TIDMDATA
RNS Number : 0420Z
Datacash Group PLC
15 September 2009
?
DATACASH GROUP PLC ('DataCash' or 'the Company')
INTERIM RESULTS
FOR THE SIX MONTHS
ENDED 30 JUNE 2009
15th September 2009
DataCash Group Plc: DATA / Index: AIM / Sector: Support Services
DataCash Group Plc ('the Company')
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
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 2009.
Overview:
* Revenues increased to GBP18.0m (June 2008: GBP12.2m)
* Adjusted pre-tax profits*, increased to GBP7.53m (June 2008: GBP6.15m)
* Adjusted* earnings per share increased to 5.9p (June 2008: 4.0p)
* Cash balances of GBP13.8m (June 2008: GBP19.1m) equivalent to 14.9p per share,
after acquisition payments of GBP15.7m for The 3rd Man, ACK, ExperCash and
EuroCommerce
* Interim dividend increased by 25% to 5.0p (June 2008: 4.0p)
* Before goodwill amortisation and impairment and foreign exchange gains on
deferred consideration.
Commenting on the results, Ashley Head, Chairman of DataCash said:
"DataCash remains in a good position. We have annuity income from a growing base
of largely internet merchant accounts. We have a strong balance sheet and cash
generation. We have every confidence that we will continue to deliver good
growth in revenue, profits and dividends."
- END -
For further information please contact:
DataCash Group PLC
Carly Smith Tel: +44 (0)20 7421 9283
Marketing &
Communications Email: Carly.Smith@datacash.com
David BaileyTel:+ 44 (0)20 7421 8451
Non-Executive Deputy Chairman Mob:+44 (0)7836 258 558
Paul Burton Tel:+44 (0)20 7421 8453
Finance Director E-mail: Paul.Burton@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 2009
Chairman's Statement
The Board of DataCash is pleased to report on another very satisfactory
performance for the six month period to 30 June 2009. Headline revenues
increased by 47% to GBP18m (2008 GBP12.2m) and like-for-like revenues (excluding
the acquisitions of ACK Limited, ExperCash GmbH and The 3rd Man plc) increased
by 19%. Adjusted Group pre-tax profit (before amortisation and impairment of
goodwill and foreign exchange gains on deferred consideration payments) rose by
22% to GBP7.53m and Adjusted earnings per share grew by 46% to 5.9p per share.
The Board is pleased to announce an increase of 25% in the interim dividend to
0.5p per share (2008 0.4p) which will be paid on 20 November 2009 to those
shareholders on the register on 23 October 2009. The Group remains confident of
future growth driven from e-commerce, new products and international expansion.
In spite of the economic background, e-commerce continued to have strong growth
during the period, and the Group saw like-for-like transaction year-on-year
growth of approximately 30%. Gaming transactions have seen slower year-on-year
growth, as reported by a number of our customers, partly because of the lack of
a major summer football event this year. On-line transactions for our retailing
customers have shown excellent progression, in spite of, and perhaps partly
because of, the economic recession.
A feature of the recession has been to increase the pricing pressures on the
basic transaction processing business. We continue to migrate our customers
towards higher value added services, products and into long-term contracts,
which offsets some of the impact of lower transaction fees.
As previously announced, the margins on several of our recent acquisitions, ACK,
ExperCash and The 3rd Man are inherently lower than the margins on our historic
business mix. These acquisitions represent approximately 9% of the turnover in
the first half of 2009.
EuroCommerce, our business focussed on the airline and travel markets, has
continued to grow well, albeit still loss-making in the first half. Although the
airline market has been difficult, our innovative risk management product has
resulted in new customer wins and strong transaction growth. We remain confident
that this business will become profitable during the second half of the year,
albeit at lower levels than previously forecast.
The Cardholder Present business has been adversely affected by delays in
decision making by some retail prospects, and this is expected to impact on the
integration and licensing revenues that we anticipated for the second half.
We have a substantial support operation in Cape Town and the strength of the
South African Rand has had an impact on our costs. The Group is working hard to
mitigate the effect on the overall costs, while continuing to invest to support
the growth of the business.
