Independent thinking
Cashbox Public Limited Company
Annual Report & Accounts 2007 Contents
1 Business Highlights
2 Description of Business
6 Chairman’s Statement
8 Chief Executive’s Review
10 Operating and Financial Review
12 Board of Directors
14 Directors, Secretary and Advisers
15 Report of the Directors
18 Corporate Governance 
20 Report of the Remuneration Committee
22 Independent Auditors’ Report 
23 Consolidated Profit and Loss Account 
23 Consolidated Statement of Total Recognised
Gains and Losses
24 Consolidated Balance Sheet
25 Company Balance Sheet
26 Consolidated Cash Flow Statement
27 Notes to the Accounts
43 Notice of Annual General Meeting 1
Business Highlights
“2006/07 has been a transformational year for Cashbox. As a result of changing
funding partners and executive management, the underperforming business of much of
the year has evolved into a predictable, consistent, execution focused company, with a
clear strategy for growth and future profitability”.
Year ended Year ended
30 June 2007 30 June 2006
Machines installed at year end 1,442 1,058
Turnover £’000 4,380 3,159
Gross Margin % 27 29
EBITDA*
†
£’000 (3,510) (2,048)
Loss on ordinary activities before exceptionals* £’000 (4,056) (2,458)
Loss on ordinary activities after exceptionals £’000 (6,741) (3,637)
Loss per share before exceptionals* (pence) (6.3) (5.8)
Loss per share after exceptionals (pence) (10.5) (8.5)
Net debt £’000 855 315
* exceptional items are £2,000,000 and £685,000 in year ended 30 June 2007 relating to litigation settlement costs and lease
termination costs respectively and £1,179,000 in year ended 30 June 2006 relating to listing and share option costs.
†
EBITDA is defined as earnings before interest, tax, depreciation and amortisation, share based payments, and exceptional 
items, (note 31).
Highlights
• Installed estate increased to 1,442 despite difficulties with lease provider during year;
increasing installed estate market share (of surcharging IADs) from 4.2% to 5.7%, with a
smaller growth from 1.4% to 1.5% share of the total IAD transaction volumes market.
• Turnover up 39% from last year.
• Loss on ordinary activities increased due to higher administration costs and lease termination
costs.
• Replacement of previous lease facilities with new loan facilities signed in June 2007.
• Further £3.26m of equity raised in May 2007 and £583,000 convertible loan note issued 
in December 2007.
• Litigation settled with Hanco at a total of £2.0m.  2
Cashbox PLC  Annual Report & Accounts 2007
Description of Business
Background 
Cashbox ATM Systems Limited, the Company’s
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 ATM was installed in October 2004
with the 1,500th machine in September 2007. 
Cashbox PLC was incorporated on 
14th November 2005 and acquired the entire
share capital of Cashbox ATM Systems
Limited on 23rd March 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 detailed site
surveys, will enable Cashbox to place 
ATMs profitably in lower footfall areas
which effectively expands the market
available to Cashbox. 
• Sale Model 
The Merchant buys the machine from
Cashbox or another ATM supplier. Cashbox
provides access to the LINK network and
24 hour technical service and support.
• Fully Managed Model to maximise the
profit potential of each ATM site. 
For sites with higher footfall, the Fully
Managed Model will be used whereby ATMs
are replenished by third party cash handling
firms.
The Directors believe that Cashbox’s sales
process, which includes Cashbox’s fully
employed survey team undertaking detailed
site analysis before recommending to the
Merchant the appropriate deployment model,
provides a strong platform for growth. 
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.
Cash settlement process – what happens when I make a cash withdrawal? How does the money get transferred?
The convenience of an ATM is understood by most consumers but how does it all work?
The process starts by the Merchant putting the cash in the machine, this could be money they have taken from their account
or, more likely, cash which they already have on the premises. If the cash was not put in the machine, then it would probably
be taken to the bank and deposited.
1 Once the cash is in the ATM then it is available for use.
2 The consumer puts their cash card in the machine and through the LINK network their personal account is checked.
3 The consumer then decides on an amount to withdraw and the cash is dispensed, e.g £40.
4 The LINK network informs the consumer’s bank that the withdrawal has been made and transfers the withdrawal 
plus the convenience fee, £1.75 in this case, £41.75 in total, to a LINK settlement account.
5 Let’s say this is on a Monday. On the Tuesday the £41.75 is transferred to the Cashbox Bank of England (BOE)
settlement account. At this point Cashbox records the receipt of the cash and recognises the liability to the Merchant
in a Bank of England settlement liability account.
6 The amount withdrawn, in this case £40, is then transferred to arrive with the Merchant three days later on the
Thursday settling the liability. 
7 The convenience fee of £1.75 is then split per the agreement with the Merchant, and paid on a monthly basis. 
8 The costs due to LINK are paid from Cashbox’s share of the convenience fee. 3
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); and
• rising market of additional services
provided by ATMs, including on-screen
advertising, voucher and coupon dispensing,
and mobile phone top-ups.
Industry overview
Over the five years ended 31 December 2006,
the number of ATMs in the UK has nearly
doubled, with 76% of the ATMs deployed
during those years being installed in locations
other than banks and building societies. 
By the end of 2006, 61,000 ATMs were in
operation. More than 90% of new ATMs
deployed during 2004 were supplied by 
an IAD.
Currently, 50% of cash in circulation is
sourced in the UK from ATMs, and the
Association for Payment and Clearing
Services (APACS) predicts this will rise to
75% by 2011.
Cashbox average Convenience Fees are
currently around £1.63. The Directors believe
Convenience Fees will rise with some ATM
sites already charge £2.00. 
The growth rate of the Western European
ATM market recovered slightly from an all-
time low of 4 percent in 2005 to 4.4 percent
in 2006.
The United Kingdom remains the largest
Western European ATM market, with 
60,642 machines. Spain, which had the
leading position in 2003, is now in second
place, with 57,989 machines and Germany
comes in a relatively close third, with 
53,630 units.
Just three countries – the U.K., Italy and
Spain – account for more than half of the
region’s growth in ATM installations. 
The region’s five largest markets, the U.K.,
Spain, Germany, France and Italy, 
account for 77% of Western Europe’s
installed base.
0
500
1000
1500
2000
2500
3000
Million
2003 2004 2005 2006
0
20,000
40,000
60,000
80,000
100,000
120,000
£ Million
2003 2004 2005 2006
Transactional values have also seen a steady
growth: with 73,503 million pounds growing
to £1.026 billion in 2006.
By July 2007 the transactional values had
reached an all time high of £61,772 million
up 7.1% from the same time in 2006.*
*Source: Link Website
Transaction volumes within the UK
have grown in line with ATM deployment;
2.2 billion transactions took place in 2003
growing to 2.6 billion in 2006.*
By July 2007 the transaction levels
totalled 1,529 million, up 6% from the
same time in 2006.*
Some of our Clients:
Over the five years ended 31 December
2006, the number of ATMs in the UK 
has nearly doubled, with 76% of the 
ATMs deployed during these years 
being installed in locations other than
banks and building societies.
Y ear on Y ear Growth of T ransaction Volumes
Year on Year Growth of Transactional Values 4
Cashbox PLC  Annual Report & Accounts 2007
Description of Business continued
For the first time, off-premises ATMs
now outnumber ATMs located in
financial institution branches in
Western Europe (Retail Banking
Research Ltd 2006).
In 2006, the Netherlands and Norway
joined Finland, Ireland and the UK as
countries where off-premises ATMs are
the preferred ATM location.
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
independent ATM deployers (IADs) in
some countries.
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
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 37%
more in-store if they have withdrawn
cash from an on-site ATM.
(Harris Independent Marketing
Research 2007).
• Bank charge 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 on banks’ cash
handling charges for the Merchant.
Customers will typically spend 37%
more in-store if they have withdrawn
cash from an on-site ATM
(Harris Independent Marketing Research 2007)
Cashbox generates revenue through convenience fees,
interchange fees paid to Cashbox by the cardholder’s bank 
or building society and the sale of ATMs and ancillary
consumables, such as till roll receipts. 5
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, Research and Development
Cashbox has maintained an approach to
technology where all system developments 
are dealt with in-house. This has allowed 
the ongoing 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, AIMs, allows Cashbox to
manage and update its ATMs remotely.
Features of AIMs include system diagnostics,
machine software and graphics management
without the need to physically visit the ATM.
Cashbox was the first IAD in the UK to
implement successfully the latest ATM
encryption standard, Triple DES; the
Company was also among the first to
implement Chip & Pin technology across its
entire estate of ATMs.
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.
0
50
100
150
200
250
Million
Jul 06 Aug 06 Sept 06 Oct 06 Nov 06 Dec 06 Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07
226 224 225
230
224 226
208
205
236
226
238
234 232
Seasonality:
Highest transaction
volumes found in 
the early summer
months and a
noticeable dip 
during January 
and February. 
*Source: Link Website
Cashbox was the first IAD in the UK 
to successfully implement the latest
ATM encryption standard, Triple DES;
and was among the first to implement
Chip & Pin technology across its entire
estate of ATMs
LINK Transaction Volumes July 2006 – July 2007 6
Cashbox PLC  Annual Report & Accounts 2007
Chairman’s Statement
My statement as Chairman of Cashbox
comes following a difficult period for the
Company. The dismissal of the founder
and former CEO, Carl Thomas, has
meant that the Company has had to
meet an unanticipated challenge.
Further, it was necessary to change
funding providers, resulting in delays in
the installation of ATMs across our
estate. This has meant that the Company
has gone through a challenging year to
say the least. Each of these factors
would have been impossible to envisage
at the start of the year.
We now have a new Chief Executive
Officer in Ciaran Morton and a new
Chief Financial Officer in David Auger.
Together with Matt Thomas and Andy
Wilmott, they form a first class senior
executive team, which gives us
confidence for the future. They have
already negotiated new funding
arrangements with the Bank of
Scotland, which provide greater access
to capital and the flexibility needed to
roll out our ATMs more aggressively. 
Despite these difficulties, we have
continued to benefit from one of the
UK’s fastest organically grown estates 
of ATMs. We have negotiated new
agreements, which complement our
already impressive client list. These new
contracts will open up opportunities for
further growth in the Group’s estate. 
At the beginning of the year (July 2006)
the business had 1,058 installed ATMs.
This rose to 1,442 installed ATMs by
June 2007 and was over 1,750 by the
middle of December 2007.
2007 results
Sales for the year to 30 June 2007 
were £4,380,000 (2006: £3,159,000)
resulting in an operating loss of
£5,932,000 (2006: £3,396,000) 
and a loss before tax of £6,741,000 
(2006: £3,637,000). These results are
very disappointing but there were
exceptional items of £2,000,000
litigation settlement costs and an
exceptional finance charge of £685,000
to resolve the Group’s lease finance
arrangements as well as the large
professional fees in connection with the
Hanco lawsuit and other legal and
financial expenses.
