Trading Update, Notice of EGM

7 Jul 2008 07:00



Cashbox plc

("Cashbox" or the "Company")

Trading Update

Notice of EGM

Cashbox is pleased to provide shareholders with an update on current trading and announces the acquisition of a small estate of approximately 140 transacting ATMs. The Company is also giving notice of an extraordinary general meeting to take place on 29 July 2008.

Current Trading

Installation of machines during the six months ended 30 June 2008 remained steady throughout the period and on 30 June 2008 the installed base of transacting machines was 2,045 compared to 1,820 on 31 December 2007, and 1,442 at 30 June 2007, representing an increase of 12% to the installed base in the period, and 41% over the year. Over 250 existing ATMs were also redeployed to newly signed sites, mainly in the second half of the year, to drive transaction revenues.

Transaction revenues for the six month period ended June 2008 were up slightly on each of the six month periods ended 31 December 2007 and 30 June 2007. Despite a greater number of installed machines, transaction volumes per machine were slightly lower following reduced activity levels in some of the outlets where the Company's machines are located. 

Gross margins maintained the improvement of the last period, as an ongoing effect of the increase in proportion of placement machines. These are machines which are owned by the Company and where a greater proportion of the transaction fee is retained. The Company believes that the placement model offers the most compelling service for its clients, as well as a greater return for shareholders, and will continue to focus on this model in future expansion.

A date for the Group's annual results announcement, for the 12 months ended 30 June 2008, will be announced in due course.

Acquisition

Since the end of the six month period the Company has also acquired a small estate of approximately 140 transacting ATMs. The acquisition of these machines, which operate within a major UK public house group, has increased the total estate by 7% as well as immediately enhancing transaction volumes.

Notice of EGM

The Company announces that a circular containing notice of an extraordinary general meeting of the Company to be held at the offices of Seymour Pierce Limited, 20 Old Bailey, London EC4M 7EN on 29 July 2008 at 9:30 am (the "EGM") has been sent to the Company's shareholders ("Shareholders") today.

The Directors are seeking Shareholders' permission to increase the:

authorised share capital of the Company;

authority of the Directors to allot ordinary shares under section 80 of the Companies Act 1985; and

authority of the Directors to allot ordinary shares free of pre-emption rights.

The principal purpose of the increased authorities is to allow the Board greater flexibility to raise capital, make potential acquisitions and capitalise on other opportunities as they fall due in line with its previously stated strategy.

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