PUBLICLIMITEDCOMPANY
ANNUAL REPORT & ACCOUNTS 2008 Contents
1 Business Highlights
2 Industry Overview
3 Description of the Cashbox Business
6 Chairman’s Statement
8 Chief Executive’s Review
10 Chief Financial Officer’s Review
12 Board of Directors and Key Management
14 Directors, Secretary and Advisers
15 Report of the Directors
18 Corporate Governance 
19 Report of the Remuneration Committee
22 Independent Auditors’ Report 
23 Consolidated Income Statement 
23 Consolidated Statement of Changes in Equity
24 Consolidated Balance Sheet
25 Consolidated Cash Flow Statement
26 Notes to the Consolidated Financial Statements
51 Company Balance Sheet
52 Notes to the Company Financial Statements
56 Forward Looking Financial Statements 1
Business Highlights
Cashbox (AIM:CBOX), the independent Automated Teller Machine (“ATM”) installer
and operator, announces its annual results for the financial year ended 30 June 2008.
Year ended Year ended
30 June 2008 30 June 2007
Machines installed at period end 2,045 1,442
Turnover £’000 4,675 4,380
Gross Profit 1,768 1,161
Gross Margin % 38 27
EBITDA*
†
£’000 (2,000) (3,510)
Loss before exceptionals* £’000 (3,003) (4,056)
Loss after exceptionals £’000 (3,003) (6,741)
Loss per share before exceptionals (p)* (3.4) (6.3)
Loss per share after exceptionals (p) (3.4) (10.5)
Net debt** (£000) 5,016 2,204
† EBITDA is defined as earnings before interest, tax, depreciation and amortisation, exceptional items, share based payments
and minority interests (note 26)
* Loss before exceptionals is shown in note 9. There were no exceptional items in 2008.
** Net debt includes the borrowing of the Group (including bank loans, other loans, finance leases and overdrafts) less cash
and cash equivalents excluding balances held with the Bank of England for cash withdrawal settlement purposes (note 26).
Highlights
• Installed estate increased from 1,442 to 2,045 at 30 June 2008 
• Transaction revenues 12% higher than last year
• Gross profit up 52% from last year at £1.8m
• Successfully completed two acquisitions in July and October 2008, adding 892 sites to the
Cashbox estate
• Raised £1.5m of new equity and £1.5m in a convertible loan post year end, to provide further
working capital, as well as funding for acquisition and integration purposes
• Settlement reached with Royal Bank of Scotland relating to Hanco litigation and in
September 2008, replacing the £1.8m debt with a convertible with five year term
  2
Cashbox PLC  Annual Report & Accounts 2008
Industry Overview
Size and Growth*
The UK ATM market is the largest in
Western Europe. With a total of 64,120
machines, it accounts for 18% of the
regional total. The number of
installations rose by 5.7% in 2007,
which is above the regional average of
5.0%. This equated to 3,478 new
installations during the year.
At the end of the first quarter of 2008,
there were nine IADs operating in the
UK, the top three of which account for
over two thirds of IAD machines.
Density*
The UK has 1,055 ATMs per one
million inhabitants, the third highest
density in Western Europe and 37%
higher than the regional average of 
770 ATMs per one million inhabitants.
(Source :Retail Banking Research Ltd 2008)
Location*
The number of ATMs located off-site
(away from a bank or financial
institution) has risen rapidly in recent
years, thanks to the efforts of IADs.
Between 2003 and 2007, the share of
off-site machines rose from 59% to
71%. As a consequence, the proportion
of terminals located in branches has
fallen, as witnessed by the drop in the
percentage of through-the-wall (TTW)
installations to 19%.
The number of terminals installed 
off-premises is expected to continue
rising as banks seek new locations to
extend their reaches and to maximise
their interchange revenue. The spread 
of off-premises machines is also
expected to be driven by IADs in
Western Europe.
T ransaction Volumes*
The total number of cash withdrawals
continues to rise, having grown 3.9% in
2007. In contrast, the average volume
of cash withdrawals per machine per
month is falling due to the diluting
effect of increased IAD machine
installation, ending at 3,653 in 2007.
Transaction Values*
The total value of cash withdrawn from
ATMs grew to £108 billion in 2007, 
but the average value of cash
withdrawal remained stable at £77.50
as more machines were deployed than in
previous years. Cash withdrawals from
IAD machines amounted to a total of
£4.3 billion, just 4% of the total. 
Currently, 50% of cash in circulation is
sourced in the UK from ATMs, and the
Association for Payments and Clearing
Services (APACS) predicts this will rise
to 75% by 2011.
In 1998, Euronet, an Independent ATM Deployer (IAD) formed a partnership with Woolwich, whereby it
deployed surcharging Automated Teller Machines (ATMs) on sites that did not normally justify an installation.
By the end of 1999 a total of 10 IADs had installed ATMs in the UK. In 2000, LINK regulations were changed
to allow these non-banks to become members.
About LINK:
• LINK is the UK’s national cash
machine (ATM) interchange network
and the busiest ATM transaction
switch in the world. At peak, the
LINK switch processes almost 1
million transactions per hour.
• There are nearly 130 million LINK-
enabled cards in circulation from 38
card issuing financial institutions.
Over 61,000 ATMs are connected to
the LINK network - effectively every
ATM in the UK.
• The LINK network is a fundamental
part of the UK's payments
infrastructure and cash machines
are by far the most popular channel
for cash withdrawal in the UK, used
by millions of consumers every week
• VocaLink provides the physical
switch for these transactions while
the LINK ATM Scheme sets the
rules, practices and procedures.
• The LINK ATM Scheme is open to
every ATM operator and card issuer
in the UK. 
• LINK does not install ATMs itself or
make charges on the customers who
use them.
• The LINK ATM Scheme ensures
universal, reliable and secure access
to cash and maintains and enforces
fair rules for technical standards,
interchange, charging and signage.
60
50
40
30
20
10
0
Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07
Pay-to-useATMs
FreeATMs
ATMNumbers Share of ATM installations, 2007
8%
2%
19%
71%
TTW
Hall
Lobby
Off-site
Source: Banking
Automation Bulletin 2008
300
250
200
Jan Mar May Jul Sep Nov
150
Transaction Volumes (millions)
Source: LINK Website
2005 2006 2007 2008 3
Background 
Cashbox ATM Systems Limited, the
Company’s principal trading subsidiary,
began trading in September 2003,
installing and operating independent
ATMs which provide the public with
more convenient access to cash and
where consumers are required to pay a
convenience fee for the withdrawal of
cash. Membership of the LINK network
was granted in March 2004. The 500th
active ATM was installed in October
2004 with the 1500th machine in
September 2007 and the 2000th
machine in May 2008.
Cashbox PLC was incorporated on 14
November, 2005 and acquired the entire
share capital of Cashbox ATM Systems
Limited on 26th January 2006 as part
of the preparation of listing the company
on the London Stock Exchange
Alternative Investment Market (AIM).
The listing was completed in March 2006.
Strategy and business rationale
Cashbox’s business model is based on
three ATM product and service offerings:
• Placement Model 
The Directors expect that the majority
of new installations will use a
Placement Model whereby the ATM is
placed with the Merchant and
replenished by the Merchant,
eliminating the need for third party
cash handling costs. The Directors
believe this model, using their detailed
site surveys, will enable Cashbox to
place ATMs profitably in lower footfall
areas which effectively expands the
market available to Cashbox.
• Sale Model
This Model allows for the Merchant to
buy the ATM. The Merchant is still
responsible for replenishing the ATM.
Cashbox continues to provide access to
the LINK network and 24 hour
technical service and support. This
option offers a bigger percentage of
the convenience fee to the Merchant as
the cost of the ATM to Cashbox has
already been recovered from the sale
where Merchants previously purchased
an ATM from a different IAD,
Cashbox can still “process” the ATM.
• Fully Managed Model
To maximise the profit potential of
each ATM site, the Fully Managed
Model will be offered in cases where
the sites are characterised by a
higher footfall. These ATMs are able
to be replenished by third party cash
handling firms. 
The majority of ATMs in Cashbox’s
estate currently charge a convenience
fee, although the company is also
geared to support “free to use” (ATMs
that do not charge the customer a
convenience fee and benefits from
bank intercharge).
The Directors believe that Cashbox’s
sales process, which includes Cashbox’s
survey division undertaking a detailed
site analysis before recommending to the
Merchant the appropriate deployment
model, provides a strong platform for
growth. The Directors are confident of
the organic growth potential of
Cashbox’s ATM business. The Directors
also believe that there are a number of
current opportunities in the industry
which could result in the management of
other ATM estates being outsourced or,
in certain cases, ATM estates being sold.
The Directors believe there are many
different opportunities for growth and
additional sources of revenue:
• demographic preference for younger
customers to withdraw cash from
ATMs; 
• growth in non-bank ATM locations,
resulting from the greater commercial
viability of surcharging ATMs
compared to non-charging ATMs in
low footfall areas;
• the sale of ATM estates by financial
institutions, which could, in certain
cases, prove profitable if run by an
Independent ATM Deployer (IAD);
• the rising market of additional services
provided by ATMs, including on-screen
advertising, voucher and coupon
dispensing, and mobile phone top-ups;
and
• processing of other IAD ‘Sold’ estates.
Description of the Cashbox Business 4
Cashbox PLC  Annual Report & Accounts 2008
Description of the Cashbox Business continued
Revenues, markets and distribution
Cashbox currently generates revenue
through:
1.Transaction revenues
– Convenience Fees incurred by the
cardholder at the time of withdrawing
cash from an ATM; and
– Interchange Fees paid to Cashbox by
the cardholder’s bank or building
society on ATM balance enquiries and
rejected transactions and transactions
where no Convenience Fee is charged.
2. Sales of ATMs
– ATM sales to Merchants under the
Sale Model.
3. Sale of ancillary consumables 
– such as till roll receipts
Benefits to merchant
In addition to the transaction-based
revenue that Merchants can earn by
installing an ATM, there are the
following benefits of an ATM for
Merchants, as research shows:
• Increased footfall – a Merchant site
will typically experience an increase
of customer footfall following the
installation of an ATM.
• Customer retention – ATM users will
typically visit premises that have an
ATM more frequently. 
• Increased cash spend – Merchant’s
customers will typically spend up to
37% more in-store if they have
withdrawn cash from an on-site ATM.
(Harris Independent Marketing
Research 2007)
• Cash handling charges savings
(relevant to merchant-fill models) –
once this cash is withdrawn from the
ATM, the Merchant’s bank account is
credited with the funds electronically
three days later. This reduces the
banks’ cash handling charges to the
Merchant.
Government regulations
Cashbox is subject to the normal
regulatory framework applicable to a
UK based independent ATM operator,
company and employer. 
In March 2005, the Treasury Select
Committee appointed by the UK
Government to investigate ATM
Convenience Fees released its findings. A
memorandum submitted by HM Treasury
to the Select Committee stated that it
“welcomes the changes [to access,
pricing and transparency of charges in
the ATM industry] because they have
made the industry more competitive,
with clear benefits for consumers”. The
memorandum also mentioned the
liberalisation of LINK membership
criteria in a positive light, attributing the
increased competition in the market to
the introduction of independent ATM
operators and noting that ATMs are now
available in locations such as pubs,
shops and garages, thereby increasing
consumer choice.
The memorandum acknowledged that
“there are costs to supplying an ATM
service and it would not be commercially
viable for an ATM operator to offer the
service if these costs could not be
recovered”. It goes on to state that 
“in the majority of cases, the surcharge
would seem to be commercially justified”.
The memorandum also stated that “the
Government believes that charges are a
commercial matter for ATM operators”,
with specific warnings against the
introduction of direct regulation of
retail prices. The main recommendation
of the Select Committee was that ATM
charges should be transparent.
Capital expenditure
Our principle expenditure is on the
initial purchase of ATMs for placement
within our customer universe. A smaller
proportion of capital is utilised in the
provision and maintenance of data
platform, storage and security.
Technology and research and
development
Cashbox has maintained an approach to
technology where all system
developments are dealt with in-house.  5
This has allowed the on-going
development of the Group’s specific
management platforms built on
Microsoft SQL 2005 to be fully in line
with the demands and needs of the
business and our customers. Databox,
the in-house developed management
platform and the diagnostic software
platform licensed to Cashbox by NCR,
and Triton, allows Cashbox to manage
and update its ATMs remotely. Features
of these platforms include system
diagnostics, machine software and
graphics management. 
Cashbox’s LINK network has been
developed to be able to support multiple
ATM types and as a result puts the
business in the enviable position of being
able to acquire already existing estates
of varying machine technologies.
100% of Cashbox’s ATMs have chip
card readers fitted and activated, are
EMV-compliant and have been
upgraded to Triple DES standards, in
accordance with LINK regulations.
Hardware
NCR continues to be the largest supplier
of ATMs in the UK, accounting for 78%
of bank terminals and 43% of IAD
terminals. Triton is the next largest
supplier, holding 49% of the IAD sector.
In February 2008 Cashbox announced
that it had signed a distributor agreement
with Triton. This was in addition to
distribution arrangements with NCR
Easypoint (formerly known as Tidel).
Cashbox’s internal systems are set up to
be able to support both Tidel and Triton
ATMs and therefore no development
costs were incurred to support this
additional supplier. As part of the
agreement, Cashbox also has access to
full Triton technical support as well as
technical and sales training.
With the business continuing to expand
towards its critical mass, this agreement
provides access to a greater overall
number of machines, as well as
capabilities to be able to meet any
expansion in installation pipeline
demands. The business is now also well
placed to efficiently and effectively
support any contract wins to process
existing Triton ATM estates.
Service and Maintenance
Cash replenishment of branch ATMs is
generally undertaken by bank staff,
whilst most IAD machines are
replenished by the site owner. The
majority of Cashbox’s estate comprises
of the self-fill/merchant-fill model.
Cashbox’s service and maintenance
activity is all managed and controlled
in-house, thus ensuring the quality and
speed of service received to its
customers. This is one of the businesses
key USPs as it ensures the uptime of
machines is at optimum at all times.
This, in conjunction with LINK platform
connection availability being measured
in excess of 99.99%, ensures that our
customers are able to maximise the
benefits of supporting an ATM.
Some of our Clients:
Merchant’s customers
will typically spend up to
37% more in-store if they
have withdrawn cash
from an on-site ATM.
Harris Independent
Marketing Research 2007 6
Cashbox PLC  Annual Report & Accounts 2008
Chairman’s Statement
It is pleasing to report that your
company has made significant
progress in the period under
review.
Improved operational performance has
been key in achieving the reported
results. However the development of a
coherent strategy is vital to ensure full
realisation of shareholder value.
Y our Board, in its last report, conveyed
its intention to pursue opportunities to
grow the business by acquisition. To this
end the Board has devoted time and
effort to achieve a position of leadership
in the consolidation that the industry is
experiencing. Current market conditions
have made the furthering of this
objective even more appropriate.
The identification of possible
acquisitions, which occurred in the
second half of the year have resulted in
positive outcomes since the year end.
The significant increase in ATM numbers
achieved both by organic growth and
acquisition have increased the estate size
to 2,045 at 30 June 2008, with over
2,500 active sites at 30 November 2008.
Y our Board believes that the estate size
is such that profitability will now be
achieved within an acceptable time scale.
2008 results
Sales for the year ended 30 June 2008
were £4,675,000 (2007: £4,380,000)
resulting in an operating loss of
£2,484,000 (2007: £5,932,000) and a
loss before tax of £3,003,000 (2007:
£6,741,000).
During the year, the business has
continued to roll out ATMs into both
independent and managed sites. 
The Cashbox team has also focused on
streamlining the operational aspects of
the business by putting in place the
necessary systems to run and maintain a
fast growing estate. A new distributor
agreement was signed in February 2008
with Triton, one of the market leaders in
off-site ATM provision. The agreement is
in addition to the existing distribution
agreements with NCR Easypoint
(formerly Tidel).
The placement merchant (self-filled)
model continues to be the prime focus
for Cashbox and has seen the total estate
grow by 42%, and now accounts for
more than half the ATMs deployed. 
The business has also begun identifying
and rolling out a fully managed service
to selected high transacting sites where
it is financially viable to offer this
service. This is an area that is likely to
expand with increase in demand, and our
ability to provide this service will put the
business in a position to offer an
enviable ‘one-stop’ ATM solution for a
variety of merchant requirements. 
We are also now trialling free to use
ATMs in a number of locations.
Funding
In December 2007 Cashbox secured 
£1 million in funding from MBC
Investments Ltd. to be provided in two
tranches. The first tranche was a
convertible unsecured loan, for the sum
of £583,788. The second was a non-
convertible unsecured loan of £416,212
which was made available for draw
down from 31 March 2008. Both
tranches of the loan were due to mature
on 31 March 2009. On 14 March 2008,
the Company received notice from MBC
Investments that the holder’s intention
was to convert the convertible loan note
issued into shares under the terms of the
loan at the first available occasion being
31 March 2008.
The new loans were arranged in
conjunction with a rescheduling of the
Company’s Bank of Scotland facility,
whereby the initial £8m facility was
reduced to £6m and the drawdown
period extended from March 2008 to
December 2008. The debt repayment
originally agreed to start March 2008
was rescheduled to commence December
2009.
Hanco litigation 
In October 2007 we were able to agree
a full and final settlement with Hanco 
in respect of the long standing litigation
between the two companies. In the
settlement it was agreed Cashbox ATM
Systems Limited would pay an
additional £1.8m, on top of the
£200,000 already paid in July 2007. 
As previously announced to the market
and shareholders, Cashbox ATM
Systems Limited has the benefit of a
joint and several indemnity from 
Carl Thomas and Anthony Sharp in
The placement merchant (self-filled) model continues to
be the prime focus for Cashbox and has seen the total
estate grow by 42%, and now accounts for more than
half the ATMs deployed.  During the year, the business has continued to roll out
ATMs into both independent and managed sites. 