The Group continues to generate cash, and as at 30 June, cash balances were
GBP13.8m (GBP19.1m as at 30 June 2008), approximately 14.9p a share. Since June
2008 about GBP15.7m has been spent on strategic acquisitions and investments,
GBP2.7m in dividends, and GBP5.1m in corporation tax.
Interest income on our cash holdings has fallen significantly since last year,
and is likely to remain lower than previously anticipated until interest rates
rise. The Group continues to explore acquisition opportunities with a view to
expanding both markets and internationally.
The slowdown in gaming activity and the delayed take up of Card holder present
projects will reduce revenue growth in the second half compared to previous
expectations, although we expect margins to be higher thanks to an improved
product mix. DataCash remains in a good position. We have annuity income from a
growing base of largely internet merchant accounts. We have a strong balance
sheet and cash generation. We have every confidence that we will continue to
deliver good growth in revenue, profits and dividends.
Ashley Head
Chairman
15th September 2009
DataCash Group plc
Unaudited Condensed Consolidated Statement of Comprehensive Income
For the 6 months ended 30 June 2009
+------------------------------------------------------------+--------------+--------------+----------------+
| | 6 months | 6 months | |
| | ended | ended | Year ended |
| | 30 June | 30 June | 31 Dec |
| | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Revenue | 18,009 | 12,228 | 28,037 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Administrative expenses | (10, 677) | (6,728) | (14,205) |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Operating profit before impairment and amortisation | 7,332 | 5,500 | 13,832 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Impairment | (1,569) | (1,010) | (2,773) |
+------------------------------------------------------------+--------------+--------------+----------------+
| Amortisation | (3,567) | (1,973) | (5,240) |
+------------------------------------------------------------+--------------+--------------+----------------+
| Total operating profit | 2,196 | 2,517 | 5,819 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Finance costs (notional interest on deferred | (43) | (154) | (280) |
| consideration) | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Finance income | 224 | 739 | 968 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Foreign exchange gains/(losses) on deferred consideration | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Unsettled gain/(loss) | 46 | - | (356) |
+------------------------------------------------------------+--------------+--------------+----------------+
| Settled gain/(loss) | 236 | - | (722) |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Share of profit of joint ventures | 12 | 63 | 72 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Profit before taxation | 2,671 | 3,165 | 5,501 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Taxation | (1,187) | (1,625) | (2,861) |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Profit on ordinary activities after taxation | 1,484 | 1,540 | 2,640 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Other comprehensive income: | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Exchange differences on translation of overseas operations | (1,983) | (71) | 4,330 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Total comprehensive income for the period | (499) | 1,469 | 6,970 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Attributable to equity holders of Datacash Group Plc | 1,472 | 1,540 | 2,640 |
+------------------------------------------------------------+--------------+--------------+----------------+
| Attributable to the minority interest | 12 | - | - |
+------------------------------------------------------------+--------------+--------------+----------------+
| | 1,484 | 1,540 | 2,640 |
+------------------------------------------------------------+--------------+--------------+----------------+
| | | | |
+------------------------------------------------------------+--------------+--------------+----------------+
| Basic earnings per share | 1.61 p | 1.68 p | 2.89 p |
+------------------------------------------------------------+--------------+--------------+----------------+
| Diluted earnings per share | 1.60 p | 1.67 p | 2.86 p |
+------------------------------------------------------------+--------------+--------------+----------------+
DataCash Group plc
Unaudited Condensed Consolidated Balance Sheet
As at 30 June 2009
+----------------------------------------------------------+----------------+----------------+----------------+
| | As at | As at | As at |
| | 30 June | 30 June | 31 Dec |
| | 2009 | 2008 | 2008 |
