Datacash Group PLC
09 January 2007
Embargoed until 7.00am Tuesday 9th January 2007.
DataCash Group Plc: DATA / Index: AIM / Sector: Support Services
DataCash Group plc ("DataCash" or "the Group")
Pre-Close Trading Update
The Directors of DataCash Group plc, the AIM listed payment service provider,
are pleased to announce a pre-close trading update for the year ended 31
December 2006.
DataCash continued to make good progress in 2006 with strong growth across the
business. The acquisition of ProcCyber Services (UK) Limited (PCS) in June 2006
has delivered significant benefits, broadening our service offering, creating
further international sales opportunities and enhancing our customer base.
We are pleased to report that the results for the year to 31st December 2006 are
expected to be in line with market expectations, showing strong revenue and
profit growth over the previous year. Effective cash balances at the year end
exceeded £15m (16.5p per share).
The Group is looking forward optimistically but prudently at the prospects for
2007. Those customers affected by the passing of the US Safe Ports Act in
October (which limits the ability of US citizens to use the banking networks to
settle gaming transactions) are refocusing their marketing efforts away from the
US. We are currently seeing these customers' non-US transaction volumes growing
at a monthly compound rate in excess of 6%. Meanwhile, the rest of the business
continued to grow strongly, with transaction volumes increasing by approximately
50% in the last year.
The Group delivered on its commitment to provide a solution for the Card Holder
Present market (Chip and PIN) in 2006 and won a number of significant multi-year
contracts with High Street companies, including Odeon Cinemas and Laura Ashley.
The sales pipeline for cardholder present outsourced services is continuing to
grow in response to the increased security standards required by the card
schemes and acquiring banks.
The fundamental strength of the DataCash business model remains unchanged.
Strong underlying growth in internet commerce, together with good cash
generation and international growth opportunities leave the Directors confident
about the outlook for 2007 and beyond.
Final results are expected to be released in early April.
* * ENDS * *
For further information contact:
DataCash Group plc
Ashley Head - Executive Chairman 0870 7274760
Paul Burton - Chief Financial Officer 0870 7274760
MJ2 Business Communications
Alice Proctor / Tim McCall (0)20 7491 7776 / 07958 167 119
Notes
DataCash Group plc - www.datacash.com
DataCash is a provider of outsourced electronic payment processing, money
transfer and fraud management services to merchants trading across all sectors
on a global basis.
DataCash's solutions are suitable for merchants selling through any channel,
including the web, high street point of sale, interactive TV, kiosk, call centre
and interactive voice response. Transactions are accessible to merchants through
a real-time MIS Reporting suite.
This information is provided by RNS
The company news service from the London Stock Exchange
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