ATM manufacturer Scott Tod has told shareholders it is aiming to reduce costs and to position the company for a return to growth in 2005/2006.
The group said parts of its ATM estate were underperforming and it will also be focusing on upgrading the quality of the ATM estate by relocating these underperforming machines.
The comments came alongside results for the six months ended December 31 which showed turnover of £5.6 million. Profit before tax and amortisation of goodwill was £56,000.
There are no meaningful comparatives as the group only came into its current form in November 2003, with the reverse takeover of Scott Tod Developments.
Scott Tod had previously warned that second half results to end-June 2005 would be below market expectations.
It found that at July 1 2004, the company had an estate of 1,947 ATMs, up 165 per cent from July 1 2003. During the period to December 31 2004, the company received significant orders for new ATM installations and increased staff and resources to roll out these machines.
However, the board said many of these orders were part of large corporate contracts and customers were not able or willing to proceed with the installations at the pace which the company had planned. This had led to a shortfall against plan.
In spite of this, the ATM estate reached 2,466 at the end of December, up 27 per cent in the half-year.
The company incurred costs and overheads gearing up for the new business, in addition, Scott Tod said costs were incurred in preparing for Chip & Pin changes.