| | GBP000 | GBP000 | GBP000 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Non current assets | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Intangible assets | 13,526 | 13,494 | 13,544 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Goodwill | 54,512 | 52,095 | 57,672 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Property, plant and equipment | 2,231 | 2,357 | 2,357 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Investments in joint ventures | 99 | 73 | 87 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Investments | 3,902 | - | 3,902 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Deferred tax assets | - | 108 | - |
+----------------------------------------------------------+----------------+----------------+----------------+
| | 74,270 | 68,127 | 77,562 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Current assets | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Trade and other receivables | 3,910 | 5,247 | 5,161 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Cash and cash equivalents | 13,785 | 19,110 | 16,641 |
+----------------------------------------------------------+----------------+----------------+----------------+
| | 17,695 | 24,357 | 21,802 |
+----------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Total assets | 91,965 | 92,484 | 99,364 |
+----------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Current liabilities | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Trade and other payables | (3,348) | (3,070) | (4,555) |
+----------------------------------------------------------+----------------+----------------+----------------+
| Deferred consideration | (1,617) | (2,478) | (4,280) |
| Current tax liabilities | (1,587) | (2,222) | (2,304) |
+----------------------------------------------------------+----------------+----------------+----------------+
| | (6,552) | (7,770) | (11,139) |
+----------------------------------------------------------+----------------+----------------+----------------+
| Net current assets | 11,143 | 16,587 | 10,663 |
+----------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Non-current liabilities | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Deferred tax liability | ( 3,110) | (3,298) | (3,196) |
+----------------------------------------------------------+----------------+----------------+----------------+
| Deferred consideration | - | (2,203) | (1,706) |
+----------------------------------------------------------+----------------+----------------+----------------+
| Other liabilities | (44) | (117) | (32) |
+----------------------------------------------------------+----------------+----------------+----------------+
| | ( 3,154) | (5,618) | (4,934) |
+----------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Total liabilities | (9,706) | (13,388) | (16,073) |
+----------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Net assets | 82,259 | 79,096 | 83,291 |
+----------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Capital and reserves | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Share capital | 923 | 921 | 923 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Share premium | 10,986 | 10,757 | 10,986 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Own shares | (1,512) | (1,268) | (1,512) |
+----------------------------------------------------------+----------------+----------------+----------------+
| Foreign currency translation reserve | 2,052 | (295) | 4,035 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Share option reserve | 1,356 | 1,278 | 1,365 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Merger reserve | 63,603 | 63,603 | 63,603 |
+----------------------------------------------------------+----------------+----------------+----------------+
| Retained earnings | 4,078 | 4,100 | 3,891 |
+----------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Attributable to equity holders of Datacash | 81,486 | 79,096 | 83,291 |
| Group Plc | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+----------------------------------------------------------+----------------+----------------+----------------+
| Attributable to the minority interest | 773 | - | - |
+----------------------------------------------------------+----------------+----------------+----------------+
| Total equity | 82,259 | 79,096 | 83,291 |
+----------------------------------------------------------+----------------+----------------+----------------+
DataCash Group plc
Unaudited Condensed Consolidated Cash Flow Statement
For the 6 months ended 30 June 2009
+------------------------------------------------------------+----------------+----------------+----------------+
| | 6 months | 6 months ended | |
| | ended | 30 June 2008 | Year ended |
| | 30 June 2009 | GBP000 | 31 Dec 2008 |
| | GBP000 | | GBP000 |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Net cash inflow from operations | 7,992 | 6,272 | 16,167 |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Interest received | 224 | 739 | 968 |
+------------------------------------------------------------+----------------+----------------+----------------+
| Tax paid | (3,068) | (1,447) | (3,502) |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Net cash inflow from operating activities | 5,148 | 5,563 | 13,633 |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Cash flow from investing activities | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Acquisition of subsidiary (net of cash) | (2,378) | (1,680) | (4,075) |
