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Payments technology company Cadmus has sunk to an annual loss of $4.5 million as its overseas expansion plans stall.
The company, a rival to Provenco, appointed a new chief executive, chairman and board members this year in an attempt to reverse the slide.
Cadmus reported steady sales revenue of $25.4 million for the year to June, and a drop in earnings before interest, taxation, depreciation and amortisation to $3.2 million from last year's $7 million.
The annual net loss, compared with last year's $390,000 profit, was boosted by tax and restructuring costs, and costs related to merger talks with Australian company Intellect Holdings that began last year.
Chief executive Julian Beavis said Cadmus had to move beyond the manufacture and sale of "commodity" eftpos terminals into higher value payment technology, and had increased its investment in research and development.
The company raised $6.1 million during the year, and held $3.9 million in cash at the end of the period compared with owing $697,000 a year earlier.
Its return on assets and equity fell into negative territory, and its debt to equity ratio was at 154 per cent from 181 per cent.
Product sales and related services fell 3 per cent to $19.2 million, and rental income fell 25 per cent to $3.6 million.
Revenue in New Zealand rose 10 per cent to $20.2 million, but fell 34 per cent in Australia to $4.1 million.
Cadmus shares fell 8 per cent to 16c, their lowest since late 2004.
- NZPA