Consistently, through the year, Cashbox
has continued to secure contracts to
roll out ATMs into both independent
and managed sites. There continues to
be a large number of contract
opportunities ahead for the Company
which we will continue to pursue.
We have maintained our focus on the
Merchant Fill model which has seen the
estate grow by 36.2% in the last year.
This model continues to present the best
option for many of our customers who,
in turn, are able to offer an added value
service to their customers. The business
model has further been developed to
ensure that the commissions paid out 
to the merchant relate directly to the
transaction levels in that particular site.
Resource
With the challenges highlighted 
above, the Company’s resilience and
determination to succeed have been
evident in the past year. I believe
that we have a Company which is
professional and resolute in its
partnership with its customers, and 
one that continues to ensure that the
customer experience with Cashbox is
productive. I believe our shareholders
can have confidence that we have built 
a professional team that will create both
significant value for investors and an
effective service for our customers.
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, Cashbox ATM Systems
Limited will pay an additional £1.8m, 
on top of the £200,000 already paid. 
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 connection with
this litigation, which Directors intend to
enforce to recover the £2m. This brings
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.
The Board was surprised and
disappointed to receive a letter from
Anthony Sharp disputing the validity of
his indemnity to Cashbox ATM Systems
Limited. The Board has subsequently
received legal advice supporting that the
indemnity is valid and enforceable. As
the indemnity is a reimbursement and
receipt is not virtually certain, the
amount recoverable will not be recorded
as a receivable until receipt is virtually
certain in accordance with UK GAAP .
Hence, the value of the indemnity does
not appear on the Balance Sheet.
However, shareholders can rest assured
that the Board intends to vigorously
pursue the indemnity.
Post Balance Sheet Events
The rollout of ATMs has been slower
than expected for several reasons, not
least being changes to the production
procedure of our ATM supplier. This,
coupled with a maturing market, has led
to slower installation rates than
originally planned. Break-even, which
was expected towards the end of 2007, is
now forecast for summer 2008. As a
result we have had to raise new operating
capital, as well as re-structure our
existing arrangements with Bank of
Scotland. I am happy to report that we
have achieved this.
We have maintained our focus on the placement of the Merchant
Filled model. This model continues to present the best option for
our customers who, in turn, are able to offer an added value service
to their customers. I believe that we have a Company which is
professional and resolute in its partnership
with its customers, and one that continues
to ensure that the customer experience 
with Cashbox makes us the ATM partner 
of choice in the UK.
Bank of Scotland have agreed to
lengthen our drawdown period from
March 2008 to December 2008, with a
corresponding reduction in the required
facility from £8m to £6m, reflecting
current trading conditions. This was
agreed on the basis that we raised £1m
of funding for operating capital, which
we have done in the form of one
convertible loan and one non-convertible
loan. The convertible loan of £583,000
has already been loaned to the Company
and the non-convertible loan of
£417,000 is available from 31 March
2008. The Board are proposing a fund
raising in 2008 about which shareholders
will be notified in due course.
The Board recognises that there are now
two main goals for the business:
• To continue to exploit the opportunity
in the market to grow the core
business organically. With that in
mind, Matthew Thomas (Chief
Technology Officer), and Andrew
Wilmott (Technical Director) will
focus upon driving the execution of
this growth taking major roles within
the Executive Board of the operating
company, Cashbox ATM Systems
Limited. They will relinquish their plc
roles in order to achieve this goal.
• To develop a more external focus, with
a view to deriving value from
transactions in what we believe to be a
market ready for consolidation. This
requires the Board leadership to
leverage a different skill-set from that 
of running and growing an existing
business operation. Cashbox is fortunate
to have that talent already in place. It is
my intention to step down at the AGM
and allow Non-executive Director,
Robin Saunders, with her considerable
financial market experience, to replace
me as Chair, to take forward this next
phase of Cashbox’s evolution. Non-
executive Director, Stephen L Brown,
will also stand down at the next AGM,
to enable a balanced Board of two
Executives, Ciaran Morton and David
Auger, and two Non-executives, Robin
Saunders and William Hughes to
leverage transactional value in a
changing market.
2007/08
The current year will be one of high
expectations, challenges and hard work
for Cashbox, with demanding yet
achievable goals. The rollout of ATMs
will continue and we intend to reach
monthly break-even during 2008. 
I send my fellow Directors and all 
the  staff at Cashbox my best wishes 
for their future success.
John Maples
Chairman Cashbox PLC  Annual Report & Accounts 2007
Chief Executive’s Review
Whilst the last year has clearly been a
challenging one for the business, it has
also clearly proved that Cashbox has
the resilience, capabilities and the
correct strategy to thrive in a highly
competitive marketplace. There has
been considerable change within both
the Executive Management Team and
the Non-executive Board. However,
staff both old and new have remained
fully focussed 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
systems to ensure the maximum level
of uptime for all ATMs.
During the course of 2006/07, Cashbox
was hampered in its ability to execute
against those cornerstones by a lack of
funding. This situation was resolved in
June 2007 by the signing of a deal with
Bank of Scotland. A lack of funding
also causes a business to wholly focus
upon the short term rather than plan
for the long term. Securing a funding
partner has enabled management to
restructure the business with a view to
meeting short term requirements whilst
providing a secure and stable platform
for the consistent and predictable
execution of the growth business plan
over the medium to long term.
These changes are designed to focus the
business, especially sales and support
operations, upon meeting the needs of
our customers. An Account
Management team has been created to
develop a partnership approach with
our key clients. This single point of
contact provides regular site
penetration and transaction reports,
and works with our clients to target
new sites and create marketing
materials to drive additional estate
penetration as well as transaction
volumes within existing sites.
Closer links to our clients and the
resulting increased understanding of
their business priorities also allows for
the efforts of the Field Sales team to
be co-ordinated with our clients’
internal marketing efforts. This has
resulted in over 30% growth of site
conversions H2 v H1 in 2006/07. 
This performance is expected to be
maintained, if not accelerated further,
in 2007/08; especially with the recent
addition of a Telephone Sales team to
drive estate penetration. Recently
acquired clients such as Total Fitness
and Marstons Pub Company are
experiencing a rapid fulfilment of their
estate’s potential thus reducing the
time to generate substantial revenues.
The provision of outstanding support
services are increasingly the key
business differentiator between Cashbox
and all other players in the market. By
retaining all these functions in-house,
Cashbox can ensure the quality and
timeliness of all installation, upgrade
and repair services. The Help Desk and
Sales Support teams were also recently
merged to provide available scale for
any particular priority task, such as
large scale customer roll out, software
upgrades and loading graphic images.
However, the real benefit has been the
sharing of information about client
needs, issues and requests across the
organisation, reducing response times
and increasing our ability to pro-
actively manage anticipated issues. 
As a result, despite growth in the
installed base of nearly 50% over the
past year, we have been able to
maintain our benchmark of resolving
85% of all ATM performance issues
immediately by phone, the remainder
being handled in person by trained
engineers within twenty-four hours of
the fault being logged. This dedicated
approach to service ensures we
experience ATM uptime in excess of
98% as an average across the entire
estate. In this way, our clients are
continually driving increased footfall to
their locations, and increased spending
at these locations from customers who
always enjoy access to cash.
Moving into 2007/08, it is the Cashbox
experience – the actual verbal and
physical interaction with Cashbox staff
that will differentiate us from our
competition. After discussing the
business goals of any potential client,
our in-house survey team assesses
whether an ATM can deliver those
goals wholly, or in part. This then
drives the discussions between Sales
Management and the on-site Merchant
to agree mutually beneficial contract
terms, prior to any installation. This
integrated and professional approach
to meeting our clients’ business needs
together with our company wide
commitment to service excellence will
ensure that Cashbox customers are
fully informed as to what the ATM can
achieve for their business, and that
both parties have a realistic
expectation of transaction
performance. A true partnership that
we expect to build upon and renew
during the lifetime of the contract.
As the Bank of Scotland funding allows
for the regular purchase and roll-out of
ATMs to drive revenues, similarly the
Executive Management are seeking
ways to optimise operational
efficiencies, whilst driving towards
The provision of outstanding support services are increasingly the key
business differentiator between Cashbox and all other players in the
market. By retaining all these functions in-house, Cashbox can ensure
the quality and timeliness of all installation, upgrade and repair services.
8 85%
of all ATM performance issues
are resolved over the phone
98%
of Cashbox ATMs 
available for use
The provision of outstanding
support services are increasingly
the key business differentiator
between Cashbox and all other
players in the market.
Gross transaction
revenues
up 40% on last year to
£4.0m as the installed base of
machines increases.
sustainable profitable growth. All major
supplier contracts have been re-
negotiated resulting in increased funds
to invest in sales and support areas.
Additional sales headcount and capital
expenditure on Customer Relationship
Management software has partly been
funded out of operational efficiencies.
The placement strategy continues to drive
our growth, but we have taken steps to
ensure that the rapid deployment of ATMs
does not affect future profitability. A new
approach in customer contracts, which
grow merchant commissions in line with
transaction volume, ensures that even low
transacting ATMs generate significant
profits over the contract duration.
Transaction volumes, as expected,
continue to grow, and, more
importantly, average transactions per
ATM have not suffered as a result from
the swing in emphasis from sales and
managed ATMs to placement ATMs.
This has been driven in part by the high
quality machines used. We have recently
upgraded from the Tidel 3400 to the
3600, which we believe to be “best in
class”. With enlarged screen and
enhanced colour graphics, keypad and
security features, the 3600 provides
tangible reassurance to merchant and
user alike.
In conclusion, a difficult year of
trading, where a lack of funding and
personal governance created an
environment where execution was
severely hampered. However, the staff
and the new management are energised
about the future. The restructuring has
created purpose and enabled focus upon
those key elements of our business that
create the foundation of our long-term,
profitable future. Exit run rates from
2006/2007 are very encouraging and
are built upon in H1 2007/08.
As I look to 2007/08, I am fully
resolved that the defining element
of this new Cashbox will be the
delivery of consistent and
predictable performance. We
will achieve this by developing
meaningful partnerships that
deliver true mutual value with
all of our clients, and by
demanding more of ourselves
and our performance.
Ciaran Morton
Chief Executive
Moving into 2007/08, it is the Cashbox
experience – the actual verbal and
physical interaction with Cashbox staff
that will differentiate us from our
competition. 
2006 £2.84m
£4.0m 2007 10
Cashbox PLC  Annual Report & Accounts 2007
Operating and Financial Review
The Operating and Financial Review
should be read in conjunction with the
Financial Statements starting on page 23.
The figures for year ended 30 June 2006
have been restated following the
adoption of the accounting standard
FRS20 on share based payments.
Operationally the business has been
fundamentally restricted by the funding
difficulties which prevented the roll-out
of ATMs across sites under contract. 
