Cashbox plc

Cashbox plc

May 31, 2006 02:04 ET

Cashbox plc: 1,000th ATM Installation Achieved; ATM Performance Update

LONDON, UNITED KINGDOM--(CCNMatthews - May 31, 2006) - Cashbox plc ("Cashbox" or "the Company") (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."

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.

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