TIDMDATA
RNS Number : 8717Q
Datacash Group PLC
21 April 2009
DataCash Group Plc: DATA / Index: AIM / Sector: Support Services
DATACASH GROUP PLC ('DataCash' or 'the Group')
FINAL RESULTS
DataCash Group Plc, the AIM listed payments service provider, announces its
results for the 12 months to 31 December 2008.
Financial Highlights
* Adjusted Group pre-tax profit* up 35% to GBP14.6m (2007: GBP10.8m).
* Adjusted underlying earnings per share of 10.89p (2007: 8.48p).
* Group turnover increased by 37% to GBP28.04m (2007: GBP20.45m).
* Debt free cash balance of GBP16.6m** (18p per issued share) (2007 GBP17.9m - 19p
per issued share).
* Dividend recommendation of 1.4p. Annual dividend payment increased by 28% to
1.8p per share recommended (2007: 1.4p)
* before foreign exchange losses on contingent deferred consideration and
impairment and amortisation of intangible assets.
** including escrow and security deposits of GBP4.2m (GBP1.2m).
Operational Highlights
* Transactions with a cash value of over GBP16bn processed through the Group's
systems in 2008 (2007: GBP12bn).
* Acquisition of ACK provider of software to UK card holder present market.
* Acquisition of EasyDebit GmbH a German Payment service Provider.
* Acquisition of The 3rd Man plc a leading UK provider of fraud management to the
retail industry completed in January 2009.
* Continued Investment in key infra-structure projects.
Ashley Head, Chairman said "We are pleased with the progress the Group made in
2008 and look forward with confidence to 2009 and being able to capitalise on
the investments we have made"
Contacts:
David Bailey Deputy Chairman, DataCash Group Plc 0870 7274760
Carly Smith Marketing, DataCash Group Plc 0870 7274760
Chairman's Statement
2008 was another successful year for DataCash Group. We grew revenues and profit
strongly, announced three acquisitions and made strategic investments into two
complementary businesses. We invested further into our technology and people to
increase our system functionality, scalability and reliability and expand our
international capabilities. With a good cash position, and the strength of the
e-commerce market, we view the future with confidence.
The Group produced annual revenue of GBP28m (2007 GBP20.45m), an increase of
37%. Excluding the impact of the acquisitions within the year (ACK Limited and
Easydebit GmbH), revenues rose by 32%. Adjusted Pre-tax profits (excluding
foreign exchange losses on contingent deferred consideration and impairment and
amortisation of intangibles) rose by 35% to GBP14.6m (2007 GBP10.8m), and
adjusted underlying earnings per share rose by 28% to 10.89p (2007 8.48p).
The Board will recommend a dividend of 1.4p at the annual general meeting, which
together with the interim dividend of 0.4p paid in November, makes a total of
1.8p (2008.1.4p), an increase of 29%. Subject to shareholder approval, the
Company intends to pay the dividend on 19 June 2009 to those shareholders on the
register at the close of business on 8 May 2009.
Our overall payment processing transaction volumes increased substantially and
overall the value of the transactions processed increased by approximately 33%
to GBP16bn.
The cash position of the Group remains strong, with approximately GBP16.6m in
net cash at year end (including security deposits of GBP2.4m and escrow amounts
held for payment of deferred consideration totalling GBP1.8m), after the
acquisitions of strategic investments and deferred consideration payments that
amounted to GBP11.41m. The recent fall in interest rates will inevitably impact
the return from our treasury activities in 2009, and we continue to look for
earnings enhancing acquisitions to expand our geographical reach and/or our
product set.
In the summer of 2008 we acquired ACK Limited, a provider of software in to the
UK card holder present retail market for a total consideration (net of cash) of
GBP2.16m. We had a well-established relationship with the Company and it fits
into our "one stop" shop for payment processing strategy. The combination of
DataCash's strength in the Cardholder Not Present market with ACK's reputation
and relationships in the Cardholder Present field is proving to be attractive to
potential customers. We had deployed more than 6,000 licences by the end of
2008, all of which utilise DataCash's processing service; overall deployments of
the ACK licence are now approaching 45,000 units.