The Board considers reaching critical
mass and profitability key objectives
and the number of installations in a
period to be one of the Key Performance
Indicators, KPIs.
During the year the estate was increased
by 384 machines with 631 installs and
247 uplift of machines, as the machine
locations were optimised when new
machines were not available. With
difficulties involving General Capital
Venture Finance (GCVF) not being
resolved until the end of June 2007, the
increase in the second half of the year 
was only marginally up on the first half.
The proportion of machines operating
under the placement model, where
Cashbox retains ownership of the
machine, continued to increase and at 30
June 2007 was 34% of the total estate.
Turnover
Turnover for the year was £4.4m, up 39%
on last year as the business continued to
grow and further machines were installed,
albeit at a slower rate than envisaged.
Gross transaction revenues were up 40%
on last year to £4.0m as the installed
base of machines increased. Other
revenues, principally from the sale of
machines, increased to £0.4m but the
increase has slowed as the focus continues
to be on the placement model.
Gross margin
Gross margin for the year was 27%, 
2 percentage points lower than the
previous year which benefited from
service income from relocating a
number of a customer’s ATMs. 
The margin on Transaction fees
continued to improve with 31% for 
the year against 29% in the
comparable period. This is expected to
continue as the ATM estate continues 
to grow with the higher margin
placement machines making up a
greater proportion of the estate.
Administration costs
Administration costs have risen
significantly from last year as the
business continues to resolve ongoing
issues. In particular salary and other
related costs are up significantly, but in
line with expectations as the average
number of employees employed by the
Group has risen from 22 in the year
ended 30 June 2006 to 44 in the year
ended 30 June 2007. 2006 also included
share based remuneration costs of
£574,000 associated with the IPO
recorded as an exceptional item. 
While staff costs are considerably higher,
the second half was only 18% higher
than the first half, as the staffing levels
reached the appropriate level to take the
business forward and grow the ATM
estate. The current number of employees
in October 2007, 50, is not expected to
increase significantly as the business
moves forward for the foreseeable future. 
Vehicle and motor expenses have also
increased reflecting the growing sales
force. However these are expected to be
reduced once the fleet is migrated from
short term rental contracts currently in
place to a vehicle financing
arrangement with Bank of Scotland as
part of the long term refinancing of the
business. Occupancy costs were
£316,000 for the year up 21% all
relating to telephony while travel and
entertaining expenses increased by 50%
for the year. The majority of this
increase related to higher spend in the
first half of the year and spending has
been dramatically reduced from the last
quarter of the year.
The other significant area of overheads
are professional fees which amounted to
£874,000 during the year. This includes
the cost of resolving some of the
difficulties the business has faced
during the year, particularly in the
second half with the litigation costs of
the Hanco case, cancelling the
financing arrangement with GCVF,
arranging the new financing facility
with Bank of Scotland and the
dismissal of the former chief executive.
As the new management team resolve
these issues and progress to a more
“business as usual” situation it is
expected that the professional fees
being incurred will significantly reduce. 
EBITDA
Earnings before interest, tax,
depreciation, amortisation, share based
payments and exceptional items. This is
considered a KPI for the business at its
current state of development. EBITDA,
was a loss of £3.5m compared to £2.0m
last year, with the increased losses due to
higher administration costs (a
reconciliation to statutory headings is
included in note 31).
Non cash administration costs
Non cash administration costs of
depreciation and costs associated with
share based payments, principally the
employee share option scheme, meant
that the operating loss was £3.9m before
exceptionals, £1.7m worse than last year
before exceptionals, while the operating
loss after exceptionals was £5.9m and
last year was £3.4m reflecting £2.0m
settlement costs recorded this year and
IPO costs and share option costs at the
time of the IPO of £1.2m.
Interest costs
Interest costs for the year amounted to
£809,000 which included the finance
cost of exiting the GCVF lease facilities
of £685,000 which has been treated as
an exceptional item. This includes a
cash cost of £467,000 being the
settlement of the interest element of
future rental payments under the lease
agreements together with the write off
of prepaid fees £189,000 and the
remaining accretion of warrants cost
issued to GCVF, £29,000, which were
cancelled as part of the settlement.
Other interest costs were £161,000
partially offset by interest income of
£37,000 which arose on the Group’s
Bank of England settlement account.
Loss on ordinary activities
The Loss on ordinary activities for the
year was £6.7m compared to a £3.6m
loss last year with the higher gross
profits failing to offset the higher
overheads. Before exceptional items,
losses for the year were £4.0m, against
£2.5m last year as explained above.
The operating loss of £5.9m gave rise
to a net cash outflow from operating
activities of £2.5m, with non cash  11
items included in the operating loss of
£0.4m and movements in working
capital of £3.0m.
Closely monitoring cashflow is critical
for a business which is loss making, as
Cashbox currently is, consequently all
the headings within the cashflow are
considered KPIs.
Working capital movements
Working capital movements provided a
cash flow benefit as reported for the
year. The underlying performance of the
same is critical to the Group maintaining
a sound financial base.
At 30 June 2006, total operating debtors
amounted to £1.3m of which £840,000
related to amounts due from GCVF
included in Trade debtors and relating to
the purchase and sale and leaseback of
machines and other fixed assets. The last
of these monies was not received until the
middle of September 2006, over 16
weeks after it was due to be paid. This
created cash-flow difficulties that lead to
delays in the purchase and roll out of
ATMs. Trade Debtors at 30 June 2007
were minimal, reflecting the situation
where transaction revenues are collected
automatically through the settlement
process and the sale of machines has
reduced. Total debtors at 30 June 2007
were £0.8m, including £479,000 in
relation to VAT , £306,000 of which
related to VAT on the purchase of assets
back from GCVF , to be recovered from
Her Majesty’s Revenue and Customs
(HMRC). In addition, but not recognised
in the accounts, as explained in note 30,
is £2,000,000 due from Anthony Sharp,
previously Chairman, and Carl Thomas,
previously CEO, under the terms of the
indemnity signed by them as part of the
IPO process under which they are jointly
and severally liable for the settlement
reached with Hanco. 
The increase in operating creditors
resulted in a cash inflow of
£2,661,000. However underlying
operating creditors were at a similar
level with £543,000 of this inflow as a
result of increases in the “Bank of
England settlement” creditor which
relates to the settlement of amounts
withdrawn by consumers back to the
merchants who filled the ATMs with
cash as part of the three day settlement
process. It also includes the impact of
the 2007 year end falling on a
Saturday compared to a Friday last
year. In addition, at 30 June 2007, 
a £2,000,000 liability is included in
Other Creditors in relation to the Hanco
litigation of which £200,000 was paid
on 24 July 2007 as described in note 29.
Servicing of finance costs
Servicing of finance costs were
£580,000 including £467,000 in
relation to the GCVF settlement.
Fixed asset purchases
The investment in the future of 
the business through the purchase of
fixed assets, principally ATMs, was
£693,000. These costs resulted in a 
net cash outflow before financing of
£3.7m for the year, less than the £4.6m
reported in 2006. However while the
majority of this reflects the losses
being made rather than investment in
the business, this is disappointing. 
Financing
Despite the difficulties faced by Cashbox,
existing and new investors in the business
have continued to be supportive. During
the second half of the year, loans of
£2.8m were raised in February and
March to allow the Company time to
look at the financing alternatives. As
part of the ongoing discussions with
Bank of Scotland, the Company raised
£3.3m in new shares following an
extraordinary general meeting in May
2007, being £0.6m in cash and £2.7m in
the conversion of the loans raised a few
months earlier. The key to the success of
the placement model is the financing of
the purchase of the ATMs and in June
2007 the Company reached settlement
with GCVF , allowing the release of the
charge GCVF held over the Company’s
assets and allowing alternative funding
from Bank of Scotland. The net cash
inflow from financing for the year was
£4.7m, offsetting the cash outflow before
financing and resulting in a net increase
in cash of £0.9m.
For the period until the Company moves
to profitability, the long term financing
of the business has been reviewed and
the refinancing described on pages 41
and 42 actioned.
Increase in cash
The net increase in cash of £0.9m
comprises an increase in cash held in the
BOE settlement account of £1.1m less a
reduction in other cash of £0.2m. Cash
at the year end held in the BOE
settlement account amounted to just over
£1.3m, over £200,000 in excess of the
corresponding BOE settlement liability. 
Future developments and outlook
Following the year-end, the Group has
been utilising the Bank of Scotland 
loan facility and is continuing the
planned roll-out of ATMs with the
installed base increasing to over 1,750
machines by the middle of December.
This is an increase of 308 machines from
the year end with 393 installations
including 85 relocations. The 85
relocations are part of our ongoing plan
to churn locations, replacing low
transacting sites with those with higher
potential transaction volumes. This churn
policy also provided our ATM supplier
with time to gear up production
capabilities at their new manufacturing
facility. While transaction volumes in the
summer were slightly below expectations,
overall transaction revenues are
continuing to grow with the increased
installed base of ATMs and are in line
with future revenue expectations.
As part of the budgeting exercise for
the new financial year, the new
management team has undertaken a
thorough review of the cost base of the
Group and has identified considerable
scope for cost savings without
restricting the Group’s ability to grow
to profitability. A series of action plans
and targets have been put in place
across the business to realise these
savings going forward, particularly in
the areas of vehicle costs, telephone
communications, travel and
entertaining and professional fees.
Marketing expenditure has also been
significantly reduced as the Company
has moved towards targeting specific
sectors as opposed to the entire
potential ATM community. It is
anticipated that these initiatives,
together with the planned growth in 
the number of ATMs will bring the 
Group to a break even position towards
the end of the next financial year.
However, if the losses are forecast to
extend beyond that point, then
additional cost saving measures,
including possible reductions in staff,
have not been ruled out. 12
Cashbox PLC  Annual Report & Accounts 2007
Board of Directors
1. John Maples
Chairman
John brings with him a wealth of
business experience relevant to
Cashbox, including a tenure as
Chairman of ATM operator Bank
Machine Ltd from 2003 until it was
acquired by Cardtronics Inc in 2005.
Mr Maples first became a Member of
Parliament for the Conservative Party
in 1983 and is currently the Member 
of Parliament for Stratford-on-Avon. 
John Cradock Maples MP , aged 63,
currently holds the following
directorships: Dunlop Transcalm Ltd,
Advanced Visual Technology Ltd, 
Value Retail plc, Agatha Christie Ltd,
and Autospan Ltd.
2. 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.
3. 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 through his recent
experience 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.
4. 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. Matt has
been responsible for the development
and implementation of the Company’s
technical and operational infrastructure
to date.
5. Andy Wilmott
Technical Director 
Andy has been with Cashbox since its
inception and continues to lead in the
development and implementation of the
bespoke technical infrastructure.
