RNS Number : 7036C
Datacash Group PLC
04 September 2008
EMBARGOED UNTIL 7.00am ON THURSDAY 4th SEPTEMBER 2008
DATACASH GROUP PLC ('DataCash' or 'the Company')
INTERIM RESULTS
FOR THE SIX MONTHS
ENDED 30 JUNE 2008
4th September 2008
DataCash Group Plc: DATA / Index: AIM / Sector: Support Services
DataCash Group Plc ('the Company')
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008
The Board of DataCash Group Plc, the payment service provider, is pleased to announce its half yearly results for the six months to 30
June 2008.
Overview:
* Revenues increased to �12.2m (June 2007: �9.86m) * Adjusted* pre-tax profits, increased to �6.3m (June 2007: �5.3m) * Adjusted*
earnings per share increased to 5.04p (2007: 4.07p) * Cash balances of �19.1m (June 2007: �19.2m) equivalent to 20.7p per share, after
acquisition payments for ACK and EuroCommerce.
* Before goodwill amortisation and impairment, National Insurance provision on share option gain and notional interest on deferred
consideration.
Commenting on the results, Ashley Head, Chairman of DataCash said:
"Overall, the Board is pleased with the progress of implementing our strategy to both broaden our product range and international
coverage. Despite the current pessimism regarding the UK economy, the Board is confident of achieving its full year outlook."
- END -
For further information please contact:
DataCash Group PLC
David Bailey Tel:+ 44 (0)20 7421 8451
Non-Executive Deputy Chairman Mob:+44 (0)7836 258 558
Carly Smith Tel: +44 (0)20 7421 9283
Marketing & Communications Email: Carly.Smith@datacash.com
Paul Burton Tel:+44 (0)20 7421 8453
Finance Director E-mail: Paul.Burton@datacash.com
Andrew Dark Tel:+44 (0)20 7421 9289
Chief Executive E-mail: Andrew.Dark@datacash.com
Website: www.datacash.com General enquiries Tel: +44 (0)870 727 4761
About DataCash
DataCash Group Plc (AIM: DATA), a market leading provider of payment processing
solutions, provides merchants with a single interface that allows them to process secure payments, both on and offline, anywhere in the
world.
DataCash also provides a range of value added services with its fraud and Risk
Management solutions supporting AVS/CV2, 3-D Secure (Verified by Visa and
MasterCard Secure Code) together with traditional rules-based screening.
DataCash provides first-class service reliability at a fraction of the price of an in-house solution, servicing clients within the
retail, travel, telecommunications and gaming sectors.
DataCash Group Plc
Interim Report & Accounts for the six months ended 30 June 2008
Chairman's Statement
The Board of DataCash Group Plc is pleased to report that the Group had a very satisfactory first six months trading. Revenues increased
by 24% to �12.2m, adjusted pre-tax profits (before goodwill amortization and impairment, National Insurance provision on share option gain
and notional interest on deferred consideration) rose by 18.5% to �6.3m and underlying earnings rose by 23.8% to 5.04 pence per share. The
prospects for the second half are good, and with strong cash generation an ongoing feature of the business, the Board is pleased to announce
an increase in the interim dividend of one third, to 0.4p per share to be paid on 28th November 2008 to those shareholders on the register
on 24 October 2008
The Group saw continued strong transaction volume growth, but also started to reap the benefits of broadening our historically UK
centric product and service set into more international, added value areas. DataCash's increased range of new and different types of payment
and new services (PayPal; European Debit Payments; Dynamic Currency Conversion; Local Acquiring Services etc) is providing new income
streams and improving our competitiveness. In addition our focus into new geographies and vertical sectors is starting to show results. We
have signed sizeable deals in Ireland, taken our first contracts for delivering services into Europe for US based entities and increased the
numbers of clients taking our broadened range of localised products outside of the UK.
The recently announced acquisition of ACK is already generating enhanced opportunities in the UK and Irish retail markets, and
EuroCommerce, the Dublin-based business targeted at the airline industry, has made good progress, albeit losing more than forecast as a
consequence of the airline industry facing some well-documented challenges. We remain confident that the opportunities in this area are
significant, as indicated by the successful implementation of our risk system to a number of EuroCommerce's customers.
