Final Results

Cashbox PLC
29 September 2006


Press Release                                                  29 September 2006



Cashbox plc



                          ('Cashbox' or 'the Company')



                    Preliminary Statement of Annual Results



Cashbox (AIM:CBOX), the independent ATM deployer and operator, announces its
maiden set of results for the year ended 30 June 2006.



Highlights


•   Successful listing on AIM in March 2006, raising £4.5 million before expenses
•   Turnover increased 25% to £3.16 million (2005 - 10 months: £2.53 million), an annual
    equivalent increase of 4.1%
•   Turnover from transaction income increased 93.6% to £2.84 million (2005 - 10 months: £1.47
    million), an annual equivalent increase of 61.3%
•   ATM estate now at over 1,200 machines, up from 845 at 31 December 2005
•   96% of Cashbox's ATMs are trading above their breakeven point and 98% are available for use
•   Significant agreements signed with Wadworth, Chevron/Texaco, among others





Commenting on the results, Carl Thomas, Chief Executive of Cashbox, said:  'We
are pleased with the progress that Cashbox has achieved over the last twelve
months.  The Company's successful listing on AIM in March has obviously provided
us with a good platform for the future, however, it is the quality of our
business model, strong market demand for our product and pragmatic commitment of
our employees in delivering the very highest levels of service to our expanding
customer base that has driven this business forward so successfully.'



'We hope that Shareholders will share the Board's satisfaction with our early
achievements, and our confidence that with the potential offered by our markets
and the quality inherent in our people, we view the next twelve months with
considerable optimism.'

                                    - Ends -




For further information:
Cashbox plc
Carl Thomas, Chief Executive                           Tel: [phone]
[e-mail]                                    www.cashboxplc.co.uk


Seymour Pierce Limited                        
Jeremy Porter, Corporate Finance                       Tel: [phone]
                                                           www.seymourpierce.com



Media enquiries:
Abchurch
Neil Camp / Gareth Mead                                Tel: [phone]
[e-mail]                              www.abchurch-group.com




CHAIRMAN'S STATEMENT



It is my pleasure to introduce to you Cashbox's first results, for the year
ended 30 June 2006 since the AIM float.



The Company's performance was in line with our expectations - turnover was
£3.16m (2005; ten months: £2.53m) and we made a loss of £2.39m, excluding
exceptional items, £3.56m including exceptional items (2005; ten months:
£1.89m).  Operating costs increased from £2.46m for the 10 month period to 30
June 2005 to £3.06m, an annualised increase of only 3.6% and gross margin
increased from 25.9% (2005) to 28.9%.  ATM transaction income was up from £1.47m
(2005) to £2.84m, an increase of 93.6% compared to the 10 month period and 61.3%
on an annualised basis.



'The Opera of Life does not come with a programme' is an expression that I
learned some time ago and is particularly apt when I look back at the expected,
and sometimes unexpected, leaps of progress that your Company has made over the
past 12 months.



To proclaim that 2006 has been an 'important year' for Cashbox would not be the
usual hybristic overstatement that you would expect to read here.  Cashbox
really has accomplished difficult tasks and galloped past country milestones
with ease.


 •  The flotation successfully raised £4.5m in equity, before expenses, and a lease finance facility of
    £6.1m giving us a strong financial foundation to support the growth of the Company, as well as '
    currency' that we could use to acquire ATM estates that are complementary to Cashbox's.

 •  You will by now, I'm sure, have noticed the advancements that your Company has made in terms of
    customer and site wins. The sheer number of potential sites that we now have under contract is truly
    remarkable and importantly, that much of this progress has been made post the IPO is also worthy of a
    mention.  Our portfolio of clients now includes well recognised names like: Thresher, Greene King,
    Chevron/Texaco, NISA Todays, Wadworths and P&H (convenience store supplier).  In winning these
    prestigious clients Cashbox has competed successfully against all the usual IAD competitors and
    prevailed.

