Provenco increases profit projection

Media release

Wednesday 30th March 2005

Provenco Group Ltd has significantly increased its profit projection for the current financial year.

Provenco has announced that the directors are currently projecting that Provenco will have an operating profit after goodwill amortisation, and before unusual items and taxation, in the region of $7.2 million for the financial year ending 30 June 2005.

This compares to a profit projection advised to the market on 26 January 2005 of an operating profit in excess of $6 million for the same period.

The chairman of Provenco, David Wolfenden, said the latest profit projection incorporates the results for the last five months of the 2005 financial year relating to the recently acquired businesses of Vantex Pty Limited, a company based in Melbourne, and Vantex Wholesale Distributors (NZ) Limited, a Christchurch-based company.

"This represents 40% growth in operating profit on the previous year. The directors have reviewed the projections for all other operating businesses within the group and are pleased to report that all are experiencing continuing growth in profitability. This is a reflection of the strong market positioning of all businesses within the group," said Wolfenden.

The directors have already advised that they intend to pay a fully imputed dividend of 3 cents per share following the end of the 30 June 2005 financial year. The proposed dividend will be tax paid in the hands of New Zealand shareholders, utilising accumulated imputation credits.

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