VTL brings out the cash

It's VTL's first acquisition since listing last year and the company says it will boost its share of the high end New Zealand electronic snack and beverage vending market to 38%

"SnackTime, which focuses exclusively on the snack food vending market in Auckland, is the third largest operator in New Zealand with some 10% of the national electronic vending snack market and key contracted sites in the education and recreation sectors," says VTL chairman Richard Janes.

Mr Janes says the purchase presents tremendous revenue and margin growth potential for the company.

"SnackTime is a good cash-positive business with qualified sites delivering over $5 million in revenues over three years on current product lines alone.

"We have an immediate opportunity to expand the offerings of these vending machines beyond snacks to include offering hot and cold food and drinks, which will add to both revenues and margins."

The company also plans to put the Snacktime sites in its VendSmart programme, allowing it to license a number of individual branded businesses, as well as look at selling signage rights to the machines.

Mr Janes says the acquisition adds substance and detail to its recently announced growth strategy, looking at buying profitable electronic vending businesses with premium contracted sites throughout Australasia.

"Once we have completed an acquisition we will upgrade the machines of businesses we acquire with our software and electronics, ensure they carry a full choice of snack and beverage products and enter them into our VendSmart and FMCG licensing programmes.

"They will then deliver choice and convenience to consumers and quality long-term sustainable income to the company."

Vending Technologies has been a star new listing since its entered the market 8 months ago, currently trading at more than three times it issue price of $1.00.

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