Interim Results

Datacash Group PLC
02 August 2005

        DataCash Group Plc: DATA / Index: AIM / Sector: Support Services


                DATACASH GROUP PLC ('DataCash' or 'the Company')

            INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2005

News Item

The Board of DataCash Group plc, the payment service provider, is pleased to
announce its half yearly results for the six months to 30th June 2005

Overview:

•       Continuing strong transaction volume growth
•       Turnover up 35% to £2.88m (June 2004: £2.14m)
•       Adjusted pre-tax profits* up 70% to £1.14m (June 2004: £670,000)
•       Cash balances risen to £4.14m (June 2004: £2.35m)
•       Diluted adjusted earnings per share 2.42p

* before goodwill amortisation and National Insurance provision on share option
gain.



Chairman's statement

The DataCash business continued to perform well in the first half of 2005.
Although we significantly increased our investment in sales and marketing and in
our technology infrastructure, pre-tax profits (before goodwill amortisation and
NI on share option gain) rose by 70% to £1.14m (June 2004: £670,000) on revenues
up by 35% to £2.88m (June 2004: £2.14m).

Cash balances again grew strongly, increasing by £930,000 in the first half, and
at the end of June 2005 were £4.14m (June 2004: £2.35m). This represents the
equivalent of approximately 9p a share and is expected to increase further in
the second half, reflecting both levels of activity and low working capital
requirements.

All our first half revenue was derived from our Card Holder Not Present (CNP)
activities. Growth in CNP transactions processed continued in the first half of
2005, with volumes up more than 50% to 28.8m compared with 18.7m in the first
half of 2004.

Our investment in developing sales via partner channels continues to show good
growth, with transactions from partners now more than twice the level of a year
ago. We believe that the partner model has considerable potential and we have
invested significantly in this area.

We continued to invest in the Card Holder Present (CHP) market and we are
optimistic that this still provides an important opportunity for the Group. Our
partners are reporting renewed interest and prospect potential which should, we
believe, enhance our future growth.

The integration with CLICK2PAY, an E-Wallet, which we announced recently, has
given us the ability to support a more diverse range of international
transactions and we intend to continue to support and develop additional
innovative services to remain a leader in our field. Further integration and
partnering initiatives will strengthen and expand our offering enabling us to
address new markets and opportunities previously not available to us.

We have further invested in our operational infrastructure, including the
deployment of our 'second site' based in Edinburgh, which provides significantly
increased processing capacity and underpins systems resilience.

No interim dividend is proposed (2004: Nil), although the Board expects to
recommend a full year dividend for the year to 31 December 2005.

Your Board looks forward to the future with confidence and believes that the
second half of the year will see further progress.

David Bailey
Chairman

2nd August 2005


For further information contact:

DataCash:                   Terry Cave (Chief Executive Officer):          Tel: [phone]
St Brides Media:            Isabel Crossley:                               Tel: [phone]

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DataCash Group plc

Consolidated profit and loss account
For the 6 months ended 30 June 2005

                                                                            Unaudited      Unaudited         Audited
                                                                       6 months ended 6 months ended      Year ended
                                                                            30-Jun-05      30-Jun-04       31-Dec-04
                                                                                 £000           £000            £000

Turnover                                                                        2,882          2,141           4,643
Continuing operations                                                        2,140.66       2,140.66           2,073
Administrative expenses                                                       (1,812)        (1,502)         (3,210)

Operating profit before goodwill and exceptional items                          1,070            639           1,433

Goodwill amortisation                                                           (988)          (988)         (1,975)
National Insurance on share option                                               (44)              -           (125)

Operating profit/(loss)                                                            38          (349)           (667)

Interest receivable and similar income                                             72             31              87
Interest payable and similar charges                                               -               -
                                                                                                                 -
Profit/(loss) on ordinary activities before taxation                              110          (318)           (580)

Taxation                                                                         (33)            244             228

Profit/(loss) on ordinary activities after taxation                                77           (74)           (352)

Dividends                                                                          -               -           (224)

Profit/(loss) for the period                                                       77           (74)           (576)

Basic earnings/(loss) per share                                                 0.17p        (0.16)p         (0.79)p
Diluted earnings/(loss) per share                                               0.17p        (0.16)p         (0.79)p
Diluted adjusted profit per share                                               2.42p          2.04p           3.91p
(before goodwill and exceptional items)

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.




DataCash Group plc

Consolidated balance sheet
As at 30 June 2005                                                          Unaudited      Unaudited         Audited
                                                                                As at          As at           As at
                                                                            30-Jun-05      30-Jun-04       31-Dec-04
                                                                                 £000           £000            £000

Fixed assets
Intangible assets                                                               9,324         11,300          10,312
Tangible assets                                                                   168            118             190
Investments
                                                                                  -              -               -
                                                                                9,492         11,418          10,502

Current assets
Debtors                                                                           889            647             741
Debtors - Deferred tax asset                                                    1,141          1,174           1,175
Cash at bank and in hand                                                        4,138          2,350           3,206

                                                                                6,168          4,171           5,122

Creditors
Amounts falling due within one year                                           (1,311)        (1,007)         (1,411)

Net current assets                                                              4,857          3,164           3,711

Total assets less current liabilities                                          14,349         14,582          14,213

Provisions for liabilities and charges                                          (168)              -           (125)

