(MENAFN- ProactiveInvestors - Australia) Ezeatm (ASX: EZA) has inked a three year Preferred Supplier Agreement with Australian United Retailers for the provision of ATM related services.
Australian United Retailers is an independent retail supermarket group trading under the FoodWorks brand, which in the past two years has become Australia's largest truly independent supermarket group supporting A$2 billion in annual sales.
The company has close to 600 supermarkets, food and convenience stores spanning seven states and territories nationally with over 430 of these operating under the FoodWorks brand.
Chad Zani, co-founder and sales director of Ezeatm, told Proactive Investors today the company already has 16 sites which are associated with FoodWorks, but has recently completed a new agreement for another site.
"We have set a goal of securing 200 new FoodWorks sites over the term of the agreement."
Zani said this new agreement is for all Australian United Retailers' brands, and Ezeatm will be working closely with the retailer to roll out its ATM technology through all their affiliated stores.
Brad Slater, business systems manager of FoodWorks, commented: "FoodWorks conducted a three month investigation of ATM providers in Australia, and selected Ezeatm due to their superior ATM technology, proven service history, great customer service and commitment to be the best ATM provider for our stores."
Ezeatm has advanced from being a regional deployer of ATMs in the Western Australian market to the largest ASX listed deployer of ATMs and an ATM switching provider.
The company is also the exclusive distributor of cashPod ATMs and ATM products in Australia.
Ezeatm is committed to working closely with FoodWorks to roll out the Cashpod ATMs throughout the store network.
Zani said: "FoodWorks has a great business model that focuses on serving the local community, and providing their customers with safe, fast and reliable access to cash is an important part of this service.
"FoodWorks has also recognised the benefits of the unique advertising of the Cashpod ATM, which puts a printed advertisement in the hands of the ATM user, just before they get their cash, and are looking to maximise their in-store marketing efforts."
Milestones
Zani told Proactive Investors Ezeatm is still awaiting certification of its ATMs in Indonesia, and has set a goal of securing 500 agreements in Australia this calendar year.
The company is working to roll out its ATM network in 2013 that Zani said will deliver significant returns for 2014 through to 2018, which is when shareholders will see regular dividends and improved share prices.
Analysis
We see significant growth appeal for Ezeatm, as well as potential suitors eyeing the platform developed by the company and possible corporate appeal.
Ezeatm previously announced an agreement to expand operations into both Indonesia and Nepal and is seeking further overseas growth opportunities.
The current market valuation of $0.44 per share still discounts the intrinsic underlying value of the business, and makes no allowance for the growth potential in the Indonesian market, or additional revenue streams flowing from ATM advertising, maintenance contracts, pre-paid phone services, loyalty cards, pre-paid debit cards, acquisition of other ATM networks, or additional international opportunities.
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