KEY POINTS:
Cadmus Technology today announced its December half-year net profit fell 89 per cent to $53,000 from $488,000 a year ago.
Operating revenues rose 9.3 per cent to $14.8 million and earnings before interest and tax rose 12 per cent to $1.6m.
Chairman Keith Phillips said cash flow rose 53 per cent to $3.9m.
He said the benefits of Cadmus owning its own products and having its own rental business were paying off.
In a dig apparently aimed at rival eftpos company Provenco, Mr Phillips said Cadmus clearly had "a significant competitive advantage over those that only have a distribution model with no IP in their business".
Cadmus has in excess of $7m in cash, plus $7m of free cash flow residing in its rental division which would be released over the next 24-30 months.
"That puts us in a great position moving forward to scale the business even further," he said.
Around 50,000 New Zealand eftpos terminals need to be upgraded to meet modern standards, business worth up to $100m.
In addition the Australia markets were also moving towards similar standards of compliance and it had 400,000 terminals, Mr Phillips said.
Cadmus raised over $7m through the placement of 31 million shares and 22 million options in October.
The company was expecting to make several million dollars in India after a signing a preliminary agreement with a leading forecourt petrol pump, Postec Data Systems.
Cadmus was still in talks with Intellect Holdings (IHG) that, if successful, would allow it access to the untapped, lucrative European market. Talks begun last year, and were delayed over the Christmas holiday.
"Due to the extensive nature of the IHG sales channels and business, both IHG and Cadmus are continuing to undertake further due diligence before advising the outcome of their latest discussions," Mr Phillips said.
Cadmus shares were unchanged on 21 cents today. They have traded between 18 and 24 cents in the last year.
- NZPA
