Scott Tod reversed into shell company Darwin Capital last november.
On 2 October 2003, Darwen Capital announced that it had acquired a 20%
shareholding in Scott Tod Developments Limited ('Scott Tod'), which distributes
and maintains automated teller machines and is also involved in the development
and manufacture of card vending machines and change machines, for 525,000 from
A Cohen & Co PLC.
On 7 October 2003, Darwen Capital announced that it had agreed to
acquire the outstanding 80% of Scott Tod, and raised 2.5 million in a placing at 25p per share.

David Massie, the Chairman of Darwen Capital, commented:

'Scott Tod is an excellent business with tremendous growth prospects.
The flotation through reversing into Darwen will not only raise its profile in
the City but will enable it to grow more rapidly through carefully targeted
acquisitions.
Trading at Scott Tod is encouraging and, with plans for a further 200 ATM
machines to be deployed over the next two months, I am confident that the
outlook for the business is excellent.'

The Three Business Divisions

ATMS.

Scott Tod's ATMs are
all free-standing and are situated indoors, typically in pubs, leisure and
retail outlets. Scott Tod currently has an estate of over 900 ATMs in operation,
with revenue generated from a transaction fee of, on average, of 1.43 per
withdrawal and approximately 19p for all other transactions effected on any ATM
owned or operated by Scott Tod.
Key ATM customers include Scottish & Newcastle plc, Enterprise Inns PLC,
Wolverhampton & Dudley Breweries PLC, Six Continents PLC, The Laurel Pub Company
Limited, Megabowl Limited and Tussauds Group.
In April 2001, Scott Tod became a full member of LINK, the ATM network operated
by LINK Interchange Network Limited. This enables Scott Tod to process all
transactions through its estate of ATMs.

Card Vending Machines

Scott Tod develops and manufactures its own range of card vending machines.
These are able to vend all types of cards, from pre-paid mobile phone top up
cards to pre-valued payment cards for use on land line calls, bill payment or
simple business or scratch cards. There are approximately 1,500 Scott Tod card
vending machines in operation, of which 1,200 are installed in approximately 120
hospitals in the UK and the Netherlands.

Change Machines

Scott Tod develops and manufactures its own range of change machines,
predominantly for the leisure industry, including free-standing and wall-mounted
machines which can give back change in either coins, tokens or tickets from an
input of coins, notes or both.

Jewel In The Crown

This is of course its ATM business which is growing at massive pace and is one of only 3 listed ATM companys other than Banks on the main markets the other two being Cardpoint and Ambient, which will float off its atm business Moneybox in a few months time.
The other independent ATM deployers being Hanco ATM Systems
Limited, TRM Corporation, Bank Machine Limited,
InfoCash Limited, INKAS Financial Corp. Limited, OmniCash Limited
and the Travelex Group.

There is of course a fantastic opportunity therefore for SCD with its 1.8 million cash the opportunity for consolidation in the sector.


Business Development

Scott Tod

* Over 900 ATMs deployed

* 1,500 Card Vending Machines

* Over 10,000 Change Machines installed

* Turnover 6.9 million (up 94% from 2002)**

* Profit before tax 158,000 (up 95% on 2002)**

* Market continues to grow

* Current trading encouraging

* 200 ATM machines planned to be deployed in next two months

* Orders for over 500 card vending machines

* Positive about future growth prospects.


Financials

Years ended 30 June 30 June 30 June
2001 2002 2003
'000 '000 '000

Turnover:
Change and card machines 1,724 2,684 3,154
ATMs nil 866 3,747
---------------------------- --------- --------- ---------
1,724 3,550 6,901
---------------------------- --------- --------- ---------
Operating profit 81 200 488
---------------------------- --------- --------- ---------
Profit on ordinary activities before taxation 15 81 158
---------------------------- --------- --------- ---------


Forward Outlook

The Directors and the Proposed Directors, having regard to the performance of
Scott Tod in the current financial year as warranted by the Vendors believe
that, taking into account the additional working capital to be provided by the
Placing, the prospects for the new group for the remainder of the current
financial year are good.
Current trading is encouraging with orders for over 500 card vending machines
and plans in place to deploy a further 200 ATMs in the next two months.

Accordingly, the Directors and the Proposed Directors view the future growth
prospects for new group with confidence.

Results

Interims due 11th of February and the directors propose to pay a dividend.

I rate this as a medium to long term recommendation and as always please DYOR, and you are responsible for your own buying and selling timing actions.

cheers Gf.

House Broker Keith Bayley Rogers has just given out a conservative upgrade on SCD.....