Prior to joining Cashbox Andy worked
for Bosch Security Systems (Formerly
Philips Communications, Security &
Imaging) as ‘UK Technical Product
Specialist and Training Manager’;
supporting life safety and mission
critical communication systems across
varied locations, from Office parks to
Oil rigs. Andy also worked for Stage
Electrics, a leading company in the
sound and lighting industry, with key
responsibilities for the design,
commissioning and support of critical
control systems. Andy’s high level of
both technical and practical experience,
particularly with database and
management information design and
support continues to be an invaluable
contribution to the business. 
6. Robin Saunders
Non-executive Director
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
nine acquisitions across three platform
companies. Until 2004, she was
Managing Director of the Principal
Finance Group at WestLB AG. She has
specialised in acquisition and
securitisation financing of strong cash
flow businesses in a variety of sectors. 13
Robin’s client/partner list spans 12
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.
7. Stephen Brown
Non-executive Director
Stephen Brown has over 30 years
experience in the investment banking
industry. In 1983 he founded S.L.
Brown & Company, a private
investment partnership engaged in
acquisition and merchant banking
activities as principal. The firm’s
primary investments included the
acquisition of Excelsior Truck Leasing
Company, Inc. a former subsidiary of
Conrail, and the acquisition of a control
position in Franklin Capital, 
an American Stock Exchange listed
investment company where Mr. Brown
served as Chairman and CEO from
1987 to 2004. 
Mr. Brown presently is Chairman of
Brimco LLC, a private investment firm
in New York, and serves on the board
of directors and as secretary of 
Ascend Acquisition Corporation 
(OTC Bulletin Board), a specified
purpose acquisition company, as well as
the board of Copley Financial Services,
advisor to the Copley Fund Inc., a
publicly traded mutual fund.
Mr. Brown is a graduate of New York
University School of Law, LLB 1965,
Brown University, BA 1961 and the
Peddie School 1957, where he has
served as a Trustee since 1991.
8. 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 recently 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 he has been a
director of the Foundation for
Accountancy and Financial
Management representing the Scottish
Institute of Chartered Accountants 
and served as the Chairman of the 
CBI (Scotland). 14
Cashbox PLC  Annual Report & Accounts 2007
Directors
JC Maples (Non-executive Chairman)
CG Morton (Chief Executive Officer)
D Auger (Chief Financial Officer)
MJ Thomas (Chief Technical Officer)
AD Wilmott (Technical Director)
SL Brown (Non-executive Director)
RE Saunders (Non-executive Director)
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 
Bryan Cave 
33 Cannon Street 
London 
EC4M 5TE
Howes Percival
252 Upper Third Street
Grafton Gate East
Central Milton Keynes
MK9 1DZ
Mishcon de Reya
Summit House
12 Red Lion Square
London
WC1R 4QD
Nominated Adviser
Seymour Pierce Ltd 
20 Old Bailey 
London 
EC4M 7EN
Brokers
Seymour Pierce Ltd 
20 Old Bailey
London 
EC4M 7EN
Fairfax IS PLC 
46 Berkeley Square
Mayfair
London
W1J 5AT
Registrars
Computershare Investor 
Services PLC
PO Box 82
The Pavilions
Bridgwater Road
Bristol 
BS99 7NH
Directors, Secretary and Advisers 15
Report of the Directors
for the year ended 30 June 2007
The Directors present their report, together with audited
financial statements for the year ended 30 June 2007.
Results and Dividends
The consolidated profit and loss account for the year is set
out on page 23. The Group’s loss for the financial year, 
after taxation, was £6,741,000 (2006 £3,637,000).
The Directors are not able to declare a dividend.
Principal activity
The Cashbox Group 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 and
maintenance 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
Operating and Financial 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.
Appointment
Executive Directors
CG Morton 12 April 2007
D Auger 2 April 2007
MJ Thomas
AD Wilmott 22 December 2006
Non-executive Directors
JC Maples (Non-executive Chairman)*
†
20 November 2006
SL Brown (Non-executive)*
†‡
WY Hughes CBE (Non-executive)*
‡
30 March 2007
RE Saunders (Non-executive)
†‡
Directors who are not currently serving but served during
the year
Resignation
ACJ Sharp (previously Chairman)*
†
4 July 2007
CJ Thomas (previously CEO) 20 March 2007
D Woolsgrove (previously CFO) 18 June 2007
CL Hallett (previously Sales Director) 22 December 2006
* Members of the Audit Committee
†
Members of the Remuneration Committee
‡
Members of the Nominations Committee
Directors’ interests in the shares of the Company, are as
follows.
1p Ordinary Shares 1p Ordinary Shares
held at 30 June 2007 held at 1 July 2006
Current Executive Directors
MJ Thomas 2,940,000 2,940,000
CG Morton 200,000 –
D Auger 133,333 –
Current Non-executive Directors
SL Brown 106,000 156,000
RE Saunders 676,334 –
JC Maples 135,184 –
Directors who served during the year but have stepped down.
ACJ Sharp* 22,338,000 22,338,000
CJ Thomas 4,241,421 5,460,000
D Woolsgrove 60,000 60,000
CL Hallett 30,000 30,000
Note* 21,372,000 ordinary shares held in the name of Annenberg
Investment Management S.A., a company controlled by Anthony Sharp.
The 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 11 December 2007, 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 26.86
MJ Thomas 2,940,000 3.53
V Flynn 6,619,156 7.96
Lansdowne Partners 3,750,000 4.51
In the terms of AIM Rules published February 2007 and
insofar as the Company is aware, at 11 December 2007
32.8% 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 (2006: Nil).
Policy and practice on the payment of creditors
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.  16
Cashbox PLC  Annual Report & Accounts 2007
Report of the Directors continued
for the year ended 30 June 2007
Trade creditors of the Group at 30 June 2007 were equivalent
to 47 days’ purchases for the Group (2006: 48 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.
Financial instruments
Details of the use of financial instruments by the Company
and its subsidiary undertakings are included in note 19 of the
financial statements.
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. While a formal
review of risks has not been undertaken since, the risks 
facing the business were considered during the budget setting
process for the financial year ending June 2008. 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 Group’s 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 is exploring alternative suppliers of
ATMs 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. 
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 as
described in note 29. The Company’s subsidiary, Cashbox
ATM Systems Limited 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.
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 then the loan would be repayable on demand.
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.
A resolution to re-appoint BDO Stoy Hayward LLP as
auditors was proposed and approved at the last annual
general meeting held on 22 December 2006 and their
continued appointment will be proposed at the next. 17
Statement of Directors’ responsibilities
The Directors are responsible for preparing the annual report
and financial statements in accordance with applicable law
and United Kingdom Generally Accepted Accounting Practice
(“UK GAAP”).
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 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 Group and the Company 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 27.
Post balance sheet events
In July 2007 the Company’s subsidiary, Cashbox ATM
Systems Limited was ordered to pay costs of £199,760 to
Hanco ATM Systems Limited (“Hanco”) as part of the
litigation brought by Hanco against the Company’s
subsidiary, Cashbox ATM Systems Limited, claiming that
Carl J Thomas and Cashbox ATM Systems Limited 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.
On 23 October 2007 the Company and its subsidiary 
Cashbox ATM Systems Limited announced they had reached
agreement on a full and final settlement (the “Settlement”)
with Hanco ATM, concluding the litigation brought by Hanco
against Cashbox ATM Systems Limited.
Under the terms of the Settlement, Cashbox ATM Systems
Limited has agreed to pay £1.8 million to Hanco together
with interest accruing daily if payment is deferred. Cashbox
ATM Systems Limited has the option of deferring payment of
the £1.8 million for up to 2 years on the basis that interest
will accrue on the settlement sum at a rate of 5 per cent. 
per annum for the first year and at 20 per cent. per annum
thereafter. Payment of any interest may also be deferred for
up to 2 years. The obligations of  Cashbox ATM Systems
Limited under the Settlement are guaranteed by the Company.
Cashbox ATM Systems Limited has the benefit of a joint and
several indemnity in connection with this litigation, which 
the Company and its subsidiary propose to enforce. In accepting
the terms of the Settlement, Hanco foregoes the right to bring any
further claims against the Company or Cashbox ATM Systems
Limited in relation to the subject matter of the proceedings.
Cashbox ATM Systems Limited has written to both the
indemnifiers, Carl Thomas and Anthony Sharp, requesting
payment. At the date of this report payment has not been
received and Anthony Sharp has questioned the validity of the
indemnity. The Directors, having taken legal advice, believe
the indemnities are enforceable and recoverable however in
accordance with UK GAAP the receivable for the full amount
of £1,999,760 is treated as a reimbursement which will only
be recognised once receipt is virtually certain.
On 19 December 2007 the Company agreed further financing
arrangements and issued a convertible loan note for £584,000
together with an agreement for a non-convertible loan note of
£416,000 to be issued in March 2008 to provide additional
working capital as described in note 29 to the accounts. This
is supplemented to the facility with Bank of Scotland which
was reduced to £6m but with rescheduled repayments starting
in December 2009.
By order of the Board
David Auger
Director and Company Secretary
19 December 2007 18
Cashbox PLC  Annual Report & Accounts 2007
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 four Executive
Directors and four Non-executive Directors including the
Chairman. As part of the measures described on page 7, 
the Board is being reduced in size with two of the Non-
executives stepping down at the next AGM. To ensure the
Board remains balanced, two of the executives will also step
down from the Board but will be remaining with the Group. 
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 
judgment 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 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 at least monthly. In the
year ended 30 June 2007 the Board met 14 times.
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) Robin Saunders and 
Stephen Brown 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) Stephen Brown and John
Maples, 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.
Following his appointment, the new Chief Financial Officer 
is undertaking a thorough review of internal controls. 
It is planned that following that review the Audit Committee
will review the effectiveness of the control environment and
the recommendations made. 
The Audit Committee meets at least twice a year with the
external auditors.
The Remuneration Committee, comprising Stephen Brown
(Chairman of the Committee), Robin Saunders and John
Maples, 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
take part in discussions concerning their own remuneration.
The Report of the Remuneration Committee is set out on
pages 20 to 21. 19
Implementation of IFRS
All AIM-quoted companies are required to report financial
results under International Financial Reporting Standards
(IFRS) for accounting periods commencing on or after 
1 January 2007. Management has considered the impact 
of IFRS on the Group’s results and do not believe that 
they will lead to materially different results, the main
potential difference being the treatment of the deferred tax
asset associated with the taxable losses made to date. 
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 Chairman and Executives of the Business regularly 
meet with major shareholders throughout the year to develop
a balanced understanding of the issues and concerns of the
shareholders, which are then shared with the Board.
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 notice of the
Annual General Meeting at which the Directors will be
available to discuss aspects of performance and management
in more detail. This year the Annual General Meeting will
take place on 22 January 2008, and for which the notice is
included on page 43.
All Directors are subject to re-election by Shareholders at the
first Annual General Meeting after their appointment and
thereafter at three yearly intervals. 20
Cashbox PLC  Annual Report & Accounts 2007
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. A car allowance is also
included.
