Core business a write-off for MyATM

MyATM has written off all the intangibles associated with its core business of deploying automatic teller machines, an endeavour central to its rationale for raising A$6.7 million in new capital through an initial public offering early in 2011.

Directors of MyATM wrote in an overview to their financial statements for June 2011 that "the goodwill and other intangible assets relating to the cost of ATM sites… as it relates to future income from deployment sites cannot be reliably calculated."

In a prospectus, released in January, MyATM noted that "the company's main assets are intangibles".

A pro-forma balance sheet contained in the prospectus, in an investigating accountant's report from PKF Corporate Advisory, showed more than $9 million in intangibles and goodwill.

MyATM has now written these items off.

One reason for doing so is that its Aussie ATM business "had a much more challenging year than anticipated", largely because of poor site selection.

A rival operator, Customers Limited, will now take 120 of these sites off the company's hands.

Sales of ATMs to investors (whose site agreements the firm helps manage) provided 70 per cent of the firm's 2011 revenue.

Thanks to the write-down, MyATM incurred a full-year loss of $16 million and the firm reported negative net assets of $4.2 million at June 2011.