By Phil Boeyen, ShareChat Business News Editor
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Tuesday 6th November 2001 |
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The company says its profit for the six months ended September was $1.8 million, up 45% on last year. However total operating revenues of $8.5 million were 9% lower than the same period last year.
Chairman, Richard Janes, says the result was satisfactory given recent market conditions and the company is on track to meet its full year forecast surplus of $4.9 million when seasonal and other factors are taken into consideration.
"A large proportion of the costs associated with the establishment and rollout of the VendSmart licensing programme into NZ and Australia were incurred in the first half year and, significantly, VendSmart has recently confirmed its potential to both reduce company costs and to enhance revenue."
"Fast Moving Consumer Goods signage revenue will strengthen in the second half year."
Mr Janes says the company has been closely monitoring conditions since the events of September 11 and has balanced its growth plans against the risks and uncertainties.
"We retain a strong interest in expanding our presence in the Australian market but in the near term will target the organic growth available to us there and the revenue enhancement the VendSmart programme provides."
Immediately following the US attacks in September VTL postponed a one for ten rights issue and later withdrew from its planned purchase of Australian vending company Soche Limited.
At the time the company said it was cancelling the deal because it wanted to hold onto the $2.5 million and maintain a strong cash position in light of market uncertainty.
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