KEY POINTS:
Shares in eftpos company Provenco slumped 12 per cent, or 5c, to 36c yesterday after it reported its December half-year net loss widened to $4.6 million from $1.8 million a year earlier.
The company, planning to merge with rival Cadmus Technology, said revenue declined 6 per cent to $82.8 million.
Chairman Rick Christie said revenue from the company's international operations was typically lower in the first six months due to the contractual nature of the business. But other problems were also encountered.
"Delays in the confirmation of new contracts have impacted the business previously and this is again evident within the current reporting period," he said.
He said the board was concerned about the lack of revenue in the first half of the year.
As a consequence, a series of cost reduction projects had been implemented "resulting in a significant decrease in expenditure in appropriate parts of the group".
He said Provenco's working capital position had been well managed, resulting in positive operating cash flows of $6.4 million.
The result was reflected in the new merger ratios announced this week where Cadmus shareholders will get one Provenco share for 4.2 Cadmus shares against 4.6 previously.
Christie said Provenco's market share had not dropped, "But we have felt the force of international trading conditions across the business."
- NZPA