 •  Delighted as I am about new sites, I am also in equal measure, keen to see that the machines that
    Cashbox deploys in the field are ready for use at all times, are achieving the necessary number of
    transactions and are therefore profitable.  Cashbox is purpose-built to avoid the pitfalls that have
    caught other IADs and so during the summer, we announced to the market that 96% of our machines were
    trading above their breakeven point.  This still remains the case and as I write 98% of the ATMs in the
    Cashbox estate are open for business. Both of these key performance indicators (KPIs), and more
    besides, are reviewed daily by Carl and his team.  These KPIs indicate to the Board that the merchant
    fill business model is a workable and lasting solution and that Cashbox's sales, installation and
    customer service teams are doing their work diligently. Cashbox will continue to regularly report these
    two KPIs to the market so that you too can track our performance.



Which brings me onto the Cashbox team.  The management of your business is, by
the highest of standards, the best in its class.  Carl's experience in the IAD
market is known to many while the Board that he has assembled around him are
supportive and experienced.  However, any company's success depends critically
on the quality, loyalty and dedication of its employee team and your Company is
no different.  The Cashbox team's experience, hard work and commitment to
success continues to ensure that our customers receive unparalleled service and
support, thereby creating a lasting impression that we are a professional and
steadfast enterprise that sees itself 'in partnership' with its customers.
Since the Company's IPO we have augmented our already adept team with some high
calibre individuals that we believe will create both value for investors and an
effective service for our customers.



Outlook



Looking forward for the next 12 months, it is apparent to all here at Cashbox
that for our business at least, the market is in a rapid growth mode.
Retailers, publicans and forecourt owners are becoming extremely aware that an
ATM will markedly increase their turnover and that, 'customers with more money,
spend more money' is a truthful dictum.



During the course of the next 12 months we expect Cashbox to announce new ATM
estate wins.  Our sales teams have been extremely successful in their work and
Cashbox now has some prominent companies that are eager to rollout ATMs into
their estates - watch this space.




Furthermore, it is becoming very clear that the global market is also
consolidating and producing good returns for shareholders, as evidenced by the
US IAD Cardtronics' acquisition of Bank Machine for £50 million and Cardpoint's
acquisition of Moneybox for £87million.  It is worth mentioning to you that
during the last few months the owners of AIM-listed Scott Tod decided to sell
their business to the highest bidder. Cashbox participated in this process but
for a number of reasons your Board took the decision not to pursue the
possibility further.  Your Board felt it prudent to stay its hand for future,
possibly more strategic, acquisitions.  We are now of the firm belief that there
will be more strategic opportunities like this for us in the forthcoming 12
months.



Lastly, I do not want to leave you with the impression that we are comfortable
with Cashbox being a loss making business, as making losses over anything other
than the short-mid term in this business is unacceptable.  Therefore I want to
assure you that the management team and I are making every effort to bring
Cashbox into profit as quickly as we can.  Please be aware that this is another
one of those KPIs that we watch closely.



All that's left for me now is to thank you our Shareholders, my fellow Board
members and all the Cashbox employees for your time and your support in 2005/6.
 The future, as they say, is a different country but one in which Cashbox
definitely has a visa.



Anthony Sharp

Chairman

29 September 2006




CHIEF EXECUTIVE'S REVIEW



I am extremely happy to report that in the last 3 months, a huge percentage of
our ATMs are trading above their breakeven point and are available for use.
Certainly in my experience in the IAD industry, this percentage of profitable
ATMs in any estate is unprecedented.



Building on our placement model



Hopefully by now you will have noticed a clear illustration of the main benefits
of Cashbox's placement model and the potential market opportunity available as a
result.  Our existing and fast evolving customer base already provides
availability for further significant ATM installations.  This adds up to nearly
27,000 sites, defined as the total number of sites owned or operated by Cashbox
customers, including those with an associated membership network.  As a matter
of policy, Cashbox is willing to provide an unlimited number of machines in any
estate as long as it is economically viable.



As a LINK member, we continue to monitor changes in the industry with a hawk's
eye.  We, like all other LINK members, are closely involved with formulating
policy and the regulations as they develop.  Therefore, Cashbox welcomed the new
LINK regulations on signage as we were already compliant.