We have completed the development of the DataCash Universal Gateway that allows clients to connect to any of the functionality contained
within the Group's diverse platforms through a single interface. This is both live and with transactions being successfully processed. The
pipeline of clients developing links into the DataCash Universal Gateway continues to grow, demonstrating the demand for the broader range
of functionality and services that we have developed or acquired. Our major overhaul of infrastructure is close to completion, ensuring that
we have the capacity on demand to continue to meet our customers' and prospects' needs.
As mentioned above, DataCash is a naturally cash generative business and, despite acquisition payments, we finished the half year with
cash balances (including business related deposits) of �19.1m, 20.7p per share. We continue to seek earnings accretive strategic
acquisitions to develop the business and to evaluate the opportunities that m-commerce and pre-pay may provide in the future.
Overall, the Board is pleased with the progress of implementing our strategy to both broaden our product range and international
coverage. Despite the current pessimism regarding the UK economy, the Board is confident of achieving its full year outlook.
Ashley Head
Chairman
4th September 2008
DataCash Group plc
Consolidated Income Statement
For the 6 months ended 30 June 2008
Unaudited Unaudited
6 months 6 months
ended ended Audited
30 June 30 June Year
2008 2007 ended
�'000 �'000 31 Dec
2007
�'000
Revenue 12,228 9,860 20,451
Administrative expenses (6,750) (4,898) (10,189)
Share option charge 22 (74) (262)
Total administrative expenses (6,728) (4,972) (10,451)
Operating profit before impairment 5,500 4,888 10,000
and amortisation
Impairment and amortisation (2,983) (2,672) (5,022)
Total operating profit 2,517 2,216 4,978
Finance costs (notional interest on (154) - -
deferred consideration)
Finance income 739 343 910
Other gains - - 941
Share of profit/(loss) in venture 63 (8) (7)
Profit before taxation 3,165 2,551 6,822
Taxation (1,625) (1,581) (2,508)
Profit on ordinary activities after 1,540 970 4,314
taxation
Basic earnings per share 1.68 p 1.07 p 4.73 p
Diluted earnings per share 1.67 p 1.06 p 4.69 p
DataCash Group plc
Consolidated Balance Sheet
As at 30 June 2008
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 2007 31 Dec
2008 �'000 2006
�'000 �'000
Non current assets
Intangible assets 13,494 23,173 14,193
Goodwill 52,095 32,695 51,517
Property, plant and equipment 2,357 873 1,790
Investments in joint ventures 73 (14) (13)
Investments - 163 -
Deferred tax assets 108 140 146
68,127 57,030 67,633
Current assets
Trade and other receivables 5,247 6,262 6,443
Cash and cash equivalents 19,110 18,187 16,716
24,357 24,449 23,159
Total assets 92,484 81,479 90,792
Current liabilities
Trade and other payables (3,070) (4,472) (3,510)
Deferred consideration (2,478) - (2,125)
Current tax liabilities (2,222) (535) (1,734)
(7,770) (5,007) (7,369)
Net current assets 16,587 19,442 15,790
Total assets less current 84,714 76,472 83,423
liabilities
Non-current liabilities
Deferred tax liability (3,298) - (3,434)
Deferred consideration (2,203) - (1,762)
Other liabilities (117) (291) (262)
(5,618) (291) (5,458)
Total liabilities (13,388) (5,298) (12,827)
Net assets 79,096 76,181 77,965
Capital and reserves
Share capital 921 917 919
Share premium 10,757 10,479 10,640
Own shares (1,268) - (685)
Foreign currency translation (295) (63) (224)
reserve
Share option reserve 1,278 1,082 1,152
Other reserves 94,676 94,774 94,676
Retained earnings (26,973) (31,008) (28,513)
Total equity 79,096 76,181 77,965
DataCash Group plc
Cash flow statement
For the 6 months ended 30 June 2008
Unaudited Unaudited
6 months 6 months Audited
