LONDON - Shares in the UK's Ambient rallied 17 percent on news that the business and marketing services group planned to float Moneybox, its ATM management business, by next spring.
According to a report in the Financial Times, Moneybox, which installs and operates ATMs in retail locations, saw sales increase 19 percent to £14.1 million ($23.9 million U.S.) and operating losses narrow from £2 million ($3.4 million U.S.) to £900,000 ($1.5 million U.S.) in the six months to July 31. Its UK business reported a first half-year operating profit of £800,000 ($1.3 million U.S)
Andrew Stimpson, group managing director, said, "We believe it is the right time to put the business in the market as we have sustained profitability, secured new outsourcing contracts with financial institutions and have exciting opportunities in Europe."
Moneybox said it first became profitable in August, by cutting costs and increasing convenience fees charged to ATM users. (See related story Moneybox now profitable in UK)
The group also announced the conditional acquisition of G2, a developer and operator of ATMs, cashless payments and access control systems. Providing Moneybox floats before June 30, 2004, it will purchase G2 for a sum equivalent to 23.5 percent of the enlarged equity of Moneybox, in cash and shares.
Ambient could not offer a valuation figure for Moneybox as a stand-alone business, but it is believed to be worth between £50 million ($84.8 million U.S.) and £60 million ($101 million U.S.), according to the Financial Times.
Stimpson expected to keep Touch, the group's marketing services business, as a main focal point of the group. He said its local business directory portals -- a series of Web sites offering local information -- had benefited from a presence on Google, the search engine, and monthly visits to the sites had risen from 376,000 in January to about 2.8 million this month.
But he said the group might decide to exit its electronic media promotions business, EMP, which saw operating losses widen from £500,000 ($848,000 U.S.) to £800,000 ($1.3 million U.S.)
Ambient reduced group pre-tax losses from £6 million ($10 million U.S.) to £3.6 million ($6.1 million U.S.) and losses per share from 9.1 pence (15 cents) to 6.5 pence (11 cents) in the first half of 2003.
The shares closed up 8 pence (13½ cents) at 56½ pence (96 cents) on Oct. 29.