It is worth bearing in mind that Cashbox was the first IAD estate in the UK to
be Triple DES compliant.  We completed the EMV (chip and PIN) upgrade within an
impressive 14 days.



Hand in hand and working with our manufacturers, I am also pleased to report
that we will be fully compliant with the new RoHS (Restriction on Hazardous
Substances) European directives that came into force on July 1st 2006.



We increasingly live in a cash-rich, time poor, culture.  It is therefore no
surprise to me to report to you that we have encountered little resistance to
our raising the surcharge across the estate from £1.50 to £1.75.  We expect to
have 100% of our estate migrated to this new charge by the year end.



My experience in the industry has taught me that many an IAD has fallen folly of
the mistake of assuming that an ATM in any site can generate revenue.  This is
not the case. Cashbox surveys ALL of its sites prior to installation of ALL of
its machines.  I will not allow a machine to be installed that is NOT
profitable.  The survey process that I have put in place, along with the team
that carry out this important process, ensures this.



Whilst looking at our progress in building the business, there are four broad
areas we are constantly reviewing:
•    increasing our installed base of ATMs

•    driving transactions at each individual site

•    refining our KPI monitoring systems

•    ensuring that the organisation is ready and capable of integrating any acquired estates




Sales organisation



In addition to our high profile, Blue Chip customers, we also have a rapid
growing customer base that consists of independent and SME sites.  Since the
IPO, I have put in place an experienced sales team that are targeting this
lucrative sector.  More specifically the teams are split into three groups to
address the market:


•    independent small customers with anything from 1- 10 sites





•    commercial medium sized organisations with 10 - 200 sites





•    corporate large organisations with in excess of 200 sites








Each of the groups is targeting three primary sectors: convenience stores,
garage forecourts, and pubs and leisure.



Essential to any new sales push is the need for an experienced marketing team.
This is now in place and will, going forward, be rolling out a consistent and
intelligent message to both existing and potential customers.



Optimising transaction levels



An estate that is used more generates more profit. It is one of my key goals to
ensure that all machines in our estate are fulfilling their full potential every
month.  The advanced systems we now have in place continuously monitor
transaction levels in real time and the ability to identify sites that are not
fulfilling their full potential is paramount.  Our systems can not only spot
abnormal trends in individual machines but we are also now able to gather market
intelligence of the different sectors they operate in and periodically carry out
a trend analysis exercise.



Our marketing strategy will also include communicating with the end user to
ensure we drive up usage of our machines.  In the next twelve months, Cashbox
will be developing a combination of incentives and advertising suitable for each
of our sites.



Our market leading ATM offering continues to evolve with many new and exciting
features being made available to our customers.  We expect to roll out the
Windows CE version over the coming year which will in turn expand our ability to
develop the ATM screens for advertising and issuing of coupons by the individual
sites.  This is an additional revenue stream and a service that I believe will
drive transactions higher.



Maximising uptime



The systems I have put in place ensure that I am aware of any machines that are
not transacting in any one day.  I then ensure action is taken immediately.



The advanced, bespoke diagnostic capability we have in place is an invaluable
tool to ensure that our in-house, 24/7 Helpdesk team can efficiently maximise up
time.  As I write, this is currently running at 98%.  Another interesting KPI
worth mentioning is that over 90% of support requests to the team are dealt with
on the phone.  This swift resolution is a valuable benefit to our customers and
allows our engineers to focus more of their time installing the fast growing
pipeline.



Versatile infrastructure



The majority of our estate is equipped with the Tidel 3400. During the last 12
months, Cashbox acquired a competitor's estate and therefore by design for the
first time, we now have Triton machines in our ATM portfolio.  Cashbox is now in
the enviable position where its LINK node can process nearly all major
manufacturers of ATMs.  Therefore we can quickly integrate previously
competitor-owned estates into our portfolio with ease.  I am very excited at the
prospect of winning similar estates going forward.




Conclusion



Last but by no means least I would like to acknowledge and thank my entire team
at Cashbox who are undoubtedly committed to our success.