The Cashbox team has also focused on streamlining
the operational aspects of the business by putting in
place the necessary systems to run and maintain a fast
growing estate.
connection with this litigation, which the
Directors intend to enforce to recover
the £2m. However both Mr Thomas and
Mr Sharp have refused to contribute
and Mr Sharp declared himself
bankrupt on 14 May 2008.
This brought to an end the litigation
which has been a drain on management
time and was continuing to incur
substantial legal bills. The Board did 
not believe that continuing the litigation
was in the best interests of shareholders.
Post balance sheet events
During the period from the 7th July
2008 to 8th October 2008, the company
was able to complete four transactions,
effectively acquiring all of the sites and
ATMs of MyATM, a non-Link member
IAD, and Cash4All a Link member IAD.
This added another 892 sites to the
Cashbox estate. Although predominantly
independent contracts, the acquisitions
also included 144 sites within Mitchells
& Butlers, one of the UK’s largest
managed pub estates.
The company has successfully raised
monies in this difficult market to provide
further working capital, as well as funds
for acquisition and integration costs. 
I was unable to participate in these
placings, the company being in a closed
period. However, I have been able to
express my support for the business by
funding a £100K loan to the business,
which, subject to Board approval, I am
willing to convert when legally allowed
to do so.
2008/2009
It is my clear intention to ensure that
your Board’s priority is the creation of
value for shareholders. The foundation
for the achievement of this has now been
laid. The optimisation of the benefits of
the enlarged estate will be
management’s priority and I am
confident of their ability to deliver this.
With positive cash flow and profitability
now realisable I believe that the
disappointments of the past are now
behind us.
I wish to express my appreciation to all
staff who have contributed during this
period of change.
Robin Saunders
Chairman
7 Cashbox PLC  Annual Report & Accounts 2008
Chief Executive’s Review
In my last report, I commented
upon the need to remain focused
upon the cornerstones of our
business, namely:
• The continuing acquisition of key
client contracts with high volume
estates
• The rapid conversion and installation
of profitable sites within these estates
• The provision of outstanding service
and support levels to drive transaction
volumes; and
• The utilisation of a robust and flexible
platform technology and reporting
system to ensure the maximum level
of uptime for all ATMs.
I am pleased to say that we have made
considerable progress, with measurable
successes, in every area of
implementation. From 1st July 2007 to
30th June 2008, we successfully
negotiated and signed up 871 sites
which were suitable for installation.
Two approaches were adopted to fulfil
this opportunity, namely the purchase of
new ATMs utilising the Bank of
Scotland drawdown and the
redeployment of existing ATMs from
low transacting locations. The former
increased our overall estate size from
1,442 to 2,045 in the period, whilst the
second increased our return on ATM
investment.
This has involved entering new markets
such as transportation hubs and
cinemas, as well as greater penetration
in the leisure and convenience store
sectors.
Our relationships with communication
partners, has culminated in a new direct
agreement with BT, signed in April
2008. This enables us to reduce waiting
times for telephone line installation
which, coupled with improved ATM
stock management and ordering, has
enabled us to reduce average installation
times [period from approved deal to
installed ATM] from 51 days in Q1 to
just 28 days in Q4. Although the estate
has increased significantly in size,
engineering headcount has remained
constant throughout the period.
We are rightly proud of the service we
provide, planned and co-ordinated by
our Account Management team, and
this dedicated and professional
approach has lead to our corporate
clients collectively increasing their
installed ATM base with Cashbox by
25% over the past twelve months. We
have also experienced increased estates
in 72% of our corporate clients, 6% of
corporate clients declining by only one
site each, and 22% of corporate clients
remaining at a constant size.
Further investment in training was
undertaken, especially for field service
engineers, relating to new ATM types,
software and upgrade parts. This is a
crucial element of our service offering –
the ATM has to be working to meet the
business and operational requirements
of our clients.
Over 90% of the new sites installed in
the period were placement self-fill
machines, where we retain a higher
percentage of the convenience fee. 
This has enabled us to maintain the
higher gross profit margins experienced
last year, without having to resort to
raising the convenience fee, which has
been maintained at £1.75 across the
majority of the estate. 
Transaction volumes continue to grow 
in a difficult economic environment. 
The re-deployment of ATMs from low
transacting sites to new sites supports
average transaction levels which are
depressed by the addition of new sites
throughout any given month. We will
continue to re-deploy at the current
rate, on a monthly basis throughout the
coming year, to ensure that average
transactions are maintained, with
possible future growth. As we increase
our installed base, a greater proportion
of our efforts will shift from the
acquisition and installation of net new
sites to redeployment of existing ATMs
to higher transacting sites.
During the course of the past year, at
the request of clients, we have extended
our offering to include a fully managed
service and free to use ATMs. Both of
these offerings were successfully
launched with a limited rollout, and are
being closely monitored and refined,
before we commit to a larger scale
promotion and rollout. High volume
sites have traditionally required a fully
managed offering and the potential for
this market is well recognised. However,
we believe that the current economic
climate is creating a new sector in the
free to use market, where a free to use
ATM is justified not solely by
transaction volumes and location, but is
greatly influenced by our clients seeking
to support their value offering to their
own customers. Initial reports are
encouraging and we look forward to
increasing our presence in these areas.
Free to use ATMs still generate income
for Cashbox via the interchange fee.
This is where the customer’s bank pays
Cashbox a fee for allowing their
customer to withdraw cash free of
charge from an independently deployed
ATM. Although the interchange fee is
smaller than the convenience fee, the
increased volume of transactions
stimulated by no transaction fees means
that this is still potentially profitable
business for Cashbox.
Halifax Bank of Scotland continues to
be a very supportive financing partner
in the rollout of ATMs. In an
environment where many capital
intensive businesses are feeling the
effects of the high cost of borrowing, 
8 we are fortunate to have a partner who
has not only supported the existing
business model but also supported the
acquisition of small existing estates,
such as the July 2008 purchase of 144
ATMs situated within Mitchells &
Butlers plc, one of the largest managed
pub companies in the UK. The
acquisition of already installed estates 
is intelligent business for Cashbox, 
as transaction volumes are of a known
quantity, the ATMs have already ramped
up performance, and we do not have to
bear the cost of site acquisition, initial
survey and installation. Our Engineers,
Sales Support team and Technology
group provided further proof of our
outstanding levels of service by
decommissioning and re-uploading these
ATMs to the LINK network within the
same month of signing, despite not
being able to work within opening
hours.
The Board believe that there are more
opportunities of this nature, and stand
by their re-structuring of the Board in
January 2008, which was enacted to
increase our ability to react quickly and
creatively to such market opportunities.
The Board and Executive Management
are mindful that the business has not yet
attained profitability and continually
evolve roles, processes and operating
systems, leveraging technology where
possible, to ensure that operating costs
are kept to a minimum. Significant cost
savings have been made in the areas of
administration costs, professional fees
and occupancy costs, whilst being 
aware of our need to invest for growth.
One example of this has been the
increase in our headcount average from
44 in 2006 to 2007 to 50 in 2007 to
2008 at an increase of only 1% to total
employee costs. 
Our goal has always been to create a
stable platform, one which empowers
the business to deliver sustainable,
profitable growth. The changes to the
structure of the organisation in
2006/2007 enabled that platform to be
built in 2007/2008 and we go forward
with a significantly larger estate which
generates larger and growing revenues,
with a stable and robust organisational
structure and workforce, all of which
operates on a substantially reduced 
cost base.
Looking forward to 2008/2009, 
we will continue to allow the
outstanding quality of our
service, the flexibility of our
offerings, and the complete
ownership of all aspects of
our post-sales support to be
the differentiators in
driving our business success.
We will continue to focus upon
delivering organic growth, whilst
remaining responsive to acquisition
opportunities in a market with
considerable consolidation potential.
In conclusion, I am very encouraged by
the mature, resilient and professional
manner in which the Company and its
staff have dealt with considerable 
re-structuring in a changing economic
climate. I look forward to the next
twelve months with confidence and
optimism about returning real value to
our shareholders.
Ciaran Morton
Chief Executive
Looking forward to 2008/2009, we will
continue to allow the outstanding
quality of our service, the flexibility of
our offerings, and the complete
ownership of all aspects of our post-
sales support to be the differentiators in
driving our business success.
9 10
Cashbox PLC  Annual Report & Accounts 2008
Chief Financial Officer’s Review
The Chief Financial Officer’s Review
should be read in conjunction with the
Consolidated Financial Statements
starting on page 23.
Operationally the business has grown
during the year utilising the Bank of
Scotland debt facility to finance
machine purchases and increase the
deployment of ATMs. During the year
the estate grew by 603 machines. 
The proportion of machines operating
under the placement model, where
Cashbox retains ownership of the
machine, continued to increase and at
30 June 2008 was 51%, up from 34%
at June 2007. Transaction volumes
grew during the year with the second
half higher than the first half; and both
periods were up on the comparable and
preceding periods for the year ended 
30 June 2007.
Turnover for the year was £4.7m, 
7% higher than last year, with
transaction revenues 12% higher and
lower sales of ATMs and sundry items.
The increased number of placement
machines where a greater portion of the
transaction revenues are retained by
Cashbox meant that gross margin
continued to increase albeit more 
slowly in the second half. The Gross
margin achieved in 2008 was 38%, 
11 percentage points higher than 2007.
With higher revenues and improving
gross margins, gross profits for 2008
were up significantly on the prior year,
at £1.8m compared to £1.2m, an
increase of £0.6m or 52%.
Management maintained the tight
control on costs introduced after their
appointment and administration
expenses for the year were £4.3m,
compared with £5.1m last year before
exceptional items. The largest single
item of expenditure was employee costs
which were up only 1% despite an
increase of 6 people in the average
headcount from 44 to 50, as roles were
redefined and the average salaries fell.
Vehicle and fuel costs were 3% higher
with fuel costs in particular rising.
Depreciation was the only other cost to
have increased, as would be anticipated
with the increased number of owned
machines in the estate. Excluding
depreciation and share option costs
(which are both non cash items)
administration costs were £3.6m,
£1.0m or 22% lower than prior year
with occupancy costs, professional fees
and other administration costs all
falling despite pressure from suppliers
trying to raise prices.
Earnings before interest, tax,
depreciation and amortisation, EBITDA,
(as defined in note 26) was a loss of
£1.8m, an improvement of £1.5m
before exceptional items compared to
the same period last year, with
increased gross profits and reduced
costs driving this encouraging result.
The operating loss for the year was
£2.5m, £1.4m better than last year
excluding last years exceptional item
and £3.4m better when including the
settlement of the Hanco litigation.
Finance income, principally interest on
the Bank of England account, of
£46,000 was slightly up on last year.
Finance costs for the year amounted to
£565,000, which included costs of the
facility with Bank of Scotland of
£469,000, reflecting the increased
levels of borrowing during the year
compared to £138,000 in 2007. This
was mainly interest on the finance
leases with GCVF which were
terminated in June 2007 with  additional
costs of £685,000.
The loss for the year attributable to the
equity holders was £3.0m compared to
a £4.1m loss last year before
exceptional items, with the improvement
due to reduced operating losses being
partially offset by higher interest costs.
After exceptional items, the loss for the
year ended June 2008 was £3.7m
better than the £6.7m loss in 2007 as
the Hanco litigation settlement costs
were recorded in the year ended 
30 June 2007 as well as the costs of
exiting the finance lease arrangements.
The loss for the year of £3.0m gave rise
to cash used in operations of £2.3m
with non cash cost items and net
interest costs reducing the loss by
£1.2m and outflows in working capital
of £0.5m. This is slightly lower than the
cash used in operations last year when
the higher losses were offset by the
working capital movements, principally
due to the Hanco liability of £2.0m
recorded as a post balance sheet
adjusting item at June 2007.
Net cash used in investing activities was
£1.6m compared to £0.7m as, having
resolved the financing difficulties of last
year, the Group was able to accelerate
the purchase and deployment of ATMs
into the estate. The purchasing of the
ATMs was financed through the use of
the banking facilities, and £2.4m was
drawn down on the Bank of Scotland
loan facility with a total of £4.7m
drawn at 30 June 2008, leaving £1.3m
undrawn. The total proceeds from
borrowings was £3.4m with the balance
of £1.0m being from MBC Investments,
with £0.6m as a convertible loan note
and £0.4m as a non convertible loan
note issued in December 2007. The
convertible loan note was converted at
the end of March 2008 in accordance
with the terms of the note while the
non-convertible loan note is due for
repayment in March 2009. In addition
to the borrowings, the Company raised
£0.5m in new equity in April 2008.
Cash generated from financing activities
for 2008 was £3.9m compared to
£4.2m last year. At 30 June 2008 this
additional funding amounts to £2.8m of
new debt and new equity of £1.1m
(being the placing and the conversion of
the convertible loan note).
Despite the improvements in the
financial performance, Cashbox is still
loss making and therefore requires
further operating cash-flow. As part of
the loan agreement with Bank of
Scotland, financial covenants are in
place to ensure that the banks position
is protected if these losses continue.
Consequently the Board regularly looks
at the necessary steps to ensure these covenants are met and discuss the
situation in good time with the Bank.
Plans made during the second half of
the financial year were well advanced
and the Bank had indicated that as long
as any shortfall was remedied within an
agreed timeframe then no action would
be taken. While finalising the annual
report, the Company was technically in
breach of the net worth covenant at 
30 June 2008, and while Bank of
Scotland had indicated no action was
being taken because of the funds being
raised from shareholders, that continued
waiver of covenants was not
unconditional and consequently under
the specific guidance included in IFRS,
all of the liabilities shown to Bank of
Scotland are shown payable “within one
year” despite this is not when amounts
will actually be paid.
The net decrease in cash for the year
was £0.3m, compared to a net increase
in cash of £0.9m in 2007 as 2008 was
a year of investment following the
changes in financial arrangements made
at the end of June 2007.
Post balance sheet events
In the period following the year end the
investment in the business has
continued. In July 2008, the Company
acquired 144 machines already placed
with Mitchells and Butlers’ pubs as 
part of a transaction financed using the
Bank of Scotland facility. At the
Extraordinary General Meeting on 
29 July 2008 shareholders approved the
resolutions proposed to increase the
authorised share capital and allow the
issuing of up to a further 320,000,000
ordinary shares without further
approval from shareholders to give the
Board greater flexibility in raising funds
and participating in further opportunities
in the consolidating market.
The Board utilised this facility and has
raised a further £1,547,000 new equity
with placings in July, September and
October 2008 together with a
£1,500,000 convertible in December
2008 to provide additional working
capital.
In a series of transactions, Cashbox
acquired the majority of the owned and
leased ATMs of Cash4All Limited
together with the underlying site
agreements for a total consideration of
£1,672,340 being £872,340 cash
payable to the four lease providers and
£800,000 being £250,000 cash and
£650,000 in equity to the mezzanine
debt holders.
As part of the additional financing
raised by the Company, on 31 December
2008, agreement was reached with
Bank of Scotland for certain covenants
which were due to be tested for the first
time for the year ended 30 June 2009
to be reset based on revised financial
projections.
David Auger
Chief Financial Officer
11
With higher revenues and improving gross margins,
gross profits for 2008 were up significantly on the prior
year, at £1.8m compared to £1.2m, an increase of
£0.6m or 52%. 12
Cashbox PLC  Annual Report & Accounts 2008
Board of Directors and Key Management
Robin Saunders
Non-executive Chairman
Robin Saunders is a London based
financier who has specialised in
securitisation, capital markets and
private equity for nearly 20 years. 
In 2004, she launched a Private Equity
boutique, Clearbrook Capital Partners
LLP , with the support of high net worth
investors and financial institutions
across Europe and the US. Clearbrook
Capital Partners has since completed
14 acquisitions across five platform
companies. Until 2004, she was
Managing Director of the Principal
Finance Group at WestLB AG. 
Robin’s client/partner list spans 15
countries and a variety of industries.
She currently serves on several private
company boards. A native of
Jacksonville, Florida, Robin graduated
from Florida State University in 1984.
Ciaran Morton
Chief Executive Officer
Ciaran Morton, previously with 
The Thomson Corporation, has extensive
public company experience and has held
senior management roles in a number of
Thomson companies, with considerable
operating experience in Europe,
America and Asia-Pacific. In his last
role as General Manager of Thomson
Business Intelligence, Ciaran personally
led the restructuring of a global
business with clients in over 
100 countries. Prior to this, aged 31, he
was appointed to the board of M.A.I.D
PLC in 1994 and led their expansion
into Asia Pacific. Following an
acquisition in 2000 Ciaran moved to the
Thomson Corporation as Executive Vice
President of The Dialog Corporation, 
a TLR (Thomson Legal and Regulatory)
subsidiary, responsible for all non-US
operations. Following Dialog’s
acquisition of Intelligence Data and
NewsEdge, Ciaran led the successful
integration of all international
operations, with directorships in every
key European market. In 2004 Dialog
was unbundled to enable the component
parts of the business to specialise in key
areas and Ciaran led a period of
substantial growth for the newly created
Thomson Business Intelligence, one of
the world’s largest suppliers of online
strategic business intelligence.
David Auger
Chief Financial Officer and 
Company Secretary
David Auger, is a chartered accountant,
previously with PricewaterhouseCoopers,
and has held a number of senior group
finance positions in large UK PLCs
including ICI and Invensys. In 2004 he
joined CP Ships, a US$4 billion
turnover container shipping company,
listed in Canada until October 2005,
where he held the position of Group
Financial Controller and was a member
of the senior management team. David
brings extensive financial expertise in
listed companies and is used to dealing
with rapidly changing and challenging
environments. He is a Cambridge
graduate and has a Masters in Finance
from London Business School.
William Hughes CBE
Non-executive Director
William is currently the Non-executive
Chairman of Fairfax I.S. PLC, 
an investment bank and member of 
The London Stock Exchange. He was
the Chairman of Grampian Holdings
PLC from 1985 to 1998, having
previously been Chief Executive from
1976. He was also Non-executive
Chairman of Aberforth Smaller
Companies Trust PLC for 15 years until
his retirement in 2005. William also
retired in July 2007 from being a
Trustee of the Prince’s Trust UK Council
and Chairman of the Prince’s Trust
(Scotland). In addition to Cashbox he is
currently Chairman of Palm Tree
Technology plc and a non-executive
director of Frenkel Topping plc.
