By PETER GRIFFIN
Payment terminals provider Provenco has scored a $21 million contract in Malaysia to supply outdoor payment machines for petrol stations.
The deal is part of the bonanza of work coming the way of Provenco and fellow terminal maker Cadmus as retailers the world over upgrade their payment technology to comply with new EMV (Europay, Mastercard, Visa) security standards.
The contract was signed with major Malaysian oil company Petronas Dagangan and will run for a year.
Most of the revenue from the deal will be counted by Provenco in the financial year starting July 1.
Cadmus did not bid for the work.
"We've split the market between us, not intentionally, but they're in the service station market and we've been in other retail," said Cadmus managing director Ian Bailey.
Provenco's managing director, Tony Bradley, said it would not be hit by stock write-downs as a result of the introduction of the new standards.
Cadmus said recently that its rental stock would have to be written down to the tune of $234,000 as it could not be sold to markets introducing the stricter standards.
"We took a very conservative view on our assets so we've no exposure on that," said Bradley.
Provenco Group plans to release its preliminary result for the six months to December 31 on Friday.
Provenco shares yesterday rose 9c, or 18 per cent, to close at 58c.
Provenco wraps up $21m Malaysian oil firm deal
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