VTL posts 14-month loss of $133m, as expected

Troubled vending machine franchise company VTL Group reported an audited loss of $133 million for the 14 months to August, slightly below guidance earlier this month.

The stock exchange has removed VTL's shares from suspension, allowing them to trade after they were suspended in early November after VTL missed the deadline to provide its annual financial result.

The result included write-downs and provisions relating to its Service America Group company of $105m.

"The result is clearly disappointing, however the company's board and management are working through an orderly process, which included a thorough review of the company's balance sheet," VTL chairman Gary Stevens said.

"The focus of the board and management is now on protecting the assets of the company and on generating as much value as possible for the benefit of stakeholders. Legal and professional advisers have been engaged to assist with both the sales and restructuring processes."

Operating revenue for the 14 months fell to $32.96m from $48.46m for the 12 months to June 2006, while expenses rose to $59.26m from $43.11m.

VTL is the parent company of Nathans Finance which went into receivership last August, owing $166 million to investors.

Shares in VTL slumped from a pre-insolvency level of 69c to 2c in November.

- NZPA