Radar

A fund manager has a very positive outlook for the digital payments ASX share Smartpay Holdings Ltd (ASX: SMP).

It is truly an annuity business, and at the flip of a switch, could be turned into a cash flow monster should management (or an acquirer) choose to do so. [comments](https://fundhost.com.au/wp-content/uploads/2017/07/2022_11.pdf) about Smartpay in the fund update for November 2022. Hansen pointed to the “positive outcomes every increase in marketing Smartpay has had over the past few halves has had.” One reason to like the ASX share is that the stated customer churn was just 1.1%. The operating cash flow is being used to fund the purchase of new terminals, ongoing development of software and reduce bank debt. It’s looking forward to a “strong” second half. The company also reported net profit before tax of $2.7 million, an increase of 637%. Hansen said that the Smartpay [update](https://www.fool.com.au/tickers/asx-smp/announcements/2022-10-18/2a1406627/trading-update/) in mid-October was “spectacular”. The company is working on its Android in-store proposition, which is a “key focus”. [cash flow](https://www.fool.com.au/definitions/cash-flow/) of $10.1 million in the period. [small-cap ASX share](https://www.fool.com.au/investing-education/small-cap/) Smartpay Holdings Ltd ( [ASX: SMP](https://www.fool.com.au/tickers/asx-smp/)) is a leading idea according to a fund manager. [interim result](https://www.fool.com.au/tickers/asx-smp/announcements/2022-11-28/2a1416394/half-year-result-investor-presentation/) for the six months to 30 September 2022.