Payment terminal operator Smartpay has recovered from a COVID-related collapse in activity in the June quarter, reporting that its transaction revenue is now well above the level it reached early this year before the pandemic hit.

The company released its results for the six months to September yesterday, with the highlight a 67 per cent increase in Australian transaction revenue to A$6.3 million, compared with the previous corresponding period.

The company had 4611 point of sale terminals installed in Australia at the end of September and the number was up to 5098 at the end of October.

The New Zealand business did not do so well. Service revenue fell 4.7 per cent to $7.2 million half-on-half. The company said it has launched a marketing campaign to strengthen its position in NZ.

Total revenue rose 8.2 per cent to $14.5 million but after a 13 per cent increase in operating expenses, a higher impairment charge and a $7.7 million charge for the change in the value of convertible notes, the company reported a loss of $9.2 million. That compares with a loss of $576,000 in the previous corresponding period.

In June the company completed a capital raising that allowed it to reduce its debt from $19.4 million to $4.8 million.

The company suffered some disruption in April, when a deal to sell its New Zealand business to US payments company Verifone fell through.

The parties first agreed to a deal in November last year but as COVID-19 took hold the April completion deadline passed without a transaction.

Verifone made a revised offer but Smartpay rejected it, saying the terms were not acceptable.

The company’s strategy is to shift its focus to the Australian market, where it sees greater growth opportunities.

It has had turnover in its senior executive ranks this year, with Marty Pomeroy replacing Bradley Gerdis as chief executive in September and the appointment of Mark Fortugno as chief financial officer this month.