Datacash Posts Lower H1 Profit

9/15/2009 4:52 AM ET

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Datacash Group 6-month Profit Down - Quick Facts

(RTTNews) - Tuesday, payment processing solutions provider Datacash Group Plc (DATA.L: News ) reported a decrease in profit for the first half of fiscal 2009, reflecting higher impairment and amortisation costs. On an adjusted basis, earnings increased year-on-year, as revenues grew 47%.

For the half-year period, profit attributable to the shareholders was GBP 1.47 million or 1.60 pence per share compared to GBP 1.54 million or 1.67 pence per share in the prior-year period. On an adjusted basis, earnings were GBP 5.42 million or 5.84 pence per share as against GBP 3.69 million or 3.99 pence per share last year.

Adjusted results exclude, among other items, costs relating to impairment and amortisation of goodwill and intangibles amounting to GBP 5.14 million, up from GBP 2.98 million in the same period last year.

Profit before taxation slumped to GBP 2.67 million from GBP 3.17 million in the first half of fiscal 2008. Adjusted pre-tax profit for the period was GBP 7.53 million versus GBP 6.15 million in the previous year.

London-based Datacash's first-half revenues surged to GBP 18.01 million from GBP 12.23 million in the comparable period prior year. Like-for-like revenues, excluding purchase of ACK Limited, ExperCash GmbH and The 3rd Man plc, were up 19%.

During the period, the company incurred administrative expenses totaling GBP 10.68 million compared with GBP 6.73 million a year ago.

Looking ahead, Datacash expects the slowdown in gaming activity and delayed take up of cardholder present projects to reduce revenue growth in the second half. Margins for the remaining half of the year are anticipated to be higher due to improved product mix.

The board has declared an interim dividend of 0.5 pence per share, up 25% from 0.4 pence in the 2008 period, payable on November 20, 2009 to the shareholders on the register on October 23, 2009.

DATA is currently trading at 229.50 pence per share, down 8.38%, on the London Stock Exchange.