VTL Reports Excellent Result

Smart vending systems licensing company, Vending Technologies Ltd (NZSE:VTL), today announced a full year net profit result 35 percent ahead of the forecast in its November 2000 listing prospectus. The net surplus after tax result of $5.4 million is also 10 percent ahead of the increased profit forecast of $4.9 million NPAT the company announced in February 2001.

For the twelve months ended 31 March 2002 the company reported an audited operating surplus before tax of $5.3 million, up 27 percent on $4.1 million for the previous year. The result was achieved on revenues of $19.5 million, up 20 percent on last year’s revenues of $16.3 million.

Condensed statement of financial performance

(audited)

Twelve months ended 31 March 2002

(millions)
2002 2001
Operating Revenues $19.5 $16.3
Operating Surplus Before Tax $5.3 $4.2
Operating Surplus After Tax $5.4 $4.0
EPS* 18.3* 24.1*

* Based on weighted average of shares issued, increased as a result of the company’s IPO part way through 2001.

“In the uncertain prevailing international environment in which Vending Technologies Limited undertook its expansion, this is a very good result indeed,” said Chairman Dr Richard Janes. “It reflects the Company’s transformation from a vending machine operator into an international vending systems licensing company and confirms our ability to achieve profitable growth based on licensing models established over the last twelve months.

The result takes into account expenses for the period that include the establishment and marketing costs for two major strategic initiatives – a subsidiary finance company (Nathans Finance) and the 24seven convenience brand, both of which will be substantial longer term assets.

“VTL’s growth strategy continues to be based around purchasing food and drink vending equipment, installing our proprietary control technology; with Master Licensees now rolling out the VendSmart licensing programme, which licenses those machines to small scale independent operators in what is still, globally, a high growth market,” says Dr Janes.

“Category management and the VendSmart programme is enabling us to enhance vended product revenues and progressively reduce our own operating costs. At the same time it has created a profitable financing opportunity in supporting those operators who require additional funds to finance growth in their underlying business. By establishing Nathans Finance we have both enhanced our earnings and created a financing engine to drive additional growth.”

“As part of continuing evolution of our business model, VTL also developed the 24seven convenience brand. The program is a world first in vended distribution and has transformed the rate at which the company can enter and grow in new markets,” said Dr Janes.

ENDS

About Vending Technologies Limited
Vending Technologies Limited supplies and operates electronically enhanced food and beverage vending machines throughout Australasia. Established in 1997, the company maintains and services vending machines and licenses branded electronic vending businesses under its VendSmart programme.

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