Cashbox supplies ATMs to places like petrol stations and pubs, nightclubs, etc. It has recently been pointed out by Shares Mag as looking likely to break even in 2007.

EDIT: Currently the company is the subject of a potential takeover approach. No terms have yet been disclosed, but this indicates the company's attractiveness in a sector which has seen a fair degree of takeover activity already.

Cashbox's business model involves placing most of the machines with retailers and providing technical support but having the site owners take care of keeping the machines filled with cash, thus reducing the costs to Cashbox.

The machines are watched closely by Cashbox to ensure that they are both profitable and operational as near to 100% of the time as possible.

CBOX has had a number of good contract wins recently (see RNS releases) and currently has an estate potential of 29,000 sites amongst its customers.






EDIT: There are 61.4 million shaes in issue, of which 55% is in the hands of directors and another 3.32% by a "major shareholder". So the free float is about 25.1 million shares.


PDYOR, etc.

So, here's me sitting in the Bahamas, puffing my pipe and reading Saga Magazine.

CBOX Bid: 31p Offer: 32p Change: 5 / 980k traded

really pleased for you soul* ..... hope you also have some TAN which have also taken off today

Thanks, Cynic :o) didn't get in on TAN, in spite of considering it on numerous occasions. was Busy Doing Other Things, as usual

AFX update this morning:


UK smallcap opening - Spiritel edges ahead on Telstra Platinu partnership
LONDON (AFX) - Spiritel edged ahead 0.25 to 2.50 pence following news that the telecoms company's Callplan unit has been made first Platinum Partner of Telstra Europe.

DCD Media hardened 0.09 to 1.02 after the company's Box TV subsidiary won a contract to produce a drama serial for BBC Television. The deal is expected to generate sales of about 5.9 mln stg.

The show, entitled 'The Last Enemy', is the division's biggest-ever project and is expected to air on BBC One later this year.

Again on the contract front, Cashbox rose 2-1/4 to 33-3/4 as the company was appointed sole Supplier of ATMs to motor Fuel Group.

Buyers also came for Oilex, 5-1/2 better at 68 in response to news that surface measurements on the Cambay-72 well in India indicate that the well has started flowing oil and gas.

And speculators targeted Regal Petroleum, 11-3/4 better at 174, as the Sunday Express reported that predators are to move in on the explorer after the 1 bln stg oil find in the Ukraine.

newsdesk@afxnews.com fjb/tc

And the AFX note providing more details of the deal:

Cashbox made sole supplier of ATMs to Motor Fuels Group
LONDON (AFX) - Cashbox PLC said it has been appointed sole supplier of ATMs to petrol service stations operator Motor Fuels Group.

The contract will see the ATM operator initially deploying machines on 15 sites, with potential for more on a further 25 sites.

Cashbox said the ATMs will be placed using its 'Placement Model', whereby a convenience-fee ATM is placed with a retailer free of charge and replenished by them.

Last week, Cashbox said it was in preliminary discussions with outside parties for a possible takeover of the company, but noted that there was no guarantee any offer would be made. newsdesk@afxnews.com jr/tc

Today's order may not sound like much compared with the recent announcements such as Palmer & Harvey, but the good thing about this one is that it is a deal being done directly with the owner of the potential aTM sites, and the size is such that it ought to be filled quite quickly. The P&H deal will require P&H to roll out the ATMs to its customers and will therefore take time.

15 new ATMs represents an increase in the number of ATMs currently deployed of over 1%. Clearly if the roll-out is successful, then Motor Fuels Group will also consider rolling out to the remaining 25 sites.

CBOX Bid: 33p Offer: 34.5p Change: 2.25 232k traded

CBOX Bid: 33.5p Offer: 35p Change: 2.75 378k traded.

I'm up 43% since mid-December, having bought at around 23.25p. And still I'm on my own here :o)

A bit of profit-taking today following the strong run of the last couple of weeks.

CBOX Bid: 32p Offer: 33p Change: -0.5

Header edited.