In late September 2008 we acquired EasyDebit GmbH, a niche German payment
service provider, for an initial consideration of EUR3m. Although only
consolidated in the Group results from October, it contributed GBP708k to
revenue and GBP153k to EBIT. Post acquisition we have renamed the company
ExperCash GmbH. We are confident of a further good performance in 2009, although
the business normally has a strong second half bias.
As previously announced, in January we completed the acquisition of The 3rd Man
plc, one of the UK's leading risk and fraud management solutions for the retail
industry. This acquisition complements our business both from a technology
perspective as well as providing access into new markets, especially the retail
industry.
The Group made strategic investments into UKash (GBP3.9m) and Iridium (GBP320k)
during the year. UKash is one of the leading Pre-paid solution businesses in the
UK. Upon conversion of our preference shares we could have an ownership of
approximately 16% of UKash. Iridium is a UK PSP that focuses on the SME part of
the market, whereas our sales force is focussed more on the larger merchants.
Our joint venture businesses in China and Cyprus were both profitable in 2008,
and are expected to develop further in 2009.
We continue to invest into our technology, with the desire to add scalability,
reliability and products. With our new data centres we have achieved six sigma
reliability with full contingency. The DataCash Global Gateway (DGG) provides
single access to all of the Group's services, a range of alternative payment
instruments and local debit and credit schemes acquired through a host of
international banks.
I would like to take this opportunity to thank all our staff for their
commitment and efforts in 2008. During the year, Gavin Breeze, the original
founder of DataCash, left the group to pursue his other interests. We thank him
for his enormous contribution to the business and look forward to hearing about
his next idea!
Andrew Dark, who became Chief Executive of the Group in January 2006, left the
business at the end of March 2009, to become CEO of a private equity backed
business. We thank Andrew for his efforts on the Group's behalf and wish him
every success for the future. We have recruited a new Chief Executive, Joseph
Blass, who, we believe, has the management experience and drive to take the
business forward, and we look forward to reporting on progress during the year.
We believe that the Group is well-placed to take advantage of the market
turbulence that the economic downturn has created. We are pleased with the
progress the Group made in 2008 and look forward with confidence to 2009 and
being able to capitalise on the investments we have made.
Ashley Head
Executive Chairman
Datacash Group PLC
Consolidated Income Statement
For the year ended 31 December 2008
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | Unaudited | | Audited |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | 2008 | | 2007 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | GBP000 | | GBP000 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Revenue | | 28,037 | | 20,451 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Administrative expenses | | (14,205) | | (10,451) |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Operating profit before impairment and amortisation | | 13,832 | | 10,000 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Impairment and amortisation of intangible assets | | (8,013) | | (5,022) |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Total operating profit | | 5,819 | | 4,978 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Finance income | | 968 | | 910 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Finance cost - notional interest on deferred consideration | | (280) | | - |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Foreign exchange losses on deferred consideration | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| - Unsettled loss | | (356) | | - |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| - Settled loss | | (722) | | - |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Compensation for loss of acquisition | | - | | 941 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Share of profit/(loss) of joint ventures | | 72 | | (7) |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Profit before taxation | | 5,501 | | 6,822 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Taxation | | (2,861) | | (2,508) |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Profit for the year | | 2,640 | | 4,314 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Attributable to equity holders of the company | | 2,640 | | 4,314 |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Basic earnings per share | | 2.89p | | 4.73p |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| | | | | |
+----------------------------------------------------------------+---------+----------------+---+---------------+
| Diluted earnings per share | | 2.86p | | 4.69p |
+----------------------------------------------------------------+---------+----------------+---+---------------+
+------------------------------------------------+-------+------------+--+------------+
| Datacash Group PLC | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Consolidated Balance Sheet | | | | |
+------------------------------------------------+-------+------------+--+------------+
| As at 31 December 2008 | | | | |
+------------------------------------------------+-------+------------+--+------------+
| | | Unaudited | | Audited |
+------------------------------------------------+-------+------------+--+------------+
| | | 2008 | | 2007 |
+------------------------------------------------+-------+------------+--+------------+