• 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.
• 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. CG Morton, D Auger and MJ Thomas
are required to provide 12 months notice of termination to the
Company and A Wilmott is required to provide 6 months
notice of termination to 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.
Directors’ detailed emoluments and compensation
The Directors received or are due the following emoluments in relation to the year ended 30 June 2007.
Gross Salary/ Pension
Fees Bonus contributions Benefits T otal
££ £ £ £
Current Directors
CG Morton* 38,350 – – 166 38,516
D Auger* 40,050 – – 388 40,438
MJ Thomas 116,589 10,000 – 3,126 129,715
AD Wilmott* 48,350 – 3,500 637 52,487
RE Saunders‡ 20,000 – – – 20,000
SL Brown 20,000 – – – 20,000
JC Maples* 12,559 – – – 12,559
WY Hughes* 5,000 – – – 5,000
Previous Directors
ACJ Sharp
†
120,000 – – – 120,000
CJ Thomas 148,217 10,000 – 6,828 165,045
D Woolsgrove 87,442 10,000 – 3,869 101,311
CL Hallett** 115,452 13,333 – 2,753 131,538
772,009 43,333 3,500 17,767 836,609
Bonuses were paid for performance during the first half of the year to the Executive Directors serving at that time. 
The Directors have waived any rights to a bonus for the second half.
* Directors appointed during the year became eligible to receive salary or fees from the appointment date as set out on page 15.
† ACJ Sharp’s fees were invoiced by, and paid to, Annenberg Investment Management SA. £77,000 was paid during the year in relation to the year
and £43,000 being the maximum amount allowed under Mr Sharp’s contract is outstanding at 30 June 2007 (2006 £30,000).
‡ RE Saunders fees were accrued during the year but were not paid, the total outstanding at 30 June 2007 £25,000 (2006 £5,000).
** CL Hallett received £41,344 in lieu of notice (included above) together with £20,172 as an ex gratia payment (not included above). 21
Current Directors’ share options are as follows:
Options at Granted/ Options
30 June (cancelled) outstanding at the Exercise price Earliest Latest 
2006 during the year end of the year (pence) exercise exercise
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
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
Previous Directors (who served during the year but were not Directors at year end):
Options at Granted / Options
30 June (cancelled) outstanding at the Exercise price Earliest Latest 
2006 during the year end of the year (pence) exercise exercise
CJ Thomas
Award One 1,625,000 (1,625,000) – 24.75
D Woolsgrove
‡
1p IPO Options 1,500,000 1,500,000 1.00 29-3-2006 18-6-2009
Award One 600,000 600,000 24.75 29-3-2008 18-6-2009
CL Hallett
†
1p IPO Options 600,000 600,000 1.00 29-3-2006 30-9-2008
Award One 175,000 (175,000) –
‡ D Woolsgrove, in recognition of services provided, has been granted, at the Board’s discretion, the right to retain his options exercisable for a period
of 2 years from the date he stepped down from the Board.
† Under the terms of the option grant the 1p IPO options are exercisable for a period of 2 years from the date of notice, the award one options lapsed.
Non-executive Directors received warrants as follows:
Warrants at Granted / Warrants
30 June (cancelled) outstanding at the Exercise price Earliest Latest 
2006 during the year end of the year (pence) exercise exercise
RE Saunders 500,000 500,000 20 29-3-06 29-3-2016
SL Brown 500,000 500,000 20 6-12-06 29-3-2016
JC Maples 500,000 500,000 20 6-12-06 29-3-2016
These warrants are exercisable at any time during the period from grant to 29 March 2016.
Stephen Brown
Non-executive Director
19 December 2007
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. 22
Cashbox PLC  Annual Report & Accounts 2007
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 PLC for
the year ended 30 June 2007 which comprise the Consolidated
Profit and Loss Account, the Consolidated Statement of Total
Recognised Gains and Losses, the Consolidated and Company
Balance Sheets, the Consolidated Cash Flow Statement and
the related notes. 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 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. This other information comprises only the
Business Highlights, Description of Business, Chairman’s
statement, Chief Executives’ Review, Operational and
Financial Review, Board of Directors, Directors, Secretary 
and Advisers, Report of the Directors and the Report of the
Remuneration Committee and the Corporate Governance
Statement. 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
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 United Kingdom Generally Accepted
Accounting Practice, of the state of the group’s affairs as 
at 30 June 2007 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 2007;
• 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. 
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
Reading
19 December 2007 23
2007 2006
Notes £’000 £’000
as restated
Loss on ordinary activities after taxation (6,741) (3,637)
T otal recognised gains and losses (6,741) (3,637)
Prior year adjustment in respect of the adoption of FRS20 “Share based payments” 1, 22 (75)
T otal recognised gains and losses since the last annual report (6,816)
The notes on pages 27 to 42 form an integral part of these financial statements.
Consolidated Statement of Total Recognised Gains and Losses
for the year ended 30 June 2007
Consolidated Profit and Loss Account
for the year ended 30 June 2007
2007 2006
Notes £’000 £’000
as restated
Turnover 2 4,380 3,159
Cost of sales (3,219) (2,245)
Gross profit 1,161 914
Administration expenses (5,093) (3,131)
Exceptional items:
Share based remuneration (options) charge relating to Listing 3 – (574)
Other Listing costs 3 – (605)
Litigation settlement costs 3, 29 (2,000) –
T otal administration expenses (7,093) (4,310)
Operating loss 4 (5,932) (3,396)
Interest receivable and similar income 37 13
Interest payable and similar charges 7 (161) (254)
Exceptional finance charges 3 (685) –
Net interest payable and similar charges (809) (241)
Loss on ordinary activities before and after taxation 21 (6,741) (3,637)
Loss per ordinary share (pence) 10
Basic (10.5) (8.5)
Diluted (10.5) (8.5)
Loss on ordinary activities excluding exceptional 
costs before and after taxation 10 (4,056) (2,458)
All amounts relate to continuing activities.
The notes on pages 27 to 42 form an integral part of these financial statements. 24
Cashbox PLC  Annual Report & Accounts 2007
Consolidated Balance Sheet
as at 30 June 2007
2007 2006
Notes £’000 £’000
FIXED ASSETS
T angible assets 11 1,090 674
CURRENT ASSETS
Stocks 13 110 22
Debtors 14 850 1,492
Cash at bank and in hand 1,452 536
2,412 2,050
CREDITORS: amounts falling due within one year 15 (4,717) (2,225)
NET CURRENT LIABILITIES (2,305) (175)
TOTAL ASSETS LESS CURRENT LIABILITIES (1,215) 499
CREDITORS: amounts falling due after one year 16 (2,305) (679)
NET LIABILITIES (3,520) (180)
CAPITAL AND RESERVES
Called up share capital 20 832 614
Share premium account 20 6,925 3,880
Merger reserve 21 2,180 2,180
Warrants reserve 21 – 37
Profit and loss account 21 (13,457) (6,891)
SHAREHOLDERS’ DEFICIT 22 (3,520) (180)
The financial statements were approved and authorised for issue by the Board on 19 December 2007.
Ciaran Morton David Auger
Director Director
The notes on pages 27 to 42 form an integral part of these financial statements. 25
2007 2006
Notes £’000 £’000
FIXED ASSETS
Investments 12 381 381
CURRENT ASSETS
Debtors: amounts falling due after one year 14 5,638 3,545
Debtors: amounts falling due within one year 14 3,436 –
Cash 69 –
9,143 3,545
CREDITORS: amounts falling due within one year 15 – –
NET CURRENT ASSETS 9,143 3,545
TOTAL ASSETS LESS CURRENT LIABILITIES 9,524 3,926
CREDITORS: amounts falling due after one year 16 (2,300) –
NET ASSETS 7,224 3,926
CAPITAL AND RESERVES
Called up share capital 20 832 614
Share premium account 20 6,925 3,880
Warrants reserve 21 – 37
Profit and loss account 21 (533) (605)
SHAREHOLDERS’ FUNDS 22 7,224 3,926
The financial statements were approved and authorised for issue by the Board on 19 December 2007.
Ciaran Morton David Auger
Director Director
The notes on pages 27 to 42 form an integral part of these financial statements.
Company Balance Sheet
as at 30 June 2007 26
Cashbox PLC  Annual Report & Accounts 2007
Consolidated Cash Flow Statement
for the year ended 30 June 2007
2007 2006
Notes £’000 £’000
Net cash outflow from operating activities 23 (2,477) (4,327)
Returns on investments and servicing of finance
Interest received 37 13
Interest paid (150) (254)
Lease termination costs paid (467) –
Net cash outflow from returns on investments and servicing of finance (580) (241)
Capital expenditure and financial investment
Purchase of tangible fixed assets 11 (693) (44)
Net cash outflow from capital expenditure and financial investment (693) (44)
Cash outflow before use of liquid resources and financing (3,750) (4,612)
Financing
Issue of ordinary shares for cash (net of issue costs) 584 5,339
New loans 5,100 –
Cash advances from finance lease provider 500 –
Loans repaid (130) (457)
Sale and leaseback of tangible fixed assets – 215
Capital repayments on finance leases (1,388) –
Net cash inflow from financing 4,666 5,097
Increase in cash 916 485
The notes on pages 27 to 42 form an integral part of these financial statements. 27
Notes to the Accounts
for the year ended 30 June 2007
1. ACCOUNTING POLICIES
Accounting convention
The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom
Accounting Standards. 
Going concern
The Group incurred a loss of £6,741,000 (2006 £3,637,000) for the year and had net current liabilities of £2,305,000 (2006 £175,000)
at the balance sheet date and net liabilities of £3,520,000 (2006 £180,000).
The Company incurred a loss of £103,000 (2006 £1,250,000) for the year and had net current assets of £9,143,000 (2006 £3,545,000)
and net assets of £7,224,000 (2006 £3,926,000) at the balance sheet date. 
The Directors have prepared projected cash flow information for a period including twelve months from the date of approval of these
accounts. A key assumption is the rate of installation of new machines which the Directors believe is reasonable. 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.
In addition, the Directors of Cashbox have assessed the recoverability of the amounts owed by the group to the parent company at 30
June 2007. The Directors are confident that these amounts are recoverable and that no provision is required.
Basis of Consolidation
The consolidated financial statements of Cashbox PLC have been presented under merger accounting rules, as the combining entities within
the Group were controlled by the same parties both before and after the acquisition of Cashbox ATM Systems Limited. This means that
the financial statements of Cashbox PLC and those of its wholly-owned subsidiary, Cashbox ATM Systems Limited, have been aggregated
and presented as if the two companies have always existed as a Group. Accordingly, the results for both companies are reflected in the
Group financial statements for the year to 30 June 2007 and the comparative amounts for the year to 30 June 2006 are presented on
the same basis.
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. 
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.
Turnover
Turnover represents the value of goods sold and services provided during the year, stated exclusive of Value Added Tax.