2006/2007 is going to be not only an important year for Cashbox but one for the
industry as a whole as it goes through changes and consolidations that will
benefit shareholders and industry players alike.



I look forward to meeting you at the AGM.



Carl Thomas

Chief Executive

29 September 2006




CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2006


                                                             Note                          2006          2005
                                                                                                    10 months
                                                                                          £'000         £'000
                                                                                    (unaudited)

Turnover                                                                                  3,159         2,525

Cost of sales                                                                           (2,245)       (1,870)

Gross profit                                                                                914           655

Administrative expenses                                                                 (3,060)       (2,462)

Exceptional items:
    Share based remuneration (options) charge                                             (570)             -
    Listing costs                                                                         (605)             -


    Total exceptional costs                                                             (1,175)             -

Total administrative expenses                                                           (4,235)       (2,462)

Operating loss                                                                          (3,321)       (1,807)

Interest receivable and similar income                                                       13             6
Interest payable and similar charges                                                      (254)          (86)

Loss on ordinary activities before and after taxation                                   (3,562)       (1,887)



Loss per ordinary share (pence)                               2
    Basic                                                                                 (8.3)        (10.5)
    Diluted                                                                               (8.3)        (10.5)



Loss on ordinary activities excluding exceptional costs
and before and after taxation                                                           (2,387)       (1,887)
                                                                                        

All amounts relate to continuing activities


All recognised gains and losses are included in the profit and loss account






CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2006


                                     Note               2006            2006         2005         2005
                                                       £'000           £'000        £'000        £'000
                                                 (unaudited)     (unaudited)
Fixed assets
    Tangible assets                                                      674                       128

Current assets
    Stocks                                                22                          211
    Debtors                                            1,492                          198
    Cash at bank and in hand                             536                           51

                                                       2,050                          460

Creditors: amounts falling due                       
within one year                                      (2,225)                      (3,633)

Net current liabilities                                                (175)                   (3,173)

Total assets less current                                                
liabilities                                                              499                   (3,045)

Creditors: amounts falling due                                         
after more than one year                                               (679)                         -

Net liabilities                                                        (180)                   (3,045)

Capital and reserves
    Called up share capital                                              614                       380
    Share premium account                                              3,880                         -
    Merger reserve                                                     2,180                       474
    Warrants reserve                                                      37                         -
    Profit and loss account                                          (6,891)                   (3,899)

Shareholders' deficit                  3                               (180)                   (3,045)





CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2006


                                                                                 2006          2005
                                                                                          10 months
                                                                                £'000         £'000
                                                                          (unaudited)

Net cash outflow from operating activities                                    (4,327)       (1,447)

Returns on investments and servicing of finance
    Interest received                                                              13             6
    Interest paid                                                               (254)          (86)

Net cash outflow from returns on investment
and servicing of finance                                                        (241)          (80)


Capital expenditure and financial investment
    Purchase of tangible fixed assets                                            (44)          (81)

Net cash outflow from capital expenditure
and financial investment                                                         (44)          (81)


Cash outflow before use of liquid resources and
financing                                                                     (4,612)       (1,608)

Financing
    Issue of ordinary shares for cash (net of issue costs)                      5,339           854
    Loans                                                                       (457)           374
    Sale and leaseback of tangible fixed assets                                   215             -

Net cash inflow from financing                                                  5,097         1,228

Increase / (decrease) in cash                                                     485         (380)





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2006



1. Accounting policies

Accounting convention

The financial statements have been prepared under the historical cost convention
and in accordance with applicable United Kingdom Accounting Standards on a going
concern basis.



In preparing the financial statements for the current year, the Group has
adopted the following Financial Reporting Standards:



- the presentation requirements of FRS 25: Financial Instruments: Disclosure and
Presentation

This Standard requires financial instruments to be presented in accordance with
their substance.  Therefore shares, which previously were always presented as
part of shareholders' funds regardless of the substance of the instrument, may
now be presented as a liability when in substance that share is equivalent to a
liability.  There have been no adjustments to the financial statements of the
company on adoption of this standard.