| | | | | (restated) |
+------------------------------------------------+-------+------------+--+------------+
| | | GBP000 | | GBP000 |
+------------------------------------------------+-------+------------+--+------------+
| Non current assets | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Intangible assets | | 13,544 | | 14,193 |
+------------------------------------------------+-------+------------+--+------------+
| Goodwill | | 57,672 | | 51,517 |
+------------------------------------------------+-------+------------+--+------------+
| Property, plant and equipment | | 2,357 | | 1,790 |
+------------------------------------------------+-------+------------+--+------------+
| Investments in joint ventures | | 87 | | (13) |
+------------------------------------------------+-------+------------+--+------------+
| investments | | 3,902 | | - |
+------------------------------------------------+-------+------------+--+------------+
| Deferred tax asset | | - | | 146 |
+------------------------------------------------+-------+------------+--+------------+
| | | 77,562 | | 67,633 |
+------------------------------------------------+-------+------------+--+------------+
| Current assets | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Trade and other receivables | | 5,161 | | 5,217 |
+------------------------------------------------+-------+------------+--+------------+
| Cash and cash equivalents | | 16,641 | | 17,942 |
+------------------------------------------------+-------+------------+--+------------+
| | | 21,802 | | 23,159 |
+------------------------------------------------+-------+------------+--+------------+
| | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Total assets | | 99,364 | | 90,792 |
+------------------------------------------------+-------+------------+--+------------+
| | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Current liabilities | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Trade and other payables | | (4,747) | | (3,510) |
+------------------------------------------------+-------+------------+--+------------+
| Current tax liabilities | | (2,117) | | (1,734) |
+------------------------------------------------+-------+------------+--+------------+
| Deferred contingent consideration | | (4,307) | | (2,125) |
+------------------------------------------------+-------+------------+--+------------+
| | | (11,171) | | (7,369) |
+------------------------------------------------+-------+------------+--+------------+
| | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Net current assets | | 10,631 | | 15,790 |
+------------------------------------------------+-------+------------+--+------------+
| | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Non current liabilities | | | | |
+------------------------------------------------+-------+------------+--+------------+
| | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Deferred tax liability | | (3,196) | | (3,434) |
+------------------------------------------------+-------+------------+--+------------+
| Deferred contingent consideration | | (1,706) | | (1,762) |
+------------------------------------------------+-------+------------+--+------------+
| Other liabilities | | - | | (262) |
+------------------------------------------------+-------+------------+--+------------+
| | | (4,902) | | (5,458) |
+------------------------------------------------+-------+------------+--+------------+
| | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Total liabilities | | (16,073) | | (12,827) |
+------------------------------------------------+-------+------------+--+------------+
| | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Net assets | | 83,291 | | 77,965 |
+------------------------------------------------+-------+------------+--+------------+
| | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Capital and reserves | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Share capital | | 923 | | 919 |
+------------------------------------------------+-------+------------+--+------------+
| Share premium account | | 10,986 | | 10,640 |
+------------------------------------------------+-------+------------+--+------------+
| Own shares | | (1,512) | | (685) |
+------------------------------------------------+-------+------------+--+------------+
| Foreign currency translation reserve | | 4,035 | | (224) |
+------------------------------------------------+-------+------------+--+------------+
| Share option reserve | | 1,365 | | 1,152 |
+------------------------------------------------+-------+------------+--+------------+
| Other reserve | | 63,603 | | 94,676 |
+------------------------------------------------+-------+------------+--+------------+
| Retained earnings | | 3,891 | | (28,513) |
+------------------------------------------------+-------+------------+--+------------+
| | | | | |
+------------------------------------------------+-------+------------+--+------------+
| Total equity attributable to the equity | | 83,291 | | 77,965 |
| holders of the parent | | | | |
+------------------------------------------------+-------+------------+--+------------+
+------------------------------------------------+-------+--+------------+--+------------+
| Datacash Group PLC | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Consolidated Cash Flow Statement | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| For the year ended 31 December 2008 | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | Unaudited | | Audited |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | 2008 | | 2007 |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | (restated) |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | GBP000 | | GBP000 |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Net cash inflow from continuing operations | | | 16,167 | | 10,593 |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Interest received | | | 968 | | 910 |