Matthew Thomas
Chief T echnical Officer
Matthew is one of the founders of
Cashbox and has been instrumental in
growing it to the size it is today. 
He previously held a board position as
operations director with Seetech
Computing an IT company that is a
specialist in what is known as 
“Thin Client” technology and Network
infrastructure. Prior to this, 
Matthew spent over 10 years with
Stage Electrics a £22m turnover
leading company in the sound and
lighting field for the entertainment
industry. Matthew designed and
implemented the IT architecture to run
many of the entertainment systems in
prestige high profile sites such as the
Millennium Dome, Cardiff Millennium
Stadium and many West End Theatres.
Matthew has been responsible for the
development and implementation of the
Group’s technical and operational
infrastructure to date. Mr Thomas is
not a member of the Cashbox PLC
Board but is considered a member of
key management for related party
disclosure purposes guidelines. 13
Robin Saunders
Non-executive Chairman
Ciaran Morton
Chief Executive Officer
David Auger
Chief Financial Officer and Company Secretary
William Hughes CBE
Non-executive Director
Matthew Thomas
Chief Technical Officer
Board Members
Other members of Key Management 14
Cashbox PLC  Annual Report & Accounts 2008
Directors
RE Saunders (Non-executive Chairman)
CG Morton (Chief Executive Officer)
D Auger (Chief Financial Officer)
WY Hughes CBE (Non-executive Director)
Company Secretary 
D Auger
Registered office
Windriver House
Meridian Office Park
Osborn Way
Hook
Hampshire 
RG27 9HY
Company number
5621143
Auditors
BDO Stoy Hayward LLP
Kings Wharf 
20-30 Kings Road
Reading
Berkshire
RG1 3EX
Solicitors 
Denton Wilde Sapte LLP
Regency Court
206 Upper Fifth Street
Milton Keynes
MK9 2MR
Mishcon de Reya
Summit House
12 Red Lion Square
London
WC1R 4QD
Nominated Adviser and Broker
Seymour Pierce Ltd 
20 Old Bailey 
London 
EC4M 7EN
Joint Broker
Fairfax IS PLC 
46 Berkeley Square
Mayfair
London
W1J 5AT
Registrars
Computershare Investor 
Services PLC
The Pavilions 
Bridgwater Road
Bristol 
BS13 8AE 
Directors, Secretary and Advisers 15
Report of the Directors
for the year ended 30 June 2008
The Directors present their report, together with audited
financial statements for the year ended 30 June 2008.
Results and Dividends
The consolidated income statement for the year is set out on
page 23. The Group’s loss for the financial year, after taxation
was £3,003,000 (2007 £6,741,000).
The Directors are not able to declare a dividend.
Principal activity
The Cashbox Group (“the Group”, “Cashbox”) comprises
Cashbox Public Limited Company, (“Cashbox PLC,” 
“the Company”) the ultimate holding company and four
wholly-owned subsidiary companies, Cashbox ATM Systems
Limited, the main trading subsidiary, and Cashbox No 1
Limited, Cashbox No 2 Limited and Cashbox Finance Limited
(dormant).
The principal activity of the Group is the installation,
maintenance and operation of Automated Teller Machines
(ATMs) and the processing of ATM transactions thereon.
Trading review and future developments
Discussion of the Group’s trading and future developments
including key performance indicators may be found in the
Chief Financial Officer’s Review on page 10. The Directors
believe the number of installations, EBITDA and cashflow
items to be among the main KPIs during the year in review.
Officers of the Company
The officers of the Company who served during the year were
as follows.
Executive Directors
CG Morton
D Auger
Non-executive Directors
RE Saunders* (Chairman)
WY Hughes*
Directors who are not currently serving but served during
the year
Date of resignation
JC Maples (Previously Non-executive Chairman) 22 January 2008
SL Brown (Previously a Non-executive Director) 22 January 2008
MJ Thomas
†
22 January 2008
AD Wilmott
†
22 January 2008
ACJ Sharp (Previously Non-executive Chairman) 4 July 2007
* Members of the Audit Committee, Remuneration Committee and
Nominations Committee.
†
MJ Thomas & AD Wilmott stepped down from the PLC Board to
concentrate on the organic growth of the business.
Directors’ interests in the shares of the Company, are as follows:
1p Ordinary Shares 1p Ordinary Shares
held at 30 June 2008 held at 1 July 2007
RE Saunders 676,334 676,334
CG Morton 200,000 200,000
D Auger 133,333 133,333
Directors who served during the year but have stepped down.
ACJ Sharp n/a 22,338,000
SL Brown n/a 106,000
JC Maples n/a 135,184
MJ Thomas n/a 2,940,000
Certain Directors and previous Directors also hold interests in
warrants and options over ordinary shares in the Company
and these, as they form part of the Directors’ remuneration,
are set out in the Report of the Remuneration Committee.
Substantial shareholdings
As at 3 December 2008, the following shareholders had each
notified the Company that they held an interest of 3% or more
in the Company’s ordinary share capital:
Name Number of Shares %
ACJ Sharp/Annenberg
Investment Management S.A. 22,338,000 15.5
Allied Gulf Bank 12,500,000 8.7
MBC Investments 11,675,764 8.1
V Flynn 11,619,156 8.0
Cash4All Limited 9,166,667 6.3
Axa Framlington 5,000,000 3.5
In the terms of AIM Rules published February 2007, and
insofar as the Company is aware, at 3 December 2008 18.2%
of the Company’s AIM securities were not in public hands.
Charitable and political donations
The Group made no charitable or political donations during
the year (2007: Nil).
Policy and practice on the payment of creditors
Cashbox PLC’s principal activity is as an investment holding
company and providing finance to the subsidiaries.
Consequently details of the payment terms to its creditors is
not considered useful in isolation. It is the Group’s normal
practice to settle the terms of payment when agreeing the
terms of the transaction, to ensure that suppliers are aware of
those terms, and to abide by them. Trade creditors of the
Group at 30 June 2008 were equivalent to 63 days’ purchases
for the Group (2007: 47 days).
Research and Development
The activities of the Group are such that only limited research
and development is undertaken, as the main work in
developing new ATMs is undertaken by the ATM supplier. 16
Cashbox PLC  Annual Report & Accounts 2008
Report of the Directors continued
for the year ended 30 June 2008
Financial instruments and Subsidiary undertakings
Details of the use of financial instruments by the Company and
its subsidiary undertakings are included in notes 1 and 17 of the
Group financial statements on pages 26 and 41 and notes 1 and
2 of the Company financial statements on pages 52 and 53.
Directors’ indemnity insurance
Directors’ and Officers’ liability insurance is held by the Group.
Principal Risks and Uncertainties
The Directors undertook a review of risks facing the business
as part of the IPO process in March 2006 and again during
2008. The ongoing risks facing the business are formally
considered during the annual budget setting process. 
The Directors believe the following to be the principal risks
and uncertainties faced by the Group:
Legislative and Regulatory Change
The future of Cashbox’s business relies on the ability to
continue to charge a Convenience Fee. The 2005 Treasury
Select Committee report did not recommend any constraints
on Convenience Fee charging and the Directors are not aware
of any future legislation which may have this effect.
Change in ATM Technology or consumer trends
ATM technology is evolving and these changes could result in
the existing estate requiring either updating or becoming
obsolete. Cashbox, in order to mitigate this risk, constantly
monitors developments in ATM technology and works very
closely with its suppliers to ensure that the route is
evolutionary rather than revolutionary.
Cashbox relies on the consumer continuing to accept the
Convenience Fee for withdrawing cash and the frequency of
those cash withdrawals. The Directors constantly monitor the
transaction levels at all of Cashbox’s ATMs to ensure that they
are able to manage this risk.
Key Customers
A significant proportion of Cashbox’s revenues come from a
relatively small number of customers. The loss or failure of
one of these large customers could have a significant impact
on Cashbox’s revenues. The Directors manage the relationships
with the Groups key customers very closely to mitigate this
risk. It should also be noted that the percentage of ATMs held
with these key customers is reducing as the size of the
Cashbox ATM estate grows.
Key Personnel
The Group’s business, services and infrastructure are 
supported by skilled staff. The Group is therefore reliant on its
ability to attract, train and retain the right mix and calibre of
staff.
Key Suppliers
Cashbox is dependent on LINK for both its ability to receive
transaction income and to process transactions. LINK could
raise the charges it levies on Cashbox (and its competitors). 
In addition, Cashbox’s revenues rely on the operation of the
LINK network and a failure of the network would have an
adverse effect on the Group. 
The majority of the ATMs operated by the Group are
purchased from NCR. The Company signed a distributor’s
agreement with Triton during the year, but NCR’s ongoing
commitment and support is required to maintain the current
estate of ATMs particularly the upgrading of machines should
the machines require upgrading to comply with future security
access regulations.
New sites for ATMs
The Group is currently loss making and without significant
cost reductions will only become profitable with a larger
estate of ATMs. Increasing the size of the estate is dependent
on identifying suitable sites for new machines.
Economic conditions
Cashbox is dependent on the Merchants who provide cash for
filling the ATMs. In the current economic climate, there is a
risk that economic difficulties including the impact of reduced
cashflows being experienced by the Merchants could adversely
impact the number of cash withdrawals.
Litigation
Cashbox was party to litigation brought by Hanco ATM Systems
limited which was settled in October 2007 for £1.8million
with payment deferred for up to 2 years. This was replaced in
September 2008 with a five year convertible non secured loan
note. The Company’s subsidiary has the benefit of indemnification
arrangements put in place prior to the listing of the Company
however the indemnification arrangements are disputed and
any failure to recover under the indemnities could adversely
affect the financial position of the Group. Cashbox has been
notified by the Official Receiver that on 14 May 2008 a
bankruptcy order was made against Anthony Sharp. The Company
also believes that Carl Thomas, the other indemnifier, does not
have any unencumbered assets of significant value. Therefore
there is a significant risk that recovery under the indemnities
will be complicated and could take a significant period of time.
Bank Covenants
The Company has a bank loan from Bank of Scotland which
includes financial covenants. If the Company failed to meet
one of these covenants and relief was not provided by the
bank, the loan would be repayable on demand. This risk is
mitigated by a close dialogue with the Bank and agreeing any
remedial steps that may be necessary on a timely basis.
Acquisitions
The Directors believe the market in which the Group operates
is ready for consolidation and opportunities exist to derive
shareholder value from corporate transactions. Any such
transaction carries a degree of risk associated with the price
paid, execution of the transaction and subsequent integration,
and financial performance of the business acquired.
Auditors
All of the current Directors have taken all the steps that they
ought to have taken to make themselves aware of any
information needed by the Company’s auditors for the purposes
of their audit and to establish that the auditors are aware of
that information. The Directors are not aware of any relevant
audit information of which the auditors are unaware. 17
A resolution to re-appoint BDO Stoy Hayward LLP as auditors
was proposed and approved at the last annual general meeting
held on 22 January 2008 and their continued appointment will
be proposed at the next annual general meeting.
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Annual Report
and Accounts in accordance with Companies Acts 1985 and
International Financial Reporting Standards (“IFRS”) as
adopted by the European Union (EU) and have elected to
prepare Company financial statements in accordance with UK
accounting standards.
UK company law requires the Directors to prepare financial
statements for each financial year that give a true and fair
view of the state of affairs of the Company and Group and of
the profit or loss of the Group for that period. 
In preparing those financial statements, the Directors are
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgments and estimates that are reasonable and
prudent;
• state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group will
continue in business.
The Directors are responsible for keeping proper accounting
records which disclose, with reasonable accuracy at any time,
the financial position of the Company and the Group and
enable them to ensure that the financial statements comply
with the Companies Act 1985. They are also responsible for
safeguarding the assets of the Company and the Group and
hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
Financial statements are published on the Group’s website in
accordance with legislation in the United Kingdom governing the
preparation and dissemination of financial statements, which
may vary from legislation in other jurisdictions. The maintenance
and integrity of the Group’s website is the responsibility of the
Directors. The Directors’ responsibility also extends to the
ongoing integrity of the financial statements contained therein.
Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may vary from the
legislation in other jurisdictions.
Going Concern
The Directors have prepared the financial statements on a
going concern basis as described in the Accounting Policies on
page 28. This includes assumptions on the ongoing economic
conditions remaining difficult but without further significant
decline.
Implementation of IFRS
All AIM-quoted companies are required to report financial
results under International Financial Reporting Standards for
accounting periods commencing on or after 1 January 2007. 
As described in the Group Financial Statements, they have
been prepared in accordance with IFRS together with the
restatement of the prior year. The impact of the conversion
was not material and the reported losses were unchanged.
Post balance sheet events
On the 7 July 2008 the Company completed an acquisition of
144 ATMs located with Mitchells and Butler and signed a
new 5 year contract for their placement. 
On 29 July 2008 at an Extraordinary General Meeting of the
Company, the shareholders approved the increase of the
authorised share capital by 850,000,000 1p ordinary shares
to 1,000,000,000 1p ordinary shares.
On 31 July 2008 the Company signed placing agreements for
the issue of 720,000 1p ordinary shares at a placing price of
5p together with the issue of 144,000 warrants to subscribe
for further 144,000 1p ordinary shares at a price of 5p.
On 19 September 2008 the Company restructured the liability
due under the Hanco settlement by agreeing to issue
£1,800,000 convertible unsecured loan notes due 30 September
2013 to West Register (Investments) Limited at the direction of
Hanco ATM Systems Limited (“Hanco) to satisfy the
£1,800,000 liability to Hanco under the settlement agreement
dated 17 October 2007. The notes accrue interest at a fixed
rate of 5% per annum previously fixed at 20% per annum for
2008/09 in the original settlement and are now repayable by 30
September 2013 (the ‘Redemption Date’), whereas the original
agreement had been due for settlement by October 2009.
On 25 September 2008 the Company signed placing
agreements for the issue of 17,500,000 1p ordinary shares at
a placing price of 5p together with the issue of 3,500,000
warrants to subscribe for further 3,500,000 1p ordinary
shares at a price of 5p.
On 3 October the Company raised 6,250,000 ordinary shares
at a placing price of 5p.
On 9 October the Company completed a series of transactions
acquiring the ATMs and underlying site agreements of Cash4All
Limited, a competitor for a total consideration of £1,672,340.
On 31 December 2008 the Company raised £1.5m through the
issue of a convertible loan note carrying a coupon of 8%.
By order of the Board
David Auger
Director and Company Secretary
31 December 2008 18
Cashbox PLC  Annual Report & Accounts 2008
Corporate Governance
AIM-listed companies are not required to comply with the
disclosure requirements of the Combined Code on Corporate
Governance. However, Cashbox PLC is committed to high
standards of corporate governance. 
The Board of Directors is accountable to the Group’s
shareholders for good corporate governance. The following
statement outlines how the Group applies the principles of
good corporate governance.
Directors and Board
The Group is controlled on behalf of its shareholders by the
Board of Directors. The Board is made up of two Executive
Directors and two Non-executive Directors including the
Chairman. 
The roles of Chief Executive Officer and Chairman are
separate and there is a clear division of their responsibilities.
The Non-executive Directors bring their independent
judgement to all issues related to strategy, performance, 
key appointments and resources.
The Board has considered whether the warrants issued to
three of the Non-executive Directors who served during the
year as described in the remuneration report impacts their
independence. The Board is of the view that their strength of
character and judgement are such that this in no way impairs
their independence and the cost of providing alternative
remuneration would not be in the best interests of
shareholders and the Company at the present time.
The Company Secretary is responsible for ensuring that board
procedures are followed and that applicable rules and
regulations are complied with. The Directors have access to
the Company Secretary for advice on Board procedures.
All Directors have the ability to take independent professional
advice at the Group’s expense should they consider it
necessary.
The Board meets regularly, currently monthly. In the year
ended 30 June 2008 the Board formally met 12 times with a
further 14 meetings via telephone.
Board papers including management accounts and matters for
approval are produced and circulated to the Board in advance
of the meeting by the Chief Financial Officer and Company
Secretary. Formal minutes are produced and circulated for
comment and formally approved. In the event that a Director
has concerns that cannot be resolved about the running of the
Group or a proposed action, they have the right to have their
concerns minuted. In the event of a Director’s resignation,
they are encouraged to write to the Board confirming whether
they have any such concerns.
Committees
The Board has established three committees, the Nominations
Committee, the Audit Committee and the Remuneration
Committee. There are written terms of reference for all the
committees.
The Nominations Committee consists of William Hughes
(Chairman of the Committee) and Robin Saunders and
considers appointments to the Board in consultation with the
other Directors as appropriate. The Nominations Committee
has committed to considering how the performance of the
Board will be evaluated together with reviewing the roles and
capabilities with job specifications within the next year.
The Audit Committee, comprising William Hughes (Chairman
of the Committee) and Robin Saunders, has been established
to determine the application of the financial reporting and
internal control principles, including reviewing the
effectiveness of the Group’s financial reporting, internal
control and risk management procedures and the scope,
quality and results of the external audit. 
The Audit Committee meets at least twice a year with the
external auditors.
The Remuneration Committee, comprising Robin Saunders
(Chairman of the Committee) and William Hughes, has been
established to review the performance of the Executive
Directors and will set their remuneration and consider bonus
and share option schemes. No Director will participate in
discussions relating to their own remuneration.
The Report of the Remuneration Committee is set out on pages
19 to 21.
Risk management and internal control
The entire Board is responsible for managing the risks of the
Group and employs senior employees with appropriate
knowledge and skills to effectively manage the operational
and financial risks of the business.
Internal audit
The Board considers an internal audit function to be
inappropriate for a Group the size of Cashbox.
The Audit Committee will review this position annually with 
a view to establishing such a function when the Group is of
appropriate size and complexity.
Relations with shareholders
The Board recognises the importance of the effective
communication with the Group’s owners. The Group
communicates to investors through its interim and annual
results and also press releases issued via the London Stock
Exchange. 
