1,000th ATM installed
May 31 2006 - 3:02AM
UK Regulatory
RNS Number:7987D
Cashbox PLC
31 May 2006
Press Release 31 May 2006
Cashbox plc
("Cashbox" or "the Company")
1,000th ATM installation achieved
ATM performance update
Cashbox plc (AIM:CBOX), the AIM-listed independent ATM deployer and operator,
announces that it has installed its 1,000th ATM, following a further
installation into the pub estate operated by Scottish & Newcastle Pub
Enterprises, the leased pub management business owned by Scottish & Newcastle
plc, which has exclusive preferential status for an entire estate of over 1600
pubs throughout the UK.
Currently Cashbox has a contract with S&N Pub Enterprises to install ATMs using
the Placement Model into its tenanted pub estate. The Placement Model, which is
Cashbox's primary focus, is where an ATM is placed with a merchant free of
charge and replenished by the merchant, eliminating the need for third party
cash-handling costs. Using detailed site surveys and the Placement Model,
Cashbox is able to profitably place ATMs in lower footfall areas which
effectively expands the available market.
Commenting on the successful integration of Cashbox's ATMs into pubs that are
part of their estate, Kay Sibbald, Franchise Manager of S&N Pub Enterprises,
said: "I have been impressed with Cashbox's prompt response to requests from
lessees and the company for ATMs. The free placement ATM is a real benefit for
lessees who wish to offer their customers a cash facility on site."
Carl Thomas, Chief Executive of Cashbox plc, said: "The installation of
Cashbox's 1,000th ATM marks a significant milestone in our business and
successfully demonstrates the robustness of our business model. We have a
strong relationship with S&N Pub Enterprises and they are a valued customer.
The installation of our ATMs into their estate is a win-win situation for all
parties concerned as it delivers increased footfall to the pub itself, improves
customer retention for the landlord and increases cash spend at the bar. With
the 1,000th ATM now in situ, we are delighted to confirm that our installation
programme remains ahead of schedule and that the Company has a significant
pipeline of future ATM installations."
Cashbox is also pleased to provide an update on an important key performance
indicator (KPI) of the business - the percentage of ATMs within the Cashbox
estate that are trading profitably at a gross profit level.
Commenting on this KPI, Carl Thomas added: "The profitability of machines that
have been installed across an estate by independent ATM deployers (IADs) has
been an area of concern for investors. On a number of occasions IADs have
surprised the market with disappointing profit numbers due to ATMs being
deployed using either the wrong business model or into locations where the ATMs
are simply not used. We are pleased to announce this important KPI data as it
is information that we monitor daily. We are extremely pleased to report that
98% of our total estate and 91.4% of the placement estate is trading profitably
and making a positive contribution to our gross profit account line and as such,
we view the future with considerable optimism."
- Ends -
For further information:
Cashbox plc
Carl Thomas, Chief Executive Tel: +44 (0) 870 126 2274
cthomas@cashboxatm.co.uk www.cashboxatm.co.uk
S&N Pub Enterprises
Kay Sibbald, Franchise Manager Tel: +44 (0) 131 528 2713
kay.sibbald@s-n.com www.pub-enterprises.co.uk
Seymour Pierce Limited
Jeremy Porter, Corporate Finance Tel: +44 (0) 20 7107 8000
jeremyporter@seymourpierce.com www.seymourpierce.com
Media enquiries:
Abchurch
Henry Harrison-Topham Tel: +44 (0) 20 7398 7700
henry.ht@abchurch-group.com www.abchurch-group.com
Notes to editors
Cashbox is a leading independent ATM deployer (IAD) with an estate of 1,000 ATMs
in remote locations around the UK. The Company began trading in September 2003
and was established by brothers Carl and Matt Thomas. Cashbox installs and
operates an estate of ATMs, typically on five to seven year contracts, at sites
throughout the UK where there is a demand for cash withdrawal services and where
customers are willing to pay a convenience fee.
Cashbox was granted membership of LINK in March 2004, allowing Cashbox to
incorporate its ATMs in the LINK network. Cashbox also has a Bank of England
settlement account and became the first IAD in the UK to become completely
compliant with the Triple DES security standard in June 2004.
Cashbox's sales strategy is based on selecting amongst three models to maximise
the profit potential of each ATM site - the Sale Model, the Placement Model and
the Fully Managed Model. The Company intends that the majority of new
installations will use the Placement Model, whereby the ATM is purchased by
Cashbox under lease hire, placed with the merchant and replenished by the
merchant, eliminating the need for third party cash handling costs.
The Company listed on AIM in March 2006.
S&N Pub Enterprises
S&N Pub Enterprises is the leased pub division of Scottish & Newcastle UK and
operates over 1,600 of the best pub sites throughout the UK. The management of
Pub Enterprises is split into 6 regional teams based across the UK, with its
head office in Edinburgh.
S&N Pub Enterprises portfolio of properties covers the entire spectrum of the
pub business; from city centre pubs to rural locations, from community pubs to
family ones, from proven branded developments to individual project investment.
Proven profit brands developed uniquely for leased operators include: James H
Porter, Village Inn, Cooper's Kitchen and Baroque.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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