Troubled electronic payment provider Payzone has said it will push ahead with its planned investment in its core business, despite recording a pre-tax loss of €166.7m (£131.8m) on sales of €449m (£355m) for the six months to 31 March.

The company was formed in December last year through a merger of Alphyra and Cardpoint but has been beset by problems, including legal action by two senior former executives and a temporary suspension of its shares.

The period had been a "difficult start" for the company, Payzone admitted.

Inefficiencies within its outsourced cash-in-transit provider had led to a shortfall in money in some of its cash machines and competition had tightened after an increase in the number of free-to-use cash machines, the company said.

The pre-tax loss included impairment charges of €143m (£113m) and restructuring costs of €8.8m (£6.9m), Payzone said.

"We remain focused on re-establishing the financial stability of the company following a difficult start," said chairman Peter Smyth. "We are committed to investing in the core business as well as exploring opportunities for product and geographic expansion along with market share growth in the more mature territories."

Investment in the business would be funded by a share placement that had raised €40m (£31.6m) and banking facilities of €332m (£262m) that had been secured this week.

The company has been beset with internal board wrangling since January, when it sacked CEO John Nagle and CFO John Williamson. Both took legal action, claiming breach of contract. Williamson dropped his action but Nagle is understood to be continuing with his case.

Earlier this month Payzone received an EGM requisition notice from shareholders to remove David Mills as a non-executive director.