Cost savings from restructuring and solid revenue growth have helped vending technology company VTL to achieve a big turnaround in earnings for the year to June 30.
Net profit was $2.3 million, compared with a loss of $9.8 million the previous year.
The profit was achieved on a 14 per cent rise in revenue to $48.5 million.
Chairman Gary Stevens said a large part of the turnaround could be attributed to a drop in operating costs to $43.1 million from $60.3 million, which he said was the cause of last year’s loss.
The company had had to dismantle unwanted infrastructure in the US after it got involved with vending business All Seasons.
“We restructured a whole lot of things last year [and] we also as a result undertook a major review of all expenses, and consequently we’ve made some significant savings,” Stevens said.
The result includes an equity accounted loss of $3 million from VTL’s share in All Seasons, which is now 17.1 per cent.
All Seasons’ performance is improving and VTL expects to soon be in a position to exercise an option for a controlling interest.
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