits, was $106 million 18 months ago.

Around 40 per cent the revenue is from card fees and late charges paid by customers (mainly businesses), with another a third the merchant fees paid by petrol station operators. Gift card income was around 20 per cent of revenues.

Retail Decisions is owned by the formerly acquisitive UK company of the same name. Motorcharge adopted the name of its UK owner earlier this decade.

Palamon Capital Partners, a private equity firm, bought Retail Decisions plc in mid 2006.