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Eftpos company Provenco reported a net loss of $1.9 million in the six months to December.
The company said the loss, which compared with a $2.9m profit in the
year ago period, was in line with forecasts. The directors
decided to suspend dividend payment again. Last
year it posted a fully imputed interim dividend of 1.3 cents per share,
having restored dividend payments the year before after an eight-year
hiatus. The loss was despite revenue growth of 13 per cent to $89m.
Chairman David Wolfenden said that the growth in revenues was as expected for the period. He
said the bottom line result did not mirror the revenue gains and
reflected a significant proportion of Provenco's business depended on
international contracts, which were inevitably fluctuating.
The company had invested in technology and pre-sales activity during the period.
Currency
volatility had significant affected profitability with the company
earning 65 per cent of revenue overseas. Profits were hit by over $2m.
Cash flow was affected by the capital investment required to support
the growth in its Vantex venture and increased investment in Retail
Automation -- forecourt hardware and software for petrol stations.
Chief executive David Ritchie said the company was confident it would
win new major contracts.
"The
global markets for this business are rapidly expanding as the oil
industry demands new systems and solutions to improve forecourt
efficiencies."
The company was chasing business in China, India
and the Middle East, as well as the traditional markets of Europe and
Australasia.
Mr Wolfenden said confidence in the group's future
growth was reinforced by recent investment by Todd Capital, an
investment unit of New Zealand's richest family.
Todd owns 15.8
per cent. Other major shareholders include The Warehouse founder,
Stephen Tindall, entrepreneur Duncan Saville and Navman founder Peter
Maire. He reiterated Provenco was anticipating a stronger second half.
The full year result is forecast to show operating revenues of
approximately $180m and ebitda in the range of $9.5-11.5m.
Provenco shares were unchanged on $1.10 today. They have traded between
73 cents and $1.12 in the last year.
PetrolWorld 070608
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