+------------------------------------------------+-------+--+------------+--+------------+
| Compensation for loss of acquisition | | | - | | 941 |
+------------------------------------------------+-------+--+------------+--+------------+
| Tax paid | | | (3,502) | | (2,890) |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Net cash inflow from operating activities | | | 13,633 | | 9,554 |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Cash flow from investing activities | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Acquisition of subsidiaries (net of cash) | | | (4,412) | | (875) |
+------------------------------------------------+-------+--+------------+--+------------+
| Payment of deferred consideration on prior | | | (3,101) | | - |
| year acquisition | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Investment in joint ventures | | | - | | (277) |
+------------------------------------------------+-------+--+------------+--+------------+
| Purchase of investments | | | (3,902) | | - |
+------------------------------------------------+-------+--+------------+--+------------+
| Purchase of property, plant and equipment | | | (1,253) | | (1,220) |
+------------------------------------------------+-------+--+------------+--+------------+
| Purchase of intangible assets | | | (445) | | (116) |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Net cash outflow from investing activities | | | (13,113) | | (2,488) |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Cash flow from financing activities | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Net proceeds from issue of share capital | | | 350 | | 459 |
+------------------------------------------------+-------+--+------------+--+------------+
| Repayment of loan | | | - | | (2,989) |
+------------------------------------------------+-------+--+------------+--+------------+
| Purchase of own shares | | | (827) | | (685) |
+------------------------------------------------+-------+--+------------+--+------------+
| Equity dividends paid | | | (1,372) | | (1,193) |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Net cash outflow from financing activities | | | (1,849) | | (4,408) |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Net cash (outflow)/inflow | | | (1,329) | | 2,658 |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Cash and cash equivalents at start of period | | | 17,942 | | 15,284 |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Exchange gains on cash | | | 28 | | - |
+------------------------------------------------+-------+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
| Cash and cash equivalents at the end of the | | | 16,641 | | 17,942 |
| period | | | | | |
+------------------------------------------------+-------+--+------------+--+------------+
+--------------------------+--+----+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| DataCash Group plc | | | | | | | | | | | | | | | | |
+--------------------------+--+----+----------+--+-------------+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+--+----+----------+--+-------------+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Consolidated Statement of Changes in Equity | | | | | | | | | | | |
+--------------------------------------------------------------+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| For the year ended 31 December 2008 | | | | | | | | | | | | |
+-----------------------------------------------------------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | Share | | Share | | Foreign | | Share | | Own | | Other | | Retained | | Total |
| | | | | | | | | | | Shares | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | Capital | | Premium | | Currency | | Option | | | | Reserve | | earnings | | Equity |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | Account | | Translation | | Reserve | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | Reserve | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | GBP000 | | GBP000 | | GBP000 | | GBP000 | | GBP000 | | GBP000 | | GBP000 | | GBP000 |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| At 1 January 2007 | | 908 | | 10,192 | | (121) | | 1081 | | - | | 95,116 | | (31,816) | | 75,360 |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Exchange differences on | - | | - | | (103) | | - | | | | - | | - | | (103) |
| translation of overseas | | | | | | | | | | | | | | | |
| operations | | | | | | | | | | | | | | | |
+----------------------------------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Tax effect in equity of share | - | | - | | - | | - | | - | | - | | 182 | | 182 |
| options | | | | | | | | | | | | | | | |
+----------------------------------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Net income recognised | | - | | - | | (103) | | - | | - | | - | | 182 | | 79 |
| directly in equity | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Profit for the year | | - | | - | | - | | - | | | | - | | 4,314 | | 4,314 |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Total recognised income and | - | | - | | (103) | | - | | - | | - | | 4,496 | | 4,393 |
| expense for 2007 | | | | | | | | | | | | | | | |
+----------------------------------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Share-based payments | | - | | - | | - | | 71 | | - | | - | | - | | 71 |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Merger reserve on acquisition of | - | | - | | - | | - | | - | | (440) | | - | | (440) |
| subsidiary | | | | | | | | | | | | | | | |
