Eftpos company chases payoff in Australia

Technology company Cadmus plans to introduce its finance business in Australia in a bid to boost the bottom line, it said yesterday after revealing a stronger profit.

Revenue for the year ending June was $25.7 million, 30 per cent up on the previous year's $19.7 million.

Trading profit grew 137 per cent to $6.7 million, although net profit was up a more modest 12 per cent at $392,000, after the company chose a more cautious approach to depreciating rental assets.

Commercial director John Nimmo said Cadmus planned to introduce its business model of selling eftpos terminals and providing rental finance into Australia, where it now focused solely on selling terminals.

"Cadmus has put quite a strong team of people in Australia and we are hoping that in 2007 that will give us a good step forward," Nimmo said.

Systems had been tested and the company was looking for bigger offices in Sydney to accommodate the operation. "We're now pretty much ready to implement and press the button," Nimmo said.

The revenue from finance was $5.8 million for the year to the end of June, up from $2.1 million the previous year.

Cadmus also planned a merger with Australian-listed but European-focused Intellect Holdings.

Cadmus said it was approaching critical mass in relation to its fixed costs "and hopefully if we can keep growing the business then we will get bigger contributions to the bottom line", said Nimmo.

The depreciation of $3.5 million, up from $1.8 million the previous year, was a more prudent approach, he said, "and we'll see good returns from that going down the path".

The domestic market could also see growth, including demand from the January 1, 2008 deadline for terminal upgrades to meet new standards, Nimmo said.

Managing director Ian Bailey said the next logical move was to strive for larger terminal volumes and thereby reduce the cost of goods.

"The proposed merger [with Intellect], if approved by shareholders, will put Cadmus in the top 10 eftpos terminal suppliers worldwide plus expand our product range into the growing unattended payments market," he said.

"Cadmus will continue looking at more acquisitions to add further value to the Cadmus business and shareholders."