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.

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.

Competition has always been there. I think ATM's tie in with our lazy culture. People can not be bothered to leave the pub and walk for a few minutes and save themselves 1.75. These have got a long way to go IMHO and they could be gobbled if competition really gets going.

gallick soon people are going to catch on the rate of interest they are paying.

Imagine drawing out 20 & paying 1.75 (your figure) for doing so, that is 8.75% daily rate or an annual rate of 3193%.


Do people really realise what they are paying?


Talk about 30% Apr being high, I think this will hit the fan at some stage and have an effect on these companies.

ThirdEye,

You would have thought so, but I doubt it!

People are lazy, and lethargic, and just seem to accept things without too much thought, so I think the charge won't make any difference.

I never use a chargeable ATM, unless really desperate, but if you look at Cardpoint's figures, as an example, I am in the minority!

I hold CASH, not SCD, but same principle applies IMHO.

Cardpoint are now going into Germany, a very immature market, so plenty of room for expansion I reckon.

Andy please take a look at your PMs.

cheers Gf.

GF,

Yes thanks, a better day today, AU has turned nicely!

Well Andy i thought there might start to be campaigns to wise folk up, it's typical Watchdog material anyway I see it's started, a article from Motley Fool:

Avoid Your Supermarket Cash Machine

By Jane Mack
May 28, 2004

What on earth did we ever do before the invention of the hole-in-the-wall cash machine? Oh, yes, I remember. We had to queue at the bank to get cash and sometimes it took up the whole of our lunch hours.

Now we think nothing of sticking a card in the slot, tapping in a number and pocketing all the delicious dosh that comes out. There are now almost 50,000 cash machines shared over the LINK network by various different banks, building societies and independent suppliers, 32,000 of which don't charge you for the privilege of getting easy access to your money.

However, there are still 17,000 machines that do charge you - as much as 1.50 in many cases. Although most of the major banks decided not to charge for cash machine withdrawals a couple of years ago, the ones you find outside supermarkets or on petrol station forecourts quite often do.

They're usually in places that wouldn't normally justify the cost of installing a cash machine because fewer people are expected to use them, hence the reason for the charges. And although the surcharging machines only deal with about 2.5% of total cash withdrawal transactions (nearly 200 million transactions a month), operators are still making a considerable amount of money out of us.

Although you'll always be warned during the transaction if a charge applies, you're unlikely to use the option to cancel if it means you have to walk further up the road to one that doesn't. If you're willing to pay the charge, that's your call but for the most part it's a complete waste of money. Remember that most supermarkets these days offer a free cash-back service and paying up to 1.50 a time for the convenience of drawing out your own money from a machine outside the building is a bit of a rip-off when you think about it. So don't be a mug be a Fool.

ThirdEye,

I totally agree with the article, and very rarely use these machines myself, but the cold fact is people DO use them, and ARE using them in increasing numbers, per Cardpoint's latest figures!

People are lazy and apathetic (generally) and that's why a correctly positioned machine will make money IMHO.

The justification for the charge is the positioning, ie non economical if it was free, so to a certain extent they have a case for the charge.

I don't see this as a big issue, there is a choice, pay a fee or find a free machine, and people will excercise that choice.

Third eye>>

The article that YOU posted, seems to disprove your argument (ie people have the right to cancel the transaction and are informed of the charge but generally don't.)

If you think about, it we are constantly ripped off when it comes to money and people are used to it. How about the commission charged by bureau de change, how about the outrageous spreads we pay on currency exchanges, how about stamp duty on share purchases, how about stamp duty on moving house!! I will stop now before I really get started.

regrds
gk

of course people have the right to cancel, but only when campaigns happen do people actually stop & think & change their course of action, not all, but many.

Something like the article above on a consumer programme would affect the a sector thet is becoming inreasing competitive, what will the forecasts be when the charge is reduced to 75p to stay in line with competition?

Taken a bashing today.

*I hold

Had to bail out of this one since things were getting a little hot! I'm a bit surprised about the fall, and about the sector in general - ie cardpoint and moneybox both edging down. Best on the sidelines for now IMHO.

rgrds
gk

All quiet on this one--should move up soon I hope as the trading update was encouraging. Anyone still holding?

Bought at 57 back sometime ago (April)and watched its descent. Wanted to buy back at 42 but thought I was exposed enough as it was. Has been recovering well sine middle of June. But I notice that a numeber of shares in this sector of the market have had good reports but the market discounts the figures and was taking its profits and waiting.
Have a look at AIt, DAtacash, CardPoint, EPO Telecom Plus. My portfolio was looking miserable for a while. Seems that a recovery is ocurring. Holding for the period.

If it breaks the 67p and 70p should fly.






:=}}}






Hopefully upwards!!!!

Excellent results and a dividend from SCD today. Anyone else still in this one?
I think it is one to accumulate.

In since 51p. holding for medium term at th moment. Graeme.

Moving on up again

Heard a rumour that someone is checking up on the charges made by the "money" machines.

A lot of buying going on.

Maybe good moment to stock up.

Scott Tod confirms it has received a tentative approach which may or may not lead to an offer.