+------------------------------------------------------------+----------------+----------------+----------------+
| Payment of deferred consideration | (3,928) | - | (3,101) |
+------------------------------------------------------------+----------------+----------------+----------------+
| Investments | - | - | (3,902) |
+------------------------------------------------------------+----------------+----------------+----------------+
| Purchase of property plant and equipment | (386) | (892) | (1,253) |
+------------------------------------------------------------+----------------+----------------+----------------+
| Purchase of intangible fixed assets | (231) | (134) | (445) |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Net cash outflow from investing activities | (6,923) | (2,706) | (12,776) |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Cash flow from financing activities | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Net proceeds from issue of share capital | - | 119 | 350 |
+------------------------------------------------------------+----------------+----------------+----------------+
| Purchase of own shares | - | (583) | (827) |
+------------------------------------------------------------+----------------+----------------+----------------+
| Equity dividends paid | (1,285) | - | (1,372) |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Net cash outflow from financing activities | (1,285) | (464) | (1,849) |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Net Cash (outflow)/inflow | (3,060) | 2,394 | (992) |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Cash and cash equivalents at start of period | 16,641 | 16,716 | 17,942 |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Exchange gains/(losses) on cash and cash equivalents | 204 | - | (309) |
+------------------------------------------------------------+----------------+----------------+----------------+
| | | | |
+------------------------------------------------------------+----------------+----------------+----------------+
| Cash and cash equivalents at the end of the period | 13,785 | 19,110 | 16,641 |
+------------------------------------------------------------+----------------+----------------+----------------+
DataCash Group plc
Unaudited Condensed Consolidated Statement of Changes in Equity
For the 6 months ended 30 June 2009
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | Share | Share | Foreign | Share | Own | Merger | Retained | Total | Minority | Total |
| | Capital | Premium | Currency | Option | Shares | Reserve | Earnings | | Interest | Equity |
| | | | Translation | Reserve | | | | | | |
| | | | Reserve | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| At 1 January 2009 | 923 | 10,986 | 4,035 | 1,365 | (1,512) | 63,603 | 3,891 | 83,291 | - | 83,291 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Exchange | - | - | (1,983) | - | - | - | - | (1,983) | - | (1,983) |
| differences on | | | | | | | | | | |
| translation of | | | | | | | | | | |
| overseas operations | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Net income and | - | - | (1,983) | - | - | - | - | (1,983) | - | (1,983) |
| expense recognised | | | | | | | | | | |
| directly in equity | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Profit for the | - | - | - | - | - | - | 1,472 | 1472 | 12 | 1,484 |
| period | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Total recognised | - | - | (1,983) | - | - | - | 1,472 | (511) | 12 | (499) |
| income and expenses | | | | | | | | | | |
| for 6 months to | | | | | | | | | | |
| June 2009 | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Share-based | - | - | - | (9) | - | - | - | (9) | | (9) |
| payments | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Dividends paid | - | - | - | - | - | - | (1,285) | (1,285) | - | (1,285) |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Minority interest | - | - | - | - | - | - | - | - | 761 | 761 |
| arising on business | | | | | | | | | | |
| combinations | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| At 30 June 2009 | 923 | 10,986 | 2,052 | 1,356 | (1,512) | 63,603 | 4,078 | 81,486 | 773 | 82,259 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | Share | Share | Foreign | Share | Own | Merger | Retained | Total | Minority | Total |
| | Capital | Premium | Currency | Option | Shares | Reserve | Earnings | | Interest | Equity |
| | | | Translation | Reserve | | | | | | |
| | | | Reserve | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| At 1 January 2008 | 919 | 10,640 | (224) | 1,152 | (685) | 94,676 | (28,513) | 77,965 | - | 77,965 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Exchange | - | - | 4,259 | - | - | - | - | 4,259 | - | 4,259 |
| differences on | | | | | | | | | | |
| translation of | | | | | | | | | | |
| overseas operations | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Tax effect in | - | - | - | - | - | - | 63 | 63 | - | 63 |