"Projecting merely from the last reported five weeks’ figures would imply a H2 turnover of 4.5m, against our original full year forecast of 9.9m. That compares with 8m for the last reported period before flotation covering 15 months to June 2003 (6.4m annualised). There are thus no reported figures at present for the intervening 21 weeks to November 21 2003.

Given the roll out of the estate, we would expect H2 turnover to exceed H1 (and will in any case be considerably boosted by the supply of the 900 new merchant refill ATM’s - at around close to 3,000 each on average). Full year annualised turnover could therefore considerably exceed our original 9.9m forecast, but it is difficult to judge by how much.

The first five-week profit contribution by Scott Tod has been stated at 71,000, which would imply a profit of 369,000 for the ensuing six months, against our original full year (12 month) forecast of 900,000 before tax. Again, even though such a short period cannot be reliably extrapolated, we would expect a considerably better second-half profit for the reasons already mentioned. We therefore fee justified in forecasting at least an annualised profit of 1m pre-tax, and eps of 2.59p for the current year to June 2004. It could be more.

Next Year to June 2005.
Our original forecasts assumed an ATM estate of 1,370 at end June 2004 and 1,500 at end June 2005. Now, however, the start of year 2005 estate will be at least 33% higher than our original end of year assumption, so that obviously ATM revenues stand to be substantially higher than our forecast, quite apart from the boost to numbers from selling outright most of the ATMs involved. (ATM revenues were originally forecast to account for 44% of the total of 14.9m which included an expanded ATM Services, and the Card machine manufacturing operation).

In all, we feel justified in increasing our revenue forecast by at least 2.5m to 17.5m, and our pre-tax profit forecast from 1.5m to 2m, producing earnings per share (after a maximum earn-out) of 3.78p

cheers GF.

COMPANIES UK: Cash cows with customers that demand instant money
By David Blackwell
Financial Times; Mar 22, 2004

The mercurial and impecunious Mr Micawber advised young David Copperfield to avoid overspending. "Annual income 20, annual expenditure 19 19/6d, result happiness. Annual income 20, annual expenditure 20 0/6d, result misery."
However, the rising level of consumer debt suggests that the warnings embodied by Dickens in the character of Mr Micawber are fading from the national consciousness. It is easy enough to imagine Mr Micawber blithely ignoring his own advice and heading for the nearest cash machine.

The convenience of the ATM, or automated teller machine, cannot be denied. It is harder to explain the willingness of consumers to pay 1.50 to obtain 40 in crisp notes, especially when the banks came under fire a few years ago for daring to charge customers using machines in branches to get at their own money.

But the market has changed - and instant cash is particularly attractive to young males. Customers are queuing up to be charged for the privilege, and the companies that supply the ATMs are queuing up to join Aim.

Moneybox last week became the latest, demerging from Ambient and raising 21.8m. With a market capitalisation just over 100m, it is the biggest of three ATM companies on the junior market.

The others are Scott Tod and Cardpoint. Scott Tod, which reversed into an Aim cash shell in December, said last month it was expecting to double its business in the second half. Cardpoint floated on Aim less than two years ago with 188 machines - it now has more than 2,000 and last week moved into the German market.

The market they are attacking, which is also served by several private companies, is growing rapidly. According to the Association of Payment and Clearing Systems (Apacs) more than half the cash in circulation in the UK was taken from ATMs in 2002.

Fewer workers are being paid in cash, and people prefer using machines to cashing cheques or waiting at bank counters. Even state benefits are increasingly paid into bank accounts. Apacs is forecasting that by 2012, 74 per cent of the UK's cash will be delivered by machines.

Moneybox, which last year added 1,000 machines, taking its total to 2,471, is aiming for sites with a high footfall, including retail centres, entertainment complexes, leisure centres and transport halts such as stations and motorway services. It claims to have a 16 per cent share of the UK's total of almost 50,000 ATMs, giving it a 26 per cent share of the transactions.

Most of its revenues come from the fees generated every time a customer takes cash from a machine. But in addition Moneybox runs ATMs for other financial services companies, including Bradford & Bingley. It has also used some of the proceeds from the float to buy G2, the payment purchasing business that converts cash on to vending cards for use in offices and other closed environments.

Moneybox made an operating profit on its UK operations of 2m on turnover of 27.6m in the 11 months to December 31. But that was more than offset by losses on its operations in Germany and the Netherlands, where it has 178 and 165 machines respectively.

Cardpoint has also turned to Germany for growth. It expects the German market, which has a different pricing structure, to have more potential than the UK.

It will take some doing to move as quickly as it has in the UK. The shares were 43p on flotation in June 2002 and declined as the company made its first acquisition. But after a placing and open offer at 53p for the second acquisition last May, the shares accelerated.

