Payment processor Smartpay has made progress on the re-establishment of its business in Australia after it lost a wholesale taxi payment terminal contract at the end of 2014. However, its efforts are not yet reflected in its earnings.After the loss of the contract the company decided to compete directly in the Australian taxi payments market and has been deploying terminals.It said the number of its terminals in Australian taxis grew from 200 at the start of the 2015/16 financial year (the company has a March 31 balance date) to a current level of 1900. But so far there has not been any significant revenue contribution from those terminals.Smartpay reported a net profit of A$215,000 for the 12 months to March - well down on profit of $1.6 million for the previous corresponding period.The company earned revenue of $20.4 million, compared with $22.2 million for the previous corresponding period. Revenue fell in both New Zealand, which is the biggest part of the company's business, and Australia.Higher depreciation and amortisation charges and a 50 per cent increase in impairments left the company with a pre-tax profit of just $96,000. A tax benefit of $119,000 helped the bottom line.The company's cash flow position was also weaker. Net cash inflow from operating activities was $5.8 million, compared with $6.3 million in the previous corresponding period.The company has made investments in a number of new payment systems and this has led to an increase in net debt from $21.1 million to $23.9 million.The company said the outlook was positive, with revenue from Australian taxi terminal deployments due to have an impact in the current year. It has launched new taxi payments technology in New Zealand, which it hopes will increase revenue and margin.And it said it was making inroads into the Australian retail market with new mobile payment terminals.