| equity | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Net income and | - | - | 4,259 | - | - | - | 63 | 4,322 | - | 4,322 |
| expense recognised | | | | | | | | | | |
| directly in equity | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Profit for the | - | - | - | - | - | - | 2,640 | 2,640 | - | 2,640 |
| period | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Total recognised | - | - | 4,259 | - | - | - | 2,703 | 6,962 | - | 6,962 |
| income and expense | | | | | | | | | | |
| for 2008 | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Share-based | - | - | - | 213 | - | - | - | 213 | - | 213 |
| payments | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Dividends paid | - | - | - | - | - | - | (1,372) | (1,372) | - | (1,372) |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Own shares | - | - | - | - | (827) | - | - | (827) | - | (827) |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Issue of shares | 4 | 346 | - | - | - | - | - | 350 | - | 350 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Reserve transfer | - | - | - | - | - | (31,073) | 31,073 | - | - | - |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| At 31 December 2008 | 923 | 10,986 | 4,035 | 1,365 | (1,512) | 63,603 | 3,891 | 83,291 | - | 83,291 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | Share | Share | Foreign | Share | Own | Merger | Retained | Total | Minority | Total |
| | Capital | Premium | Currency | Option | Shares | Reserve | Earnings | | Interest | Equity |
| | | | Translation | Reserve | | | | | | |
| | | | Reserve | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| At 1 January 2008 | 919 | 10,640 | (224) | 1,152 | (685) | 94,676 | (28,513) | 77,965 | - | 77,965 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Exchange | - | - | (71) | - | - | - | - | (71) | - | (71) |
| differences on | | | | | | | | | | |
| translation of | | | | | | | | | | |
| overseas operations | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Net income and | - | - | (71) | - | - | - | - | (71) | - | (71) |
| expense recognised | | | | | | | | | | |
| directly in equity | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Profit for the | - | - | - | - | - | - | 1,540 | 1,540 | - | 1,540 |
| period | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Total recognised | - | - | (71) | - | - | - | 1,540 | 1,469 | - | 1,469 |
| income and expenses | | | | | | | | | | |
| for 6 months to | | | | | | | | | | |
| June 2008 | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Share-based | - | - | - | 126 | - | - | - | 126 | - | 126 |
| payments | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Own shares | - | - | - | - | (583) | - | - | (583) | - | (583) |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Issue of shares | 2 | 117 | - | - | - | - | - | 119 | - | 119 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| Reserve transfer | - | - | - | - | - | (31,073) | 31,073 | - | - | - |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
| At 30 June 2008 | 921 | 10,757 | (295) | 1,278 | (1,268) | 63,603 | 4,100 | 79,096 | - | 79,096 |
+---------------------+----------+----------+-------------+----------+----------+----------+----------+----------+----------+----------+
Notes to the Unaudited Condensed Financial Information
For the 6 months to 30 June 2009
1. Basis of Preparation
This Report for the 6 months ended 30 June 2009 was approved by the directors on
15 September 2009.
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 2008 but are unaudited, and are also consistent
with those which will be adopted in the 2009 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 2006 that remain
applicable to companies reporting under IFRS.
The financial information contained in this Report does not constitute statutory
accounts as defined by Section 434 of the Companies Act 2006.
The figures for the year ended 31 December 2008 have been extracted from the
statutory accounts, which have been filed with 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.
Copies of this announcement are available from the company's website,
www.datacash.com.
2. Dividend
An interim dividend of 0.5p (interim 2008: 0.4p, Final 2008: 1.4p) per ordinary
share will be paid. In accordance with IAS 10 Events after the Balance Sheet
date, this dividend has not been recognised in the accounts at 30 June 2009, but
will be recognised in the accounting period ending December 2009.
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 an annual impairment review, or more frequently if there
are any indications that goodwill might be impaired.
The charge for the year comprises amortisation of intangible assets of GBP3.57m
(6 months to 30 June 2008: GBP1.97m, full year 2008: GBP5.24m) and impairment of
goodwill of GBP1.57m (6 months to 30 June 2008: GBP1.01m, full year 2008:
GBP2.77m).
The amortisation of intangibles consists of GBP2,461k customer contracts,
GBP1,069k software and GBP37k development costs.
The impairment of goodwill during all periods was entirely attributable to
EuroCommerce as a result of the downturn in the airline industry.
