News

UK ATM operator raises funds to bring CIT operations in-house

May 26, 2004

LONDON - ATM operator Scott Tod has placed almost £2.5 million (U.S. $4.6 million) in additional shares to fund the rollout of its cash-in-transit venture.

The company, which provides ATMs to pubs and leisure venues across the UK and is listed on the Alternative Investment Market (AIM), has conditionally placed 4.2 million new ordinary shares at 58 pence (U.S. $1.06) per share.

The placing will be used to fund the rollout of the company's in-house cash-in-transit business, according to a report in the Western Mail.

The share issue is the first since the company floated on the AIM last November. Its interim results, published in February, showed that Scott Tod raised just over £2.3 million (U.S. $4.2 million) from its flotation, which left the company with free cash balances of £1.75 million (U.S. $3.2 million).

Last month the company said it had been admitted to the NatWest National Cash Carriers scheme, allowing it to refill its own estate of ATMs rather than having to rely on third-party security firms.

By May 10, the company had installed a total of 1,680 ATMs, up from 1,437 on March 31. Of those machines 1,269 were filled by the site owner, while 411 were fully managed and restocked by Scott Tod.

In a statement, Scott Tod described the move to bring the cash-in-transit element of the business in-house as "very encouraging," noting that ATMs were less likely to be out of cash, which had resulted in greater use of the machines.

"The decision to move the cash-in-transit business in-house has received an enthusiastic welcome from our customers, who appreciate the greater efficiency which has already resulted in an increase in transaction volumes and improved cash utilization," said company chairman David Massie. "It is our intention to manage the cash delivery and restocking for the whole of our ATM estate by the end of this financial year."

The money being raised with the issue of additional shares will be used to bring the remainder of the cash-in-transit business in-house and fund the rollout of approximately 150 more fully managed ATMs by June 30.

The company said that it remained on target to have almost 2,000 ATMs installed by June 30. It recently reached an agreement with pub operator Mitchells & Butlers to install 400 machines.

In addition to installing ATMs, Scott Tod also operates change machines and card vending machines.