20th Dec 2005 07:00
FOR RELEASE 7.00AM 20 December 2005 SCOTT TOD PLC (Distribution and processing of ATMs and a developer and manufacturer of card vending and change machines) Trading Update Good progress in cost reduction and divisional re-organisation Benefit expected from January 2006 New Sales Director to be appointed Scott Tod Plc (the "Company") makes the following trading update ahead of theend of the six month period to 31 December 2005.Shareholders will be aware that the Company's former CEO was placed ongardening leave on 22 August and on 24 October 2005, the Company announced atthe time of the Preliminary Announcement for the results to 30 June 2005 thatit had been loss making for the first three months of the current financialyear. Since then a review of operations led to approximately 20 per cent. ofthe workforce being made redundant, various other cost saving measures and thecreation of a clearer business structure and organisation.As previously announced, John Dixon joined the Board as Finance Director on 5December 2005 and is assisting in drawing up a medium term financial strategy.Ignoring one-off costs associated with the above, trading is continuing in linewith management expectations and a loss is expected for the first half.The costs of the redundancy programme outlined above, other organisationchanges and provisions in relation to potential severance costs for the formerChief Executive and legal costs to deal with both the recent aborted EGMrequisitioned by certain shareholders and the new EGM requisition by the sameshareholders are estimated in aggregate at ‚£250,000 and will be taken as acharge in the first half.The new divisional structure is leading to a clearer focus and is enablingmanagement to prioritise resources. With the completion of the reorganisation,the benefits of the cost savings achieved should start to improve results fromJanuary 2006.The core ATM market remains competitive but the process of relocating ATMs fromunder performing sites to new sites ("churn") continues and is having ameasurable positive affect upon transaction numbers, particularly in relationto the Fully Managed estate.The Company believes it has completed the major steps necessary to reduce itscost base. Emphasis in the New Year will be given to future marketing strategyand creating the right balance between internally generated sales and thosereliant upon third parties. In respect of the latter, the Company has decidedin the future that its main thrust in the leisure sector will be direct salesso as not to be reliant on third party marketing. To assist in this process,Matthew Sneade, currently Sales Manager, is being promoted to the Board ofDirectors as Sales Director, effective 3 January 2006.Interim figures for the six months to 31 December 2005 will be announced inMarch 2006.For further information:Scott Tod PlcDavid Massie (Non-Executive Chairman) 020 7389 1770Lawrence Watts (Chief Executive Officer) 01873 811634Cubitt ConsultingBrian Coleman-Smith 07802 724400 (Until 1.00pm)Nia Thomas 020 7367 5100Alison Reid 020 7367 5100ENDSCOTT TOD PLCRelated Shares:
SCD.L