4. Adjusted earnings reconciliation
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| | 6 months | | 6 months | | Year ended |
| | ended 30 | | ended 30 | | 31 Dec 2008 |
| | June 2009 | | June 2008 | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| | GBP000 | | GBP000 | | GBP000 |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| | | | | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| Profit before taxation per consolidated | 2,671 | | 3,165 | | 5,501 |
| statement of comprehensive income | | | | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| Adjustments: | | | | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| - Impairment and amortisation | 5,136 | | 2,983 | | 8,013 |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| - Unsettled foreign exchange (gain)/losses on | ( 46) | | - | | 356 |
| deferred consideration | | | | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| - Settled foreign exchange (gain)/losses on | (236) | | - | | 722 |
| deferred consideration | | | | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| | | | | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| Adjusted profit before taxation | 7,525 | | 6,148 | | 14,592 |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| | | | | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| Taxation per consolidated statement of | (1,187) | | (1,625) | | (2,861) |
| comprehensive income | | | | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| Tax effect of adjustments detailed above | (920) | | (835) | | (2,545) |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| Adjusted taxation | (2,107) | | (2,460) | | (5,406) |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| | | | | | |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
| Adjusted profit for the period | 5,418 | | 3,688 | | 9,186 |
+--------------------------------------------------+-------------+-----+--------------+----+-------------+
The Directors believe that the adjusted profit for the period 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 period based on profit before taxation
per the consolidated statement of comprehensive income is 44.4% (6 months to 30
June 2008: 51.3%, Full year 2008: 52.0 %).
The group's effective tax rate for the period based on the adjusted profit
before taxation, as detailed in note 4 above, is 28.0% (6 months to 30 June
2008: 40.0%, Full year 2008: 37.0%).
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.
+--------------------------------------+------------+--+------------+--+------------+
| Weighted average number of 1p | 6 months | | 6 months | | Year |
| ordinary shares in issue during the | ended 30 | | ended 30 | | ended 31 |
| year is set out below: | June | | June 2008 | | Dec 2008 |
| | 2009 | | | | |
+--------------------------------------+------------+--+------------+--+------------+
| | Number | | Number | | Number |
+--------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+--------------------------------------+------------+--+------------+--+------------+
| For basic earnings per share | 92,300,490 | | 91,945,183 | | 91,472,062 |
+--------------------------------------+------------+--+------------+--+------------+
| Dilutive effect of share options | 473,906 | | 337,171 | | 907,728 |
+--------------------------------------+------------+--+------------+--+------------+
| For diluted earnings per share | 92,774,396 | | 92,282,354 | | 92,379,790 |
+--------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+--------------------------------------+------------+--+------------+--+------------+
| Basic earnings per share | 1.61 p | | 1.68p | | 2.89p |
+--------------------------------------+------------+--+------------+--+------------+
| Diluted earnings per share | 1.60 p | | 1.67p | | 2.86p |
+--------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+--------------------------------------+------------+--+------------+--+------------+
| Adjusted basic earnings per share | 5.87 p | | 4.01p | | 11.21p |
+--------------------------------------+------------+--+------------+--+------------+
| Adjusted diluted earnings per share | 5.84 p | | 3.99p | | 11.10p |
+--------------------------------------+------------+--+------------+--+------------+
7. Analysis of net funds
+---------------------------------------+-------------+-------------+----------+
| | At 1 | Cashflow | At 30 |
| | January | | June |
| | 2009 | | 2009 |
+---------------------------------------+-------------+-------------+----------+
| | GBP000 | GBP000 | GBP000 |
+---------------------------------------+-------------+-------------+----------+
| | | | |
+---------------------------------------+-------------+-------------+----------+
| Cash and cash equivalents | 13,785 | (1,605) | 12,180 |
+---------------------------------------+-------------+-------------+----------+
| Restricted cash held in escrow | 1,980 | (375) | 1,605 |
+---------------------------------------+-------------+-------------+----------+
| | 15,765 | (1,980) | 13,785 |
+---------------------------------------+-------------+-------------+----------+
8. Reconciliation of profit for the period to net cash inflow from operating
activities
+----------------------------------------------------+----------------+----------------+----------------+
| | | | |
| | 6 months ended | 6 months ended | Year ended |
| | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
+----------------------------------------------------+----------------+----------------+----------------+
| | GBP000 | GBP000 | GBP000 |
| | | | |
+----------------------------------------------------+----------------+----------------+----------------+
| Profit for the period | 1,484 | 1,540 | 2,640 |
| | | | |
+----------------------------------------------------+----------------+----------------+----------------+