Net assets                                                                     14,181         14,582          14,088

Capital and reserves
Called up share capital                                                           448            447             448
Share premium account                                                           9,766          9,743           9,750
Merger reserve                                                                  (124)          (124)           (124)
Other reserve                                                                  18,889         18,889          18,889
Profit and loss account                                                      (14,798)       (14,373)        (14,875)

Equity shareholders' funds                                                     14,181         14,582          14,088



DataCash Group plc

Consolidated cash flow statement
For the 6 months ended 30 June 2005
                                                                            Unaudited      Unaudited         Audited
                                                                       6 months ended 6 months ended      Year ended
                                                                            30-Jun-05      30-Jun-04       31-Dec-04
                                                                                 £000           £000            £000

Net cash inflow from operating activities                                         871            763           1,678

Returns on investments and servicing of finance
Interest received                                                                  72             31              87
Interest paid                                                                       -              -               -

Net cash inflow from returns on investments
and servicing of finance                                                           72             31              87

Capital expenditure and financial investment
Purchase of tangible fixed assets                                                (29)           (35)           (158)
Sale of tangible fixed assets                                                       -              -               -

Sale of tangible fixed assets                                                        -             -               1

Net cash outflow from capital expenditure and financial investments              (29)           (35)           (157)

Net cash inflow before management
of liquid resources and financing                                                 914            759           1,608

Management of liquid resources
Increase in short term bank deposits                                          (2,653)          (921)             112

Net cash outflow from management of liquid resources                          (2,653)          (921)             112


Financing
Exercise of share options                                                          18             43              50

Net cash inflow from financing                                                     18             43              50

(Decrease)/increase in cash in the period                                     (1,721)          (119)           1,770



DataCash Group plc

Reconciliation of net cash flow to movement in net funds
For the 6 months ended 30 June 2005
                                                                        6 months ended  6 months ended     Year ended
                                                                             30-Jun-05       30-Jun-04      31-Dec-04
                                                                                  £000            £000           £000

(Decrease)/increase in cash in the period                                      (1,721)           (119)          1,770
Cash inflow from management of liquid resources                                  2,653             921          (112)
Movement in net funds                                                              932             802          1,658

Opening funds                                                                    3,206           1,548          1,548
Closing funds                                                                    4,138           2,350          3,206


Notes

(1)                 Basis of preparation

The results for the six months ended 30 June 2005 and the comparative figures
for the six months ended 30 June 2004 are unaudited. They have been prepared on
accounting bases and policies that will be used in the preparation of the
financial statements of the Group for the year ended 31 December 2005.

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 2004 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)                 Earnings per share

The calculations of earnings/(loss) per share are based on the following profits
and numbers of shares:

The adjusted profit/(loss) per share is based on the profit/(loss) after tax
before goodwill amortisation and exceptional items.

                                                                       6 months ended  6 months ended      Year ended
                                                                            30-Jun-05       30-Jun-04       31-Dec-04
                                                                                 £000            £000            £000
Weighted average number of 1p ordinary shares in issue during the
period
For basic earnings per share                                               44,778,180      44,726,982      44,737,684
Exercise of share options                                                   1,126,273               -               -
For diluted earnings per share                                             45,904,453      44,726,982      44,737,684

Profit for the financial period                                                 £'000           £'000           £'000

Profit for adjusted earnings per share                                          1,109             914           1,748
Adjustment for goodwill amortisation                                            (988)           (988)         (1,975)
Adjustment for NI on share options                                               (44)               -           (125)

Profit for earnings/(loss) per share                                               77            (74)           (352)

For the 6 months ended 30 June 2004 and the Year ended 31 December 2004 there is
no dilution due to the loss in the period


(3)   Reconciliation of operating profit/(loss) to operating cash flows

                                                                       6 months ended 6 months ended      Year ended
                                                                            30-Jun-05      30-Jun-04       31-Dec-04
                                                                                 £000           £000            £000

Operating profit/(loss)                                                            38          (349)           (667)
Amortisation                                                                      988            988           1,975
Depreciation                                                                       51             41              94
Profit on sale of fixed assets                                                      -             -                1
(Increase)/decrease in debtors                                                  (148)              6           (331)
(Decrease)/increase in creditors                                                (101)             99             503
Increase/(decrease) in provisions                                                  43           (22)             103

Net cash inflow from operating activities                                         871            763           1,678


(4)   Analysis of Net Funds

                                                                                   At                             At
                                                                            01-Jan-05      Cash Flow       30-Jun-05
                                                                                 £000            £000           £000

Cash in hand and at bank                                                        2,317         (1,721)            596
Short term bank deposits                                                          889           2,653          3,542

                                                                                3,206             932          4,138


(5)   Reconciliation of Movement in Shareholders' Funds
                                                                                  At              At              At
                                                                           30-Jun-05       30-Jun-04       31-Dec-04
                                                                                £000            £000            £000

Profit/(loss) for the period                                                      77            (74)           (576)
Issue of ordinary share capital                                                   16              43              50
Net movement in shareholders funds                                                93            (31)           (526)

Opening shareholders funds                                                    14,088          14,614          14,614

Closing shareholders' funds                                                   14,181          14,583          14,088


(6) Taxation

   The current tax rate of 30% has been used for the basis of the tax provision.




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