+----------------------------------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Dividends Paid | | - | | - | | - | | - | | - | | - | | (1,193) | | (1,193) |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Own shares | | - | | - | | - | | - | | (685) | | - | | - | | (685) |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Issue of shares | | 11 | | 448 | | - | | - | | - | | - | | - | | 459 |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| At 31 December 2007 | | 919 | | 10,640 | | (224) | | 1,152 | | (685) | | 94,676 | | (28,513) | | 77,965 |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Exchange differences on | - | | - | | 4,259 | | - | | - | | - | | - | | 4,259 |
| translation of overseas | | | | | | | | | | | | | | | |
| operations | | | | | | | | | | | | | | | |
+----------------------------------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Tax effect in equity of share | - | | - | | - | | - | | - | | - | | 63 | | 63 |
| options | | | | | | | | | | | | | | | |
+----------------------------------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Net income recognised directly | - | | - | | 4,259 | | - | | - | | - | | 63 | | 4,322 |
| in equity | | | | | | | | | | | | | | | |
+----------------------------------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Profit for the year | | - | | - | | - | | - | | | | - | | 2,640 | | 2,640 |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Total recognised income and | - | | - | | 4,259 | | - | | - | | - | | 2,703 | | 6,962 |
| expense for 2008 | | | | | | | | | | | | | | | |
+----------------------------------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Share-based payments | | - | | - | | - | | 213 | | - | | - | | - | | 213 |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Dividends paid | | - | | - | | - | | - | | - | | - | | (1,372) | | (1,372) |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Own shares | | - | | - | | - | | - | | (827) | | - | | - | | (827) |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Issue of shares | | 4 | | 346 | | - | | - | | - | | - | | - | | 350 |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| Reserves transfer | | - | | - | | - | | - | | - | | (31,073) | | 31,073 | | - |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| | | | | | | | | | | | | | | | | |
+--------------------------+-------+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
| At 31 December 2008 | | 923 | | 10,986 | | 4,035 | | 1,365 | | (1,512) | | 63,603 | | 3,891 | | 83,291 |
+--------------------------+--+----+----------+--+----------+--+-------------+--+----------+--+----------+--+----------+--+----------+---+---------+
Datacash Group PLC
Notes to the financial statements
1. BASIS OF PREPARATION
The financial information contained in this document does not constitute
statutory financial statements as defined by section 240 of the Companies Act
1985 for the years ended 31 December 2008 or 2007.
The statutory financial statements for the year ended 31 December 2008 will be
finalised and signed on the basis of the financial information presented by the
directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.
The financial information for the year ended 31 December 2007 is derived from
the statutory accounts for that year. The auditor reported on those statutory
accounts which have been delivered to the Registrar of Companies. The audit
report was unqualified, did not include references to matters to which the
auditors drew attention by way of emphasis without qualifying their report and
did not contain a statement under section 237(2) or (3) of the Companies Act
2005.
This announcement is prepared applying International Financial Reporting
Standards and IFRIC interpretations (`IFRS') as adopted by the European Union,
with those parts of the Companies Act 1985 applicable to companies reporting
under IFRS and using accounting policies that are consistent with those as
stated in the previous year's financial statements.
The comparative financial information in the balance sheet and the cash flow
statement has been restated to include security cash deposits of GBP1,226,000 at
31 December 2007 (2006: GBP4,004,000) as cash and cash equivalents as opposed to
other receivables.
This preliminary announcement was approved by the Board of directors on 20 April
2009.Copies of this announcement are available from the Company its website,
www.datacash.com.
2. Dividends
+--------------------+-------+--------+-----+--------+---+--------+---+----+------+--------------+------+--------------+
| | | | | | | | | | | 2008 | | 2007 |
+--------------------+-------+--------+-----+--------+---+--------+---+----+------+--------------+------+--------------+
| Ordinary : | | | | | | | | | | GBP000 | | GBP000 |
+--------------------+-------+--------+-----+--------+---+--------+---+----+------+--------------+------+--------------+
| Final paid in respect of the year ended 31 December 2007 - 1.1p (2006 - 1.0p) | | | |
| | 1,006 | | 917 |
+---------------------------------------------------------------------------------+--------------+------+--------------+
| Interim dividend paid in respect of the year ended 31 December 2008 - 0.4p | | | |
| (2007 - 0.3p) | 366 | | 276 |
+---------------------------------------------------------------------------------+--------------+------+--------------+
| | | | | | | | | | | | | |
+--------------------+-------+--------+-----+--------+---+--------+---+----+------+--------------+------+--------------+
| | | | | | | | | | | 1,372 | | 1,193 |
+--------------------+-------+--------+-----+--------+---+--------+---+----+------+--------------+------+--------------+
A final dividend of 1.4p is proposed for the year ended 31st December 2008.
