Moneybox reports positive first half

Moneybox reports positive first half

UK fee-charging ATM operator Moneybox is reporting strong profit growth for the first half of 2005 due to a good performance in Europe and savings in supplier costs.

Moneybox shares jumped five per cent to 41.50 pence on news that first half profit and Ebitda are in line with forecasts.

In a trading update, Moneybox says it has seen strong growth in new ATM contract sales in both the UK and Europe in H1, and as a result there is a significant pipeline of sites due for installation in the second half.

The positive first half reflects removal of under-performing ATMs from the company's UK estate, in-sourcing of a range of ATM support services, savings in supplier costs and growth in the vendor's European business.

Moneybox says renegotiated supplier contracts will lead to a restructuring charge of approximately £2m during 2005, the majority of which will be recognised in the first half results.

The company has also been awarded its first outsourcing contract in the Netherlands, initially involving the management of 20 ATMs installed in C1000 supermarkets on behalf of its Dutch banking partner SNS Bank. If successful the trial is expected to lead to the roll-out of ATMs into around 472 supermarkets across the country.

Moneybox says the upswing in daily transaction volumes it reported in April has continued, with daily transaction rates for the second quarter of 2005 ahead of those achieved in Q1. H1 has also seen the completion of the major upgrade programme of its UK ATM estate to meet Chip and PIN and Link encryption standards. The vendor has also seen an increase in orders for its G2 cashless payment and access control system.

The group, which has been in a bid period since the end of March, says it will provide a further update to shareholders as soon as possible.

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