- FRS 21: Events after the balance sheet date

The adoption of FRS 21 has resulted in a change in accounting policy in respect
of proposed equity dividends.  If the company declares dividends to the holders
of equity instruments after the balance sheet date, the company does not
recognise those dividends as a liability at the balance sheet date.  Previously,
where these equity dividends were proposed after the balance sheet date but
before authorisation of the financial statements they were recorded as
liabilities at the balance sheet date. As no dividend is proposed nor has been
paid, no adjustment has been required to the financial statements for this year
nor for the period ended 30 June 2005.



- FRS 22: Earnings per share

FRS 22 prescribes the basis for calculating and presenting earnings per share in
the financial statements of entities whose shares are, or will be, publicly
traded and other entities that choose to disclose earnings per share.  There has
been no adjustment to the financial statements of the Group on adoption of this
standard.



- FRS 28: Corresponding amounts

FRS 28 requires corresponding amounts to be shown for items in the primary
financial statements and notes to the financial statements.  Where corresponding
amounts are not directly comparable with the amount to be shown in respect of
the current financial year, they shall be adjusted and the basis for adjustment
disclosed in a note to the financial statements.



The FRS permits a reporting entity not to show corresponding amounts for certain
items in the notes to the financial statements that were previously exempted
under company law.  It also does not require corresponding amounts for the
earliest period presented where financials statements for two or more
consecutive periods are presented together.  There has been no adjustment to the
financial statements of the Group on adoption of this standard.



The principal accounting policies of the group, which are considered to be most
appropriate to the group's circumstances, are set out below.



Basis of Consolidation



The consolidated financial statements of Cashbox have been presented under
merger accounting rules, as the combining entities within the group were
controlled by the same parties both before and after the acquisition.  This
means that the financial statements of Cashbox and those of its wholly-owned
subsidiary, Cashbox ATM Systems Limited, have been aggregated and presented as
if the two companies have always existed as a Group.  Accordingly, the results
for both companies are reflected in the Group financial statements for the year
to 30 June 2006 and the comparative amounts for the ten month period to 30 June
2005 are presented on the same basis.



Investments



Investments held as fixed assets are stated at cost less any provision for
impairment in value.  In relation to acquisitions, where advantage can be taken
of the merger relief rules, shares issued as consideration for acquisitions are
accounted for at nominal value.



Turnover



Turnover represents the value of goods sold and services provided derived during
the year, stated exclusive of Value Added Tax.



Income from the sale of Automated Teller Machines (ATMs) is recognised when each
ATM is installed in its location and transaction income is recognised in the
period in which the transaction took place.



Depreciation



Depreciation is provided on all tangible fixed assets to write off the cost,
less estimated residual values, evenly over their expected useful lives. The
rates used for this purpose are:
•    Automated Teller Machines                         - Straight line over five years


•    Furniture and Fittings                            - Straight line over three years


•    Office Equipment                                  - Straight line over three years.





Stock



Stocks are valued at the lower of cost and net realisable value.  Cost is based
on the cost of purchase on a first in, first out basis.  Net realisable value is
based on the estimated selling price less additional costs to completion and
disposal.



Foreign currency



Transactions in foreign currencies are translated at the exchange rate ruling at
the date of transaction.  Monetary assets and liabilities in foreign currencies
are translated at the rates of exchange ruling at the balance sheet date.  Any
differences are taken to the profit and loss account.



Deferred taxation



Deferred tax balances are recognised in respect of all timing differences that
have originated but not reversed by the balance sheet date except that the
recognition of deferred tax assets is limited to the extent that the Group
anticipates making sufficient taxable profits in the future to absorb the
reversal of the underlying timing differences.



Deferred tax balances are not discounted.



Pensions



The Group operates defined contribution schemes.  All contributions are charged
to the profit and loss account in the year they are payable.



Share-based employee remuneration



When shares and share options are awarded to employees, a charge is made to the
profit and loss account based on the difference between the market value of the
company's shares as at the date of grant and the option exercise price, in
accordance with UITF Abstract 17 (Revised 2004) 'Employee Share Schemes'.  The
Group is not voluntarily applying early adoption of FRS 20.