A dividend of 1.4p will be proposed for approval at the Annual General Meeting
and has not been included as a liability in these financial statements.
3. Impairment and amortisation of intangible assets
In accordance with the group's accounting policies, intangible assets are
amortised over their useful economic lives and goodwill is not amortised.
Goodwill is subject to annual impairment reviews.
The charge for the year comprises amortisation of intangible assets of GBP5.24m
(2007: GBP2.77m) and impairment of goodwill of GBP2.77m (2007: GBP2.25m).
The amortisation of intangibles consists of GBP3,380k customer contracts,
GBP1,833k software and GBP27k development costs.
The impairment of goodwill during the year was entirely attributable to
Eurocommerce as a result of the downturn in the airline industry.
4. Adjusted earnings reconciliation
+------------------------------------------------------------------------+--------------+-------+-------------+
| | 2008 | | 2007 |
+------------------------------------------------------------------------+--------------+-------+-------------+
| | GBP000 | | GBP000 |
+------------------------------------------------------------------------+--------------+-------+-------------+
| | | | |
+------------------------------------------------------------------------+--------------+-------+-------------+
| Profit before taxation per the income statement | 5,501 | | 6,822 |
+------------------------------------------------------------------------+--------------+-------+-------------+
| Adjustments: | | | |
+------------------------------------------------------------------------+--------------+-------+-------------+
| - Impairment and amortisation of intangible assets | 8,013 | | 5,022 |
+------------------------------------------------------------------------+--------------+-------+-------------+
| - Unsettled foreign exchange loss on deferred consideration | 356 | | - |
+------------------------------------------------------------------------+--------------+-------+-------------+
| - Settled foreign exchange loss on deferred consideration | 722 | | |
+------------------------------------------------------------------------+--------------+-------+-------------+
| - Compensation for loss of acquisition | - | | (941) |
+------------------------------------------------------------------------+--------------+-------+-------------+
| | | | |
+------------------------------------------------------------------------+--------------+-------+-------------+
| Adjusted profit before taxation | 14,592 | | 10,793 |
+------------------------------------------------------------------------+--------------+-------+-------------+
| | | | |
+------------------------------------------------------------------------+--------------+-------+-------------+
| Taxation per income statement | (2,861) | | (2,508) |
+------------------------------------------------------------------------+--------------+-------+-------------+
| Tax effect of adjustments detailed above | (1,769) | | (549) |
+------------------------------------------------------------------------+--------------+-------+-------------+
| Adjusted taxation | (4,630) | | (3,057) |
+------------------------------------------------------------------------+--------------+-------+-------------+
| | | | |
+------------------------------------------------------------------------+--------------+-------+-------------+
| Adjusted profit for the year | 9,962 | | 7,736 |
+------------------------------------------------------------------------+--------------+-------+-------------+
The Directors believe that the adjusted profit for the year and the adjusted
earnings per share figure assists in the presentation of the group's underlying
performance.
5. Taxation
The group's effective tax rate for the year based on profit before taxation per
the income statement is 52.0% (2007: 36.8%).
The group's effective tax rate for the year based on the adjusted profit before
taxation, as detailed in note 4 above, is 31.7% (2007: 28.3%).
6. Earnings per Share
The basic and diluted earnings per share is calculated using the profit for the
year as set out in the income statement. The adjusted earnings per share is
calculated using the adjusted profit for the year as detailed in note 4 above.
Basic earnings per share has been calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average number of ordinary
shares in issue during the period, determined in accordance with IAS 33 Earnings
per share.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue on the assumption of conversion of all the
potentially dilutive ordinary shares for which all the conditions have been met.
