Sharechat Logo

Former sharemarket darling feels investors' wrath

Friday 21st February 2003

Text too small?
If Vending Technologies shareholders are feeling some pain, at least it's shared by the men running the company.

The 56% stake held by executive directors John Hotchin and Mervyn Doolan is now valued by the market at $11.7 million, $51 million less than in August 2001 when the shares traded at $3.75.

VTL joins a growing band of companies with bombed-out share prices following a profit warning. It is also not the world's greatest communicator and the related-party arrangements examined by the market surveillance panel last year showed its corporate governance needed attention too.

It warned on January 15 that its profit for the March 2003 year would be "significantly lower" than the $5.4 million it booked for 2002 but, nine months through the financial year, you'd think management could be a little more specific.

It blamed lower Australian machine placements and a slower-than-planned entry into the US, and notified an "adverse impact" from unrealised foreign exchange losses due to "the revaluation of long-term licence arrangements," whatever that might mean.

The surveillance panel gave VTL an earbashing for breaching listing rules by failing to get shareholder approval for a loan to the company by Doolan and Hotchin but acknowledged neither had benefited from the omission.

Meanwhile, the company's core business of licensing sophisticated vending machines looks solid enough. Revenue growth while patchy has been strong and it's a shame VTL has damaged its ability to raise further capital to fund its ambitions.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Government package for commercial leases too little, too late
Concerns over Government’s intervention in commercial leases
Development Commitment to Bowen Campus Stage Two
Vista Group International Limited - Update on the impacts of COVID-19
AFT secures Maxigesic IV® distribution in four Western European countries and reports Australasian market share gains in COVID-19 medicines
Investore Property Limited (Investore) today announced its financial results for the twelve months ended 31 March 2020 (FY20).
Rabobank GDT Analysis - Event 261
SkyCity Entertainment Group Limited - Update on COVID-19 Impacts and Recent Trading
ANZ announces sale of UDC Finance
Foley Wines Limited Announces Harvest Result, Earnings Outlook and Development in Martinborough

IRG See IRG research reports