Income from the sale of Automated Teller Machines (ATMs) is recognised when each ATM is installed in its location and transaction income
is recognised in the period in which the transaction took place.
Impairment of fixed assets
The need for any fixed asset impairment write-down is assessed by comparison of the carrying value of the asset against the higher of
realisable value and value in use.  28
Cashbox PLC  Annual Report & Accounts 2007
Notes to the Accounts continued
for the year ended 30 June 2007
1. ACCOUNTING POLICIES continued
Depreciation
Depreciation is provided on all tangible fixed assets 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 present value of the minimum lease payments payable over the term of the lease.
The corresponding leasing commitments are shown as amounts payable to the lessor. 
Depreciation on the relevant assets is charged to the profit and loss account over the shorter of estimated useful economic life and the
period of the lease.
Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to the profit
and loss account over the period of the lease and is calculated so that it represents a constant proportion of the balance of capital
repayments outstanding. The capital 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 profit and loss account on a straight-
line basis over the term of the lease.
Sale and leaseback
Sale and leaseback arrangements, by means of a finance lease, are accounted for in the same manner as a standard finance lease
agreement. It is not appropriate to regard an excess of sale proceeds over the carrying amount as income. Such excess is deferred and
amortised over the lease term.
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.
Leased assets: lessor
Where assets are leased to a third party give rights approximating to ownership (finance leases), the assets are treated as if they had been sold
outright. The amount removed from the fixed assets is the net book value on disposal of the asset. The profit on disposal, being the excess of the
present value of the minimum lease payments over net book value is credited to the profit and loss account. Lease payments are analysed between
capital and interest components so that the interest element of the payment is credited to the profit and loss account over the period of the lease
and represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts owed by the lessee.
All other leases are treated as operating leases. Their annual rentals are charged or credited to the profit and loss account on a straight-
line basis over the term of the lease.
Stock
Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. 
Net realisable value is based on the estimated selling price less additional costs to completion and disposal.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate ruling at the date of transaction. Monetary assets and liabilities in foreign
currencies are translated at the rates of exchange ruling at the balance sheet date. Any differences are taken to the profit and loss account. 
Deferred taxation
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date
except that the recognition of deferred tax assets is limited to the extent that the Group anticipates making sufficient taxable profits in
the future to utilise the reversal of the underlying timing differences.
Deferred tax balances are not discounted. 29
1. ACCOUNTING POLICIES continued
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 2007, no provision was required.
Financial instruments
In relation to the disclosures made in note 19:
• short term debtors and creditors are not treated for disclosure purposes as financial assets or financial liabilities except for the
currency disclosures; and
• the Group does not hold or issue derivative financial instruments for trading purposes.
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. 
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. 
Reimbursements under Indemnity agreements
Amounts recoverable under indemnity agreements are treated as reimbursements in accordance with Financial Reporting Standard 
No 12 and, unless virtually certain, are only recognised on receipt.
Changes in accounting policies
In preparing the financial statements for the current year, the Group has adopted the following Financial Reporting Standards:
Share-based employee remuneration
The Group has adopted FRS 20 ‘Share based payment’ 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. 
In accordance with the FRS, 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. 
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 the profit and loss reserve and reported in the reconciliation of movements in
shareholders’ funds. 
The standard was applied to all grants of equity instruments as the earliest grant by the Company was 29 March 2006. 
For the year ending 30 June 2006, the change in accounting policy has resulted in net decrease in 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. For 2007, the impact of share-based payments is a net charge to income
of £138,000. The share-based payments expense has been included in the administrative expenses. 30
Cashbox PLC  Annual Report & Accounts 2007
Notes to the Accounts continued
for the year ended 30 June 2007
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:
2007 2006
£’000 £’000
ATM sales 373 161
Gross transaction revenue 4,003 2,844
Other 4 154
4,380 3,159
All the turnover in both years arose in the United Kingdom.
3. EXCEPTIONAL ITEMS
2007 2006
£’000 £’000
Charged in arriving at operating losses:
Share based remuneration – 574
Listing expenses – 605
Litigation settlement costs 2,000 –
2,000 1,179
Charged within interest costs:
Lease termination costs 685 –
The litigation settlement costs 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 as described in note 29. The Company’s subsidiary,
Cashbox ATM Systems Limited, has a joint and several indemnity in connection with this litigation. In accordance with Financial
Reporting Standard No 12, the amounts due under the indemnity have been treated as a reimbursement as described in Note 30.
The £685,000 exceptional costs associated with terminating the lease arrangements with General Capital Venture Finance 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 GCVF agreed to release the debenture held over the Group’s assets.
4. OPERATING LOSS
2007 2006
£’000 £’000
This is stated after charging / (crediting)
Depreciation of fixed assets 284 98
Exchange differences (2) (68)
Auditors’ remuneration
– Statutory audit 119 78
– Regulatory reporting 5 –
– T ax compliance 12 31
– T ax advisory – 15
– Corporate finance – 140
– Other – 13
136 277
Operating lease rentals – land and buildings 96 96 31
5. EMPLOYEES
Group Company
2007 2006 2007 2006
£’000 £’000 £’000 £’000
as restated
Salaries and wages 1,900 1,055 90 –
Social security costs 235 137 – –
Other pension costs 34 24 – –
Equity settled share based remuneration costs 138 645 138 –
T otal 2,307 1,861 228 –
The average number of employees (including Directors) during the year was as follows:
Group Company
2007 2006 2007 2006
Sales 15 3 – –
Engineering 14 9 – –
Administration 15 10 4 4
T otal 44 22 4 4
The costs of the employees excluding the Directors are borne by the Group’s main operating company, Cashbox ATM Systems Limited.
The Executive Directors’ costs are allocated across the group companies reflecting the time incurred in meeting their responsibilities. 
The cost of the Non-executive Directors are borne by the Company, Cashbox PLC.
6. DIRECTORS’ REMUNERATION
2007 2006
£’000 £’000
Aggregate emoluments (including amounts paid to third parties) 837 511
Company contributions to money purchase pension schemes 3 –
Equity settled share based remuneration costs 110 503
Ex gratia payments 21 –
971 1,014
There was 1 director (2006: nil) in the Company’s defined contribution pension scheme during the year.
The total amount payable to the highest paid director was £165,045 (2006: £172,599). Company pension contributions of nil (2006: nil)
were made to a money purchase scheme on his behalf.
Full details of the Directors remuneration during the year is included in the Report of the Remuneration Committee on pages 20 to 21.
7. INTEREST PAYABLE AND SIMILAR CHARGES
2007 2006
£’000 £’000
Loan interest 11 203
Interest on Finance leases 138 –
Supplier interest – 46
Other 12 5
161 254 32
Cashbox PLC  Annual Report & Accounts 2007
Notes to the Accounts continued
for the year ended 30 June 2007
8. TAXATION
2007 2006
£’000 £’000
Loss on ordinary activities before tax (6,741) (3,637)
Loss on ordinary activities at the standard rate of UK Corporation tax of 30% (2006: 30%) (2,022) (1,091)
Effect of:
Expenses not deductible for tax purposes 247 452
Depreciation in excess of capital allowances 86 29
Losses carried forward 1,689 610
Current tax charge for the period – –
The Group has trading losses of approximately £11m (2006 £6m) that are available for the offset against future trading profits subject
to the agreement of HM Revenue & Customs. A deferred tax asset has not been recognised in respect of these losses as they may not be
used to offset taxable profits for some time.
9. LOSS FOR THE YEAR
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 Group loss for the year includes a loss before and after taxation of £103,000
(2006: £1,179,000) which is dealt with the financial statements of the parent company.
10. 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 the Directors believe aid 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.
2007 2006
£’000 £’000
as restated
Earnings
Retained loss before and after tax for basic loss per share (6,741) (3,637)
Add back exceptional charges (see note 3) 2,685 1,179
Adjusted loss before exceptional items (4,056) (2,458)
Number of ordinary shares 
Weighted average number of shares for basic loss per share 64,129,470 42,692,407
Potentially dilutive share options and warrants (weighted average) 8,145,167 1,868,563
Weighted average number of shares including potentially 
dilutive share options and warrants 72,274,637 44,560,970
Basic loss per share (10.5)p (8.5)p
Diluted loss per share (all the potential shares are anti-dilutive) (10.5)p (8.5)p
Adjusted loss per share (excluding exceptional items) (6.3)p (5.8)p 33
11. TANGIBLE FIXED ASSETS
The Group tangible fixed assets consist of the following:
Office Furniture Automated 
Equipment and fittings teller machines T otal
£’000 £’000 £’000 £’000
Cost
Balance at the beginning of the year 178 16 648 842
Additions 122 92 486 700
Disposals – – – –
Balance at the end of the year 300 108 1,134 1,542
Depreciation
Balance at the beginning of the year 112 7 49 168
Provided during the year 64 17 203 284
Disposals – – – –
Balance at the end of the year 176 24 252 452
Net Book Value
Balance at the beginning of the year 66 9 599 674
At the end of the year 124 84 882 1,090
The net book value of tangible fixed assets for the Group includes an amount of £6,000 (2006: £639,000) in respect of assets held under
finance leases. 
The Company has no tangible fixed assets.
12. FIXED ASSET INVESTMENTS
The Group holds no fixed asset investments. 
The Company holds shares in its subsidiary companies:
2007 2006
£’000 £’000
Cost and net book value
Balance at the beginning of the year 381 –
Additions – 381
Balance at the 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 2007, 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 a newly incorporated company, Cashbox No 1 Limited, an intermediate holding
company, registered in England and Wales and through this ownership, 100% of the share capital of Cashbox No 2 Limited, also a newly
incorporated company registered in England and Wales, which purchased the assets previously owned by General Capital Venture Finance
Limited as part of the settlement reached with GCVF and leases these assets to Cashbox ATM Systems Limited. 34
Cashbox PLC  Annual Report & Accounts 2007
Notes to the Accounts continued
for the year ended 30 June 2007
13. STOCKS
The Group stocks consist of the following:
2007 2006
£’000 £’000
Automated teller machines 49 –
Spare parts 61 22
110 22
The Company has no Stocks.
14. DEBTORS
The Group and Company debtors consist of the following:
Group Company
2007 2006 2007 2006
£’000 £’000 £’000 £’000
Amounts falling due within one year
Trade debtors 11 951 – –
Corporation tax 21 21 – –
Value added tax 479 46 – –
Share capital not paid – 17 – –
Other debtors 79 136 17 –
Prepayments and accrued income 122 321 37 –
Amounts owed by Group undertakings 3,382
712 1,492 3,436 –
Amounts falling due after one year
Prepayments 138 – 138 –
Amounts owed by Group undertakings 5,500 3,545
138 – 5,638 3,545
T otal debtors 850 1,492 9,074 3,545
Not included in debtors is an amount of £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 29. Under UK GAAP this
has been treated as a reimbursement and will not be recognised until its receipt is virtually certain as described in note 30.
