(Correcting description of ThinkSmart's business.)
LONDON (Alliance News) - ThinkSmart Ltd shares spiked Wednesday after the digital payment technology provider swung to a profit in the first half and announced it will distribute AUD8.0 million, around GBP4.3 million, to shareholders.
Shares in ThinkSmart were up 0.8% on Thursday at 13.10 pence each.
ThinkSmart will return the AUD8.0 million in AUD4.0 million of capital reduction and AUD4.0 million in the form of a special dividend, equal to 3.772 cents per share.
The final amount of the capital reduction will be determined by the company.
In the six months to December 31, ThinkSmart swung to a net profit after tax of GBP6.9 million from a loss of GBP1.2 million in the same period the year before.
Profit was boosted by the sale of 90% of ClearPay Finance Ltd, which generated proceeds of GBP7.7 million.
The company's pretax loss narrowed to GBP752,000 from GBP1.3 million a year ago.
The company recorded a decrease of 5.0% in total revenue to GBP3.8 million from GBP4.0 million. ThinkSmart's business volumes decreased 61% to GBP2.7 million from GBP7.0 million.
ThinkSmart's operating costs increased 31% to GBP2.2 million in the first half.
In the current period, ThinkSmart said it is trading in line with the first half.
