UK cashpoint firm 'to start charging users'

British cash machine operator Cardpoint said today that almost a third of the 800 dispensers it acquired from Halifax owner HBOS will soon start charging users.

The group, which bought the machines for £50m (€71.2m) in May, started converting them to the Cardpoint format last month, meaning many now charge around £1.50 to £1.75 (€2.10 to €2.50) per transaction.

It said today that this number would increase “substantially” during 2005 and that more than 250 would eventually charge customers.

The Automatic Teller Machines (ATMs) bought from HBOS are “non-branch” machines mainly located at shops, petrol stations and railway stations.

At the time of the purchase, Lancashire-based Cardpoint said it would attempt to convert dispensers to its charging model, but did not give a figure.

Today’s update came as the group revealed that annual results were far better than expected. Pre-tax profits before goodwill soared to £1.8m (€2.6m) in the year to the end of September, against just £50,000 (€71,200) last year.

Cardpoint owns and operates 2,800 cash machines, dispensing more than £300m (€427m) every month, and around 4,000 mobile phones top-up terminals which sell more than £7m (€10m) worth of airtime a month.

Many of its machines are in areas not served by cash machines, meaning customers are often willing to pay a charge.

Chief executive Mark Mills said: “We are making significant progress integrating our acquisition from HBOS and we look forward to delivering further significant growth in 2005.”