15. CREDITORS: AMOUNTS DUE WITHIN ONE YEAR
The Group and Company creditors falling due within one year consist of the following:
Group Company
2007 2006 2007 2006
£’000 £’000 £’000 £’000
Trade creditors 731 592 – –
T axation and social security 262 45 – –
Amounts due under finance leases 2 172 – –
Other creditors 2,111 469 – –
Accruals and deferred income 1,611 947 – –
4,717 2,225 – –
Included in Other creditors is an amount of £1,999,760 due to Hanco ATM Systems Limited as a result of the settlement of litigation as
described in note 29. 35
16. CREDITORS: AMOUNTS DUE AFTER ONE YEAR
The Group and Company creditors falling due after one year consist of the following:
Group Company
2007 2006 2007 2006
£’000 £’000 £’000 £’000
Bank Loans 2,300 – 2,300 –
Amounts due under finance leases 5 679 – –
2,305 679 2,300 –
Maturity of debt:
2006
Finance 2007 Finance
Loans Leases Total Leases
£’000 £’000 £’000 £’000
In one year or less – 2 2 172
Between one and two years – 2 2 172
Between two and five years 2,300 3 2,303 507
Between one and five years 2,300 5 2,305 679
2,300 7 2,307 851
There are no amounts due after more than five years (2006: nil).
The Bank Loans are amounts due under a term loan facility with Bank of Scotland, the first drawdown of which was £2,300,000 with 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 term loan.
Interest is payable at quarterly intervals at a floating rate of 3.0% over LIBOR plus mandatory costs up to 31 December 2008 when the
rate will be fixed at 2.5% over the prevailing 4 year forward LIBOR rate plus mandatory costs for a period of not less than four years.
Repayments 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.
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.
The loan and overdraft facility are 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.
The Group has no commitment under finance leases at the balance sheet date which were due to commence thereafter.
17. COMMITMENTS UNDER OPERATING LEASES
The Group has annual commitments under non-cancellable operating leases as follows:
2007 2006
£’000 £’000
Land and Buildings
Operating leases that expire after five years 96 96
The leases while expiring after five years, have break clauses excercisable by the Company which have the effect of terminating the leases
during the period 1-2 years from the balance sheet date.
In August 2007 the Group entered into a vehicle leasing arrangement with Bank of Scotland with an annual expenditure of £129,000. 
18. 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 £34,000 (2006: £24,000). There were
no amounts outstanding at the beginning and end of the period. 36
Cashbox PLC  Annual Report & Accounts 2007
Notes to the Accounts continued
for the year ended 30 June 2007
19. FINANCIAL INSTRUMENTS
The Group’s financial instruments during each period comprised a mixture of cash at bank, and various items such as debtors and
creditors that arise directly from its operation. 
The Group does not hold any derivative financial instruments and does not trade in financial instruments. The Group has bank accounts
denominated in sterling. The main future risks arising from the Group’s financial instruments are liquidity risks. The Group has taken advantage
of the exemption in FRS 13 “Derivatives and other financial instruments” in respect of disclosure for short-term debtors and creditors.
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.
There is no material difference between the book value and fair value of financial assets and liabilities.
As described in note 16 the interest rate on the term loan with Bank of Scotland is at floating rates until 31 March 2008 when it will
be fixed at 2.5% over the prevailing 4 year forward LIBOR rate plus mandatory costs for a period of not less than four years. 
At 30 June 2007 the book and fair value of this contract was nil.
20. SHARE CAPITAL
1p Ordinary Shares
Authorised Number £
At 30 June 2007 and 2006 150,000,000 1,500,000
2007 2006
Issued £ £
83,171,761 (2006: 61,409,143) 1p ordinary shares 831,718 614,091
Number of Issue Price Share Capital Share Premium
shares pence £ £
30 June 2006 61,409,143 614,091 3,879,900
Placing 14 May 2007 21,762,618 15 217,627 3,046,766
Issue expenses (1,350)
30 June 2007 83,171,761 831,718 6,925,316
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 price 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. Under the terms of the options, they can be exercised up to the 10th Anniversary of the date of Listing or , if an individual
leaves the Company, within 2 years of the leaving date. 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 T wo options were awarded to certain key employees
and Directors as part of the long term incentive plan. Both the Award One and Award Two options vest after two years from date of grant.
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 37
20. SHARE CAPITAL continued
Options continued
The number of share options outstanding to Directors and employees as at 30 June 2006 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 9.75 5.75
Award One 1,906,370 2,462,880 29-3-06 24.75p 9.75 5.75
3,014,450 3,754,800
The weighted average contractual life remaining of the options in existence at the end of the year was 6.87 years (2006: 9.75 years).
The summary of movement in the share options is as follows:
1p IPO Options Enterprise 
Management 
Approved Unapproved Incentive Scheme Unapproved T otal
Outstanding at 30 June 2005 – – – – –
Granted 1,108,080 1,291,920 1,906,370 2,462,880 6,769,250
Outstanding at 30 June 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
Exercisable at 30 June 2006 and 30 June 2007 1,108,080 1,291,920 – – 2,400,000
The weighted average exercise price of share options (pence) is as follows:
Enterprise 
Management
Incentive 
1p IPO Options Scheme Unapproved T otal
Outstanding at 30 June 2005 – – – –
Granted 1.00 24.75 24.75 13.76
Outstanding at 30 June 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
Exercisable at 30 June 2006 and 30 June 2007 1.00 – – 1.00
The market price for these shares at 30 June 2007 was 17.5p and the high and low for the year was 33p and 14.5p respectively.
The fair value of the options for the recognition of share based payments under the requirements of FRS 20 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 20p 24.75p 18.00p
Exercise price 1.00p 24.75p 18.00p
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. No dividends can be paid at present
and the dividend yield has been assumed as nil. 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. 38
Cashbox PLC  Annual Report & Accounts 2007 Cashbox PLC  Annual Report & Accounts 2007
Notes to the Accounts continued
for the year ended 30 June 2007
20. SHARE CAPITAL continued
Warrants and other options
As described in the Report of the Remuneration Committee the Board has issued warrants to a number of Non-executive Directors as part
of their compensation as well as Options to Bank of Scotland as part of the financing arrangements signed on 29 June 2007.
J C Maples & Bank of 
R E Saunders S L Brown Scotland 
Warrants Warrants Options
Number of warrants granted 500,000 1,000,000 800,000
Share price at grant date 20p 18p 17.5p
Exercise price 20p 20p 20p
Option 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 option (pence) 6.05 4.11 3.94
21. CAPITAL AND RESERVES
The Group has capital and reserves as follows:
Share Share Merger Warrants Profit and 
capital premium reserve reserve loss Total
£’000 £’000 £’000 £’000 £’000 £’000
At 30 June 2006 as restated 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 (FRS 20) 138 138
At 30 June 2007 832 6,925 2,180 – (13,457) (3,520)
The Company has capital and reserves as follows:
Share Share Warrants Profit and 
capital premium reserve loss Total
£’000 £’000 £’000 £’000 £’000
At 30 June 2006 as restated 614 3,880 37 (605) 3,926
Issue of shares 14 May 2007 218 3,045 3,263
Cancellation of GCVF Warrants (37) 37 –
Loss for the year (103) (103)
Share based remuneration 138 138
At 30 June 2007 832 6,925 – (533) 7,224 39
22. RECONCILIATION OF MOVEMENTS IN SHAREHOLDER’S FUNDS
Group Company
2007 2006 2007 2006
as restated as restated
£’000 £’000 £’000 £’000
Loss for the financial year (6,741) (3,637) (103) (1,250)
Share based remuneration 138 645 138 645
(6,603) (2,992) 35 (605)
Issue of shares including premium 3,263 4,114 3,263 4,494
Warrants issued – 37 – 37
Merger reserve creation 1,706
Movement in shareholders’ funds (3,340) 2,865 3,298 3,926
Opening shareholders’ (deficit)/funds (180) (3,045) 3,926 –
Prior year adjustments
– share based payments credit to reserves 75 75
– share based payments debit to reserves (75) (75)
Opening shareholders’ deficit/funds as restated (180) (3,045) 3,926
Closing shareholders’ (deficit)/funds (3,520) (180) 7,224 3,926
The merger reserve arose on the combination of Cashbox ATM Systems Limited with Cashbox PLC on 23 March 2006 under merger
accounting rules, as the combining entities within the Group were controlled by the same parties both before and after the combination.
23. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
2007 2006
£’000 £’000
as restated
Operating loss (5,932) (3,396)
Add back
Depreciation of tangible assets 284 98
Share based remuneration charge 138 645
Accretion of warrants 27 –
(Increase)/decrease in stocks (88) 189
Decrease/(Increase) in debtors 433 (1,294)
Increase/(decrease) in trade & other creditors 2,661 (569)
Net cash outflow from operating activities (2,477) (4,327)
24. MATERIAL NON-CASH TRANSACTIONS
During the year the Group converted outstanding loans and interest of £2,670,000 into ordinary shares and entered into finance leases
of £7,000. 40
Cashbox PLC  Annual Report & Accounts 2007
Notes to the Accounts continued
for the year ended 30 June 2007
25. ANALYSIS OF CHANGES IN NET DEBT
Cash in Debt due Debt due
hand and within after T otal net 
at bank one year one year debt
£’000 £’000 £’000 £’000
At 30 June 2005 51 (614) – (563)
Conversion into share capital 157 157
Cash flows 485 457 942
Sale and leaseback (43) (172) (215)
Finance lease (129) (507) (636)
At 30 June 2006 536 (172) (679) (315)
Reclassifications (679) 679 –
Cash flows 916 (2,670) (2,300) (4,054)
Converted into shares 2,670 2,670
Cash advances from lease provider (500) (500)
Finance lease capital repayments 163 163
Lease termination capital repayment 1,225 1,225
New finance leases (2) (5) (7)
Non cash items (37) (37)
30 June 2007 1,452 (2) (2,305) (855)
26. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2007 2006
£’000 £’000
Increase in cash during the period 916 485
Conversion of loans into capital 2,670 157
Cash flows within debt within one year (2,670) 457
Cash flows within debt after one year (2,300) –
Cash flows from sale and leaseback – (215)
Finance Leases 844 (636)
Movement in net debt during the period (540) 248
Net debt at start of year (315) (563)
Net debt at end of year (855) (315)
27. RELATED PARTY TRANSACTIONS
During the year a number of Directors and parties connected to the Directors provided loans to the Company as part of the 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 in
Loan Interest cash shares
££ ££
Catherine Oxley (wife of Andy Wilmott, a director) 30,000 254 30,254
Robin Saunders (a director) 100,000 1,450 101,450
John Maples (a director) 20,000 278 20,278
Brimco Partners LLP 
(in which Stephen Brown, a director, holds a beneficial interest) 50,000 694 50,694 41
27. RELATED PARTY TRANSACTIONS continued
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 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 the Company sponsored a Polo team connected with Anthony Sharp to the value of £4,300.