More profit-taking. CBOX Bid: 27.5p Offer: 29p Change: -1.75

Late news on Friday:

Cashbox PLC - Statement re. Press Comment
RNS Number:9883Q
Cashbox PLC
08 February 2007


Cashbox plc ('the Company')

Statement re Press Comment

The Company notes recent press comment regarding the ongoing litigation between,
inter alia, Hanco and Cashbox ATM Systems Ltd ('ATM'). The Company confirms that
on 29 November 2006, summary judgment was handed down against Carl Thomas, the
Company's CEO, and ATM relating to certain claims forming part of the litigation
and an interim award application has been made by Hanco. ATM and Carl Thomas
intend to appeal the summary judgment and will vigorously defend the interim
award application. The next hearing on the case is currently expected on 21
February 2007.

It should be noted that as set out in the Company's Admission Document dated 24
March 2006, an unlimited indemnity, in favour of the Company and ATM, has been
given by Anthony Sharp, Chairman, and Carl Thomas. The further indemnity from
KKR Investment Management SA has not yet been put in place.

For info.


Cashbox facing 2m damages claim from Hanco

Independent ATM operator Cashbox has been hit with a 2 million damages claim from Hanco, a cash machine vendor owned by the Royal Bank of Scotland, according to a Financial Times report.

Cashbox was set up in September 2003 by Carl Thomas - a former sales director at ATM firm Hanco which was acquired by Royal Bank of Scotland in 2004 - and his brother Matt. The firm floated on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE) last year.

Cashbox said last week that it had received an early stage bid approach that could lead to an offer for the business.

According to the FT report Hanco launched proceedings three years ago against Cashbox and Carl Thomas.

The report, which cites Cashbox's prospectus, says the firm is warning of "significant claims" from Hanco, including an allegation that Thomas "diverted a business opportunity from Hanco to Cashbox, namely a contract for the installation of ATMs with Thresher Group".

A summary judgment in Hanco's favour was handed down by the Masters' Chancery Division last November. The courts ruled that Hanco is entitled to summary judgment on liability against Thomas in respect of breach of contract and breach of fiduciary duty, says the FT, as well as against Cashbox in respect of its assistance in bidding for a contract to supply cash machines to Threshers.

Thomas and the company are appealing against the judgment.

Hanco is seeking damages of 2m and is also claiming costs thought to be more than 1m, says the FT.

The case will be heard in the High Court on 21 February 2007.

Ouch! That's quite some claim!

one would assume that the potential bidder was already aware of this case .... if not, then he was pretty dozy! ...... i would also assume that the summary judgement awarded 2m, though that is not at all clear .....

while CBOX may be appealing, i would have thought their chances of overturning the judgement are very slim, as summary judgement not implies that the charge was uncontested but also that it was cast iron.

CBOX must surely be liable for both parties' costs

CBOX really ought to give better guidance and clarification ..... though the court papers must be in the public domain if anyone knows how to access them.


soul* ..... have you taken any profits off the table? .... do hope so

Hi Cynic, thanks for your thoughts. Actually I am thinking of selling this one altogether and getting well out of the way while this court case continues.

If judgment goes against Cashbox, the SP could slump and create a bargain for a bidder, but would not do my profits any good. I think I'll use the cash from this to finance my pop at HaiKe if it goes ahead.

Dumped it! Made only about 7% profit by the time all was said and done, but rather that than a loss, and it ain't bad for two months!

Will watch and see how the court case turns out.

ST
you've done the right thing as the pending court case may well have the share price behaving very erratically.

Well done, at least, on a 7% profit over 2 months - still outperforming the vast majority of the overpaid City fund managers !!!!

Ian

ps - did you ever get into GSH ? The fun has only just begun ;o)

Thanks very much, Ian; good to have my thoughts confrimed! Thanks too for the mention of GSH - have seen the rise but not had time to look into it. However, am looking for new prospects, so will try and give it the once-over

PS - Ian, have you looked into HAIK, due for IPO tomorrow? Could be quite a performer.