News

Interim Results for the six months ended 31st December 2008

18 March 2009

Cashbox (AIM:CBOX), the independent Automated Teller Machine ("ATM") installer and operator, announces its interim results for the six months ended 31 December 2008 (H1 08/09). 

 

	H1 08/09 6m ended 31 Dec 08 unaudited	H2 07/08 6m ended 30 Jun 08 unaudited	H1 07/08 6m ended 31 Dec 07 unaudited
Machines installed at period end	2,838	2,045	1,820
Turnover £ 000	2,986	2,404	2,271
Gross Profit £ 000	1,083	952	816
Gross Margin* %	36%	39%	36%
EBITDA * † £ 000	(659)	(881)	(1,119)
Loss £ 000	(1,454)	(1,394)	(1,609)
Loss per share (p)	(1.0)p	(1.5)p	(1.9)p
Net debt † (£000)	8,082	5,016	5,022

† A non GAAP measure, these are defined in note 12.

* Gross margin in H2 07/08 reflects short-term benefit of the sale of upgrade kits 

Highlights

• Installed machines reach 2,838, an increase of 793 in the period
• Transaction revenues increased by 19% over H2 and 24% over H1 07/08
• Gross profits increased and gross margin improvements maintained
• Losses measured by EBITDA improved again
• Two acquisitions completed
• New funding of £1.5m new equity and £1.5m convertible loan notes raised in period
• £1.8m Hanco debt replaced by a convertible loan note
• £417K MBC debt replaced by a convertible loan note

 

CHAIRMAN'S STATEMENT

For the six months to December 2008 your Company incurred a loss of £1.45m on turnover of £2.98m. The encouraging trend established during the prior year has continued with a reduction in losses at EBITDA level while maintaining previous gross margin improvements.

 During the period under review, your Company has realised solid progress in one of its key growth strategies through the completion of two attractive acquisitions. The acquisitions of the ATM and site assets of MyATM and Cash4All have provided significant scale to the Company's operations. As the ATM estates of these businesses are fully integrated into the Cashbox platform, improved gross margin will be realised coupled with associated benefits of scale at the operating level. 

Whilst growth by acquisition can greatly help in achieving your Company's objectives, organic growth continues to be aggressively pursued. In addition to pursuing additional customer relationships, your Company is creating new revenue streams through the processing of other parties' ATM estates. This initiative is resulting in a number of interesting potential revenue opportunities.

Internally, the focus must be on releasing value from the acquisitions to date. Cashbox is adhering to its migration schedules, transferring Cash4All and MyATM sites to the Cashbox platform, and this process will be concluded shortly. 

As with all businesses, there needs to be an ever vigilant approach to cost control and it is appropriate to report that, after a review of operations, annual overheads have been markedly reduced, with significant reductions in senior management costs.

Your Company maintains its focus on installations with the 'Placement Model', which has resulted in over half the estate now being in that category. This focus has allowed your Company to sustain the margin increase built during last year and bodes well for future profitability.

Increasing the number of ATMs in our estate is a primary focus, however it is equally important to monitor the performance of existing machines. Wherever possible, those ATMs that have a low number of transactions are removed and placed on sites where utilisation levels are assessed to be materially higher.

The excellent systems that have been developed combined with the customer service that this affords give your Company distinct competitive advantage. This is becoming clearly evident as we increase our efforts to penetrate major organisations who value this level of professionalism.

Hanco Settlement Update

Following the full and final settlement of £1.8m, on top of the £200,000 already paid, agreed in October 2007 with Hanco, we have now negotiated that this payment, originally due in September 2009, will instead be satisfied by the issue of a convertible with a five year term and with a lower interest rate than that previously pertained.

Financing

In three stages in August, September and October 2008, your Company raised, through the issue of equity, £1.5m of additional working capital and subsequently raised a further £1.5m operating capital in December 2008 through the issue of a convertible loan note.

This recent support of shareholders and others in subscribing for equity and debt in the business is a clear indication that the business model is perceived as providing solid returns. The Board greatly appreciates such tangible support. 

Board Update

I am delighted to welcome a new Non-Executive Director, Andrew Fearon, who will assume his responsibilities in March 2009. A corporate lawyer with experience of running AIM businesses, Andrew will augment the Board's deal-making and negotiating capabilities. The stability of the core business and the increasing importance of successful integration are also reflected in the appointment of Matthew Thomas, Cashbox CTO, to the PLC Board as an executive director.

 Outlook

Your Board is particularly mindful to target, as a key objective, the continuing current trend of reduction in losses at EBITDA level. To this end the continued growth of the core business and the speedy and successful integration of recent acquisitions are crucial. Progress in both these areas gives grounds for encouragement.

 

Robin Saunders
Non Executive Chairman

18th March 2009

 

For further information:

Cashbox plc
Ciaran Morton, Chief Executive Officer	Tel: +44 (0) 1256 441 000
cmorton@cashboxplc.co.uk	www.cashboxplc.co.uk
Seymour Pierce Limited
Jonathan Wright	Tel: +44 (0) 20 7107 8000
	www.seymourpierce.com
Fairfax I.S. PLC
Ewan Leggat	Tel: +44 (0) 20 7598 5368
	www.fairfaxplc.com

Media enquiries:

Threadneedle Communications
Josh Royston / Graham Herring	Tel: +44 (0) 20 7653 9844
	www.threadneedlepr.co.uk

 

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