Adelaide-based ATM Holdings, which owns and operates hundreds of ATM machines across Australia, has been placed in voluntary administration after failing to secure new funding for the business.
The move comes after the business was placed in a voluntary trading halt late last week, with a voluntary suspension also being announced earlier this week, as the company hinted at a new funding agreement being finalised.
“As a consequence of the funding discussions that would have enabled My ATM to continue its trading activities into the future not coming to an immediate conclusion, KordaMentha has been appointed as voluntary administrator,” company secretary Graham Seppelt said in a statement.
Stephen Duncan and Briston Talbot have been appointed as administrators. Both were contacted this morning by SmartCompany but neither was available prior to publication.
Duncan has been quoted by AAP as saying the company’s business model didn’t yield the returns first forecast by the founders.
“We will investigate all aspects of the current operations with a view to providing a forward plan that enhances the future profitability,” he said.
My ATM has suffered a poor year. In its latest financial report, the company announced a loss of $15.7 million after a once-off impairment charge of $9.3 million due to new deploying sites, along with ongoing costs of $3 million.
The underlying loss was $3.4 million, down from a profit of $1.1 million in 2012.
One major problem was the delays in listing on the ASX, which the company said restrict cashflow and expansion opportunities.
“We also recognise that as a micro-cap, the company has low recognition to investors outside of South Australia,” chairman Kym Weir said in a presentation to the annual general meeting.
“The board is not satisfied with its results since listing,” Weir said.
Weir determined the company would pursue a number of different ways to improve the performance and funding of the business.
“These included the acquisition of more local sites, which were to be funded by a private lender. “Critical mass in the deployment business is important,” Weir said.
Kym also announced integrated payments, sales of EFTPOS terminals, and new sponsorship and marketing efforts, along with new trial of a product developed by a cashless ATM company.
At that time, Weir also said the company would be looking to strengthen its board, which only has three members – managing director Tim Scala was announced to be stepping down in the New Year.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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