CARDPOINT, A GROWTH COMPANY GOING PLACES.

Im recommending Cardpoint after having this stock on my watch list for the last three months and have to say it really as a fantastic management, and a management that backs the company up with solid Director Buying. It’s a simple business the management have formed and has been acquisitive throughout the last financial year creating growth and value for company shareholders.

What Does It Do?

Cardpoint plc is an independent owner and operator of 1,800 ATMs and 2,900 mobile top up terminals across the UK. The ATMs are typically placed in convenience stores, shopping centres, motorway service stations, hospitals and train stations, and in areas that are not traditionally serviced by other ATM providers, thereby offering their customers greater convenience and access to cash. The Company typically charges #1.50 per cash withdrawal, with its customers' go-ahead, and also receives transaction revenues for balance enquiries and rejections. The Company recently acquired Securicor Cash Machine Limited for up to #9.2m over two years. The mobile top division, acquired in July 2003, trades under the name of PT Distribution Limited and is being rebranded to Cardpoint Merchant Retail from September 2003 onwards and operates in retail outlets such as MOTO, Londis, Costcutter and Spar. Cardpoint is a full member of the LINK Network, the only branded shared network of ATMs and self-service terminals in the UK, which allows more than 80 million cardholders of every member financial institution to use the ATM of another LINK member. Cardpoint listed on the Alternative Investment Market in June 2002. The Company's Stock Exchange EPIC is CASH.

Recent Developments.

The company put out this recent trading update and also news of another quality acquisition.

Trading Update Cardpoint plc, the AIM listed ATM and mobile top up operator, is providing the following trading update as it goes into its closed period. Having reviewed the draft unaudited management accounts for the financial year ended 30 September 2003, the Board believes that the Group's performance will be closely in line with the revised market expectations following the two significant acquisitions made by the Company. The Preliminary Results will be released on 24 November 2003. The integration of Securicor Cash Machine (SCM), which was acquired in May 2003, and PT Distribution, acquired in July 2003, is continuing extremely well and the improved margins that were expected are filtering through to the bottom line.

Mark Mills, Chief Executive of Cardpoint plc, said: "The recent acquisitions have transformed Cardpoint into the fastest growing and third largest independent ATM deployer in the UK. "As a result of the recent acquisitions, the Group has continued to benefit from improved margins and a number of cross selling opportunities. We have a good pipeline of new business and are in the process of rebranding our machines to further increase visibility and footfall. I am confident that our figures will be in line with market expectations and the Board looks forward to start of the new financial year with great confidence."

News Of The Acquisition.

Cardpoint PLC 21 October 2003 Press Release 21 October 2003. Cardpoint to provide Thresher wine merchants with 1,000 mobile top up terminals Cardpoint plc, the AIM listed ATM and mobile top up operator, has been awarded a two year contract to provide Thresher Group with 1,000 electronic mobile top-up terminals across the country in the first major deal this year in the retail mobile top-up sector. The contract win follows Cardpoint's acquisition of PT Distribution Limited from Project Telecom in July for 1.7 million. PT Distribution has subsequently been renamed Cardpoint Merchant Retail. The top-up terminals will be rolled out before the end of 2003 with full supporting point of sale and marketing material. Thresher Group is the UK's leading specialist retail drinks retailer with over 2000 shops operating under brand names such as Thresher, Wine Rack, Victoria Wine and Bottoms Up. The group is the fifth largest private retailer and attracts over 150 million customers each year.

Mark Mills, Chief Executive of Cardpoint plc said: 'Since acquiring the top-up business, Cardpoint has restructured the sales and marketing functions which have directly led to this significant contract win. As I stated in our positive trading update of 30 September 2003, the Group has continued to benefit from improved margins and a number of cross selling opportunities following recent acquisitions and we are confident that our figures for the year ended 30 September 2003 will be in line with market expectations.'


Results And Forecasts.

Years To Sept T/O(m) Pre/Tax Profit (m) EPS(p) P/E

2002(A) 3.1 (0.8) (5.4) n/a
2003(E) 11.2 (0.5) (2.1) n/a
2004(E) 30.3 1.9 5.0 15.9


House Broker.

Evolution Beeson Gregory - recent comment.
All the acquisitions and cost-saving potential has created tremendous 'value creation' possibilities. For 2003 they expect earnings before tax, depreciation and amortization of 1.4 million and a pre tax loss of 500,000.

For 2004 they expect 6.6 million before EBITDA, with pre-tax profits coming in at 1.9 million on sales of 30.3 million. This would put the shares on a forward P/E rating of 15.8, which they point out is very cheap for a company with reasonable gearing, impressive margins and a very solid base on which to build out further growth.

Traded on Aim.

I believe this is a medium to long term growth punt and potential investors, please DYOR, you are responsible for your buying and selling actions.

Regards GF.

Goldfinger

What sort of levels are you looking for... how much higher can it go in the short to mid term?

Interesting thoughts. It's always a problem (or the sixty thousand dollar question) on how to get out at the top.
Stop losses are great but it's galling to lose 20% at the best of times.
The same question has arisen with KEWILL (KWL). Great gains recently and look at the chart from 3 years back...30 heights.
Tadpole (TAD) 8p to 24p but where will it stop??? 2? or 15p.
Happy Hunting!

Think you have to look at this one from what kind of investment stratergy you employ. Being a med to long term player in general I am quite happy to just sit in and wait for more acquisitions that are likely to take place this year.
I beleive EVo BEE GREG are coming out with an update shortly. Please note I top sliced aswell a few days back only about 20% of the top, its on the goldfinger thread.

Im very positive on this one and I dont see any reason to sell the full holding, prudent to take profits now and again.

good luck, cheers Gf.

Hope we have now seen the last of the profit taking and the share consolidates.

cheers GF.

Started to run again guys now another chance to get in.

cheers GF.