| Taxation | 1,187 | 1,625 | 2,861 |
+----------------------------------------------------+----------------+----------------+----------------+
| Finance income | (224) | (739) | (968) |
+----------------------------------------------------+----------------+----------------+----------------+
| Finance costs | 43 | 154 | 280 |
+----------------------------------------------------+----------------+----------------+----------------+
| Impairment and amortisation of goodwill and | 5,136 | 2,983 | 8,013 |
| intangibles | | | |
+----------------------------------------------------+----------------+----------------+----------------+
| Depreciation | 571 | 309 | 860 |
+----------------------------------------------------+----------------+----------------+----------------+
| Loss from sale of property, plant and equipment | - | - | 1 |
+----------------------------------------------------+----------------+----------------+----------------+
| Profit on joint ventures | (12) | (63) | (72) |
+----------------------------------------------------+----------------+----------------+----------------+
| Share option charge | (9) | (22) | 213 |
+----------------------------------------------------+----------------+----------------+----------------+
| Exchange movements | (282) | (92) | 1,078 |
+----------------------------------------------------+----------------+----------------+----------------+
| Changes in trade and other payables | (1,439) | 28 | 744 |
+----------------------------------------------------+----------------+----------------+----------------+
| Changes in trade and other receivables | 1,537 | 549 | 517 |
+----------------------------------------------------+----------------+----------------+----------------+
| | | | |
+----------------------------------------------------+----------------+----------------+----------------+
| Net cash inflow from operations | 7,992 | 6,272 | 16,167 |
+----------------------------------------------------+----------------+----------------+----------------+
9. Acquisitions
On 21 January 2009, the company acquired 76% of the issued share capital of The
Third Man Group plc for cash consideration of GBP2,388,355. Total goodwill
arising on the acquisition is GBP265,000. The fair values of net assets acquired
are based on provisional assessments pending final determination of certain
assets and liabilities.
+----------------------------------------------+-----------------+------------------+------------------+
| | Carrying values | Fair value | Fair value |
| | pre acquisition | adjustments | |
+----------------------------------------------+-----------------+------------------+------------------+
| | GBP000 | GBP000 | GBP000 |
+----------------------------------------------+-----------------+------------------+------------------+
| | | | |
+----------------------------------------------+-----------------+------------------+------------------+
| Intangible assets | 162 | 3,688 | 3,850 |
+----------------------------------------------+-----------------+------------------+------------------+
| Property, plant and equipment | 59 | - | 59 |
+----------------------------------------------+-----------------+------------------+------------------+
| Trade and other receivables | 287 | - | 287 |
+----------------------------------------------+-----------------+------------------+------------------+
| Cash and cash equivalents | 298 | - | 298 |
+----------------------------------------------+-----------------+------------------+------------------+
| Trade and other payables | (244) | - | (244) |
+----------------------------------------------+-----------------+------------------+------------------+
| Deferred tax liabilities | - | (1,078) | (1,078) |
+----------------------------------------------+-----------------+------------------+------------------+
| | | | |
+----------------------------------------------+-----------------+------------------+------------------+
| Net assets acquired | 562 | 2,610 | 3,172 |
+----------------------------------------------+-----------------+------------------+------------------+
| | | | |
+----------------------------------------------+-----------------+------------------+------------------+
| Goodwill | | | 265 |
+----------------------------------------------+-----------------+------------------+------------------+
| Minority interest | | | (761) |
+----------------------------------------------+-----------------+------------------+------------------+
| | | | |
+----------------------------------------------+-----------------+------------------+------------------+
| Total purchase consideration | | | 2,676 |
+----------------------------------------------+-----------------+------------------+------------------+
| | | | |
+----------------------------------------------+-----------------+------------------+------------------+
| Consideration satisfied by: | | | |
+----------------------------------------------+-----------------+------------------+------------------+
| Cash | | | 2,388 |
+----------------------------------------------+-----------------+------------------+------------------+
| Directly attributable costs | | | 288 |
+----------------------------------------------+-----------------+------------------+------------------+
| | | | |
+----------------------------------------------+-----------------+------------------+------------------+
| | | | 2,676 |
+----------------------------------------------+-----------------+------------------+------------------+
The goodwill arising on acquisition of The Third Man Group Plc represents the
value of anticipated future operating synergies from the combination. There is
no deferred contingent consideration payable in respect of this acquisition.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRGDCBDBGGCS
|