+-------------------+--------+--------+---+---------+---+---+---+-----+----+----+----+-------------+----+--------------------+
| | | | | | | | | | | 2008 | | 2007 |
+-------------------+--------+--------+---+---------+---+---+---+----------+---------+-------------+----+--------------------+
| | | | | | | | | | | | | |
+-------------------+--------+--------+---+---------+---+---+---+-----+---------+------------------+----+--------------------+
| Weighted average number of 1p ordinary shares in issue during the year is set out below: | | |
+--------------------------------------------------------------------------------------------------+----+--------------------+
| | | | | | | | | | | | | |
+-------------------+--------+--------+---+---------+---+---+---+-----+---------+------------------+----+--------------------+
| For basic earnings per share | | | | | | | | 91,472,062 | | 91,195,129 |
+-------------------------------------+---+---------+---+---+---+-----+---------+------------------+----+--------------------+
| | | | | | | | | | | 719,171 |
| Dilutive effect of share options | | | | | | | | 907,727 | | |
+-------------------------------------+---+---------+---+---+---+-----+---------+------------------+----+--------------------+
| | | | | | | | | | | |
| For diluted earnings per share | | | | | | | | 92,379,790 | | 91,914,300 |
+-------------------------------------+---+---------+---+---+---+-----+---------+------------------+----+--------------------+
| | | | | | | | | | |
+-----------------------------------------+---------+---+---+---+-----+---------+------------------+----+--------------------+
| | | | | | | | | | | | | |
+-------------------+--------+--------+---+---------+---+---+---+-----+---------+------------------+----+--------------------+
| Basic earnings per share | | | | | | | | | 2.89p | | 4.73p |
+----------------------------+--------+---+---------+---+---+---+-----+---------+------------------+----+--------------------+
| Diluted earnings per share | | | | | | | | 2.86p | | 4.69p |
+-------------------------------------+---+---------+---+---+---+-----+---------+------------------+----+--------------------+
| | | | | | | | | | | | | |
+-------------------+--------+--------+---+---------+---+---+---+-----+---------+------------------+----+--------------------+
| Adjusted basic earnings per share | | | | | | | 10.89p | | 8.48p |
+-----------------------------------------+---------+---+---+---+-----+---------+------------------+----+--------------------+
| Adjusted diluted earnings per share | | | | | | 10.78p | | 8.42p |
+-------------------+--------+--------+---+---------+---+---+---+-----+----+----+----+-------------+----+--------------------+
7. Reconciliation of profit for the year to net cash inflow from operating
activities
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| | | | | | | | | | | | | Restated |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| | | | | | | | | Year ended | | | | Year ended |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| | | | | | | | | 31 December | | | | 31 December |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| | | | | | | | | 2008 | | | | 2007 |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| | | | | | | | | GBP000 | | | | GBP000 |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| | | | | | | | | | | | | |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| Profit for the year | | | 2,640 | | | | 4,314 |
+-----------------------------------------------------+------------+---+-------------------+---+---+---+-------------------+
| Taxation | | | | | | | | 2,861 | | | | 2,508 |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| Finance income | | | | | | | | (968) | | | | (910) |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| Finance costs | | | | 280 | | | | - |
+-------------------------------------------------+---+------------+---+-------------------+---+---+---+-------------------+
| Compensation for loss of acquisition | | | | - | | | | (941) |
+-------------------------------------------------+---+------------+---+-------------------+---+---+---+-------------------+
| Impairment and amortisation of goodwill and intangibles | 8,013 | | | | 5,022 |
+----------------------------------------------------------------------+-------------------+---+---+---+-------------------+
| Depreciation | | | | | | | | 860 | | | | 482 |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| Profit from sale of property plant and equipment | 1 | | | | 5 |
+----------------------------------------------------------------------+-------------------+---+---+---+-------------------+
| (Profit)/loss on joint | | | | | | | (72) | | | | 7 |
| ventures | | | | | | | | | | | |
+-------------------------------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| Share option charge | | | | | | | 213 | | | | 71 |
+-------------------------------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| Exchange movements | | | | | | | 1078 | | | | (102) |
+-------------------------------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| Changes in trade and other receivables | | | | 517 | | | | (657) |
+-------------------------------------------------+---+------------+---+-------------------+---+---+---+-------------------+
| Changes in trade and other payables | | | | 744 | | | | 794 |
+-------------------------------------------------+---+------------+---+-------------------+---+---+---+-------------------+
| | | | | | | | | | | | | |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
| Net cash inflow from continuing operations | | 16,167 | | | | 10,593 |
+----------------------+--------+--------+---+----+---+------------+---+-------------------+---+---+---+-------------------+
8.Acquisitions in the year
On 12 June 2008, the company acquired 100% of the issued share capital of ACK
Limited for a cash consideration of GBP2,951,000 and estimated deferred
consideration of GBP177,000. Total goodwill arising on the acquisition is
GBP1,496,000. The fair values of net assets acquired are based on provisional
assessments pending final determination of certain assets and liabilities.
