Interim Results
06 August 2003 - 5:00PM
UK Regulatory
RNS Number:3568O
Datacash Group PLC
06 August 2003
DATACASH GROUP PLC
INTERIM RESULTS
Six months ended 30 June 2003
DataCash Group plc today announces its interim results for the six months to 30
June 2003
Highlights
* Datacash announces its first half-yearly profit (before goodwill
amortization)
* First half PBT (pre-goodwill and NI provision) of #273,000 (2002 :
#284,000 loss)
* First half Revenue up 36% to #1.69m (2002 : #1.24m)
* Cash balances rose to #920,000 (31.12.02: #667,000)
* Transaction volumes up 46%
* Costs reduced and forecast to be similar in the second half.
* A number of successful new product launches in the period
* Some excellent new high profile customer wins
David Bailey, Chairman of DataCash Group plc, said:
"The Board's stated objective in 2002, of sustainable, profitable, cash
generative growth has been realised in the first six months of 2003.
...the requirement to combine processing of both cardholder present and not
present transactions is becoming increasingly apparent........The DataCash
outsourcing proposition is attracting significant interest and we are confident
that this will generate future revenue growth.
The Board is confident that the second half will see further revenue and profits
growth."
For further information contact:
David Bailey (Chairman): 0870 7274760
Keith Butcher (Finance Director): 0870 7274760
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DATACASH GROUP PLC
Interim Results statement
Six months to 30 June 2003
The Board of DataCash Group plc, the payment service provider, is pleased to
announce its first half-yearly profit, before goodwill amortisation, in the six
months to 30 June 2003.
First half revenues continued to grow strongly, increasing by 36% to #1.69m
compared with last year, and the Board's stated objective in 2002 of
sustainable, profitable, cash generative growth has been realised.
Profits before tax, goodwill amortisation and NI provision (for an outstanding
vested option) for the six months to 30 June 2003 were #273,000 compared with a
loss of #284,000 for the same period in 2002 and adjusted earnings per share
(before goodwill amortisation) were 0.62p (2002: -0.65p).
The Group was cash positive throughout the first half of 2003, ending the period
with #920,000 in cash balances (#667,000 at 31.12.02) and we expect to continue
to be cash generative on an ongoing basis.
Costs were reduced to #1.43m (2002 #1.54m) and we expect second half costs to be
broadly similar. As stated in the 2002 Annual Report and Accounts, we believe
that we can accommodate sizeable increases in both customers and transaction
volumes without this cost base rising significantly. Transaction volumes rose by
46% to 12.6m and we have won some excellent new high profile customers, which
should underpin our future growth.
Historically the group has focused solely on processing cardholder-not-present
transactions. However, as discussed in the 2002 Annual Report and Accounts, the
requirement to combine processing of both cardholder present and not present
transactions is becoming increasingly apparent. This trend is expected to be
accelerated by new banking initiatives that will significantly broaden the
market opportunity of your Company. We are particularly encouraged by the
prospects in the retail sector, where retailers are having to upgrade their
systems by 2005 to support the new payment standards. The DataCash outsourcing
proposition is attracting significant interest and we are confident that this
will generate future revenue growth.
The period saw a number of successful new product launches, including DataCash's
own Merchant Plug-In solution and associated support for the 3-D Secure
protocols, accreditation for GE Capital Private Label cards, accreditation with
Allied Irish Bank (AIB), and support for continuous authority credit card and
Direct Debit transactions. Developments aimed at further differentiating and
improving the service to our customers are expected in the second half.
The Board is confident that the second half of the year will see further revenue
and profits growth.
The Group changed its name from Auxinet plc to DataCash Group plc in June. New
share certificates have not been issued, but shareholders who wish to change
their share certificates can do so at no charge by writing to the registrars,
Capita Registrars, at the address at the end of this report.
David Bailey
Chairman
6 August 2003
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DataCash Group plc
Consolidated Profit and Loss account (unaudited)
For the 6 months ended 30 June 2003
6 months ended 6 months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
Turnover 1,693 1,244 2,703
Administrative expenses
Amortisation of goodwill (988) (988) (1,975)
(Increase)/decrease in provision for
national insurance on share option gains (10) 8 -
Other (1,427) (1,540) (3,113)
Total administrative expenses (2,425) (2,520) (5,088)
Operating loss (732) (1,276) (2,385)
Interest receivable and similar income 7 12 19
Loss on ordinary activities before taxation (725) (1,264) (2,366)
Tax on loss on ordinary activities - - -
Loss on ordinary activities after taxation (725) (1,264) (2,366)
Dividends - - -
Loss for the period (725) (1,264) (2,366)
Basic and diluted loss per share (pence) (1.66)p (2.91)p (5.44)p
Adjusted basic and diluted profit/(loss) per share 0.62p (0.65)p (0.90)p
All amounts relate to continuing activities.
