Brisbane mail house to float on the stock exchange

The company is in the same sector as rival Salmat, which proved to be one of the most successful print-oriented share floats in recent years.

QM manages more than 100 million mostly printed communications between client organisations and their customers each year, with its services including invoices, account statements, renewal notices and direct marketing materials that are delivered using post, fax, email and internet.

Nick Debenham, managing director at QM Technologies, labels his company as one of Australia's largest providers of traditional mail services. “Our core business of providing print and mail services for essential communications provides a solid business foundation for the company to generate sustainable returns for investors.”

He claims his company offers investors a suitable balance of sustainable returns from its core business and growth potential from its new electronic solutions. The initial public offering is targeted to raise $48 million, with $4.3 million set aside for investment in the company and the remaining $41 million paid to the shareholders.

QM Technology plans to expand into Western Australia and New Zealand, using its software to develop new products, increase market share and look at potential acquisitions.

However, Debenham emphasises the company's strategy of applying technology to provide new services. “Our e-business revenues grew by 25 per cent in 2005 and we have blue-chip client relationships and a strong new product pipeline that provide potential for further growth,” he says.

QM Technology has revenues of $53.84 million and EBT of $9.50 million for the 2004/05 financial year, also reporting strong growth over the past two years based on increasing market share, continued industry growth and the expansion of its of e-business services.

QM Technology estimates the marketplace for its services has grown by eight to nine per cent in the last financial year to a total of $600 million, and emphasises that it outpaced this with a revenue increase of 17 per cent for the 2004/05 financial year.

The offer will be open from 9am (Sydney time) on October 17 until 5pm (Sydney time) on November 9. Applications for shares can be made on the form attached to the prospectus, available at www.qmtechnologies.com or via telephone on 1800 777 946.