Eftpos supplier on the rebound

Provenco, the technology company that rose from the ashes of the IT sector crash, has doubled its profits in the year to June 2005 and grown revenue by nearly 60 per cent.

After posting a net profit of $8.6 million, it yesterday rewarded long- suffering shareholders, paying out its first dividend since 1997.

The company, which sells Eftpos machines and other retail technologies, was once considered the sexiest thing on the New Zealand stock exchange.

Advantage Group - as it was called at the time - epitomised the hype surrounding the IT boom of the late 90s.

With rapid growth, bullish forecasts and a glamorous owner (Eric Watson), investors piled into the company, sending its shares soaring to a high of $5.65 in 1999.

By 2002, they were worth 33c and Advantage was looking like just another tech-wreck victim headed for life as a shell company.

It couldn't even hold on to its name, losing a court battle with a Palmerston North computer company that claimed prior rights.

Chief executive David Ritchie said the improved profit was the result of two years of hard work.

Ritchie, who has been with the company only since last year, said Provenco was now an entirely different business to the one that went through the dot.com boom.
The strong result had three key drivers.

Provenco was benefiting from the upgrade of Eftpos terminals to cope with new computer chip technology embedded in credit cards.

Ritchie said that upgrade process was in full swing but the business it was generating looked likely to be sustainable for two to three years.

Provenco had also won market share in the small but lucrative niche of automatic payment solutions for petrol stations.

Ritchie said the company had also made progress in developing a broader retail technology business and was offering stores a range of wireless and mobile applications.

Provenco will pay a fully imputed dividend of 3c a share on October 17.