Executive Decisions, by Oliver Haill

It’s been a profitable summer for the two major directors of cash machines operator Cardpoint, both of whom took the opportunity to pocket their paper profits the day after the group completed its £87.3 million all-cash purchase of ATM rival Moneybox.

Chief executive and founder Mark Mills sold 750,000 at 138p to gross over £1 million, leaving him with a residual 1.7 per cent stake in the company. Simultaneously, chief operating officer Chris Hanson offloaded the bulk of his stake, landing a very useful £345,000 in the process.

Cardpoint's shares hit an all-time peak of 146p just prior to the deal, although over the past few weeks the price has come back to 127p. But, if you’re still exposed to Cardpoint, it might be worth holding on. Mills and Hanson still have a lot of wealth wrapped up in this venture, which should ensure they remain committed to its growth (for instance, Mills still has 1.8 million shares and a similar number of options).

Moreover, the group is on a strong growth trajectory with the market expecting a more-than-doubling of pre-tax profits to £3.9 million this year and not less than £11.3 million in 2006 (figures which don’t include the contribution of the acquisition).

Scott Tod’s woes mount

Whether you should continue to hold at Scott Tod, AIM’s other cash machines operator, is a moot point. This troubled, loss-making group, which just recently ousted its chief executive Nick Tod, would seem to be an obvious takeover target – its cash machine estate is 2,200 strong. However, whether anyone is likely to snap it up at a healthy premium to its current 17.5p share price (a historic low for the underperforming group) is unclear. Added to this is the fact that Nick Tod and his wife still own 27 per cent of the shares.

Gunn loads up

Serial small cap investor John Gunn has been active in the market of late, picking up just under £200,000-worth of shares in AIM-listed Rotala, where he is chairman, at prices between 6p and 7p. Rotala floated as a cash shell in March, seeking investments in car-parking and transportation management. During the summer it made its first acquisition, of Flights Group, a coach and chauffeur businesses. A £1.19 million placing at 6.5p accompanied the deal and the shares have since appreciated to 7.5p.

Gunn is also a director (and 16p per cent shareholder) of West 175 Media, another penny-share shell where he last bought in the market in January. In retrospect, this has proved to be a timely piece of business as West 175’s shares have since leapt 50 per cent. Following its CVA and £1 million March fundraising the group, which sports ex-Mirror chief executive and professional Ulsterman David Montgomery as its executive chairman, has net assets of £1.3 million and a market cap of just £250,000.

Goble exits Gyrus

Non-executive director Mark Goble has pocketed £3.7 million after selling practically all his holding (at 318p) in Cardiff-based Gyrus, maker of specialist equipment for keyhole surgery. Goble, a qualified surgeon, founded the company in 1989 and now holds only 40,000 shares in the fully listed company.

Pre-tax profits at Gyrus, which was transformed in July when it bought American Cysto-scope Makers Incorporated for $497 million, are forecast to grow by almost 80 per cent to £18.35 million in 2006. American operations have not been significantly affected by the issues relating to Hurricane Katrina, says Numis Securities, which remains positive toward the company with an ‘add’ rating and 370p price target. Investors sitting on a healthy profit though might be tempted to follow the founder and sell down their holdings.