There were no recognised gains or losses other than those shown in the profit
and loss account.
There are no differences between historical cost profits and losses and those
shown above.
Consolidated Balance Sheet (unaudited)
As at 30 June 2003
As at As at As at
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
#000 #000 #000
Fixed assets
Intangible assets 13,274 15,249 14,262
Tangible assets 141 252 170
Investments 160 170 160
13,575 15,671 14,592
Current assets
Debtors 603 513 641
Cash at bank and in hand 920 748 667
1,523 1,261 1,308
Creditors
Amounts falling due within one year (809) (1,161) (959)
Net current assets 714 100 349
Total assets less current liabilities 14,289 15,771 14,941
Provisions for liabilities and charges (799) (517) (789)
Net assets 13,490 15,254 14,152
Capital and reserves
Called up share capital 440 436 436
Share premium account 9,568 9,509 9,509
Share scheme reserve 4 4 4
Merger reserve (124) (124) (124)
Other reserve 18,889 18,889 18,889
Profit and loss account (15,287) (13,461) (14,562)
Equity shareholders' funds 13,490 15,254 14,152
Consolidated Cash Flow statement (unaudited)
For the 6 months ended 30 June 2003
6 months ended 6 months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
Net cash inflow/(outflow) from operating activities 225 (296) (357)
Returns on investments and servicing of finance
Interest received 7 12 19
Net cash inflow from returns on investments
and servicing of finance 7 12 19
Capital expenditure and financial investment
Purchase of tangible fixed assets (42) (30) (67)
Decrease in investment loans - 40 50
Net cash (outflow)/inflow from capital expenditure
and financial investments (42) 10 (17)
Net cash inflow/(outflow) before management
of liquid resources and financing 190 (274) (355)
Management of liquid resources
(Increase)/Decrease in short term bank deposits (173) 404 364
Net cash (outflow)/inflow from management
of liquid resources (173) 404 364
Financing
Exercise of share options 63 71 71
Net cash inflow from financing 63 71 71
Increase in cash in the period 80 201 80
Notes
(1) Basis of preparation
The results for the six months ended 30 June 2003 and the comparative figures
for the six months ended 30 June 2002 are unaudited. They have been prepared on
accounting bases and policies that are consistent with those used in the
preparation of the financial statements of the Group for the year ended 31
December 2002.
The financial information contained in this report does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985 (as
amended). The results for the year ended 31 December 2002 were reported on by
the auditors and received an unqualified report and contained no statement under
Section 237(2) or (3) of the Companies Act 1985 (as amended). Full accounts have
been delivered to the Registrar of Companies and are available on request.
(2) Exceptional item
The exceptional item in 2003 relates to an increase in provisions of #10,000
representing national insurance contributions on share option gains.
(3) Earnings per share
Basic and diluted loss per share for the six months ended 30 June 2003 have been
calculated on the basis of the loss after taxation for the period of #725,000
and the average number of shares in issue during the period of 43,710,435.
The adjusted profit per share figure is calculated on the profit before
administrative items based on the same weighted average number of shares in
issue.
(4) Reconciliation of operating loss to operating cash flows
Six months Six months Year
ended 30 June ended 30 June ended 31
2003 2002 December 2002
#000 #000 #000
Operating loss (732) (1,276) (2,385)
Amortisation 988 988 1975
Depreciation 71 89 185
Loss on sale of fixed assets - 1 24
Decrease in debtors 38 215 89
Decrease in creditors (150) (305) (509)
Increase/ (decrease) in provision for
national insurance on share option
gains 10 (8) 264
Net cash outflow from operating
activities (225) (296) (357)
(5) Analysis of Net Funds
At At
1 January Cash Flow 30 June
2003 2003
#000 #000 #000
Cash in hand and at bank 118 80 198
Short term bank deposits 549 173 722
667 253 920
This information is provided by RNS
The company news service from the London Stock Exchange
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