The Group regularly updates its website, at
www.cashboxplc.co.uk, with information including press
releases and is compliant with AIM rule 26.
The Board uses the Annual General Meeting to communicate
with private and institutional shareholders and welcomes their
participation.
All shareholders will have at least 21 days clear notice of the
Annual General Meeting at which the Directors will be
available to discuss aspects of performance and management
in more detail.
All Directors are subject to re-election by Shareholders at the
first Annual General Meeting after their appointment and
thereafter at three yearly intervals. 19
Report of the Remuneration Committee
Introduction
As a company listed on AIM, Cashbox PLC is not required to
present a Directors’ remuneration report. However, as part of
the Board’s commitment to good corporate governance, some
voluntary disclosures have been given.
The Remuneration Committee has considered the Combined
Code in setting its remuneration policy and in the reporting of
remuneration.
Remuneration policy
The Remuneration Committee is responsible for determining
the Group’s policy for executive remuneration and the
individual packages for the Executive Directors as well as
remuneration policies for all staff. Remuneration levels are set
to attract, retain and motivate high calibre individuals.
Remuneration of Executive Directors
The Executive Directors are awarded a package comprising a
mix of basic salary and performance related elements
designed to incentivise.
The packages comprise the following elements:
• Basic salary – Basic salaries are reviewed annually and are
set to reflect responsibilities and the skills, knowledge and
experience of the individual.
• Bonus scheme – the Executive Directors are eligible to
receive a bonus dependent on both their and the Group’s
performance against guidelines determined by the
Remuneration Committee. The bonus targets are designed to
be challenging with an “on target” payout equivalent to
50% of base salary with a maximum payout of up to 100%
of base salary. For the year ended 30 June 2008 the targets
were based on number of installations of ATMs and
profitability levels. The minimum targets were not achieved
and no bonus is payable.
• Share options – These are discussed below.
• Other benefits – The Group makes a contribution into a pension
scheme (or makes a payment equivalent in value), and also
pays life assurance, permanent health insurance and private
medical insurance as well as a contribution to fuel costs.
The Executive Directors are all engaged under separate
contracts which require a notice period of 12 months to be
given by the Company.
Share options
The Group believes that share options are an appropriate and
very important method of incentivising staff and allowing
valuable members of staff to share in the success of the Group.
Employees (excluding Directors) are eligible to receive share
options after 12 months service and may be offered options
under the Company’s EMI share option scheme. 
Executive Directors are awarded share options at the discretion
of the Remuneration Committee. All recent and future share
options will be granted at the mid-market closing value of the
Company’s ordinary shares on the day prior to grant.
Remuneration of Non-executive Directors
The fees paid to the Non-executive Directors are determined
by the Board. In addition to fees the Non-executive Directors
are eligible to receive warrants to purchase shares in the
Company at a level determined and approved by the Board.
The Non-executive Directors do not receive any other forms
of benefits, such as health insurance. The total level of
remuneration for the Non-executive Directors is considered in
relation to the commitment and responsibilities undertaken.
The Non-executives’ appointments are for an initial period of
one year which may be terminated early if they give three
months notice. The contracts of the Non-executive Directors
are reviewed by the Board annually.
Directors’ detailed emoluments and compensation
The Directors received or are due the following emoluments in relation to the year ended 30 June 2008.
Gross Salary/ Pension 2008 2007
Fees Bonus contributions Benefits Total Total
££ £ £ £ £
Current Directors
D Auger† 162,277 – – 831 163,108 40,438
WL Hughes 20,000 – – – 20,000 5,000
CG Morton* 180,765 – – – 180,765 38,516
RE Saunders
‡
20,000 – – – 20,000 20,000
383,042 – – 831 383,873 103,954 20
Cashbox PLC  Annual Report & Accounts 2008
Report of the Remuneration Committee continued
MJ Thomas remains as a senior executive with the Group and
is a Director of the Group’s principal operating subsidiary.
AD Wilmott remained as a senior executive with the Group
and a Director of the Group’s principal operating subsidiary
until 3 October 2008 when he left the Group. For the period
from 22 January to 30 June 2008, they received further
remuneration as follows:
Gross Salary/ Pension 2008 2007
Fees Bonus contributions Benefits Total T otal
££ £ £ £ £
MJ Thomas 57,973 – – 733 58,706 –
AD Wilmott 52,960 – 3,500 – 56,460 –
110,933 3,500 733 115,166 –
No bonus is payable to any Director for the year under review as the Company failed to reach the minimum threshold in the
Annual Bonus Plan.
Directors’ detailed emoluments and compensation continued
Gross Salary/ Pension 2008 2007
Fees Bonus contributions Benefits Total T otal
££ £ £ £ £
Previous Directors
SL Brown 16,667 – – – 16,667 20,000
JC Maples** 24,923 – – – 24,923 12,559
MJ Thomas 69,868 – – 889 70,757 129,715
AD Wilmott 67,132 – 3,500 – 70,632 52,487
CL Hallett** –– – – – 131,538
ACJ Sharp –– – – – 120,000
CJ Thomas –– – – – 165,045
D Woolsgrove –– – – – 101,311
178,590 – 3,500 889 182,979 732,655
561,632 – 3,500 1,720 566,852 836,609
* CG Morton was appointed on 12 April 2007 and became eligible to receive director’s remuneration from this date.
† D Auger was appointed on 2 April 2007 and became eligible to receive director’s remuneration from this date.
‡ RE Saunders fees were accrued during the year but were not paid, the total outstanding at 30 June 2008 was £45,000 (2007: £25,000).
MJ Thomas, AD Wilmott, JC Maples and SL Brown all stepped down from the Board on 22 January 2008 and the above emoluments are for the period to that date.
** JC Maples fees includes £7,500 as compensation for loss of office representing three months remuneration. CL Hallett received £41,344 in lieu of notice
(included above) together with £20,172 as an exgratia payment (not included above). 21
Executive Directors’ together with Senior Executives’ share options are as follows:
Options* Granted / Options
outstanding (cancelled) outstanding
at the start during at the end Exercise price Earliest Latest 
of the year the year of the year (pence) exercise exercise
Executive Directors
CG Morton
Award Two 2,000,000 – 2,000,000 18.00 25-4-2009 25-4-2017
D Auger
Award Two 800,000 – 800,000 18.00 25-4-2009 25-4-2017
Senior Executives
MJ Thomas
Award One 800,000 – 800,000 24.75 29-3-2008 29-3-2016
AD Wilmott
1p IPO Options 300,000 – 300,000 1.00 29-3-2006 29-3-2016*
Award One 175,000 – 175,000 24.75 29-3-2008 29-3-2016*
Award Two 325,000 – 325,000 18.00 25-4-2009 25-4-2017*
* AD Wilmott left the Group on 3 October 2008 and his Award One and Award T wo options lapsed on that date. The 1p IPO Options lapse on 3 April 2010.
Current and previous Non-executive Directors then serving received warrants during 2006. The amounts outstanding during the
year are as follows:
Warrants Granted / Warrants
outstanding (cancelled) outstanding
at the start during at the end Exercise price Earliest Latest 
of the year the year of the year (pence) exercise exercise
RE Saunders 500,000 – 500,000 20.00 29-3-06 29-3-2016
SL Brown 500,000 – 500,000 20.00 6-12-06 29-3-2016
JC Maples 500,000 – 500,000 20.00 6-12-06 29-3-2016
William Hughes
Non-executive Director
31 December 2008 22
Cashbox PLC  Annual Report & Accounts 2008
Independent Auditors’ Report 
to the Shareholders of Cashbox Public Limited Company
We have audited the group and parent company financial
statements (the “financial statements”) of Cashbox Public
Limited Company for the year ended 30 June 2008 which
comprise the Consolidated Income Statement, the Consolidated
Statement of Changes in Equity, the Consolidated Balance
Sheet, the Consolidated Cash Flow Statement, the Notes to the
Consolidated Financial Statements, the Company Balance
Sheet and the Notes to the Company Financial Statements.
These financial statements have been prepared under the
accounting policies set out therein.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual 
Report and the group financial statements in accordance 
with applicable law and International Financial Reporting
Standards (IFRSs) as adopted by the European Union, 
and for preparing the parent company financial statements 
in accordance with applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted
Accounting Practice) are set out in the Statement of 
Directors’ Responsibilities. 
Our responsibility is to audit the financial statements in
accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view and have been properly
prepared in accordance with the Companies Act 1985 and
whether the information given in the Directors’ Report is
consistent with those financial statements. We also report to
you if, in our opinion, the company has not kept proper
accounting records, if we have not received all the information
and explanations we require for our audit, or if information
specified by law regarding directors’ remuneration and other
transactions is not disclosed. 
We read other information contained in the Annual Report
and consider whether it is consistent with the audited financial
statements. The other information comprises only the Business
Highlights, Industry Overview, the Description of Cashbox
business, the Chairman’s Statement, the Chief Executive’s
Review, the Chief Financial Officer’s Review, Board of
Directors and Key Management, Directors, Secretary and
Advisers, the Corporate Governance Statement, the Report of
the Directors’ together with the Report of the Remuneration
Committee. We consider the implications for our report if we
become aware of any apparent misstatements or material
inconsistencies with the financial statements. Our
responsibilities do not extend to any other information
Our report has been prepared pursuant to the requirements of
the Companies Act 1985 and for no other purpose. No person
is entitled to rely on this report unless such a person is a
person entitled to rely upon this report by virtue of and for the
purpose of the Companies Act 1985 or has been expressly
authorised to do so by our prior written consent. Save as
above, we do not accept responsibility for this report to any
other person or for any other purpose and we hereby expressly
disclaim any and all such liability.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test basis,
of evidence relevant to the amounts and disclosures in the
financial statements. It also includes an assessment of the
significant estimates and judgments made by the directors in
the preparation of the financial statements, and of whether the
accounting policies are appropriate to the group’s and company’s
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary
in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements are free
from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated
the overall adequacy of the presentation of information in the
financial statements.
Opinion
In our opinion: 
• the group financial statements give a true and fair view, in
accordance with IFRSs as adopted by the European Union,
of the state of the group’s affairs as at 30 June 2008 and 
of its loss for the year then ended;
• the parent company financial statements give a true and
fair view, in accordance with United Kingdom Generally
Accepted Accounting Practice, of the state of the parent
company’s affairs as at 30 June 2008;
• the financial statements have been properly prepared in
accordance with the Companies Act 1985; and
• the information given in the Directors’ Report is consistent
with the financial statements. 
Emphasis of matter – going concern
In forming our opinion on the financial statements, which is
not qualified, we have considered the adequacy of the
disclosures made in note 1 to the financial statements
concerning the Company’s ability to continue as a going concern. 
In the event that the key assumptions in the projected
cashflow forecasts are not met, the Company may have
insufficient cash to meet its working capital requirements and
may have to seek additional funding. However, there is no
guarantee that further funding will be secured. 
These conditions along with other matters disclosed in note 1 to
the financial statements, indicate the existence of a material
uncertainty which may cast significant doubt about the
Company’s ability to continue as a going concern. The financial
statements do not include the adjustments that would result if
the Company was unable to continue as a going concern.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
Reading
31 December 2008 23
2008 2007
£’000 £’000
Opening shareholders’ deficit (3,520) (180)
Loss for the financial period being the total recognised income and expenditure for the year (3,003) (6,741)
Share based remuneration 133 138
Issue of shares for cash including premium net of costs 459 3,263
Issue of shares including premium on conversion of convertible loan stock 583 –
(1,828) (3,340)
Closing shareholders’ deficit (5,348) (3,520)
The changes in each individual component of equity is shown in note 19 on page 46.
The notes on pages 26 to 50 form an integral part of these consolidated financial statements.  
2008 2007
Notes £’000 £’000
Revenue 2 4,675 4,380
Cost of sales (2,907) (3,219)
Gross profit 1,768 1,161
Administration expenses (4,252) (5,093)
Exceptional items:
Litigation settlement costs 3 – (2,000)
T otal administration expenses 4 (4,252) (7,093)
Operating loss (2,484) (5,932)
Finance income 46 37
Finance costs 7 (565) (161)
Exceptional finance charges 3 – (685)
(519) (809)
Loss for the year attributable to the equity holders of the parent company (3,003) (6,741)
Loss per ordinary share (pence) 9
Basic (3.4) (10.5)
Diluted (3.4) (10.5)
Loss for the year attributable to the equity holders of the parent company 
excluding exceptional items 9 (3,003) (4,056)
Consolidated Income Statement
For the year ended 30 June 2008
Consolidated Statement of Changes in Equity
For the year ended 30 June 2008 24
Cashbox PLC  Annual Report & Accounts 2008
Consolidated Balance Sheet
As at 30 June 2008
2008 2007
Notes £’000 £’000
ASSETS
Non current assets
Intangible assets 10 53 13
Property, plant and equipment 11 2,081 1,077
2,134 1,090
Current Assets
Inventories 12 165 110
Trade and other receivables 13 657 850
Cash and cash equivalents 14 1,112 1,452
1,934 2,412
TOTAL ASSETS 4,068 3,502
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 15 4,159 4,715
Borrowings 16 5,254 2
9,413 4,717
Non current liabilities
Borrowings 16 3 2,305
3 2,305
TOTAL LIABILITIES 9,416 7,022
Capital and reserves attributable to equity holders
Share capital 18, 19 1,044 832
Share premium account 18, 19 7,755 6,925
Merger reserve 19 2,180 2,180
Equity reserve 19 – –
Profit and loss account 19 (16,327) (13,457)
(5,348) (3,520)
TOTAL EQUITY AND LIABILITIES 4,068 3,502
The financial statements were approved and authorised for issue by the Board on 31 December 2008 and were signed on its behalf by:
Ciaran Morton David Auger
Director Director
The notes on pages 26 to 50 form an integral part of these consolidated financial statements. The Company only balance sheet of Cashbox
PLC is shown on page 51. 25
Consolidated Cash Flow Statement
For the year ended 30 June 2008
2008 2007
Notes £’000 £’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash used in operations 21 (2,302) (2,440)
Interest paid (350) (150)
Net cash used in operating activities (2,652) (2,590)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (1,495) (687)
Purchase of intangible fixed assets (60) (6)
Net cash used in investing activities (1,555) (693)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds of issue of ordinary shares for cash 18, 19 476 584
Proceeds from borrowings 3,393 5,600
Repayments of borrowings – (130)
Capital repayments on finance leases (2) (1,388)
Lease termination costs paid 3 – (467)
Net cash generated from financing activities 3,867 4,199
Net (decrease)/increase in cash (340) 916
Cash and cash equivalents at the beginning of the year 1,452 536
Cash and cash equivalents at the end of the year 1,112 1,452
The notes on pages 26 to 50 form an integral part of these financial statements. 26
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements
For the year ended 30 June 2008
1. ACCOUNTING POLICIES
Accounting convention
The consolidated financial statements of Cashbox PLC have been prepared in accordance with International Financial Reporting Standards,
International Accounting Standards and IFRIC interpretations (collectively IFRS) as adopted by the European Union and the Companies
Act 1985 applicable to Companies reporting under IFRS. The consolidated financial statements have been prepared under the historical cost
convention as modified by the revaluation of land and buildings, available-for-sale financial assets, and financial assets and financial liabilities
(including derivative instruments) at fair value through the income statement.
The accounting policies have changed from the previous year when the financial statements were prepared under applicable United Kingdom
Generally Accepted Accounting Principles (UK GAAP). The comparative information has been restated in accordance with IFRS. 
The accounting policies that have been applied in the opening balance sheet have also been applied throughout all periods presented in these
financial statements. These accounting policies comply with IFRSs that are mandatory for accounting periods ending on 30 June 2008.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement
or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed below.
Impact of conversion to IFRS:
In implementing the transition to IFRS, the Group has followed the requirements of IFRS 1 “First Time Adoption of International Financial
Reporting Standards”, which in general requires IFRS accounting policies to be applied fully retrospectively in deriving the opening balance
sheet at the date of transition. In the Group’s case, the date of transition is 1 July 2006 being the start of the previous period that has been
presented as comparative information. IFRS 1 contains certain mandatory exceptions and some optional exemptions to this principle of
retrospective application. When preparing the Group’s IFRS balance sheet at 1st July 2006, the date of transition, the Group has taken the
optional exemption in IFRS 1 to apply the provisions of IFRS 3: Business Combinations from 1 July 2006 and not applied the provisions of
IFRS 3 to the acquisition of Cashbox ATM Systems Limited by Cashbox PLC on 23 March 2006 which has been accounted for under merger
accounting rules as described below in ‘basis of consolidation’. 
The adoption of IFRS represents an accounting change only and does not affect the operations or cash flows of the Group. 
The principal area of impact is that purchased computer software costs were previously recorded as property, plant and equipment as
permitted by UK GAAP . In accordance with IAS 38, all purchased computer software is recorded as an intangible asset. The impact of this
adjustment was to reduce the net book value of property, plant and equipment by £14,000 as at 1 July 2006 and £13,000 as at 30 June
2007 with a corresponding increase in intangible assets. There was no net impact on the income statement for the year ended 30 June 2007
or on shareholders’ equity at 1 July 2006 or 30 June 2007. Consequently a reconciliation schedule is not required.
(a) Relevant standards, amendments and interpretations effective for the year ended 30 June 2008
IFRS 7, ‘Financial instruments: Disclosures’, and the complementary amendment to IAS 1, ‘Presentation of financial statements – Capital
disclosures’, introduces new disclosures relating to financial instruments and does not have any impact on the classification and valuation of
the Group or Company’s financial instruments. 
IFRIC 8, ‘Scope of IFRS 2’, requires consideration of transactions involving the issuance of equity instruments, where the identifiable
consideration received is less than the fair value of the equity instruments issued in order to establish whether or not they fall within the scope
of IFRS 2. This standard does not have any impact on the Group’s financial statements. The Company already applies an accounting policy
which complies with the requirements of IFRIC 8.
