Interim Results
May 29 2003 - 3:03AM
UK Regulatory
RNS Number:6575L
Cardpoint PLC
29 May 2003
29 May 2003
Cardpoint plc
Interim Results for the six months ended 31 March 2003
Cardpoint plc, the first UK quoted independent ATM deployer, reports its Interim
Results for the six months ended 31 March 2003.
Highlights
- Turnover more than doubled to #2.94m (2002: #1.14m).
- Reduced operating costs and trend set to continue.
- Strong organic growth and robust pipeline for new installations.
- Green Machine, acquired in October 2002, now fully integrated and
performance of acquired estate greatly improved
- Acquisition of Securicor Cash Machine Limited, wholly owned subsidiary of
Securicor plc, announced today for a maximum consideration of
#9.2 million.
Commenting on the Interim Results, Mark Mills, Chief Executive, said: "The
Company has made tremendous progress in the last six months. Green Machine,
which was acquired in October, is now fully integrated and is performing ahead
of expectations. The acquisition also enabled the Company to review all its
supplier agreements culminating in reduced operating costs.
"The acquisition of Securicor Cash Machine Limited for a maximum consideration
of #9.2 million, will give Cardpoint critical mass and will substantially impact
on the Company's organic growth prospects. Furthermore it will give the Company
a faster route to profitability as well as making Cardpoint the third largest
independent ATM deployer in the UK."
For further information, please contact:
Enquiries:
Mark Mills, Chief Executive Officer
Cardpoint plc Tel: +44 (0) 1253 785 808
mark.mills@cardpointplc.com www.cardpointplc.com
Mike Brennan / Henry Turcan
Evolution Beeson Gregory Limited Tel: +44 (0) 20 7488 4040
Henry.turcan@evbg.com www.evbg.com
Media enquiries:
Ariane Vacher / Julian Bosdet Tel: +44 (0) 20 7444 4140
Bankside Consultants Limited
ariane.vacher@bankside.com www.bankside.com
Chairman's Statement
The six months to 31 March 2003 has seen the Company continue to grow at a rapid
pace with a total of 450 installed ATMs at the period end. In addition,
Cardpoint has today announced that it has conditionally agreed to acquire the
entire issued share capital of Securicor Cash Machine Limited for a maximum cash
consideration of #9.2 million.
Turnover in the period has increased to #2.94 million, an increase of over 157
per cent. Compared with the six months ended 31 March 2002 while the pre tax
loss of #438,000 (2002: #244,000) was in line with expectations. The installed
base of 450 ATMs at 31 March 2003 compares to 175 at 31 March 2002 and 401 at 31
December 2002, an increase of 157 per cent. and 12 per cent respectively. A
result of such rapid expansion is an increase in the number of immature ATMs.
Despite the relative lack of maturity of the ATM estate the Company has been
able to largely offset the expected reduction in average number of transactions
per ATM, 3,531 compared with 3,829 in the previous quarter, by continually
increasing the fee per cash withdrawal which averaged 158p in the quarter to 31
March 2003 compared with 143p in the corresponding period in 2002.
In October 2002 the business and assets of Green Machine, comprising 85
installed ATMs and further stock of 20, was acquired for #1.29 million. As I
announced in my statement at the AGM, its integration into the Group has been
successfully completed and it has delivered all of the benefits identified at
the time of its acquisition. The average fee per cash withdrawal has been
increased from #1.33 to #1.73 whilst at the same time the number of transactions
has been increased thereby significantly increasing the revenue per ATM.
The proposed acquisition of Securicor Cash Machine Limited will add a further
1232 installed ATMs with additional stock of 333 ATMs. In addition the Company
will, on completion of the acquisition, enter into an outsourcing arrangement
with Securicor plc for it to provide much of the day to day management of the
ATM estate including ATM installation, cash reconciliation, first line
maintenance and hardware maintenance. The deal represents a significant step in
the Group's development and one which the Directors believe, when combined with
the benefits of the outsourcing arrangements, will accelerate the Company's
positive cash flow generation and be significantly earnings enhancing.
Full details of the proposed acquisition and its anticipated effect on the
Company are set out in the explanatory circular which has been sent to
shareholders today for the purpose of seeking their approval for the acquisition
at the extraordinary general meeting of the Company which has been convened for
20 June 2003.
The strategy remains focused on maximising the revenue per ATM across the
estate. In December the Company signed agreements to provide mobile top-ups to
Vodafone and mmO2 pre-pay customers via its ATMs which the Board believes could
add incremental revenue in the future without cannibalising our core service of
providing cash at convenient locations.
Cardpoint's small team has risen to every challenge and opportunity presented by
the rapid growth of the Company. The Company currently provides a transaction on
average just under every five seconds and in April a record amount of over #15.5
million was dispensed by our ATMs. With the pipeline of potential new
installations as robust as ever, the opportunity presented by the acquisition of
Securicor Cash Machine Limited and the dedication of Cardpoint's employees, the
future of the Company is extremely promising.
Peter Smyth
Chairman
29 May, 2003
Consolidated Profit and Loss Account
For the 6 months ended 31 March 2003
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2003 2002 2002
Notes #'000 #'000 #'000
Turnover
Continuing operations 2,309 1,140 3,104
Acquisitions 627 - -
2,936 1,140 3,104
Cost of sales (2,487) (950) (2,728)
Gross profit 449 190 376
Administrative expenses
Amortisation of goodwill (58) - -
Other (769) (373) (1,035)
Total administrative expenses (827) (373) (1,035)
Operating (loss)/profit
Continuing operations (436) (183) (659)
Acquisitions 58 - -
(378) (183) (659)
Interest payable and similar charges (60) (61) (98)
Loss on ordinary activities before taxation (438) (244) (757)
Taxation on loss on ordinary activities 3 - - -
Loss for the financial period (438) (244) (757)
Loss per ordinary share
Basic and diluted 4 (2.06)p (2.06)p (5.39)p
Adjusted basic and diluted 4 (1.79)p (2.06)p (5.39)p
There were no recognised gains and losses other than those shown in the profit
and loss account.
