KEY POINTS:
A British distribution deal will give payment technology provider Provenco access to a petrol station market ripe for change, the company says.
Under the agreement, Indigo Retail Holdings will act as both British reseller and local agent for NZX-listed Provenco.
Chief executive David Ritchie said there were about 9500 forecourts in Britain and Ireland with a generally low adoption of pay-at-pump tech-nology.
"Certainly, in discussion with a number of the oil companies we have a view that they are about to move towards a pay-at-pump business model," Ritchie said.
The British market was going to be a key focus in the coming years.
"We think there's going to be quite a spend by the industry over the next three to five years there, so it gives us a solid platform to now build the business there."
Forecourt technology, including pump, shop and backroom systems, made up 20 to 25 per cent of group revenue last year but held strong prospects for growth, he said.
"It is potentially very substantial for us going forward because we build all of our own products."
Provenco had considered a direct approach to Britain but after research last year decided to sign with Indigo, Ritchie said.
"We think this is probably a lower-cost, lower-risk approach to the market."
Indigo supplies retail management products to the petroleum, convenience, pharmacy and hospitality sectors.
Ritchie said Provenco had worked with many potential British oil industry customers in other parts of the world, while a market presence in the head-office country of giants Shell and BP was also an advantage.
Provenco has installed more than 12,000 Europay Mastercard Visa chip card compliant outdoor payment terminals in countries including Hong Kong, India, Belgium and Malaysia.
More than 6000 service stations in 23 countries now used Provenco products, and the British presence would provide greater access to Europe, Ritchie said.
Provenco's share price closed up 3c yesterday to $1.04.