IFRIC 10, ‘Interim financial reporting and impairment’, prohibits the impairment losses recognised in an interim period on goodwill and
investments in equity instruments and in financial assets carried at cost to be reversed at a subsequent balance sheet date. This standard does
not have any impact on the Group’s financial statements.
IFRIC 11, ‘IFRS 2 – Group and treasury share transactions’ provides guidance on whether share-based transactions involving treasury shares
or involving group entities (for example, options over a parent’s shares) should be accounted for as equity-settled or cash-settled share-based
payment transactions in the stand-alone accounts of the parent and group companies. This interpretation has not had any impact on the Group’s
financial statements. 27
1. ACCOUNTING POLICIES continued
(b) Standards, amendments and interpretations effective for the year ended 30 June 2008 or are effective from 1 July 2008
but not relevant
The following standards, amendments and interpretations to published standards are mandatory for accounting periods beginning on or
after 1 July 2007 but they are not relevant to the Group or Company’s operations:
Revised guidance on implementing IFRS 4, ‘Insurance contracts’;
IFRIC 9, ‘Re-assessment of embedded derivatives’.
Amendments to IAS 39 and IFRS 7, ‘Reclassification of Financial Instruments’.
(c) Standards, amendments and interpretations to existing standards that are not yet effective and have not been early
adopted by the Group
The following standards, amendments and interpretations to existing standards have been published and are mandatory for the group’s
accounting periods beginning on or after 1 July 2008 or later periods, but the Group has not early adopted them:
IAS 1 Presentation of Financial Statements revised. The standard replaces the previous IAS 1 revised for periods beginning on or after 
1 January 2009 and with respect to the Group will be effective for the year ended 30 June 2010.
IAS 23 (Amendment), ‘Borrowing costs’ (effective from 1 January 2009). The amendment to the standard is still subject to endorsement by
the European Union. It requires an entity to capitalise borrowing costs directly attributable to the acquisition, construction or production of
a qualifying asset (one that takes a substantial period of time to get ready for use or sale) as part of the cost of that asset. The option of
immediately expensing those borrowing costs will be removed. The group will apply IAS 23 (amended) from 1 January 2009, subject to
endorsement by the EU but it is currently not applicable to the Group as there are no qualifying assets.
IFRS 1 First time adoption of International Financial Reporting Standards (revised) (effective from 1 January 2009). These revisions are
still to be endorsed by the EU but are not expected to impact the Company Amendments to IAS 32 and IAS 1 Puttable Financial Instruments
and obligations arising on liquidation (effective from 1 January 2009). These amendments are still to be endorsed by the EU but are not
expected to impact the Company.
IFRS 2 Amendment to share based payments (effective from 1 January 2009). The amendment to the standard is still subject to endorsement
by the European Union. The amendment concerns vesting conditions and cancellation. The group will apply IFRS 2 (amended) for the year
ended 30 June 2010, subject to endorsement by the EU.
IFRS 8, ‘Operating segments’ (effective from 1 January 2009). The standard replaces IAS 14 and aligns segment reporting with the
requirements of the US standard SFAS 131, ‘Disclosures about segments of an enterprise and related information’. The new standard
requires a ‘management approach’, under which segment information is presented on the same basis as that used for internal reporting purposes.
The Group will apply IFRS 8 from 1 July 2009. The expected impact is still being assessed in detail by management, but it appears unlikely
that the number of reportable segments, as well as the manner in which the segments are reported, will change.
IFRS 3 Business combinations (revised). The standard continues to apply the acquisition method to business combinations, with some
significant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with some
contingent payments subsequently re-measured at fair value through income. Goodwill may be calculated based on the parent’s share of net
assets or it may include goodwill related to the minority interest. All transaction costs will be expensed. These changes will affect how the
Group reports any subsequent acquisitions but will not be effective until such time as it makes any.
Amendments to IFRS 1 and IAS 27 Cost of an Investment in a Subsidiary, Jointly-Controlled Entity or Associate (effective for accounting
periods beginning on or after 1 January 2009). These amendments are still to be endorsed by the EU. The amendments permits the entity
at its date of transition to IFRSs in its separate financial statements to use a deemed cost to account for its investment in subsidiary, jointly
controlled entity or associate. The deemed cost of such investment could be either the fair value of the investment at the date of transition,
which would be determined in accordance with IAS 39 Financial instruments: Recognition and Measurement or; the carrying amount of the
investment under previous GAAP at the date of transition. Management is currently assessing the impact of the Amendment on the accounts.
Improvements to IFRS (effective for accounting periods beginning on or after 1 July 2009). This improvements project is still to be endorsed
by the EU. The amendments take various forms, including the clarification of the requirements of IFRS and the elimination of inconsistencies
between Standards. Management is currently assessing the impact of the Amendment on the accounts. 28
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
1. ACCOUNTING POLICIES continued
(d) Interpretations to existing standards that are not yet effective and not relevant for the Group’s operations
The following interpretations to existing standards have been published and are mandatory for the Group’s accounting periods beginning on
or after 1 April 2008 or later periods but are not relevant for the Group’s operations:
IFRIC 12, ‘Service concession arrangements’
IFRIC 13, ‘Customer loyalty programmes’
IFRIC 14, ‘IAS 19 – The limit on a defined benefit asset, minimum funding requirements and their interaction’
IFRIC 15, ‘Agreements for the construction of real estate’.
IFRIC 16, ‘Hedges of a net investment in a foreign operation’.
Going concern
The Directors have prepared projected cash flow information for a period including twelve months from the date of approval of these accounts.
Key assumptions are the rate of installation of new machines, the number of transactions per ATM and the fee per transaction all of  which
the Directors believe are reasonable. The installation of new ATMs or redeployment of ATMs with low transaction volumes to new sites with
higher transactions is dependent on such sites continuing to be identifiable and available. These assumptions include an assessment of the
impact of the current economic uncertainty on the company but does not include the potential impact of a significant worsening of the
situation given the inherent uncertainty as to the extent of such worsening and that the impact would have a number of mixed effects on
Cashbox’s business. The projections include cashflows to Bank of Scotland being quarterly interest payments together with the repayment
of principal commencing December 2009. A significant worsening of the economic situation may adversely impact upon the key assumptions
within the projected cash flow information and result in insufficient cash being generated to meet the capital repayments to the bank which
are due to start in twelve months time and may result in insufficient cash being generated to meet working capital requirements. In the event
that the economy does significantly weaken, the Directors may seek additional funding to ensure all payments can be met. On the basis of
this cash flow information, and discussions with and the continued support of the Group’s bankers, the Directors are confident, based on current
results, projections and the Group’s cash position at the date of the approval of these 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 the
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 cash flows.
Basis of consolidation
The consolidated financial statements comprise the Cashbox Public Limited Company together with Cashbox ATM Systems Limited (“principal
operating company”), together with Cashbox No 1 Limited, Cashbox No 2 Limited and Cashbox Finance Limited, all wholly owned either
directly or indirectly by Cashbox PLC, for the year to 30 June 2008 with comparative information for the year ended 30 June 2007. 
The consolidated financial statements present the results of the Company and its subsidiaries (“the Group”) as if they formed a single entity.
All inter-company balances and transactions have been eliminated upon consolidation.
The merger reserve arose on the combination of Cashbox ATM Systems Limited with Cashbox PLC on 23 March 2006 as the combining
entities within the Group were controlled by the same parties both before and after the combination. 
Principal accounting policies
The principal accounting policies of the Group, which are considered to be most appropriate to the Group’s circumstances, are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated. 
Revenue
Revenue represents the value of goods sold and services provided during the year, stated exclusive of Value Added Tax. Transaction income
is recognised in the period in which the transaction took place. Income from the sale of Automated Teller Machines (ATMs) is recognised
when each ATM is installed in its first location.
Segmental reporting
The Directors in considering the disclosure of business segments have considered the following definitions: A business segment is a distinguishable
component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that
is subject to risks and returns that are different from those of other business segments. A geographical segment is a distinguishable component
of an enterprise that is engaged in providing products or services within a particular economic environment and that is subject to risks and
returns that are different from those of components operating in other economic environments. On this basis, in the opinion of the Directors,
the Group has only one Segment at present. This will be reviewed at least annually. 29
1. ACCOUNTING POLICIES continued
Foreign currency translation
The consolidated financial statements are presented in pounds sterling (‘£’), which is the company’s functional and presentational currency.
Transactions in foreign currencies are translated at the exchange rate ruling at the date of transaction. Foreign currency transactions are
translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement.
Exceptional items 
Exceptional items are those significant items which are separately disclosed by virtue of their size or incidence to enable a full understanding
of the Group’s financial performance.
Website development costs
Expenditure incurred on maintaining websites and expenditure incurred on developing websites used only for advertising and promotional
purposes are written off as incurred.
Intangible assets
Intangible assets comprise computer software licences acquired and are capitalised on the basis of separately identifiable costs incurred to
acquire and bring into use specific software less accumulated amortisation and any impairment in value.
Amortisation on intangible assets
Amortisation is provided on intangible assets which have a finite useful economic life to write off the cost, less estimated residual values,
evenly over their expected useful lives on a straight line basis. Lives used for this purpose are:
–  Computer software 3 years
Property, plant and equipment
Property, plant and equipment are held at cost being the purchase price and other costs directly attributable to bringing the asset into use
less accumulated depreciation and any impairment in value.
Depreciation on property, plant and equipment
Depreciation is provided on property, plant and equipment to write off the cost, less estimated residual values, evenly over their expected useful
lives on a straight line basis. Lives used for this purpose are:
–  Automated teller machines 5 years
–  Furniture and fittings 3 years
–  Office equipment 3 years
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 lower of the fair value of the leased property and 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 income statement 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 income
statement 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 element of the payment reduces the amount payable to the lessor. 
All other leases are treated as operating leases. Their annual rentals are charged or credited to the income statement 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.  30
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
1. ACCOUNTING POLICIES continued
Onerous leases
Where the unavoidable costs of a lease exceed the economic benefit expected to be received from it, a provision is made for the present value
of the obligations under the lease.
Impairment of non-current assets
Assets that are subject to amortisation or depreciation are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes
of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating
units). Non-current assets other than goodwill that suffer an impairment are reviewed for possible reversal of the impairment at each
reporting date.
Inventories
Inventories 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.
Financial assets
The Group has classified all its financial assets as loans and receivables. This is based on the classification of the financial assets at initial
recognition by Management. These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified
as non-current assets. The Group’s loans and receivables comprise ‘trade and other receivables’ and ‘cash and cash equivalents’ in the
balance sheet.
Trade receivables
Trade receivables are recognised initially at invoiced value, less provision for impairment, and if materially different adjusted to fair value
and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment
of trade receivables is established when there is objective evidence that the group will not be able to collect all amounts due according
to the original terms of the receivables. The amount of the provision is the difference between the asset’s carrying amount and the
present value of estimated future cash flows, discounted at the original effective interest rate.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original
maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance
sheet.
The Group has not classified any of its financial assets under the following headings:
–  Assets held to maturity
–  In money derivatives - held for trading
–  Available for sale financial assets.
Financial liabilities
The Group classifies all its financial liabilities (other than those in a qualifying hedging relationship) as other financial liabilities and includes
the following:
Trade payables
Trade payables are recognised at invoiced value and if materially different adjusted to fair value and subsequently measured at amortised
cost using the effective interest method.
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost;
any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the
period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the group has an
unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. 31
1. ACCOUNTING POLICIES continued
Share capital
Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability.
The Group’s ordinary shares are classified as equity instruments.
Convertible debt
The proceeds received on issue of the Group’s convertible debt are allocated into their liability and equity components. The amount
initially attributed to the debt component equals the discounted cash flows using a market rate of interest that would be payable on a
similar debt instrument that does not include an option to convert. Subsequently, the debt component is accounted for as a financial liability
measured at amortised cost (see above). On conversion, the equity component in reserves is taken to the share premium account.
The Group has not classified any of its financial liabilities as liabilities under the following headings:
–  Out of money derivatives - held for trading.
Derivative financial instruments and hedge accounting
The Group has considered the requirements of IFRS 7 and has adopted the following policies although no items were applicable in the
current year.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their
fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and
if so, the nature of the item being hedged. Derivatives may be designated as either:
(a) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge);
(b) hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge); 
or
(c) hedges of a net investment in a foreign operation (net investment hedge)
The group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk
management objectives and strategy for undertaking various hedging transactions. The group also documents its assessment, both at hedge
inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes
in fair values or cash flows of hedged items.
Hedge accounting is applied to financial assets and financial liabilities only where all of the following criteria are met: 
–  At the inception of the hedge there is formal designation and documentation of the hedging relationship and the group’s risk management
objective and strategy for undertaking the hedge.
–  For cash flow hedges, the hedged item in a forecast transaction is highly probable and presents an exposure to variations in cash flows
that could ultimately affect profit or loss.
–  The cumulative change in the fair value of the hedging instrument is expected to be between 80-125% of the cumulative change in the
fair value or cash flows of the hedged item attributable to the risk hedged (i.e. it is expected to be highly effective).
–  The effectiveness of the hedge can be reliably measured.
–  The hedge remains highly effective on each date it is tested. The Group has chosen to test the effectiveness of its hedges on a quarterly
basis.
At the 30 June 2008 and in the financial year then ended, together with the preceding financial year, no asset or liability met the requirements
for hedge accounting.
Finance costs
Finance costs are charged to the income statement over the term of the debt so that the amount charged is at a constant rate on the carrying
amount. Finance costs include issue costs, which are initially recognised as a reduction in the proceeds of the associated capital instrument.
Current and deferred taxation
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. 32
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
1. ACCOUNTING POLICIES continued
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income
tax liability is settled. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised. Deferred tax balances are not discounted.
Pension costs
Contributions to Cashbox ATM Systems Limited’s defined contribution pension scheme are charged to the income statement in the year in
which they become payable. 
Reimbursements under indemnity agreements
Amounts recoverable under indemnity agreements are treated as reimbursements and, unless virtually certain, are only recognised on receipt.
Share-based employee remuneration
The Group has adopted IFRS 2 ‘Share based payments’ which is obligatory for periods commencing on or after 1 January 2006. The Group
issues equity settled share based payments including share options and warrants to certain Directors and employees. The fair value of the
employee services received in exchange for the grant of the options is recognised as an expense. Equity-settled share based payments are
measured at fair value at the date of grant using an appropriate option pricing model. The fair value determined at the date of grant is expensed
to the income statement on a straight line basis over the vesting period. Non-market vesting conditions are taken into account by adjusting
the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the
vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options
granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied.
The cumulative expense is not adjusted for failure to achieve a market vesting condition. At the balance sheet date the cumulative change in
respect of each award is adjusted to reflect the actual levels of options vesting or expected to vest.
Critical accounting estimates and judgements
In preparing the consolidated financial statements, management has to make judgements on how to apply the group’s accounting policies
and make estimates about the future. The critical judgements that have been made in arriving at the amounts recognised in the consolidated
financial statements and the key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the
carrying value of assets and liabilities in the next financial year, are discussed below.
Useful lives of intangible assets and property, plant and equipment
Intangible assets and property, plant and equipment are amortised or depreciated over their useful lives. Useful lives are based on the
management’s estimates of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness.
Changes to estimates can result in significant variations in the carrying value and amounts charged to the consolidated income statement in
specific periods.
Fair value of financial assets and liabilities 
The Group determines the fair value of financial instruments that are not quoted, using valuation techniques. Those techniques are significantly
affected by the assumptions used, including discount rates and estimates of future cash flows. In that regard, the derived fair value estimates
cannot always be substantiated by comparison with independent markets and, in many cases, may not be capable of being realised immediately.
Amounts recoverable under indemnities
As described in notes 13 and 25, the settlement costs of the Hanco litigation are recoverable from Anthony Sharp (previously Chairman and
a significant shareholder) and Carl Thomas (previously Chief Executive Officer). In considering the likelihood of recovery under the indemnity,
judgement has been used in forming the view that while receipt is eventually anticipated, it is not virtually certain.
Income taxes
In recognising income tax assets and liabilities, management makes estimates of the likely outcome of decisions by tax authorities on
transactions and events whose treatment for tax purposes is uncertain. Where the final outcome of such matters is different, or expected to
be different, from previous assessments made by management, a change to the carrying value of income tax assets and liabilities will be recorded
in the period in which such a determination is made. The carrying values of income tax assets and liabilities are disclosed separately in the
consolidated balance sheet. 33
1. ACCOUNTING POLICIES continued
Exceptional items
Exceptional items are those that, by virtue of their size or incidence, should be separately disclosed in the income statement. The determination
of which items should be separately disclosed as operating exceptional items requires judgement. Exceptional items are described further in
note 3.
Provisions
The Group continues to carry balance sheet provisions in a number of areas against exposures that arise in the normal course of trading.
These provisions cover areas such as uninsured losses, termination and reorganisation activities and property dilapidation reserves. Judgement
is involved in assessing the exposures in these areas and hence in setting the level of the required provision.
Share based payments
The Group operates an Employee Option Scheme. Employee services received, and the corresponding increase in equity, are measured 
by reference to the fair value of the equity instruments at the date of grant, excluding the impact of any non-market vesting conditions. 
The fair value of share options is estimated by using valuation models, such as Black-Scholes on the date of grant based on certain assumptions.
Those assumptions include, among others, expected volatility, expected life of the options and number of options expected to vest.
Employer taxes on share options
To the extent that the share price at the balance sheet date is greater than the exercise price on options granted under unapproved schemes,
provision for any National Insurance contributions has been made based on the prevailing rate of National Insurance unless the employee is
liable under the terms of the option. The provision is accrued over the performance period attaching to the award. At the 30 June 2008, 
no provision was required.
