Cardpoint plc, (“Cardpoint” or “the Company”), an owner and operator of an estate of 188 independent cash machines (ATMs) in the UK, has today published its Full Prospectus relating to its Placing and Admission to trading on the Alternative Investment Market (AIM) of the London Stock Exchange. Cardpoint announces a Placing price of 43 pence per share, giving a market capitalisation at the Placing price of approximately £8.0 million. The Company will become the first UK quoted independent ATM deployer (IAD).
The Placing of £2.5 million, which is all new money, has attracted high levels of interest resulting in significant demand for the shares. The Placing will allow the Company to use up to £3 million of a £5 million debt facility provided by the Bank of Scotland and to increase the number of Cardpoint ATMs deployed in the United Kingdom. Dealings are expected to commence on Monday, 10 June 2002 and the stock market EPIC will be CASH.L.
Mark Mills, Chief Executive of Cardpoint plc, said: “We are delighted the Placing has been so successful and that the Company will have a high quality institutional shareholder base. We look forward to commencing the roll out of a further 250 ATMs to meet the significant demand already identified from new and existing customers.”
Cardpoint and its subsidiaries (“the Group”) operate in the growing independent ATM market, which has benefited from demands for more conveniently located cash machines, the emergence of internet banking with no established point of presence and the closure of bank branches due to consolidation in the banking industry. These factors have created a significant market opportunity for independent ATM operators, which in 2001 installed 74 per cent of the 3,666 new ATMs in the UK, whilst banks and building societies reduced the growth of ATM deployment away from branches (“Remote ATMs”) to the lowest level in ten years.
The Group focuses on identifying sites where there is potential for high transaction volumes and which are in areas not traditionally serviced by other ATM providers. Approximately 70 per cent of the Group’s ATMs are deployed with corporate customers such as Welcome Break and MOTO. In addition, it has a number of large single site customers, including shopping centres, NHS hospitals and army barracks where it is inconvenient for customers to leave a site purely to withdraw cash from an alternative ATM.
Cardpoint’s Chief Executive, Mark Mills, founded the Group in 1999 after extensive research in the ATM market. He identified a gap in the UK market for the provision of internal freestanding ATMs in locations which could generate significant transaction volumes but did not necessarily meet the deployment criteria of a bank or building society. This led to assembling a management team with substantial experience in starting, developing and operating businesses with multi-site deployment, which is well placed to maximise the potential of the independent ATM market.
Beeson Gregory is both Nominated Advisor and Broker to the Company.
Mark Mills, Chief Executive Officer
Tel: +44 (0) 1253 785 808
Mike Brennan / Henry Turcan
Beeson Gregory Limited
Tel: +44 (0) 20 7488 4040
Julian Bosdet / Ariane Vacher
Tel: +44 (0) 20 7444 4140
Bankside Consultants Limited
Mob: +44 (0) 7771 663 887
Soft JPEG copies of photographs of Mark Mills (Chief Executive Officer) and Peter Smyth (Chairman) are available from Bankside. To arrange, please contact Ariane Vacher on +44 (0) 20 7444 4143 or firstname.lastname@example.org
Notes to editors
The Group undertakes detailed due diligence of the sites where it installs ATMs, familiarising itself with customers’ and visitors’ profiles and analysing footfall and/or turnover. In addition, the Group’s cash in transit provider completes independent site security reviews. When the Group installs an ATM, it retains responsibility for the ownership and management of the ATM. ATMOS, which processes all transactions at the ATM, provides the Group with detailed daily transaction reports enabling it to monitor an ATM’s performance and effectively manage the supply chain. Bank notes are supplied by Girobank and transported by Securicor.
Customers withdrawing cash from the Group’s ATMs are given the option to accept a withdrawal fee of typically £1.50. If accepted, the requested cash is issued and the total cost, including the withdrawal fee, is debited from the user’s bank account.
Each withdrawal fee is transferred for the benefit of the Group on the next banking day, producing regular daily income with no bad debts. Feedback from site hosts has shown that the presence of a well-positioned and signposted ATM can increase footfall and that a proportion of the cash withdrawn from an ATM is spent in and around the immediate retail environment.
The Group’s ATMs can achieve profitability when deployed at a location with much lower transactional volumes than might otherwise be required by a bank or building society. The capital cost of stand-alone machines used by the Group is much lower than ‘through the wall’ machines favoured by banks and building societies. Furthermore, the Group commonly achieves much higher withdrawal fees from its ATMs compared to bank and building societies, which only earn an inter-bank fee of 32.7p per cash withdrawal.
Cardpoint became a full member of LINK in January 2002, having previously obtained access to LINK via a bank sponsorship arrangement. LINK is the only branded shared network of ATMs and self-service terminals in the UK, and provides a telecoms and settlement infrastructure to its members. It allows some 80 million cardholders of every member financial institution to use the ATM of another LINK member. Membership of the network is critical to the success of any independent ATM operator.
Acceptance of the LINK network in the UK, among other factors, has contributed significantly to the growth in the independent ATM sector. At the end of 2000 approximately 28 per cent of Remote ATMs in the UK were operated by independents. This proportion is expected to grow further, as it has in the US where at the end of 2000 independents operated approximately 50% of Remote ATMs.
Although neither the Directors nor staff have access to cash at any time, for security reasons, please do not refer to the Company’s location.
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