The company broke even for the year to September, and profits of 2.4m are forecast this year as sales rise from 12.2m to 32m. News of a two-year contract with Thresher, the drinks retailer, was followed in January by a five-year deal with Welcome Break, the UK service station operator. The market capitalisation has jumped from 8m to 43m.

Shares in Scott Tod were 25p when the company raised 2.5m at the time of the reverse. Since then they have risen to 54p, reflecting the effect of moving what was an obscure private company in South Wales into the limelight of a listing.

The company has won a contract to supply its automated teller machines to Mitchells & Butlers, which has 1,600 pubs.

It also won a deal to install 500 ATMs at another large pub chain through a joint venture with Leisure Link Electronic Entertainment, a private company that supplies gaming machines to the UK pub industry. Its machines can also be found in Young's, Fullers, Barracuda and Luminar outlets.

At the moment there is plenty of room for expansion as independent ATMs increase their share of the market, which is still tiny compared with the use of the machines provided by banks and building societies.

And as the number of prime sites starts to dwindle, the listed companies are in pole position to consolidate the industry if - as Mr Micawber liked to say - anything turns up.

cheers GF.

gf
Do you think the rise on scd was on the back of the article?

On monday most certainly, gallick but its the long term that I am interested in and with the management at the last results indicating there could be acquisitions we should hopefully get some news flow which will push the price northwards.

cheers GF.

Looking good today (3.39% up). Maybe the downtrend has been broken now. I see moneybox is also up 4.5%. Will scd be gobbled up?

Just picked up that on the 23rd there were vague bid rumours circling about scd as reported by the Independent.

It's great when a stock you own rises by 15% in a day, especially when you don't know why!! I suspect that bid rumours might be the reason. Anyone out there know anything?

Regards gk

volumes were up higher today?

gallick,

Cardpoint has climbed well over the last couple of days too!
maybe there is a more general rumour circulating?

Cardpoint have just opened in the German market, a far more profitable market apparently, so worth keeping an eye on both of these IMHO.

Andy.. we meet again

I was in cardpoint from 86p until approx 140p. Was tempted to buy in at 130 again when it fell back, but missed out. I followed gf on this and went into scd after coming out of cardpoint. But I think cardpoint will continue to do well (I have seen price targets of 190p and is only on a 20X earnings multiple), but at the moment I am happy to hold scd and data. My next choice would definately be cardpoint ahead of moneybox.

regds gk

Blimey just seen the rise today. Whats this about a bid rumour then? I havent heard anythin.

cheers GF.

GF,

Both Scott Todd and Cardpoint are well up in the last few days,so maybe there is a decent rumour doing the rounds, but they are not sure who is the target?

This might help Andy from todays Independant............


From the Independant today.............
Scott Todd (SCD.L) and Eidos (EID.L) enlivened by takeover speculation.

cheers GF.

GF,

I could have predicted that - my holding is in Cardpoint!

We should be making some good money here andy over the next week or so. Goes from strength to strength............

RNS Number:0701Y
Scott Tod PLC
28 April 2004

FOR RELEASE 7.00AM 28 April 2004

Scott Tod Plc
("Scott Tod" or "the Company")
(Distribution and processing of ATMs and a
developer and manufacturer of card vending and change machines)

FURTHER PROGRESS AT SCOTT TOD

* Successful pilot of Cash-in-Transit business

* Approval by NatWest as National Cash Carrier

* Major new contract win for 250 ATMs

* 1,437 installed ATMs at 31 March 2004 - a 36% increase
on 31 December 2003 figure

* Targeting approximately 2,000 installed ATMs by 30 June 2004

Scott Tod announces today the result of its pilot of a new Cash-in-Transit
business, admittance to the NatWest National Cash Carriers Scheme and a major
new contract for provision of Fully Managed ATM machines.

The Company announced in its interim statement on 11 February 2004 that it was
piloting a Cash-in-Transit ("CiT") business to improve its product offering on
Fully Managed ATMs, whereby the Company would take in-house the delivery of the
cash and restocking of various ATMs.

The pilot has proved highly successful:

* The Company's in-house CiT business has produced greater eliability
with significantly fewer ATMs running out of cash and greater
customer confidence and satisfaction;

* The quantity of cash that needs to be allocated per ATM has
been reduced by approximately 40%.

* A trend is becoming apparent whereby utilisation of Fully Managed ATMs under
in-house CiT control increases when customers become aware of
the increased reliability.

NatWest Bank has now approved the Company as a 'National Cash Carrier' enabling
Scott Tod direct access to its cash centres for collection of bank notes.