Leased assets



Assets that are financed by leasing agreements that give rights approximating to
ownership (finance leases) are treated as if they had been purchased outright.
The amount capitalised is the present value of the minimum lease payments
payable over the term of the lease.  The corresponding leasing commitments are
shown as amounts payable to the lessor.  Depreciation on the relevant assets is
charged to the profit and loss account over the shorter of estimated useful
economic life and the period of the lease.



Lease payments are analysed between capital and interest components so that the
interest element of the payment is charged to the profit and loss account over
the period of the lease and is calculated so that it represents a constant
proportion of the balance of capital repayments outstanding.  The capital part
reduces the amount payable to the lessor.



All other leases are treated as operating leases.  Their annual rentals are
charged to the profit and loss account on a straight-line basis over the term of
the lease.



Sale and leaseback



Sale and leaseback arrangements, by means of a finance lease, are accounted for
in the same manner as a standard finance lease agreement.  It is not appropriate
to regard an excess of sale proceeds over the carrying amount as income.  Such
excess is deferred and amortised over the lease term.



Financial instruments



In relation to the disclosures made in note 25:


•    short term debtors and creditors are not treated for disclosure purposes as financial
     assets or financial liabilities except for the currency disclosures; and


•    the Group does not hold or issue derivative financial instruments for trading purposes.





2. Loss per Share



Basic and diluted loss per share has been calculated on the basis of losses
after taxation of £3,562,000 (2005: £1,887,000) and 42,692,407 1p ordinary
shares (2005: 17,911,800 equivalent 1p ordinary shares) being the weighted
average number of shares in issue during the year to 30 June 2006.





3. Reconciliation of movements in shareholders' funds
                                                                                    Group
                                                                                  2006               2005
                                                                                               10  months
                                                                                 £'000              £'000
                                                                           (unaudited)

Loss for the period                                                            (3,562)            (1,887)
Share options granted                                                              570                  -

Profit and loss account                                                        (2,992)            (1,887)
Issue of shares                                                                    234                380
Premium on shares issued                                                         3,880                  -
Capital (merger) reserve                                                         1,706                474
Warrants reserve                                                                    37                  -
Shareholders' deficit at beginning of the period                               (3,045)            (2,012)

Shareholders' (deficit)/funds at 30 June 2006                                    (180)            (3,045)




4. Financial Information



The financial information set out in the announcement does not constitute the
company's statutory accounts for the year ended 30 June 2006 or the period ended
30 June 2005.  The financial information for the period ended 30 June 2005 is
derived from the statutory accounts for that period which have been delivered to
the Registrar of Companies.  The auditors report in those accounts was
unqualified and did not contain a statement under s237 (2) or (3) Companies Act
1985.  The statutory accounts for the year ended 30 June 2006 will be finalised
on the basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting.



5. Dividend



The Directors are not able to declare a dividend



6. Going Concern



These accounts have been prepared on a going concern basis.  As outlined in the
company's admission document, and as is often the case with rapidly growing
businesses, the business model and the forecasts based thereon contain some
uncertainties.



These uncertainties relate to contracts, including one significant contract,
which currently are not signed, but the installations and transactions likely to
be generated from them are included in the company's forecasts. In the event of
significant delays in the cashflows to be derived from these contracts, as
compared with the forecasts, the directors would either seek additional funding
or implement a pre determined programme of cost saving.



The directors of Cashbox are confident that these contracts (and other
contracts) will be signed in the short term and that the resulting installations
and transactions will be in line with those forecast.  The directors are
confident, based on current projections and the Group's cash position at the
date of the approval of the Company's financial statements, that the Group will
be able to continue to trade for the foreseeable future.  As a result of the
above, the directors consider it appropriate to prepare the financial statements
on a going concern basis.  Accordingly the financial statements do not reflect
any adjustments that would be required in the event that the Group were unable
to achieve its forecast cashflows.




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