Vending Technologies posted a 52 per cent drop in annual profit to $2.59 million after a profit warning issued earlier this year.
Total operating revenue fell 7 per cent to $19.2 million, as a result of lower than expected Australian sales combined with a later than planned entry into the UnitedStates market, the company said today.
VTL executive director Mervyn Doolan said this week it had taken longer than expected to get the final tick from California's Board of Corporations.
The US vending machines market has grown more than 150 per cent in the past decade to US$35 billion ($61.41 billion), and VTL had plans to expand beyond California.
Total sales fell to $17.83 million, from $19.47 million the previous year, and earnings per share plunged to 18.3c from 8.7c.
The company, which sells and licenses vending machine technology, has 30 franchise holders in New Zealand and about 25 in Australia.
The company's previous net profit for the year ended March was up 35 per cent at $5.42 million.
VTL is changing its financial year from the end of March to the end of June, and will release figures for the 15-month period ended June 30 by August 25.
VTL undertook a review of its systems in the second half of the year, which it said had "an adverse short-term financial result".
"The company, while disappointed at not being able to maintain its unbroken record of increasing profit growth, believes the systems enhancements now incorporated as a franchisor are significant assets for growth and reaffirms its January statement of resumed strong growth in 2003/04."
VTL shares jumped on Wednesday's announcement of the US expansion, and today were up 5c at $1.20 by 1pm.
