DUBLIN-BASED electronic payments group Payzone made a loss of €203.8 million in the 12 months to the end of September 2009, accounts just filed with the companies office show.

This was in spite of the group increasing revenues from “continuing operations” by 5.9 per cent to €588.7 million.

Payzone, which provides mobile phone top-ups, bill-paying services and runs a network of ATM cash machines, closed the financial year with accumulated losses of €664 million.

The big loss posted last year came just 4½ months before the company announced a major debt-restructuring deal, which saved the business from collapse.

The debt-for-equity swap resulted in shareholder equity being wiped out and the company delisting from the stock market in London.

Its major shareholders were Balderton Capital, whose partners include Irish businessman Barry Maloney and founder John Nagle.

Payzone’s lenders agreed to write off €211 million in debts as part of the deal, taking a 16 per cent stake in the restructured entity, now called Prize Holdings.

As part of the restructuring, private equity firm Duke Street invested €45 million in Payzone for a 69 per cent stake while management were given a 15 per cent shareholding.

Payzone had to pay €2.2 million to advisers relating to the transaction with Duke Street this year.

Chief executive Mike Maloney earned €664,999 during the year. This comprised a salary and bonus payment of €584,999 and a pension contribution of €80,000.

Chairman Peter Smyth was paid €205,322 in fees. The total remuneration of directors was just more than €1 million.

The bulk of the loss posted last year related to a goodwill impairment charge of €124.4 million.

Payzone plc, which is now in receivership, also booked an impairment charge of €11.8 million on a number of loss-making ATMs that were removed from service in 2009 and scrapped.

In addition, Payzone wrote off €4.4 million in bad debts and took a hit of €4.2 million on a rationalisation of its business units.

Payzone last year sold businesses in France, Germany, Spain, Poland, Italy and the Netherlands.

The heavily-indebted company paid a hefty €24.4 million in interest to its lenders.

On a geographic basis, Payzone made an operating loss of €151.2 million in Ireland and Britain, and €3.9 million in Northern Europe.

On a brighter note, its southern and central European business unit recorded an operating profit of €6.5 million.

Payzone was formed from the merger in December 2007 of Irish e-payments company Alphyra and UK-based ATM operator Cardpoint.

It was listed on the Alternative Investment Market.