Tyro Payments (ASX: TYR) – Australia merchant provider
COMPANY SCOREBOARD
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ABOUT COMPANY
Tyro Payments (TYR) (https://www.tyro.com/) provides Australian businesses with simple, flexible, and reliable payment solutions as a merchant acquirer, along with complementary business banking products. The company supports over 66,000 customers which represents around 6% of the card payment market.
In May 2021, the company acquired Medipass, an innovative cardless digital healthcare claiming and payment platform, for $22.5m. At the time, Medipass had an ARR of $1.8m from some 4,400 healthcare providers.
In September 2022, the private equity, Potentia Capital, offered an indicative takeover offer of $1.27 per share (subsequently revised to $1.6). As of 11 December 2022, it holds a 16.08% interest. Additionally, it received support from the largest shareholder, Grok who holds another 12.5% interest.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| TYR | 0.99 | 524524266 | 474292 | 519748572.42 | (36.5)/34.6 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 18120 | 65.8% | 60.26% | 3.64% | 11551885 |
In September 2022, former Medipass CEO, Jonathan (Jon) Davey, was appointed as the group CEO.
BUSINESS
Below is the company’s past five-year performance
| TYR | 2023 | 2022 | 2021 | 2020 | 2019 |
| Operation Revenue | 428149 | 324351 | 232443 | ||
| Cost of Sale | -235432 | -171190 | -118694 | ||
| Gross Revenue | 192717 | 153161 | 113749 | 0 | 0 |
| Gross Margin | 0.4501 | 0.4722 | 0.4894 | 0 | 0 |
| Overheads | -161685 | -149057 | -132410 | ||
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -161685 | -149057 | -132410 | 0 | 0 |
| Operation Profit | 31032 | 4104 | -18661 | 0 | 0 |
| Other Revenue | 4125 | -2944 | 4340 | ||
| Interest Expense | 3941 | -104 | 15 | ||
| D&A | -36355 | -31681 | -15364 | ||
| Income Tax | 3552 | ||||
| Net Profit | 6295 | -30625 | -29670 | 0 | 0 |
| NOTES | TV 42.6b | TV 34.20b | TV 25.45b; jobseeker $4.5m | TV 20.13b | TV 17.50b |
The company’s cash flow and loan origination are built on business’s deposits, which might dry out in difficult time.
SUMMARY
It is hard for the company to source new capital when 1/3 of the share register is controlled by hostile private equity.