LONDON - Cashbox Plc., a United Kingdom-based independent ATM deployer, announced Feb. 27 that it expects to join the AIM market of the London Stock Exchange. According to a news release the company is raising £3.9 million (U.S. $6.84 million), giving it a market capitalization of £12 million (U.S. $21.03 million).
Trading on LSE is expected to begin sometime in March. Seymour Pierce Ltd. is acting as Cashbox's nominated adviser and broker in the deal.
Cashbox is the third IAD to join the London market, following Cardpoint and Scott Tod.
Cashbox was founded by Carl Thomas, who now serves as its chief executive. Thomas previously served as the corporate sales director at Hanco ATM Systems.
"The funds raised will enable us to roll out a number of pending ATMs and expand our estate," Thomas said. "Gaining critical mass in this market is crucial, and we believe we will achieve this once we have 1,900 ATMs installed around the U.K. And we expect to achieve this by the end of 2006.
The Cashbox portfolio includes 845 ATMs that it owns and leases to merchants. The company expects to further its installations by 583 in the near future, and believes potential for the installation of 5,510 additional ATMs exists.
Cashbox began trading in September 2003.
"Since Cashbox's incorporation the business model has evolved so that we now largely offer a placement (lease) model to our customers," Thomas said. "This is a business model that we believe no other independent ATM deployer focuses on, which has the major benefit of us targeting low footfall areas that our competitors would most likely consider too small.
"It also makes the decision for our customers to have an ATM an easy one to make, as there is no capital outlay on their part. … In December 2005, 89.5 percent of our deployed ATMs were already profitable at a gross profit level."
At the end of 2004, 54,412 ATMs operated in the U.K. According to the Association for Payment Clearing Services, 90 percent of those ATMs were supplied by an IAD.
In September 2003, Cashbox installed its first ATM after winning a contract with drinks merchant Thresher Group. In March 2004, Cashbox joined the Link Interchange Network.