2. TURNOVER AND SEGMENTAL ANALYSIS
Turnover (all arising in the UK) is attributed to the Group’s principal activity of the supply and maintenance of ATMs and the processing of
transactions there from. Although the directors consider that there is only one business segment, the following analysis of turnover is provided:
2008 2007
£’000 £’000
ATM and consumable sales 93 373
Gross transaction revenue 4,486 4,003
Other revenues 96 4
4,675 4,380
3. EXCEPTIONAL ITEMS
2008 2007
£’000 £’000
Charged in arriving at operating loss:
Litigation settlement costs – 2,000
Charged within finance costs:
Lease termination payments – 685
The litigation settlement costs in 2007 relate to the full and final settlement costs of £1,800,000 associated with the agreement reached with
Hanco on 23 October 2007 together with the costs order of £199,760 paid on 24 July 2007 being recorded in the year ended 30 June 2007
as an adjusting subsequent event. The Company’s subsidiary, Cashbox ATM Systems Limited, has a joint and several indemnity in connection
with this litigation. In accordance with IAS 37, the amounts due under the indemnity have been treated as a reimbursement as described in
note 13 and the amount recoverable will not be recorded until receipt is virtually certain.
The £685,000 exceptional costs associated with terminating the lease arrangements with General Capital Venture Finance (“GCVF”)
included the effective cash payment of the interest element of future lease rentals £467,000 plus the non-cash costs related to the write off
of arrangement fees, £189,000, together with write back of future warrant accretion costs £29,000. The agreement terminating the lease
arrangements provided for full and final settlement of all outstanding obligations if the Group purchased the assets legally owned by GCVF
and accordingly GCVF agreed to release the debenture held over the Group’s assets. 34
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
4. EXPENSES BY NATURE
2008 2007
£’000 £’000
Employee costs (note 5) 2,331 2,307
Depreciation of tangible fixed assets 491 277
Amortisation of intangible fixed assets 20 7
Occupancy costs 291 319
Vehicle costs 301 293
Professional fees (including auditor’s remuneration) 361 874
Other administration costs 457 1,014
Exchange differences – 2
4,252 5,093
Litigation settlement costs (note 3) – 2,000
4,252 7,093
Included in Occupancy costs are operating lease rentals for land and buildings of £96,000 (2007: £96,000) and included in Vehicle costs
are operating lease rentals for vehicles of £74,000 (2007: nil).
2008 2007
£’000 £’000
Fees payable to the Company’s auditors for Auditors’ remuneration
– audit of Company’s annual accounts 30 45
– audit of Company’s subsidiaries annual accounts 45 74
– T ax services 14 12
– all other services 15 5
104 136
5. EMPLOYEES
2008 2007
£’000 £’000
Salaries and wages 1,928 1,900
Social security costs 232 235
Other pension costs 46 34
Equity settled share based remuneration costs 125 138
T otal 2,331 2,307
The average number of employees (including directors) during the year was as follows:
2008 2007
Sales 19 15
Engineering 14 14
Administration 17 15
T otal 50 44 35
6. DIRECTORS’ REMUNERATION
2008 2007
£’000 £’000
Aggregate emoluments (including amounts paid to third parties) 564 837
Company contributions to money purchase pension schemes 3 3
Equity settled share based remuneration costs 48 110
Ex gratia payments – 21
615 971
There was 1 Director (2007:1) in the Company’s defined contribution pension scheme during the year. The total amount payable to the
highest paid Director in 2008 was £180,765 (2007: £165,045) the Company has paid no pension contributions on behalf of the highest paid
Director in either year.
7. FINANCE COSTS
2008 2007
£’000 £’000
Loan interest 364 11
Accrued redemption fee on Loan 105 –
Interest on finance leases 1 138
Interest on Hanco settlement (see notes 15 and 24) 64 –
Other 31 12
565 161
8. TAXATION
2008 2007
£’000 £’000
Loss on ordinary activities before tax (3,003) (6,741)
Expected tax credits based on loss at the standard rate of UK Corporation tax of 29.5% (2007: 30%) (886) (2,022)
Effect of:
Expenses not deductable for tax purposes 14 247
Depreciation in excess of capital allowances 90 86
Losses carried forward 782 1,689
T otal tax charge – –
The Group has trading losses of approximately 2008: £13m (2007: £11m) that are available for the offset against future trading profits subject
to the agreement of HM Revenue & Customs. A deferred tax asset of £3.7m (2007: £3.1m) has not been recognised in respect of these losses
as it is not certain when they might be utilised. 36
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
9. LOSS PER ORDINARY SHARE
The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders diluted by the weighted average
number of shares in issue during the financial year. The Group also presents an adjusted earnings per share based on earnings excluding
exceptional items which is a non GAAP measure that the Directors believe aids the understanding of the Group’s trading performance.
For dilutive earnings per share, the weighted average number of ordinary shares in issue is adjusted to reflect the impact of conversion of
dilutive potential ordinary shares. The potential dilutive ordinary shares consist of the share options and warrants. However, as the Group is
currently loss making, none of the potentially dilutive shares are currently dilutive. During the year the weighted average number of potentially
outstanding options and warrants where the exercise price was below the average share price for the year was 2,153,846 (2007: 2,153,846)
with a further 7,956,314 (2007: 5,986,321) if all options and warrants are included.
2008 2007
£’000 £’000
Earnings
Loss for the year for basic loss per share (3,003) (6,741)
Add back exceptional charges (see note 3) – 2,685
Adjusted loss before exceptional items (3,003) (4,056)
Number of ordinary shares 
Weighted average number of shares for basic loss per share and diluted earnings per share 
(all the potential shares are anti-dilutive) 83,312,035 64,129,470
Basic loss per share (3.4)p (10.5)p
Diluted loss per share (3.4)p (10.5)p
Adjusted loss per share (excluding exceptional items) (3.4)p (6.3)p
10. INTANGIBLE ASSETS
Software
£’000
Cost
Balance as at 1 July 2006 29
Additions 6
Balance as at 30 June 2007 35
Additions 60
Balance as at 30 June 2008 95
Amortisation
Balance as at 1 July 2006 15
Provided during the year 7
Balance as at 30 June 2007 22
Provided during the year 20
Balance as at 30 June 2008 42
Net Book Value
As at 30 June 2007 13
As at 30 June 2008 53 37
11. PROPERTY , PLANT AND EQUIPMENT
Office Furniture Automated 
Equipment and fittings teller machines Total
£’000 £’000 £’000 £’000
Cost
Balance as at 1 July 2006 149 16 648 813
Additions 116 92 486 694
Balance as at 30 June 2007 265 108 1,134 1,507
Additions 101 28 1,366 1,495
Balance as at 30 June 2008 366 136 2,500 3,002
Depreciation
Balance as at 1 July 2006 97 7 49 153
Provided during the year 57 17 203 277
Balance as at 30 June 2007 154 24 252 430
Provided during the year 77 38 376 491
Balance as at 30 June 2008 231 62 628 921
Net Book Value
As at 30 June 2007 111 84 882 1,077
As at 30 June 2008 135 74 1,872 2,081
The cost, accumulated depreciation and net book value of property, plant and equipment in respect of assets held under finance leases, 
all within Office Equipment, is as follows:
2008 2007
£’000 £’000
Cost 6 6
Accumulated depreciation (1) –
Net book value 5 6
12. INVENTORIES
2008 2007
£’000 £’000
Automated teller machines 27 49
Spare parts 150 61
Obsolescence provision (12) –
165 110 38
Cashbox PLC  Annual Report & Accounts 2008 Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
13. TRADE AND OTHER RECEIVABLES
2008 2007
£’000 £’000
Trade receivables 143 11
Other taxes 37 500
Prepayments and accrued income – current portion 295 122
Other receivables 92 85
Provision for doubtful receivables (11) (6)
Other receivables – net 81 79
556 712
Prepayments and accrued income – non current portion 101 138
657 850
The Group considers the fair value of trade and other receivables to equal book value. Movements in provisions represents amounts written
off to the income statement in the year. 
Not included in receivables above is an amount of £2,101,554 (2007: £1,999,760) due, joint and severally from Carl Thomas and Anthony
Sharp under the terms of an indemnity in relation to the settlement of litigation with Hanco ATM Systems Limited as described in note 25.
Under IFRS this has been treated as a reimbursement and will not be recognised until its receipt is virtually certain.
14. CASH AND CASH EQUIVALENTS
2008 2007
£’000 £’000
Bank of England 871 1,349
Halifax Bank of Scotland 219 69
Other cash at bank and on hand 22 34
1,112 1,452
15. TRADE AND OTHER PAYABLES
2008 2007
£’000 £’000
Trade payables 721 731
Other taxation and social security 76 262
Other payables 1,940 2,111
Accruals 1,061 1,611
3,798 4,715
Deferred income 361 –
4,159 4,715
The Group considers the fair value of trade and other payables to equal book value.
Included in Other payables is an amount of £1,800,000 due to Hanco ATM Systems Limited as a result of the settlement of litigation plus
interest of £64,000. This item was settled post year end as described in note 24. 39
16. BORROWINGS
2008 2007
£’000 £’000
Current
Amounts due under finance leases 2 2
Bank loans 4,805 –
Other loans 447 –
5,254 2
Non Current
Amounts due under finance leases 3 5
Bank loans – 2,300
3 2,305
5,257 2,307
The Bank loans are amounts due under a term loan facility with Bank of Scotland, with £4,700,000 drawn and further draw downs principally
for the purchase of ATMs allowed up to a maximum of £6,000,000. All draw downs must be completed prior to 31 December 2008 when
any un-drawn element of the facility is cancelled and the amount drawn down is converted to a 4 year fixed rate term loan at the fixed rate
at that time.
The loan agreement includes a financial covenant relating to “Net worth” being defined as the aggregate of the amount paid up on the issued
share capital and the amount standing to the credit of its capital and revenue reserves (including any share premium account, capital
redemption reserve and any amount of interest payable in respect of the Hanco Litigation Liability but excluding any revaluation reserve and
the amount of the Hanco Litigation Liability (up to a maximum of £2,000,000) and deducting any amounts attributable to intangible assets
including Goodwill. This covenant provides comfort to the Bank that any financial losses are covered by further investment into the Company.
Other financial covenants relate to EBITDA and cashflow cover measured against the Company’s financial projections.
During May and June 2008 the Company drew up plans to raise additional capital and on 4 July 2008 issued a notice of an Extraordinary
General Meeting as part of the process to raise a significant amount of new equity. All resolutions were duly passed and £1,547,000 of new
equity was raised in a series of placings between July and October 2008. As at the 30 June 2008, as shown by draft group statutory accounts,
the Company was in breach of the net worth covenant and while agreement existed with the Bank that no action would be taken if the breach
was rectified, the waiver was not unconditional (and the conditions had not been met since the breach was at the balance sheet date).
Accordingly, under IAS 1 paragraph 65 all the bank borrowings are shown repayable in less than one year, despite events subsequent to the
balance sheet when the breach was rectified and the Bank has confirmed that no action will be taken on the breach. Consequently while amounts
due to the bank are shown as repayable in less than one year, the actual repayments are, due to commence until December 2009 as per the
original agreement.
In further discussions with the bank, it has been agreed that additional financial covenants including interest and cash flow covers which were
due for test for the first time on 30 June 2009 have been reset based on revised financial projections and the Bank has agreed to take no
action regarding any historic breach. 
Repayments under the loan agreement are calculated as percentages of the amounts drawn prior to 31 December 2008 being 20.8% during
year ended June 2010; 29.2% during year ended June 2011 and the remaining 50.0% during the year ended 30 June 2012. 
Interest was payable at quarterly intervals at a floating rate of 3.0% over LIBOR plus mandatory costs up to 31 December 2008 when 
the rate was amended  to 6.0% over LIBOR and will be fixed over the prevailing 4 year forward LIBOR rate plus mandatory costs for a period
of not less than four years. Upon the final repayment of the principal, a further fee of £500,000 is payable, the cost of which is being accrued
over the period of the loan with the amount at 30 June 2008 being £105,000 (2007: nil).
In addition to the term loan facility, the Group has an overdraft facility of up to £750,000 with Bank of Scotland subject to an annual review,
the first being in December 2008. This has been cancelled as part of the process resetting the covenants.
The loan is secured by a fixed and floating charge over the Group’s assets and various cross guarantees in the favour of Bank of Scotland
are in place between the Company and its subsidiaries. 40
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
16. BORROWINGS continued
The Group has no commitment under finance leases at the balance sheet date which were due to commence thereafter.
Other loans are the balance due to MBC Investments Limited under a non-convertible loan note including interest being due for redemption
on or before 31 March 2009. The loan note accrues interest on a stepped interest rate basis with the rate at 30 June 2008 being 13% increasing
by 1.5% per month to a maximum of 20%. The loan note holders have confirmed to the Board that they are prepared to convert the loan to
shares at a price of 5p per share.
During the year the Company issued a Convertible loan note to MBC Investments which converted in accordance with its terms. Details are
included in note 18.
As described in Note 24, the Company reached agreement with Hanco on 19 September 2008 regarding the outstanding settlement of the
litigation and issued a £1,800,000 5 year convertible loan note in settlement of the liability.
On 31 December 2008 the Company issued a £1,500,000 convertible loan note to the terms of which are described in Note 24.
Maturity of borrowings at 30 June 2008:
Finance Leases Other loans Bank loans Total
£’000 £’000 £’000 £’000
In less than one year 2 447 4,805 5,254
In more than one but less than two years 3– – 3
In more than two but less than five years –– ––
In more than one but less than five years 3– ––
5 447 4,805 5,257
There are no amounts due after more than five years.
The carrying amounts and fair value of borrowings are as follows:
Carrying amounts Fair value
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Bank loans 4,805 2,300 5,062 2,632
Other loans 447 – 447 –
Finance leases 5 7 5 7
5,257 2,307 5,514 2,639
The carrying amount of the Bank Loans includes an amount of £105,000 (2007: £nil) being the accrual to date of the termination payment
due of £500,000 on final repayment of the Bank facility due on 31 March 2012. The fair value of the principal of the bank debt is not materially
different to notional amount while the fair value of the termination payment is £362,000 (2007: £332,000) being the termination payment
discounted to present value at 9% being the interest rate applicable to other secured borrowings from Bank of Scotland.
Since the MBC non-convertible loan note was signed in December 2007, the Directors believe the ability of the Group to borrow has not
materially changed and the interest rates available to the Group remain constant. Consequently the fair value of the MBC loan is not
materially different to its carrying value.
The present value of the Group’s obligations under finance leases approximates to their carrying amount, and is secured by the lessors either
having legal title or charges over the leased assets.
Minimum lease payments under finance leases
2008 2007
£’000 £’000
In less than one year 3 3
In more than one but less than two years 2 3
In more than two but less than five years – 2
In more than one but less than five years 2 5
5 8 41
17. FINANCIAL INSTRUMENTS INCLUDING FINANCIAL ASSETS AND LIABILITIES
Group policy prohibits speculative transactions and no trading activity in financial instruments is undertaken. 
Treasury policies are determined by the Chief Financial Officer, based on forecast business requirements, and are reviewed regularly by the
Board. 
a) Interest rate risk
The Group’s income and operating cash flows are substantially independent of changes in market interest rates. The Group’s cash flow
interest rate risk arises from a) cash deposits and b) bank term loan. Deposits placed at variable rates expose the Group to cash flow interest
rate risk. Interest on the bank loan is fixed at three monthly intervals at variable rates. There is no interest rate hedge. The Group’s cash
equivalents are held at floating interest rates. The interest rates of finance leases to which the Group is lessee are fixed at inception of the
lease. These leases expose the Group to fair value interest rate risk however the amounts are not material given the level of borrowings under
finance leases. At 30 June 2008, the amount drawn under the Bank of Scotland loan facility was £4,700,000. A movement of 1% in LIBOR
would have an impact of £47,000 pa.
b) Currency exposures
The Group currently only operates in the UK market and is only exposed to foreign exchange risk from the purchase of ATMs and spare parts
from US based suppliers where the prices are primarily in the US Dollar. Foreign exchange risk arises when future commercial transactions,
recognised assets and liabilities are denominated in a currency that is not the entity’s functional currency. There were no hedging transactions
in place at 30 June 2008. The Group’s cash and cash equivalents were all in sterling. Trade creditors included £6,000 denominated in 
US dollars.
c) Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group uses a
mixture of long-term debt finance, share capital and equity instruments and available working capital resources. The need for funds is
identified through the use of financial budgets and forecasts, the assumptions of which are described in the Going Concern accounting policy
on page 28. The Group does not include balances held with the Bank of England in its liquidity analysis since these funds are paid to
merchants on a three day cycle as part of the cash settlement of withdrawals from the Group’s ATMs.
d) Credit risk
Financial instruments which potentially expose the Group to a concentration of credit risk comprise primarily of cash equivalents and
accounts receivable. Cash equivalents are deposited with financial institutions, principally Bank of Scotland who are the main debt finance
provider. Cash to be utilised as part of the cash settlement of withdrawals from the Group’s ATMs are held with the Bank of England. 
The Group’s main source of revenue is transaction revenues from cash withdrawals from the Group’s ATMs and fees are collected automatically
as part of the settlement process and hence the Group provides only limited credit to merchants in the normal course of business for the sale
of sundry items. Amounts outstanding are usually exceeded by amounts owed in relation to the share of transaction revenues. Where
significant machine or other sales are made credit evaluations of customers’ financial conditions are performed. The Group maintains a provision
for impairment based upon the expected collectability of accounts receivable. 
e) Capital risk management
The Group’s objectives when managing capital are:
– to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide capital growth for shareholders and benefits
for other stakeholders, and
– to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Group manages the capital structure and monitors its adequacy in the light of changes in economic conditions and the risk characteristics
of the underlying assets. In order to maintain or adjust the capital structure, the Group will consider the appropriateness of issuing shares
and amending debt facilities. The Group does not maintain a target ratio for debt to adjusted capital, however its longer term aim is to repay
excess debt with cash generated by the Group’s operations and to reinvest surplus cash for business development.
The Group does not hold any derivative financial instruments and does not trade in financial instruments. The Group has bank accounts
denominated in sterling and US $. The US $ accounts are used for making transfers to US based ATM suppliers for ATMs and spare parts
and holding US$ funds when orders are placed to hedge foreign exchange risk. At 30 June 2008 the balance held in US $ was nil (2007:
nil). The main future risks arising from the Group’s financial instruments are liquidity risks.
