Scott Tod and Brinks resolve contract dispute
19 July 2006 | 1854 views | 0
Source: Scott Tod
Scott Tod plc (the Company) reports that its wholly owned subsidiary, Scott Tod Developments Limited (STDL) has resolved its dispute with Brinks (UK) Limited (Brinks) in relation to the former contract between the parties.
Pursuant to the settlement, Brinks paid a sum of £567,000 to the Company. As the Company had previously written off all amounts due from Brinks, as part of the goodwill arising on the acquisition of STDL, consideration will be given to the correct accounting treatment of the sum received in the year ended 30 June 2006.
Following the appointment of John Dixon as finance director in December 2005, the Company initiated a reconciliation of its fixed assets and, in particular, its estate of ATMs. This is now nearing completion and whilst the total number owned at 30 June 2006 is likely to reduce from previously recorded levels, the number processing through STDL is unlikely to be affected materially. Any difference to book values will be accounted for in the year ending 30 June 2006.
On 30 May 2006 the Company reported that trading was improving. This trend appears to have continued with the last three months of the financial year providing the most consistent results for some time.
On 13 July 2006, the Company announced that it was recommending an all cash offer at 21p per share by Hines Associates Limited on behalf of Notemachine Limited. It is expected that the formal offer document will be posted shortly.