+-----------------------------------------------+----------------+----------------+--------------+
| | Carrying | Fair value | Fair value |
| | values pre | adjustments | |
| | acquisition | | |
+-----------------------------------------------+----------------+----------------+--------------+
| | | | |
+-----------------------------------------------+----------------+----------------+--------------+
| | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------+----------------+----------------+--------------+
| | | | |
+-----------------------------------------------+----------------+----------------+--------------+
| Intangible 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 | | | 1,496 |
+-----------------------------------------------+----------------+----------------+--------------+
| | | | |
+-----------------------------------------------+----------------+----------------+--------------+
| Consideration | | | 3,198 |
+-----------------------------------------------+----------------+----------------+--------------+
| Consideration satisfied by: | | | |
+-----------------------------------------------+----------------+----------------+--------------+
| Cash | | | 2,451 |
+-----------------------------------------------+----------------+----------------+--------------+
| Cash held in escrow for payment of deferred | | | 500 |
| consideration | | | |
+-----------------------------------------------+----------------+----------------+--------------+
| Directly attributable costs | | | 70 |
+-----------------------------------------------+----------------+----------------+--------------+
| Deferred contingent consideration | | | 177 |
| | | | |
+-----------------------------------------------+----------------+----------------+--------------+
| | | | 3,198 |
+-----------------------------------------------+----------------+----------------+--------------+
+----------------------------------------------------------------------------
=---------------------------------+
| The goodwill arising on acquisition of
ACK Limited represents the value of anticipated future operating |
|
synergies from the combination.
|
|
|
+--------------------------------------------------------------------------
=-----------------------------------+
| From the date of the acquisition to 31
December 2008 ACK contributed GBP344,000 revenue and GBP140,000 in |
|
profit. If the acquisition of ACK Limited had been completed on the first date
of the financial year, group |
| revenues for the year would have increased
by GBP481,000 and group profit attributable to equity holders of |
| the
parent would have increased by GBP172,000.
|
|
|
| Deferred
consideration has been discounted at 6%. The range of potential contingent
consideration is from |
| GBP700k to nil.
|
|
|
| On 9 September 2008, the company acquired 100% of the
issued share capital of Easydebit GmbH for a cash |
| consideration of
EUR4,972,000 (GBP4,234,000) and estimated deferred consideration of EUR2,311,000
(GBP2,251,000). |
| Total goodwill arising on the acquisition is GBP4,956k.
The fair values of net assets acquired are based on |
| provisional
assessments pending final determination of certain assets and liabilities.
|
+--------------------------------------------------------------------------
=-----------------------------------+
The goodwill arising on acquisition of Easydebit GmbH represents the value of
anticipated future operating synergies from the combination.
From the date of acquisition to 31 December 2008 the acquisition contributed
GBP709k to revenue and GBP154k in profit. If the acquisition of Easydebit
limited had been completed on the first date of the financial year, group
revenues for the period would have increased by GBP1,966,000 and group profit
attributable to equity holders of the parent would have increased by GBP369,000.
The range of potential contingent consideration is from EUR4,284,000 to EURnil.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR URRKRKURSUAR
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