E-firm wins export deals worth $2.4m

By MICHAEL FOREMAN

E-commerce company Advantage Group has signed three software deals worth $2.4 million with overseas retail oil companies.

Auckland-based Advantage's retail solutions division has won two contracts, each worth about $1 million, to supply the South African subsidiaries of Shell and Total with Advantage's electronic payments server and its 8850 forecourt-management system.

Another software development contract, worth $400,000, has been signed with an Australian oil company.

The contracts are a significant software export for New Zealand, says Advantage chief executive Greg Cross.

"It's a great start to our financial year [which began on July 1] and we are booking this revenue in US dollars, which is obviously great at the moment."

Mr Cross said Advantage's 8850 system, designed specifically for the oil industry, was now in widespread use in 15 southern hemisphere countries.

Last financial year, the retail solutions division recorded a gross profit of $11 million on revenue of $20.6 million.

Ninety five per cent of its sales were exports.

Mr Cross said international sales now accounted for 17 per cent of the listed group's revenue.

Last week Advantage also announced a partnership with transtasman-listed "phone card to internet kiosk" company E-phone.

Under the deal, E-phone pre-paid phone-card users will be able to top up or buy new cards using Advantage's net-enabled ICE 5000 Eftpos terminal.

Mr Cross said the deal's commercial details were still being worked through, but Advantage would receive licensing revenues from E-phone for providing this facility.

Advantage, which now claims a 65 per cent share of the Eftpos terminal market, plans to replace the bulk of its existing terminals with internet-capable models within three years.