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- Release Date: 20/02/12 18:06
- Summary: FORECAST: SPY: SmartPay Revises earnings guidance
- Price Sensitive: No
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SPY
20/02/2012 16:06
FORECAST
REL: 1606 HRS Smartpay Holdings Limited
FORECAST: SPY: SmartPay Revises earnings guidance
AUCKLAND, 20th February 2012 - SmartPay (NZX: SPY) advises that due to the
delay in finalising some of its customer contracts and lower than expected
uplift in NZ sales, originally expected to occur within the current 31 March
2012 financial year, it is now extremely unlikely that the Company will
achieve its previous earnings guidance as indicated in the Company's interim
results announced on 25 November 2011.
The company continues to maintain its market share in New Zealand with the
investment in the Australian market starting to show results with
announcements expected soon.
The final end year profit numbers will be heavily dependent on the timing of
the finalisation and delivery of a number of key contracts which the Company
is currently working on. Therefore no guidance can be given at this time,
except to note that the final result will be a function of the number and
value of contracts currently underway which complete prior to the 31 March
2012 year end date.
The previous guidance was based on the expectation that a number of
significant customer contracts would be completed before the 31 March
financial year end, hence would be included in the current financial year's
result. However with less than 6 weeks until year end it is now increasingly
unlikely that all of these contracts will complete in the timeframe due to
delays in obtaining the firm orders, and meeting compliance requirements,
thereby potentially impacting on the financial year end result.
Importantly Management of the Company regards this to be largely a timing
issue with the majority of these contracts still expected to be concluded,
albeit after the 31 March 2012 year end date. This will see the profits from
these contracts falling into the 2013 financial year.
The Company expects to provide further guidance once there is more clarity
around the final year end figures.
ENDS
For further information contact:
Wayne Johnson, Chairman SmartPay Mobile +61 411 544 449
Bradley Gerdis, Group CEO, SmartPay, +61 410 623 338
Julien Leys, JML Communications, +64 21 655 598
End CA:00219750 For:SPY Type:FORECAST Time:2012-02-20 16:06:09