During the year 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. 
On 19 December the Company entered into a financing arrangement with MBC Investments Limited a Gibraltar company as described
in note 29. MBC Investments Limited is owned by a trust which also indirectly owns a significant shareholding in Fairfax IS PLC.
28. CAPITAL COMMITMENTS
Capital expenditure commitments at 30 June 2007, were as follows:
2007 2006
£’000 £’000
Authorised and contracted for 219,000 nil
Authorised but not contracted for 7,670,000 nil
29. POST BALANCE SHEET EVENTS
In July 2007 the Company’s 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 Cashbox ATM Systems Limited 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.
On 23 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 is liable to pay a further 
£1.8 million with interest if payment is deferred to Hanco (the “Settlement Amount”). The Company’s subsidiary has the option of
deferring payment of the Settlement Amount for up to 2 years on the basis that interest will accrue on that sum at a rate of 5 per cent.
per annum for the first year and at 20 per cent. per annum thereafter. The obligations of the Company’s subsidiary under the Settlement
are guaranteed by the Company.
The Company’s subsidiary has a joint and several indemnity in connection with this litigation, from Carl J Thomas (previously Chief
Executive) and Anthony CJ Sharp (previously Chairman) 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. 
In accepting the terms of the Settlement Hanco foregoes the right to bring any further claims against the Company or its subsidiary and
the other defendants in relation to the subject matter of the proceedings.
On 19 December 2007, the Company agreed further financing arrangements to provide additional working capital to the business and
rescheduled repayments of the loan facility with Bank of Scotland. While longer term financing is arranged, the Company has issued a
convertible loan note for £583,788 together with a separate non-convertible loan note for £416,212 for draw down after 31 March 2008,
both to MBC Investments Limited, a Gibraltar based company, both being due for redemption on or before 31 March 2009. 42
Cashbox PLC  Annual Report & Accounts 2007 Cashbox PLC  Annual Report & Accounts 2007
29. POST BALANCE SHEET EVENTS continued
To secure the long term financial security of the Company, the Directors are considering funding alternatives to take place during early
2008. The Directors have agreed with MBC Investments Limited that all shareholders should be in a position to participate in the
refinancing arrangements and has agreed, subject to the Company raising sufficient financing for the offer, that MBC Investments
Limited will only take up its rights under the Convertible Loan Note and the Non convertible Loan Note to the extent that other current
shareholders do not choose to subscribe in any further funding arrangements. 
The Convertible note has a coupon attached of 9% per annum, calculated on a monthly basis and to be paid in cash upon redemption.
The note has the right to convert into 11,675,764 ordinary 1p shares in the Company at a conversion price of 5p per share but not before
31 March 2008 except in the event of a capital event for the Company, including but not limited to a take over, capital raising, liquidation,
insolvency etc. Thereafter it may be converted at any time at the option of the holder. The shares to which the Convertible note relates
will be held in a separate trust for the benefit of MBC Investments Limited until the loan note is converted and / or the envisaged
fundraising described above takes place.
The Non-convertible loan note will have a coupon of 10% per annum on all drawn amounts until 30 April 2008 rising at a rate of 1.5%
per month subject to a cap of 20% per annum.
30. CONTINGENCIES
On 17 July 2007 the Company’s subsidiary wrote to Anthony CJ Sharp and Carl J Thomas (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 been taking place with the indemnifiers to resolve matters, however, if agreement
with the indemnifiers cannot be reached in the near future then proceedings to recover monies due under the indemnities will commence.
As a result of Mr Sharp’s position disputing the indemnity and 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 Financial Reporting Standard
No 12, Provisions and Contingencies, and since receipt is not virtually certain, have not recorded the amount due of £1,999,760 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.
30. NON UK GAAP TERMS
EBITDA is earnings before interest, tax, depreciation, amortisation, share based payments, and exceptional items and equals operating
income before exceptional items plus depreciation, amortisation and share based payments.
EBITA, which we consider to be a meaningful measure of operating performance, particularly the ability to generate cash, does not have
a standard meaning under UK GAAP and may not be comparable with similar measures used by others.
2007 2006
as restated
£’000 £’000
Operating loss (5,932) (3,396)
Add back:
Exceptional items 2,000 1,179
Share based payments charge 138 71
Depreciation 284 98
EBITDA (3,510) (2,048)
Notes to the Accounts continued
for the year ended 30 June 2007 43
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of Cashbox Plc (the “Company”) will be held at the offices of Seymour Pierce Ltd,
20 Old Bailey, London, EC4M 7EN on 22 January 2008 at 10.00am for the following purposes:
ORDINARY BUSINESS
To consider and, if thought fit, pass the following resolutions which will be proposed as ordinary resolutions:
1. To receive the Company’s annual accounts for the financial year ended 30 June 2007 together with the last Directors’ report, and the
auditors report on those accounts.
2. To approve the Directors’ remuneration report for the financial year ended 30 June 2007.
3. To reappoint BDO Stoy Hayward LLP as auditors at a remuneration to be determined by the Audit Committee.
4. To approve the prior appointment of Ciaran Morton as an executive director and to re-elect Ciaran Morton as an executive director.
5. To approve the prior appointment of David Auger as an executive director and to re-elect David Auger as an executive director.
6. To approve the prior appointment of William Hughes as a Non-executive director and to re-elect William Hughes as a Non-executive
director.
SPECIAL BUSINESS
To consider and, if thought fit, pass the following resolutions, of which resolution 7 will be proposed as an ordinary resolution and
resolution 8 will be proposed as a special resolution. 
7. THAT the Directors be and they are generally and unconditionally authorised for the purposes of section 80 of the Companies Act 1985
(the "Act") to exercise all the powers of the Company to allot relevant securities (within the meaning of that section) up to an aggregate
nominal amount of £415,858 being approximately 50% of the nominal value of the issued Ordinary Share capital of the Company as
at 14 December 2007, provided that this authority is for a period expiring at the conclusion of the Company’s next Annual General
Meeting but the Company may before such expiry make an offer or agreement which would or might require relevant securities to be
allotted after such expiry and the Directors may allot relevant securities in pursuance of such offer or agreement notwithstanding that
the authority conferred by this resolution has expired.
8. THAT subject to the passing of the previous resolution the Directors be and they are empowered pursuant to section 95 of the Act to
allot equity securities (within the meaning of section 94(2) of the Act) wholly for cash pursuant to the authority conferred by the
previous resolution as if section 89(1) of the Act did not apply to any such allotment, provided that this power shall be limited to the
allotment of equity securities:
(a) in connection with any issue by way of rights or other offer of such securities to holders of Ordinary Shares in proportion 
(as nearly as may be practicable) to their respective holdings of such shares, but subject to such exclusions or other arrangements
as the Directors may deem necessary or expedient in relation to fractional entitlements or any legal or practical problems under
the laws of any territory, or the requirements of any regulatory body or stock exchange; and 
(b) otherwise than pursuant to sub-paragraph (a) above, up to an aggregate nominal amount of £124,757 (representing
approximately a further 15% of the nominal value of the issued Ordinary Share capital of the Company as at 14 December 2007);
and shall expire on the conclusion of the next Annual General Meeting of the Company after the passing of this resolution save that
the Company may, before such expiry make an offer or agreement which would or might require equity securities to be allotted after
such expiry and the Directors may allot equity securities in pursuance of any such offer or agreement notwithstanding that the power
conferred by this resolution has expired.
By Order of the Board
Registered Office:
Windriver House 
Osborn Way
Hook
Hampshire
RG27 9HY
David Auger
Company Secretary
19 December 2007 44
Cashbox PLC  Annual Report & Accounts 2007
Notice of Annual General Meeting continued
NOTES:
1. A member entitled to attend and vote at the meeting convened by the notice set out above is entitled to appoint a proxy (or proxies)
to attend and, on a poll, to vote in his place. A proxy need not be a member of the Company.
2. A form of proxy is enclosed. To be valid, forms of proxy together with any power of attorney or other authority (if any) under which
any form of proxy is signed or a notarially certified or office copy of such power of attorney or other authority should be deposited
at or sent to Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol, BS13 8FB so as to arrive not later
than 48 hours before the time appointed for the meeting. Completion and return of the form of proxy will not preclude members
from attending and voting at the meeting in person should they find themselves able to do so.
3. The register of interests of the Directors and their families in the share capital of the Company and copies of contracts of service of
Directors with the Company or with any of its subsidiary undertakings will be available for inspection at the registered office of the
Company during normal business hours (Saturdays and public holidays excepted) from the date of this notice until the conclusion of
the Annual General Meeting.
4. In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the Company’s
register of members not later than [17] December 2007 or, if the meeting is adjourned, shareholders entered on the Company’s
register of members not later than 48 hours before the time fixed for the adjourned meeting, shall be entitled to attend and vote at
the meeting.
EXPLANATIONS
Annual Report and Accounts and Remuneration Report (Resolutions 1 and 2)
The Directors of the Company (the ‘Directors’) must lay the accounts of the Company for the financial year ended 30 June 2007 the report
of the Directors and the report of the auditors of the Company on those accounts before the Meeting.
In addition, Resolution 2 provides for the remuneration report for the financial year ended 30 June 2007 to be received, adopted and
approved by the Meeting.
Appointment and remuneration of auditors (Resolution 3)
The Company is required to appoint auditors at each general meeting at which accounts are laid before the Company, to hold office until the
next such meeting. Resolution 3 proposes the re-appointment of BDO Stoy Hayward LLP as auditors of the Company and authorises the
Directors to fix and determine their remuneration for the ensuing year.
Re-election of Directors (Resolution 4, 5 and 6)
Under the regulations of the Company’s articles of association concerning retirement by rotation and re-election, Matthew Thomas is required
to retire as Director and is recommended by the Directors for re-election.
Ciaran Morton, David Auger and William Hughes have been appointed since the Company’s last Annual General Meeting and are offering
themselves for re-election. 
Brief biographical details of the Directors appear on page 12 of the Annual Report and Accounts.
Special business (Resolutions 7 and 8)
Resolution 7 is to confer on the Directors authority to allot Ordinary Shares pursuant to Section 80 of the Act, amounting to approximately
one-third of the anticipated issued share capital of the Company (as diluted) in the form of a rights issue or open offer.
Resolution 8 is to confer on the Directors power to allot Ordinary Shares as if the statutory pre-emption rights set out in Section 89 of the
Act did not apply to such allotments plus, in order to give the Board flexibility for the future, an additional authority amounting to
approximately 15% of the current issued share capital of the Company. CASHBOX PLC,Windriver House, Meridian Office Park, Osborn Way, Hook, Hampshire RG27 9HY
Telephone 01256 441000  Fax 01256 768320
www.cashboxplc.co.uk