Consolidated Balance Sheet
As at 31 March 2003
Unaudited Unaudited Audited
As at As at As at
31 March 31 March 30 September
2003 2002 2002
Notes #'000 #'000 #'000
Fixed assets
Tangible assets 3,558 1,422 2,856
Intangible assets 632 - -
4,190 1,422 2,856
Current assets
Stocks 6 11 14
Debtors 346 290 155
Cash at bank and in hand 858 120 745
1,210 421 914
Creditors: amounts falling due within one year (1,897) (1,354) (2,054)
Net current liabilities (687) (933) (1,140)
Total assets less current liabilities 3,503 489 1,716
Creditors: amounts falling due after more than (1,609) (352) (216)
one year
Net assets 1,894 137 1,500
Called up share capital 6 1,063 632 927
Share premium account 6 3,176 898 2,480
Merger reserve 6 354 354 354
Profit and loss account 6 (2,699) (1,747) (2,261)
Equity shareholders' funds 1,894 137 1,500
Consolidated Cash Flow Statement
For the 6 months ended 31 March 2003
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2003 2002 2002
Notes #'000 #'000 #'000
Net cash inflow/(outflow) from operating 7 292 (21) (66)
activities
Returns on investments and servicing of
finance
Interest (paid)/ received (24) - 19
Finance lease interest paid (36) (61) (117)
Cash outflow from returns on investments and (60) (61) (98)
servicing of finance
Capital expenditure and financial
Investment
Purchase of tangible fixed assets (977) (193) (1,312)
Purchase of business (998) - -
Proceeds from disposal of tangible fixed 53 - 2
assets
Net cash outflow from capital expenditure (1,922) (193) (1,310)
and financial investment
Net cash outflow before financing (1,690) (275) (1,474)
Financing
Issue of share capital (net of issue costs) 460 167 2,128
Receipts from borrowing 8 1,500 - -
Capital element of finance lease rentals 8 (157) (128) (265)
Net cash inflow from financing 1,803 39 1,863
Increase /(decrease) in cash in the period 113 (236) 389
NOTES TO THE INTERIM FINANCIAL INFORMATION
1. Interim financial information
The interim financial information covers the period from 1 October 2002 to 31
March 2003, is unaudited and does not constitute statutory financial statements.
The figures for the year ended 30 September 2002 have been extracted from the
audited financial statements of Roundhead plc. The financial statements for the
year ended 30 September 2002 received an unqualified audit report and have been
filed with the Registrar of Companies.
2. Principal accounting policies
The interim financial information has been prepared on the same basis and using
the same accounting policies as used in the full set of financial statements for
the year ended 30 September 2002.
3. Taxation on loss on ordinary activities
There is no corporation tax charge for the period (2002: #nil) due to the losses
incurred. Trading losses of approximately #3.2 million (2002: #2.1 million) are
available to carry forward and offset against future trading profits.
4. Loss per ordinary share
The basic and fully diluted loss per ordinary share is calculated by dividing
the loss for the period after tax of #438,000 (2002: #244,000) by the weighted
average number of ordinary shares in issue during the period of 21,223,030
(2002: 11,826,690). The adjusted loss per ordinary share is calculated by
reducing the loss for the period by the goodwill amortisation of #58,000 (2002:
#nil). The share options in issue are anti-dilutive.
5. Acquisition
On 2 October 2002 the Company acquired the business and assets of ATM Express
Limited, trading as Green Machine, for a maximum potential consideration of
#1,291,500. Payment for Green Machine is being made in two stages, an initial
consideration of #1,191,500, of which #819,000 was paid in cash and #372,500 by
the allotment of 1,049,295 Ordinary Shares, and a deferred consideration of
#100,000, of which #50,000 is payable in cash and the balance by the allotment
of 140,845 ordinary shares, six months after completion provided certain site
installation criteria are met.
Goodwill arising on the acquisition of #690,000 has been capitalised, and is
being amortised over a period of 5 years.
6. Reserves
Unaudited Share Unaudited Share Unaudited Merger Unaudited Profit
capital #'000 Premium #'000 Reserve #'000 and loss account
#'000
At 1 October 2002 927 2,480 354 (2,261)
Issue of shares 136 736 - -
Share issue expenses - (40) - -
Loss for the financial period - - - (438)
At 31 March 2003 1,063 3,176 354 (2,699)
7. Reconciliation of operating loss to net cash inflow/(outflow) from operating
activities
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2003 2002 2002
#'000 #'000 #'000
Operating loss (378) (183) (659)
Depreciation and amortisation 488 172 417
Loss on disposal of fixed assets 10 - -
Decrease/(increase) in stocks 8 (5) (9)
Increase in debtors (191) (82) (32)
Increase in creditors 355 77 217
Net cash inflow/(outflow) from operating activities 292 (21) (66)
8. Analysis of change in net funds/(debt)
At At
1 October 31 March
2002 Cash flow 2003
#'000 #'000 #'000
Cash in hand and at bank 745 113 858
Obligations under finance leases (513) 157 (356)
Bank loans - (1,500) (1,500)
Net funds/(debt) 232 (1,230) (998)
9. Interim Report
This Interim Report was approved by the Directors on 29 May 2003. A copy of the
Interim Report will be available from the Company's registered office at St
James's Court, Brown Street, Manchester M2 2JF.
- Ends -
This information is provided by RNS
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