ProvencoCadmus to sell assets; managers buy unit

Monday 15th September 2008

ProvencoCadmus, the business formed from the merger of two eftpos machine companies, will sell assets to a group of managers and is preparing to dispose of other businesses to recapitalise the group.

The company agreed to sell its mobile computing and POS integration business to a group of managers, it said in a statement. No price was given though the sale is within the range of an independent valuation.

It is also in the final due diligence stage for the sale of its eftpos finance book, brought to the merger by the Cadmus group. Further, it may sell its Vantex distribution division.

ProvencoCadmus hired PricewaterhouseCoopers to review the possible sale of Vantex and is in talks with ANZ National Bank about its recapitalization plans. The company posted a full-year net loss of NZ$36.3 million. Sales fell 4.6% to NZ$161 million.

The company is grappling with a retail slump that's left it carrying high support costs while trying to win orders for its products. Its results include impairment charges against its international oil forecourt business and a reduction in the value of tax benefits.

A return to profitability is expected in 2009 and the outlook is positive, chairman Rick Christie said last month.

The shares last traded unchanged at 18 cents, near a record low, and have shed 65% this year.

By Jonathan Underhill

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