Shares in independent ATM operator Scott Tod dropped 19.30% after the firm reported heavy losses for the six months to December 31 2005 due to restructuring charges - including a payout to former CEO Nick Tod - and an absence of orders from a major customer.
The stock dropped 3.00 pence to 12.50 pence after the vendor posted pre-tax losses of £679,000, compared to a loss of £111,000 a year ago, on turnover of £4.7m, down from £5.6m in 2004.
The group says it incurred a one-off charge of £317,000 relating to the departure of former CEO Nick Tod in August, the subsequent reorganisation of the business and the EGMs requisitioned by Tod and his wife. Tod failed to remove chairman David Massie from the board and appoint himself, Roger Tod and Neil Phillips as directors of the company.
The company's drop in turnover was mainly due to the absence of orders of card vending machines from a major customer - rumoured to be Patientline - that was subject to an OFCOM investigation. Sales of these products were £29,000 compared to £950,000 last year, says Scott Tod.
Under the reorganisation, around 20% of the firm's workforce was made redundant in November and December 2005 and Scott Tod says it has implemented various other cash saving initiatives.
The firm says it has now clearly delineated its three business divisions - ATMs, card vending and change machines and Cash-in-Transit (CiT) Services - with their own management teams and much clearer financial reporting.
During the six months ATM income has risen by 12% to £3.7m (2004 to £3.3m) and now represents 79% of turnover (2004 - 58%) and resulted in a divisional profit. The firms other two divisions made losses.
But the vendor says since the end of the period monthly operating expenses have been reduced by £35,000 from the average of the previous six months.
The company said earlier this month that it had received a tentative bid approach - rumoured to be from Cashbox - that may lead to a takeover offer.