Provenco looks overseas

David Ritchie

Offshore market expansion is on the agenda for Provenco as half-year results keep its full-year forecast on track.

It was the fifth consecutive increase in earnings before interest, tax, depreciation and amortisation (ebitda) for the retail and payment technology company coming in at $8.1 million for the six months to December.

Chief executive officer David Ritchie said the company, which has customers in 23 countries, was focused on developing new markets for its forecourt sales and stock control technology.

"We've flagged that China and India is one [area] that we've got a toe-hold in and with high expectations," he said. "America is another that we've done a lot of research on."

The timing and approach to the US marketplace was under wraps with research ongoing.

The interim result means Provenco's target for a full-year operating profit of more than $9 million is likely, compared with $7.6 million previously.

A fully imputed interim dividend of 1.3c a share will be paid on April 28 and the company intends paying shareholders two dividends a year.

This is a stark contrast to recent history, in which shareholders before last year went without recompense for about eight years.

"It does reflect the fact that we think we are a different company to where we were two or three years ago," Ritchie said.

Revenue was up 46 per cent at $78.9 million, compared with $54.1 million previously.

Growth in demand for new eftpos technology to meet the mandated dates for the changeover to new smart card and EMV compliant terminals had contributed to the growth in revenue.

But growth was not expected to dry up as the changeover progressed.

"The hardware is a component but the software is where we actually see the value longer term," Ritchie said.

Pre-tax profit was up from $4.2 million the previous year to $4.9 million but net profit fell from $3.5 million to $2.7 million.

Provenco shares closed 1c up at 89c.