ended ended Year
30 June 30 June ended
2008 2007 31 Dec
�'000 �'000 2007
�'000
Net cash inflow from operations 6,272 7,990 13,371
Interest received 739 343 910
Compensation for loss of acquisition - - 941
Tax paid (1,447) (1,581) (2,890)
Net cash inflow from operating activities 5,563 6,752 12,332
Cash flow from investing activities
Acquisition of subsidiary (net of cash) (1,680) - (875)
Investment in joint ventures - - (277)
Purchase of property plant and equipment (892) (141) (1,220)
Purchase of intangible fixed assets (134) - (116)
Net cash outflow from investing activities (2,706) (141) (2,488)
Cash flow from financing activities
Net proceeds from issue of share capital 119 296 459
Repayment of loan - - (2,989)
Purchase of own shares (583) - (685)
Equity dividends paid - - (1,193)
Net cash (outflow)/inflow from financing (464) 296 (4,408)
activities
Net Cash inflow 2,394 6,907 5,436
Cash and cash equivalents at start of period 16,716 11,280 11,280
Cash and cash equivalents at the end of the 19,110 18,187 16,716
period
DataCash Group plc
Consolidated Statement of Changes in Equity
For the 6 months ended 30 June 2008
Share Capital Share Premium Foreign Currency Share Option Reserve Own Shares Other Reserves
Retained Earnings Total equity
Translation Reserve
attributable to the
equity holders of
the parent.
At 1 January 2007 908 10,192 (121) 1081 - 95,116
(31,816) 75,360
Exchange differences on - - 58 - - -
- 58
translation of overseas
operations
Tax effect in equity - - - - - -
(162) (162)
Net income and expense - - 58 - - -
(162) (104)
recognised directly in equity
Profit for the period - - - - - -
970 970
Total recognised income and - - 58 - - -
808 866
expense for 6 months to June
2007
Share-based payments - - - 1 - -
- 1
Merger reserve on acquisition - - - - - (342)
- (342)
of subsidiary
Issue of shares 9 287 - - - -
- 296
At 30 June 2007 917 10,479 (63) 1,082 - 94,774
(31,008) 76,181
Exchange differences on - - (161) - - -
- (161)
translation of overseas
operations
Tax effect in equity - - - - - -
344 344
Net income and expense - - (161) - - -
344 183
recognised directly in equity
Profit for the period - - - - - -
3,344 3,344
Total recognised income and - - (161) - - -
3,688 3,527
expense for 2007
Share-based payments - - - 70 - -
- 70
Merger reserve on acquisition - - - - - (98)
(98)
of subsidiary
Dividends paid - - - - - -
(1,193) (1,193)
Own shares - - - - (685) -
- (685)
Issue of shares 2 161 - - - -
- 163
At 31 December 2007 919 10,640 (224) 1,152 (685) 94,676
(28,513) 77,965
Exchange differences on - - (71) - - -
- (71)
translation of overseas
operations
Tax effect in equity - - - - - -
- -
Net income and expense - - (71) - - -
- (71)
recognised directly in equity
Loss for the period - - - - - -
1,540 1,540
Total recognised income and - - (71) - - -
1,540 1,469
expenses for 6 months to June
2008
Share-based payments - - - 126 - -
- 126
Dividends paid - - - - - -
- -
Own shares - - - - (583) -
- (583)
Issue of shares 2 117 - - - -
- 119
At 30 June 2008 921 10,757 (295) 1,278 (1,268) 94,676
(26,973) 79,096
Notes to the Financial Statements
For the 6 months to 30 June 2008
1. Basis of Preparation
This Report for the 6 months ended 30 June 2008 was approved by the directors on 4 September 2008.
The current and the comparative 6 months to June have been prepared using accounting policies and practices consistent with those
adopted in the accounts for the year ended 31 December 2007 but are unaudited, and are also consistent with those which will be adopted in
the 2008 Annual Report and Accounts, which will be in accordance with International Financial Reporting Standards ("IFRS") as adopted by the
EU and those parts of the Companies Act 1985 that remain applicable to companies reporting under IFRS.
