AIM-listed digital payments business ThinkSmart is reporting a 237% uplift in trading performance for the first half as it realises the value of its remaining ten percent holding in buy now, pay later firm ClearPay.
ThinkSmart sold 90% of Clearpay to Australia's AfterPay in 2018 and has an option to sell the rest which is exercisable from 2023.
Its latest results show that the 10% stake is now valued at £106.6m, compared to £53.7m a year ago.
Profit after tax now stands at £53.7 million, as opposed to £15.9 million in the year-ago period, driven by a £52.9 million non-cash fair value gain on the company's retained ten percent stake in Clearpay.
ThinkSmart’s own operating business, powered by SmartCheck, a proprietary digital payments platform and credit decision-making engine, is in managed wind down, and options to offload the business are under consideration.
Ned Montarello, executive chairman of ThinkSmart, comments: “While our strategic efforts are focused on further value creation for shareholders via our holding in Clearpay, the managed wind down of our legacy operations continues to generate positive cash flow as we control costs while rightsizing the operations to lower volumes. This leaves our balance sheet robust. There is inherent, tangible value within our proprietary payments technology and we are continuing to consider how best to optimise the value of this asset."