As a result of the successful pilot and the approval as a National Cash Carrier,
the Company intends to roll-out the CiT offering over its entire Fully Managed
ATM estate in the next few months. All costs of the pilot have been expensed.

This new service has led to an immediate contract gain as the Company has been
awarded a new contract for the provision and operation of a further 250 Fully
Managed ATMs to be sited in pubs owned by Wolverhampton & Dudley Breweries Plc.
All these ATMs will be serviced by the in-house CiT business.

Of the two major contracts announced in February 2004, the roll-out of the
contract with Leisure Link for 500 Merchant Fill machines is proceeding apace
and should be completed by May 2004. The first installations of the Mitchell &
Butler Merchant Fill contract are scheduled to commence in May 2004 and they
have asked for 50 machines from this contract to be installed immediately as
Fully Managed machines, using the Company's in-house CiT service.

At 31 December 2003, the Company had 1,053 ATMs installed of which 316 were
Fully Managed and 737 Merchant Fill. At 31 March 2004, the figures were 1,437,
with 370 Fully Managed and 1,067 Merchant Fill ATMs. The new contract will
increase the number of Fully Managed machines by approximately 75% from the
31 December 2003 level and confirms the Company's position as the leading
supplier of ATMs to the pub sector.

The Company is still targeting to have approximately 2,000 ATMs installed by
30 June 2004 with further growth thereafter.

For further information:

Scott Tod Plc
David Massie (Chairman) 020 7389 1770
Nicholas Tod (Chief Executive) 01873 811 634

Beattie Financial
Brian Coleman Smith / James Chandler / Grace Marriner 020 7398 3300

--------------------

cheers Gf.

Gf
This is great news, those ATM's are coming thick and fast. Surprised that the rise has only been 3-4%. It may not have registered with the larger investors yet though.

regds
gk

Yes GK, very promising indeed.

cheers GF.

LAMF !!

Scott Tod PLC
26 May 2004


FOR RELEASE 7.00 AM 26 May 2004

Scott Tod Plc
('Scott Tod' or 'the Company')
(Distribution and processing of ATMs and a
developer and manufacturer of card vending and change machines)

2,436,000 placing to fund roll-out of Cash-in-Transit business

Scott Tod, a leading distributor of ATMs and developer and manufacturer of card
vending and change machines, announces that it has placed conditionally, only on
Admission, 4,200,000 new ordinary shares at 58p per share to enhance its working
capital. The funds, amounting to approximately 2,376,000, will initially be
used to provide cash for the ATMs to complete the roll-out of Scott Tod's
in-house Cash-in-Transit ('CiT') business and for further expansion of the ATM
business.

Since Scott Tod announced on 28 April 2004 the result of its successful pilot of
its CiT business and that it had been admitted to the NatWest National Cash
Carriers Scheme, the Company has continued a soft roll-out and as at 10 May 2004
was delivering the cash and restocking 271 ATM machines out of its Fully Managed
estate of 411 machines, with the remaining 140 machines still being serviced by
a third party carrier.

The move to bring the management of cash in-house has been very encouraging and
has resulted in significantly better ATM availability and greater customer
confidence and satisfaction in the service offered, a key to the development of
the business. This has resulted in greater efficiency with the quantity of cash
that needs to be allocated per ATM being reduced by over 40% and a clear trend
of increased utilisation is emerging. The additional funds raised through the
placing will be used to bring 'in-house' the remaining ATMs currently serviced
by a third party and fund the roll-out of approximately 150 further Fully
Managed ATMs by 30 June 2004.

At 10 May 2004, the Company had 1,680 ATMs installed in total, compared to 1,437
at 31 March 2004 of which 1,269 were Tenant Fill and 411 were Fully Managed. The
Company remains on target to have approaching 2,000 ATMs installed by 30 June
2004. The Company is hopeful that the number of ATM machines, both Tenant Fill
and Fully Managed, will increase significantly in the new financial year which
commences on 1 July 2004.

The Change Machine and Card Vending division continues to trade in line with
budget.

David Massie, the Chairman, commented:

'We continue to make good progress. 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 utilisation. 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.'

For further information:

Scott Tod Plc

David Massie (Chairman) 020 7389 1770
Nicholas Tod (Chief Executive) 01873 811 634
Beattie Financial
Brian Coleman Smith / James Chandler / Grace Marriner 020 7398 3300



cheers GF.

This is going to be such a competitive area soon, even the local pub now has a cash machine, all these providers are going to get more competitive to get new business, not only with installation but the fees payable will become an issue too.

New types of business always good for a while until it begins to dawn on folk that competition is heating up & the pressures that go with it.