As regards liquidity, the Group’s objective throughout each period has been to ensure continuity of funding. Operations to date have primarily
been financed through the issue of share capital. 42
Cashbox PLC  Annual Report & Accounts 2008 Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
17. FINANCIAL INSTRUMENTS INCLUDING FINANCIAL ASSETS AND LIABILITIES continued
Financial assets comprise:
2008 2007
£’000 £’000
Trade and other receivables 168 22
Cash and cash equivalents 1,112 1,452
1,280 1,474
All of the financial assets are subject to a charge under the financing arrangement with Bank of Scotland. Trade and other receivables are
all receivable in 0-3 months (2007: 0-3 months). There is no material difference between the book value and fair value of financial assets.
Financial liabilities comprise:
Carrying amounts Fair value
2008 2007 2008 2007
£’000 £’000 £’000 £’000
Trade and other payables 3,722 4,453 3,722 4,453
Borrowings 5,257 2,307 5,514 2,639
8,979 6,760 9,236 7,092
The ageing of trade and other payables 
2008 2007
£’000 £’000
0-3 months 3,722 2,653
9-12 months – 1,800
3,722 4,453
18. SHARE CAPITAL
2008 2007
Authorised £’000 £’000
150,000,000 1p ordinary shares (2007 150,000,000 1p ordinary shares) 1,500,000 1,500,000
Allotted, issued and fully paid
104,367,525 1p ordinary shares (2007: 83,171,761 1p ordinary shares) 1,043,675 831,718
On 29 July 2008 at an Extraordinary General Meeting of the Company, the shareholders approved the increase of the authorised share capital
by 850,000,000 1p ordinary shares to 1,000,000,000 1p ordinary shares.
Allotted, issued and fully paid
Number of Conversion/
Purpose shares issue price Share Capital Share Premium
££
1 July 2006 61,409,143 614,091 3,879,900
14 May 2007 Placing 21,762,618 15p 217,627 3,046,766
Issue expenses (1,350)
30 June 2007 83,171,761 831,718 6,925,316
31 March 2008 Conversion of convertible loan note 11,675,764 5p 116,758 467,030,
5-6 April 2008 Placing 9,520,000 5p 95,200 380,800
Issue expenses (16,749)
30 June 2008 104,367,525 1,043,676 7,755,297 43
18. SHARE CAPITAL continued
On 14 May 2007 the Company issued 21,762,618 £0.01 ordinary shares by way of a placing. 
On 19 December 2007 the Company issued a convertible loan note to MBC Investments for £583,788, carrying a coupon of 9% with the
right to convert into 11,675,764 1p ordinary shares at any time on or after 31 March 2008 at the holders request and repayable by the
Company on or before 31 March 2009. The note converted on 31 March 2008 under the terms of the loan note. Over the 5 and 6 April 2008
the Company issued 9,520,000 1p ordinary shares by way of a placing at 5p. 
On 31 July 2008 the Company issued a further 7,200,000 1p ordinary shares by way of a placing at a share price of 5p per ordinary share
together with 1,440,000 warrants to subscribe for shares at the same price of 5p.
On 25 September the Company issued a further 17,500,000 £0.01 ordinary shares by way of a placing at a share price of 5p per ordinary
share together with 3,500,000 warrants to subscribe for shares at the same price of 5p.
On 3 October the Company issued a further 6,250,000 ordinary shares by way of a placing at a share price of 5p per ordinary share.
On 9 October the Company issued 9,166,667 ordinary shares to the mezzanine debt holders of Cash4All Limited at a share price of 6p per
ordinary share as part of the consideration for the acquisition of the entire ordinary share capital of Ensco 694 Limited.
Options
The Company has two share schemes, an approved EMI scheme adopted on 29 March 2006 and an unapproved scheme for employees and
Directors. Options are normally granted with a fixed exercise price equal to the market value at the date of the grant. The contractual life
under these schemes is 10 years from the date of grant. 
The “1p IPO options” were granted at the time of the IPO to certain key personnel in recognition of services up to and including the listing
process and vested immediately. The Award One options were awarded to employees and Directors in recognition of length of service and
seniority at the time of the IPO as part of the long term incentive plan. The Award One options vested on 29 March 2008. The Award Two
options were awarded to certain key employees and directors as part of the long term incentive plan and will vest on 25 April 2009, 
two years after grant subject to the employees remaining with the Company.
The number of share options outstanding to Directors and employees as at 30 June 2008 were as follows:
Number granted Remaining life (years)
Approved Unapproved Date granted Exercise price contractual expected
1p IPO Options 1,108,080 1,291,920 29-3-06 1.00p 1.64 1.34
Award One 1,140 1,066,920 29-3-06 24.75p 7.75 3.75
Award Two 1,311,110 2,013,890 25-4-07 18.00p 8.83 3.00
3,560,020 4,372,730
The number of share options outstanding to Directors and employees as at 30 June 2007 were as follows:
Number granted Remaining life (years)
Approved Unapproved Date granted Exercise price contractual expected
1p IPO Options 1,108,080 1,291,920 29-3-06 1.00p 2.64 2.34
Award One 1,196,830 1,066,920 29-3-06 24.75p 8.75 4.75
Award Two 1,361,110 2,013,890 25-4-07 18.00p 9.83 4.00
3,666,020 4,372,730
The weighted average contractual life remaining of the options in existence at 30 June 2008 was 5.84 years (2007: 6.87 years). No options
were issued prior to 29 March 2006. 44
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
18. SHARE CAPITAL continued
The summary of movement in the number of employee share options is as follows:
1p IPO Options
Approved Unapproved EMI Scheme Unapproved Total
Outstanding at 1 July 2006 1,108,080 1,291,920 1,906,370 2,462,880 6,769,250
Granted – – 1,361,110 2,013,890 3,375,000
Lapsed – – (709,540) (1,395,960) (2,105,500)
Outstanding at 30 June 2007 1,108,080 1,291,920 2,557,940 3,080,810 8,038,750
Granted – – – – –
Lapsed – – (106,000) – (106,000)
Outstanding at 30 June 2008 1,108,080 1,291,920 2,451,940 3,080,810 7,932,750
Exercisable at 30 June 2007 1,108,080 1,291,920 – – 2,400,000
Exercisable at 30 June 2008 1,108,080 1,291,920 1,140,830 1,066,920 4,607,750
On 28 September 2008, 600,000 1p IPO options (being 404,040 approved and 195,960 unapproved) lapsed having not been exercised within
two years of the holder leaving the Company as allowed under the terms applying to the IPO options.
The weighted average exercise price of share options (pence) is as follows:
1p IPO Options EMI Scheme Unapproved Total
Outstanding at 1 July 2006 1.00 24.75 24.75 13.76
Granted – 18.00 18.00 18.00
Lapsed 24.75 24.75 24.75
Outstanding at 30 June 2007 1.00 21.17 20.34 14.83
Granted –– – –
Lapsed – 21.57 – 24.75
Outstanding at 30 June 2008 1.00 21.14 20.34 14.74
Exercisable at 30 June 2007 1.00 – – 1.00
Exercisable at 30 June 2008 1.00 24.75 24.75 12.38
The fair value of the options for the recognition of share based payments to employees under the requirements of IFRS 2 are as follows:
1p IPO Options Award One Award Two
Number of options granted 2,400,000 4,374,250 3,375,000
Share price at grant date (pence) 20.00 24.75 18.00
Exercise price (pence) 1.00 24.75 18.00
Option life (years) 10 10 10
Expected life anticipated before exercise (years) 4.75 4.75 4.00
Volatility 25% 25% 25%
Risk free rate 4.4% 4.4% 4.7%
Fair value per option (pence) 23.94 7.49 5.01
The fair values of the options have been valued using the Black-Scholes model using the above assumptions. The volatility has been estimated
with regard to the measured standard deviation of share price returns but given the lack of history over which to measure the returns, the
volatility has been adjusted to a level believed to represent the best estimate available to the Directors. 45
18. SHARE CAPITAL continued
Warrants and other options
In 2006 the Board issued warrants to a number of Non-executive Directors as part of their compensation as well as other Options as part
of the financing arrangements in 2006 and 2007.
The number of Warrants and options outstanding as at 30 June 2008 were as follows:
Number Date Exercise Remaining life (years)
granted granted price contractual expected
RE Saunders warrants 500,000 29-3-2006 £0.20 9.00 3.00
SL Brown warrants 500,000 6-12-2006 £0.20 8.75 3.00 
JC Maples warrants 500,000 6-12-2006 £0.20 8.75 3.00
Bank of Scotland options 800,000 29-6-2007 £0.20 4.00 3.00
2,300,000
The number of Warrants and options outstanding as at 30 June 2007 were as follows:
Number Date Exercise Remaining life (years)
granted granted price contractual expected
RE Saunders warrants 500,000 29-3-2006 £0.20 10.00 4.00
SL Brown warrants 500,000 6-12-2006 £0.20 9.75 4.00 
JC Maples warrants 500,000 6-12-2006 £0.20 9.75 4.00 
Bank of Scotland options 800,000 29-6-2007 £0.20 5.00 4.00
2,300,000
The summary of movement in the number of warrants and financing options is as follows:
Bank of
NED GCVF Scotland
granted warrants options Total
Outstanding at 1 July 2006 500,000 400,000 – 900,000
Granted 1,000,000 – 800,000 1,800,000
Lapsed – (400,000) – (400,000)
Outstanding at 30 June 2007 1,500,000 – 800,000 2,300,000
Granted – – – –
Lapsed –– ––
Outstanding at 30 June 2008 1,500,000 – 800,000 2,300,000
All the warrants and options in issue at 30 June 2007 and 2008 were exercisable.
The weighted average exercise price of share warrants options (pence) is 20.00 pence throughout as instruments were all issued at the same price.
JC Maples & Bank of
RE Saunders SL Brown Scotland
Warrants Warrants Options
Number of warrants granted 500,000 1,000,000 800,000
Share price at grant date (pence) 20.00 18.00 17.50
Exercise price (pence) 20.00 20.00 20.00
Warrant life (years) 10 10 5
Expected life anticipated before exercise (years) 4.75 4.00 4.00
Volatility 25% 25% 25%
Risk free rate 4.4% 4.5% 5.0%
Fair value per warrant (pence) 6.05 4.11 3.94
The fair values of the warrants have been valued using the Black-Scholes model using the above assumptions. The volatility has been estimated
with regard to the measured standard deviation of share price returns but given the lack of history over which to measure the returns, the
volatility has been adjusted to a level believed to represent the best estimate available to the Directors. 46
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
19. CAPITAL AND RESERVES
The Group has capital and reserves as follows:
Share Share Merger Equity Profit and 
capital premium reserve reserve loss account Total
£’000 £’000 £’000 £’000 £’000 £’000
At 1 July 2006 614 3,880 2,180 37 (6,891) (180)
Issue of shares May 2007 (net of costs) 218 3,045 3,263
Cancellation of GCVF Warrants (37) 37 –
Loss for the year (6,741) (6,741)
Share based remuneration (IFRS 2) 138 138
At 30 June 2007 832 6,925 2,180 – (13,457) (3,520)
Issue of shares April 2008 95 381 476
Less issue costs (17) (17)
Issue of convertible loan note 38 38
Conversion of convertible loan note 117 466 (38) 545
Loss for the year (3,003) (3,003)
Share based payments (IFRS 2) 133 133
At 30 June 2008 1,044 7,755 2,180 – (16,327) (5,348)
The description and purpose of each reserve is as follows:
Share premium
Share premium represents the excess of the consideration received for ordinary shares in the Company over their nominal value, less the costs
of issuing such shares.
Merger reserve
The merger reserve arose on the combination of Cashbox ATM Systems Limited with Cashbox PLC on 23 March 2006 as the combining
entities within the Group were controlled by the same parties both before and after the combination.
Equity reserve
The equity reserve relates to the creation of financial instruments with an equity component. The reserve was created in 2006 with the issue
of warrants to GCVF as part of a financing arrangement which was cancelled in 2007. In 2008 the Company issued a convertible loan note,
the equity component was valued at £38,000 and credited to the reserve. On exercise of the convertible, the equity component was taken to
the share premium account.
Profit and loss account
The profit and loss account represent the accumulated profits and losses recorded by the Group plus the offsetting element of share based
payments cost recorded in the income statement under IFRS 2.
20. PENSIONS
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an
independently administered fund. During the year the Group made contributions to the Scheme of £46,000 (2007: £34,000). There were no
amounts outstanding at the beginning and end of the periods. 47
21. NOTES SUPPORTING THE CONSOLIDATED CASH FLOW STATEMENT 
2008 2007
£’000 £’000
Loss before taxation (3,003) (6,741)
Adjustments:
Depreciation of property plant and equipment 491 278
Amortisation of intangible assets 20 6
Net finance costs 519 809
Interest received 46 37
Accretion for warrants – 27
Share based remuneration charge 126 138
Changes in working capital:
Increase in inventories (56) (88)
Decrease in receivables 176 433
(Decrease)/increase in trade & other payables (621) 2,661
Cash used in operations (2,302) (2,440)
Non-cash transactions
During the year a convertible loan note, £584,000 issued by the Company, converted into ordinary shares as described in note 18. In 2007
outstanding loans and interest of £2,670,000) were settled by the issue of ordinary shares. During the year the Group entered into finance
leases of £nil (2007: £7,000).
22. RELATED PARTY TRANSACTIONS
During the year ended 30 June 2007 a number of Directors and parties connected to the directors provided loans to the Company as part of
the emergency fund raising in February 2007. These loans were at the same interest rate as other investors being 0.5% above the base rate.
The amounts lent and interest paid were as follows:
Repaid Settled
Loan Interest cash in shares
££ ££
Catherine Oxley (wife of Andy Wilmott, previously a Director) 30,000 254 30,254
Robin Saunders (a Director) 100,000 1,450 101,450
John Maples (previously a Director) 20,000 278 20,278
Brimco Partners LLP (in which Stephen Brown, previously a Director, 
holds a beneficial interest) 50,000 694 50,694
The loans and interest settled in shares were part of the placing approved at the Extraordinary General Meeting held on 11 May 2007. 
In addition to the loans, the following directors and former directors also subscribed for shares paid in cash: Anthony Sharp (via Annenberg
Management S.A.) £250,000; Ciaran Morton £30,000 and David Auger £20,000.
During the year ended 30 June 2007 the Company sponsored a Polo team connected with Anthony Sharp to the value of £4,300.
During the year ended 30 June 2007 the Company appointed Fairfax IS PLC as joint broker to the Company. William Hughes, a Director,
is the Non-executive Chairman of Fairfax IS PLC. The Broker Agreement includes an annual fee of £30,000, is for a minimum of 12 months
and can be terminated by either party on giving 3 months notice. 
In July 2008, following the end of the financial year, Robin Saunders, made a loan to the Company of £100,000. This was made on an arms
length basis at commercial terms.
Remuneration of Directors and key management is shown in the Report of the Remuneration Committee and note 6. During the year Matthew
Thomas and Andy Wilmott stepped down as directors of Cashbox PLC but remained as directors of Cashbox ATM Systems Limited and are
considered members of key management. Andy Wilmott stepped down from the Board of Cashbox ATM Systems Limited on 3 October 2008
and left the Group. 48
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
23. COMMITMENTS
Capital expenditure commitments for property, plant and equipment at 30 June 2008 was £708,000 (2007:£219,000).
The Group has aggregate minimum lease commitments under non-cancellable operating leases as follows:
2008 2007
£’000 £’000
In less than one year 237 84
In more than one but not more than two years 257 96
In more than two but not more than five years 391 288
In more than five years 45 149
930 617
24. POST BALANCE SHEET EVENTS
On the 7 July 2008 the Company completed an acquisition of 144 ATMs located within Mitchells and Butler and signed a new 5 year
contract for their placement.
On 29 July 2009 at an Extraordinary General Meeting of the Company, the shareholders approved the increase of the authorised share capital
by 850,000,000 1p ordinary shares to 1,000,000,000 1p ordinary shares.
On 31 July 2008 the Company raised £360,000 with the issue of 720,000 1p ordinary shares at a placing price of 5p together with 144,000
warrants to subscribe for further 144,000 1p ordinary shares at a price of 5p. The warrants will not be listed on AIM.
On 19 September the Company restructured the liability due under the Hanco settlement by agreeing to issue £1,800,000 convertible
unsecured loan notes due 30 September 2013 to West Register (Investments) Limited at the direction of Hanco ATM Systems Limited
(“Hanco”) to satisfy the £1,800,000 liability to Hanco under the settlement agreement dated 17 October 2007. The notes accrue interest
at a fixed rate of 5% per annum previously fixed at 20% per annum for 2008/09 in the original settlement and are now repayable by 30
September 2013 (the ‘Redemption Date’), whereas the original agreement had been due for settlement by October 2009. 
Alongside the principal amount of the Loan Notes, any accrued interest is also convertible. Cashbox, at the discretion of the Board, is also
able to repay the Loan Notes and any accrued interest in advance of the Redemption Date, in part or in full. Should a repayment not occur,
the conversion price is the lesser of the prevailing market price and 5p. 
The Loan Notes cannot be converted prior to 30 September 2009 and a maximum of £900,000 of principal and accrued interest may be
converted between 30 September 2009 and 30 September 2010. The remainder of the principal and interest may be converted on or after
30 September 2010 and before 30 September 2013. 
Interest due on the original settlement amount has been limited to £25,000 as part of the agreement and is due to be paid on the earlier of
30 April 2009 or the date a bonus is paid to any director.
On 25 September the Company raised £875,000 with the issue of 17,500,000 1p ordinary shares at a placing price of 5p together with
3,500,000 warrants to subscribe for further 3,500,000 1p ordinary shares at a price of 5p. The warrants will not be listed on AIM.
