Paywizard plc, the e-wallet division of the Kirkcaldy-based Paywizard Group, plunged into the red last year.
The previous year’s pre-tax profit of £142,324 turned into a loss of £25,718 from a turnover down 33% at £567,712.
Paywizard Group is the software developer specialising in subscriber management for Pay TV.
Last year in a reorganisation it moved all non e-wallet turnover to the parent group, with Paywizard plc focusing on its digital e-wallet service which was used mainly by a single customer.
E-wallet is an online prepaid account system where a holder stocks money to be used when required.
As it is a pre-loaded facility, consumers can buy a range of products without swiping a debit or credit card.
Writing in the firm’s accounts for 2015 lodged with Companies’ House, director Ronald Millar said Paywizard plc will continue to provide an e-wallet service to its clients and look for opportunities to grow a diversified customer base.
He added: “The directors ensure they can understand the risks related to payment processing and e-wallet operations, and have identified and implemented processes to manage and mitigate those risks.
“There are dedicated personnel in post to understand and monitor the regulatory requirements and set strategies accordingly.”
He said the main business risk faced by Paywizard plc is the loss or failure of a major customer from whom it derived the majority of its revenue.
“The company maintains a close relationship with this customer to continually meet and respond to their requirements, ” he explained.
He stated: “We are confident that the prospects for Paywizard plc are positive.”
The parent group’s accounts for 2015 have not yet been issued but in 2014 it made a £5.1 million loss as it switched from the call centre market to the pay-TV sector.
A significant part of the loss came from an exceptional £2.83m write-down to the value of Iona House, which was put on the market for £500,000.
The group described 2014 as a “transformational year” and it remained confident about its future. It had secured £3.5m from the Scottish Loan Fund to support the roll-out of its pay-TV and video on demand platform.
The group and the e-wallet division operate from Cluny Court in John Smith Business Park, Kirkcaldy.
