Cadmus turns bullish over life after Eftpos upgrades

Payments solution company Cadmus Technology has posted 50 per cent growth in revenue and a return to profitability, but chairman Keith Phillips says there is plenty more to come.

"I think it's fair to say most of the people who are investing in the company ... believe this is going to be a $100 million company one day," Phillips said. "We're certainly not making any prediction about when that's going to happen but that's the focus of the business."

Net profit for the year to June 30 was $349,000 compared with a loss of $490,000 last year. The return to profitability came on the back of revenue of $19.97 million, up from $13.12 million last year.

Cadmus said the result was driven by investment in people, product development and certification, the acquisition of distribution channels and investment in a finance company.

Phillips said the company was investing in resources and infrastructure to ensure it was ready to take advantage of growing international demand for payment technology, particularly in the Asia region.

He said any drop in revenue after the upgrade of local Eftpos terminals to meet the new Europay Mastercard Visa standards would be more than matched by growth in other regions.

"As we work in these emerging markets like India and China, which have no digital infrastructure, there's going to be a huge requirement for this business."

Phillips said consolidation of its core local business would ensure the funds to develop foreign markets.

"We've made our first entry points into Australia ... so it would be true to say that we're actually at an early stage of development of that market with enormous potential ahead of us."

Managing director Ian Bailey said investment in manufacturing and financing operations had given Cadmus more control over its revenue streams.

"So we design, develop, produce, market, distribute and finance - we've got the whole end-to-end [package]," he said.

In March, Cadmus bought a 49 per cent stake in finance company Product Rentals, settled with the issue of 3,274,289 Cadmus shares to Product Rental shareholders.

Cadmus holds an option to increase this holding to 100 per cent in the next 12 months.

Shares in Cadmus closed up 1c at 25c.