On 29 September 2008 the Company completed the acquisition of the ATMs leased by Cash4All Limited from the four leasing companies
and on 8 October acquired the ATMs owned by Cash4All Limited together for cash consideration of £872,340 with all site agreements for
a further £800,000 consideration made up of £250,000 cash and £550,000 Cashbox PLC ordinary shares at a price of 6p per share through
the acquisition of the entire issued share capital of Ensco 694 Limited, a wholly owned subsidiary of Cash4All Limited.
On 3 October the Company raised £312,500 (£250,000 net of expenses) with the issue of 6,250,000 1p ordinary shares at a price of 5p.
On 31 December 2008, the Company raised a further £1,500,000 of working capital through the issue of a convertible loan note with an
8% coupon rising to 12% from 30 June 2009 in the event that the Loan Note Holder is unable to reach an agreement with Bank of Scotland
relating to an inter creditor deed between the Company, the Loan Note Holder and Bank of Scotland regarding secondary charges over the
Group’s assets within six months of signing the Loan Note agreement. 49
25. CONTINGENCIES
In July 2007 the Company’s principal operating subsidiary, Cashbox ATM Systems Limited, (“the Company’s subsidiary”) was ordered to
pay costs of £199,760 to Hanco ATM Systems Limited (“Hanco”) as part of the litigation brought by Hanco against Cashbox ATM Systems
Limited, claiming that Carl J Thomas and the Company’s subsidiary had diverted a business opportunity from Hanco to Cashbox. A total
payment of £200,526 was made on 24 July 2007 including interest of £766 in accordance with this order.
In October 2007 the Company’s subsidiary reached full and final settlement with Hanco concluding the ongoing litigation against the
Company’s subsidiary, brought by Hanco. Under the terms of the Settlement, the Company’s subsidiary was liable to pay a further £1.8 million
with interest if payment is deferred to Hanco.The liability was settled by the issue of £1,800,000 convertible unsecured loan notes as
described in note 24.
The Company’s subsidiary has a joint and several indemnity in connection with this litigation, from Carl J Thomas (previously Chief Executive
Officer) and Anthony CJ Sharp (previously Chairman), together “the Indemnifiers”, signed on 23 March 2006 prior to the listing of the
Company on the AIM market of the London Stock Exchange in which the Indemnifiers jointly and severally agreed to keep the Company’s
subsidiary indemnified from and against all Hanco expenses including any settlement costs and against all legal and other costs, charges and
expenses the Company and or its subsidiary may incur in enforcing, or attempting to enforce, their rights under the Indemnity. The Company
and its subsidiary propose to enforce the indemnity.
On 17 July 2007, the Company’s subsidiary wrote to the Indemnifiers under the terms of the deed of indemnity signed on 23 March 2006.
The Company’s subsidiary has received a reply from Anthony Sharp informing the Company that he does not consider the indemnity to be
binding on him. The Directors do not accept Mr Sharp’s position and having taken legal advice, believe the indemnity is enforceable.
Discussions have taken place with the indemnifiers to resolve matters. 
Cashbox has been notified by the Official Receiver that on 14 May 2008 a bankruptcy order was made against Anthony Sharp. The Company
also believes that Carl Thomas, the other indemnifier, does not have any unencumbered assets of significant value. Therefore there is a
significant risk that recovery under the indemnities will take a significant period of time. As a result of Mr Sharp’s position disputing the
indemnity and his seeking to have himself declared bankrupt together with concerns relating to Mr Thomas’ ability to pay, the Directors, while
believing the indemnity is enforceable, have treated the receivable as a reimbursement in accordance with IAS 37, and since receipt is not
virtually certain, have not recorded the amount due of £1,999,760 plus interest and costs in the accounts.
Following the initial public offering of the Company it was expected that the above indemnity would be replaced by a further indemnity from
KKR Investment management SA, (“KKR”, a company in which A CJ Sharp was expected to be a minority shareholder), Annenberg
Investment Management SA (a company controlled by ACJ Sharp) and CJ Thomas severally (the “Further Indemnity”) with sole recourse
(in the case of Annenberg and CJ Thomas) to their respective holdings of ordinary shares in the Company. The Further Indemnity was
intended to come into effect only once KKR had unconditional finance in place, to the satisfaction of the Directors and Seymour Pierce Limited
(the Company’s Nominated Advisor and Broker) to cover its liabilities under the Further Indemnity. As part of this agreement, the Company
agreed to pay a cash fee in the amount of £112,500 to KKR in respect of the provision of the Further Indemnity together with the issue of
187,500 new ordinary shares to KKR. These shares would only be issued once the Further Indemnity was unconditional. Pursuant to the deed,
unconditional finance has not been put in place. 50
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Consolidated Financial Statements continued
For the year ended 30 June 2008
26. NON GAAP TERMS
EBITDA is earnings before interest, tax, depreciation, amortisation, exceptional items, share based payments and minority interests and equals
operating income / loss before exceptional items plus depreciation and amortisation. EBITDA, which we consider to be a meaningful measure
of operating performance, particularly the ability to generate cash, does not have a standard meaning under IFRS and may not be comparable
with similar measures used by others.
2008 2007
£’000 £’000
Operating loss (2,484) (5,932)
Add back
Depreciation and amortisation 511 284
Exceptional items (see note 3) – 2,000
Share based payments 125 138
EBITDA (1,848) (3,510)
Net debt is a measure used by the Directors to consider the level of indebtedness of the Group and is defined as the borrowings of the Group
(including bank loans, other loans, finance leases and overdrafts) less cash and cash equivalents excluding balances held with the Bank of
England for cash withdrawal settlement purposes. The Directors exclude the balances held with the Bank of England as, while there is no
legal obligation to separately identify those funds, the balance principally represents merchants’ funds withdrawn from ATMs and the funds
held with the Bank of England is utilised to settle liabilities to merchants, not other liabilities of the Group.
2008 2007
£’000 £’000
Cash and cash equivalents 1,112 1,452
Less Bank of England cash balance (871) (1,349)
Cash excluding Bank of England balances 241 103
Current borrowings 5,254 2
Non current borrowings 3 2,305
5,257 2,307
Net debt 5,016 2,204 51
2008 2007
Notes £’000 £’000
FIXED ASSETS
Investments 2 381 381
Current Assets
Debtors: amounts falling due after one year 5 8,480 5,638
Debtors: amounts falling due within one year 5 5,013 3,436
T otal debtors 13,493 9,074
Cash 122 69
13,615 9,143
CREDITORS: amounts falling due within one year 6 (5,267) –
NET CURRENT ASSETS 8,348 9,143
TOTAL ASSETS LESS CURRENT LIABILITIES 8,729 9,524
CREDITORS: amounts falling due after one year 7 – (2,300)
NET ASSETS 8,729 7,224
CAPITAL AND RESERVES
Called up share capital 8, 9 1,044 832
Share premium account 8, 9 7,755 6,925
Equity reserve 9 – –
Profit and loss account 9 (70) (553)
SHAREHOLDERS’ FUNDS 8,729 7,224
The financial statements were approved and authorised for issue by the Board on 31 December 2008 and were signed on its behalf by:
Ciaran Morton David Auger
Director Director
The Company has taken advantage of the exemption allowed under Section 230 of the Companies Act 1985 and has not presented its own
profit and loss account in these financial statements. The profit for the year was a profit before and after taxation of £330,000 (2007:
£103,000). The Company has taken advantage of the exemption conferred by FRSI ‘Cashflow Statements (revised 1996)’ not to prepare a
Cashflow Statement as the Company publishes a Consolidated Cashflow Statement.
The notes on pages 52 to 56 form an integral part of these financial statements.
Company Balance Sheet
As at 30 June 2008 52
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Company Financial Statements
For the year ended 30 June 2008
1. ACCOUNTING POLICIES
Accounting convention
The financial statements of Cashbox PLC have been prepared under applicable United Kingdom Generally Accepted Accounting Principles
(UK GAAP) and the Companies Act 1985. The financial statements have been prepared under the historical cost convention.
Principal accounting policies
The principal accounting policies of the Company, which are considered to be most appropriate to the Company’s circumstances, are set out
below.
Valuation of investments
Investments including the shares in subsidiary companies 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.
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 Company anticipates making sufficient taxable profits in the future
to utilise the reversal of the underlying timing differences. Deferred tax balances are not discounted.
Pension costs
Contributions to the Group’s defined contribution pension scheme are charged to the profit and loss account in the year in which they become
payable.
Employer taxes on share options
To the extent that the share price at the balance sheet date is greater than the exercise price on options granted under unapproved schemes,
provision for any National Insurance contributions has been made based on the prevailing rate of National Insurance unless the employee is
liable under the terms of the option. The provision is accrued over the performance period attaching to the award. At the 30 June 2008, 
no provision was required.
Financial instruments
In relation to the disclosures made in notes 5, 6 and 7:
• short term debtors and creditors are not treated for disclosure purposes as financial assets or financial liabilities except for the currency
disclosures; and
• the Company does not hold or issue derivative financial instruments for trading purposes.
Finance costs
Finance costs are charged to the profit and loss account over the term of the debt so that the amount charged is at a constant rate on the
carrying amount. Finance costs include issue costs, which are initially recognised as a reduction in the proceeds of the associated capital
instrument.
Share-based employee remuneration
The Company issues equity settled share based payments including share options and warrants to certain Directors and employees (including
employees of subsidiary companies). In accordance with FRS 20, equity-settled share based payments are measured at fair value at the date
of grant using an appropriate option pricing model. The fair value determined at the date of grant is expensed to the profit and loss account
on a straight line basis over the vesting period. At the balance sheet date the cumulative change in respect of each award is adjusted to reflect
the actual levels of options vesting or expected to vest. 53
2. FIXED ASSET INVESTMENTS
The Company holds shares in its subsidiary companies:
2008 2007
£’000 £’000
Cost and net book value
Balance at the beginning and end of the year 381 381
On 23 March 2006, the Company acquired the entire share capital of Cashbox ATM Systems Limited (incorporated in England and Wales)
by issuing 38,051,800 new shares and exchanging these and its 200 subscriber shares (totalling 38,052,000 1p ordinary shares). 
The transaction was completed on the basis of exchanging 6,000 shares in the Company for each of the 6,342 shares in Cashbox ATM Systems
Limited. The transaction has been accounted for under the merger accounting method.
The carrying value of the fixed asset investments was reviewed at 30 June 2008, in accordance with Financial Reporting Standard 11,
“Impairment of fixed assets and goodwill”, and the Board considered that it was not necessary to make a provision to write down the
investments to their estimated recoverable amounts.
The principal activity of Cashbox ATM Systems Limited is the installation and maintenance of Automated Teller Machines (ATMs) and the
processing of ATM transactions arising there from.
Through its 100% ownership of Cashbox ATM Systems Limited, indirectly the Company also owns 100% of the share capital of Cashbox
Finance Limited, a UK-incorporated dormant company.
The Company also owns 100% the share capital of an intermediate holding company, Cashbox No 1 Limited registered in England and Wales
and through this ownership, 100% of the share capital of Cashbox No 2 Limited, also a company registered in England and Wales, 
which owns the majority of the ATMs operated by the Group where ownership is retained.
3. STAFF COSTS
Details of the Director’s remuneration are included in the Consolidated Financial Statements on page 35. There are no other staff except the
directors.
4. AUDITORS REMUNERATION
The audit costs for the year amounted to £30,000 (2007: £45,000) and were borne by the Company’s principal operating subsidiary.
5. DEBTORS
2008 2007
£’000 £’000
Amounts due within one year
Other debtors – 17
Prepayments and accrued income 55 37
Amounts owed by Group undertakings 4,958 3,382
5,013 3,436
Amounts falling due after one year
Prepayments 101 138
Amounts owed by Group undertakings 8,379 5,500
8,480 5,638
T otal debtors 13,493 9,074 54
Cashbox PLC  Annual Report & Accounts 2008
Notes to the Company Financial Statements continued
For the year ended 30 June 2008
6. CREDITORS: AMOUNTS DUE WITHIN ONE YEAR
The creditors falling due within one year consist of the following: 2008 2007
£’000 £’000
Bank loans 4,805 –
Accruals 15 –
Other Loans 447 –
5,267 –
The terms and maturity of the Bank and Other loans are described in note 16 of the Consolidated Financial Statements on page 39.
7. CREDITORS: AMOUNTS DUE AFTER ONE YEAR
The creditors falling due after one year consist of the following: 2008 2007
£’000 £’000
Bank Loans – 2,300
The terms and maturity of the Bank loans are described in note 16 of the Consolidated Financial Statements on page 39.
8. SHARE CAPITAL 2008 2007
£’000 £’000
Authorised
150,000,000 1p ordinary shares (2007 150,000,000 1p ordinary shares) 1,500,000 1,500,000
Allotted, issued and fully paid
104,367,525 1p ordinary shares (2007: 83,171,761 1p ordinary shares) 1,043,675 831,718
On 29 July 2008 at an Extraordinary General Meeting of the Company, the shareholders approved the increase of the authorised share capital
by 850,000,000 1p ordinary shares to 1,000,000,000 1p ordinary shares.
Allotted, issued and fully paid
Number of Conversion/ Share Capital Share Premium
Purpose shares issue price £ £
1 July 2007 83,171,761 831,718 6,925,316
31 March 2008 Conversion of convertible loan note 11,675,764 5p 116,758 467,030
5-6 April 2008 Placing 9,520,000 5p 95,200 380,800
Issue expenses (16,749)
30 June 2008 104,367,525 1,043,676 7,755,297
On 19 December 2007 the Company issued a convertible loan note to MBC Investments with the right to convert into 11,675,764 
1p ordinary shares. The note converted on 31 March 2008 under the terms of the loan note as described in note 18 of the Consolidated Financial
Statements on page 42. Over the 5 and 6 April 2008 the Company issued 9,520,000 1p ordinary shares by way of a placing. 
On 31 July 2008 the Company issued a further 7,200,000 1p ordinary shares by way of a placing at a share price of 5p per ordinary share
together with 1,440,000 warrants to subscribe for shares at the same price of 5p.
On 25 September the Company issued a further 17,500,000 £0.01 ordinary shares by way of a placing at a share price of 5p per ordinary
share together with 3,500,000 warrants to subscribe for shares at the same price of 5p.
On 3 October the Company issued a further 6,250,000 ordinary shares by way of a placing at a share price of 5p per ordinary share.
On 9 October the Company issued 9,166,667 ordinary shares to the mezzanine debt holders of Cash4All Limited at a share price of 6p per
ordinary share as part of the consideration for the acquisition of the entire ordinary share capital of Ensco 694 Limited.
Details of Options and warrants are included in note 18 of the Consolidated Financial Statements on page 42. 55
9. CAPITAL AND RESERVES
The Company has capital and reserves as follows:
Share Share Equity Profit and 
capital premium reserve loss account Total
£’000 £’000 £’000 £’000 £’000
At 1 July 2007 832 6,925 – (533) 7,224
Issue of shares April 2008 95 381 476
Less issue costs (17) (17)
Issue of convertible loan note 38 38
Conversion of convertible loan note 117 466 (38) 545
Profit for the year 330 330
Share based payments (FRS 20) 133 133
At 30 June 2008 1,044 7,755 – (70) 8,729
10. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
2008 2007
£’000 £’000
Profit/loss for the financial year 330 (103)
Share based remuneration 133 138
463 35
Issue of shares including premium 1,042 3,263
Movement of shareholders’ funds 1,505 3,298
Opening shareholders funds 7,224 3,296
Prior year adjustments
– share based payments credit to reserve – 75
– share based payments debit to reserves – (75)
Opening shareholder funds as restated 7,224 3,296
Closing shareholders’ funds 8,729 7,224
During 2007, the Group adopted FRS 20 ‘share-based payment’ which is obligatory for periods commencing on or after 1 January 2006.
Prior to the adoption of FRS 20, the Group recognised the financial effect of the share-based payments when shares and share options were
awarded to employees by making a charge to the profit and loss account based on the difference between the market value of the Company’s
shares at the date of grant and the option exercise price in accordance with UITF Abstract 17 (revised 2003) ‘Employee Share Schemes’.
The credit entry for this charge was taken to profit and loss reserves and reported in the reconciliation of movements in shareholders’ funds.
For the year ending 30 June 2006, the change in accounting policy has resulted in net decrease and profit (increase in loss) for the year of
£75,000 (share-based payments expense) being £4,000 exceptional costs, in addition to the £570,000 recorded under the old policy, on the
options issued to key staff at the time of the IPO as remuneration for services relating to the IPO process together with £71,000 ordinary
costs in relation to Award One options and warrants. This was treated as a prior year adjustment in 2007.
11. POST BALANCE SHEET EVENTS
Material events occuring after 30 June 2008 are described in the notes to the consolidated financial statements on page 48. 56
Cashbox PLC  Annual Report & Accounts 2008
Forward Looking Financial Statements
This document contains statements concerning the Group’s business, financial condition, results of operations and certain of the Group’s plans,
objectives, assumptions, projections, expectations or beliefs with respect to these items.
The Company cautions that any forward-looking statements in this document may and often do vary from actual results and the differences
between these statements and actual results can be material. Accordingly, readers are cautioned not to place undue reliance on forward-looking
statements, which speak only at their respective dates. The Company undertakes no obligation to release publicly the result of any revisions
to these forward-looking statements that may be made to reflect events or circumstances after the date of this document, including, without
limitation, changes in the Group’s business or acquisition or divestment strategy or planned capital expenditures, or to reflect the occurrence
of unanticipated events.
By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will
occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed
or implied by these forward-looking statements. These factors include, among other things: the impact of competitive pricing; changes in the
price of ATMS and other key items; the occurrence of major operational problems; the loss of major customers; limitations imposed by the
Group’s indebtedness and leverage; contingent liabilities, risks associated with changes in technology requirements from LINK; risks of
litigation; and other factors described in the Company’s filings with the London Stock Exchange. CASHBOX PLC,Windriver House, Meridian Office Park, Osborn Way, Hook, Hampshire RG27 9HY
Telephone 01256 441000  Fax 01256 768320
www.cashboxplc.co.uk