Listed vending machine business VTL Group plans to boost revenue by licensing its technology to potential competitors in the United States.
Chairman Gary Stevens said the move was a response to inquiries from companies looking to improve vending machine management.
Licensing out its technology was a strategy the franchiser had
resisted until now, Stevens said.
"What we've come to realise is that there is a significant opportunity there."
VTL's hardware and software enables vending machines to wirelessly report daily sales, stock levels, takings and generate management reports.
"If you don't have that then essentially what you're relying on is a route driver using his experience and calling more regularly than he has to, to make sure that the machine is full and so on."
Stevens didn't provide a forecast for the licensing strategy, which he said would be aimed at businesses with several thousand machines in the US vending market, which has sales of about US$42 billion ($63.8 billion).
Operators would pay for installation and VTL would get a monthly fee.
The company was not worried about licensing its technology to potential competitors, Stevens said.
"We only need a small percentage of the market to make our vending franchising programme work and this is an opportunity to license our software in some way that will allow us to get another revenue stream."
The company recognised the need for "Chinese walls" to ensure confidentially and security of information for users.
"What we've done is make it clear that this is a separate business to our franchising business," Stevens said. "There's a clear distinction between the two of them."
The licensing strategy would be undertaken under the brand VTL Technologies and could also be rolled out in Australia.
VTL said this month that its American associate company All Seasons Services had paid off US$5 million in bank loans after the sale of non-core assets.
Stevens said the sales were part of a planned restructuring. A further US$4 million was due to follow in December.
VTL's share price closed up 4c yesterday at $1.05 a share.