The financial information contained in this Report does not contribute statutory accounts as defined by Section 240 of the Companies Act
1985.
The figures for the year ended 31 December 2007 have been extracted from the statutory accounts which have been filed with the Registrar
of Companies.
2. Earnings per Share
The calculations of profit per share are based on the following profits and numbers of shares:
The adjusted profit per share based on the profit after tax before impairment and amortisation of intangibles and goodwill and other
items as noted below:
6 months 6 months
ended 30 ended 30
June 2008 June 2007 Year ended 31 Dec 2007
Weighted average number of 1p
ordinary
shares in issue during the
period
For basic earnings per share 91,945,183 90,670,958 91,195,129
Share options 337,171 524,171 719,171
For diluted earnings per share 92,282,354 91,195,129 91,914,300
�'000 �'000 �'000
Profit for earnings per share 1,540 970 4,314
Impairment and amortisation of
intangibles and goodwill 2,983 2,672 5,022
Notional interest on deferred 154 - -
consideration
Share based payments expense 59 2 71
NI on share option gains (81) 72 191
Profit for adjusted earnings 4,655 3,716 9,598
per share
Adjusted basic earnings per 5.06 p 4.10 p 10.52 p
share
Adjusted diluted earnings per 5.04 p 4.07 p 10.44 p
share
Basic earnings per share 1.68 p 1.07 p 4.73 p
Diluted earnings per share 1.67 p 1.06 p 4.69 p
3. Dividend
An interim dividend of 0.4p (2007: 0.3p) per ordinary share is recommended. In accordance with IAS 10 Events after the Balance Sheet
date, this dividend has not been recognised in the accounts at 30 June 2008, but will be recognised in the accounting period ending December
2008.
4. Analysis of Net Funds
At 1 January At 30 June
2008 Cash Flow 2008
�'000 �'000 �'000
Cash in hand and at bank 3,462 5,882 9,344
Short term bank deposits 13,254 (3,488) 9,766
16,716 2,394 19,110
5. Reconciliation of profit for the year to net cash inflow from operating activities
6 months ended 6 months ended Year ended
30 June 30 June 31
2008 2007 December
2007
�'000 �'000 �'000
Profit for the year 1,540 970 4,314
Taxation 1,625 1,581 2,508
Finance income (739) (343) (910)
Finance costs 154 - -
Compensation for loss of - - (941)
acquisition
Impairment and amortisation of 2,983 2,672 5,022
goodwill and intangibles
Depreciation 309 221 482
Loss from sale of property, - - 5
plant and equipment
(Profit)/loss on joint ventures (63) 8 7
Share option charge (22) 2 71
Exchange movements (92) (283) (102)
Changes in trade and other 28 878 794
payables
Changes in trade and other 549 2,284 2,121
receivables
Net cash inflow from operations 6,272 7,990 13,371
6. Acquisitions
On 12 June 2008, the company acquired 100% of the issued share capital of ACK Limited for cash consideration of �2,451,259 deferred
consideration of �177,000 and a deferred contingent consideration of �462,950. Total goodwill arising on the acquisition is �1,404,000. The
fair values of net assets acquired are based on provisional assessments pending final determination of certain assets and liabilities.
Carrying values pre acquisition Fair value adjustments Fair value
�000 �000 �000
Intangible fixed assets - 1,142 1,142
Property, plant and equipment 19 - 19
Trade and other receivables 188 - 188
Cash and cash equivalents 786 - 786
Trade and other payables (113) - (113)
Deferred tax liabilities - (320) (320)
Net assets acquired 880 822 1,702
Goodwill 1,404
Consideration 3,106
Consideration satisfied by 2,451
cash
Directly attributable costs 15
Deferred cash contingent 463
consideration
Deferred cash consideration 177
3,106
The goodwill arising on acquisition of ACK Limited represents the value of anticipated future operating synergies from the combination.
Deferred consideration has been discounted at 6%. The range of potential contingent consideration is from �700k to �nil.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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