Globaldata Share Discussion Threads

[melville28] 05/4/2005 08:12

dont panic - these shares have added 30% while the rest of the market rolled over and got hammered. Many people tend to take profits on fact - this simply pulls the shares back to a more attractive level allowing others to get involved for the next phase of the story (which looks very impressive for data - especially given the possible deal flow over the next 6 months). Just wait for the spivvy sellers to bail and when the price stabilises, load up for the next run to 150p.

[tamaybroke] 05/4/2005 07:57

cyber,not saying i don't have faith,just think it's overpriced based on todays results and with at least another 15% rise in costs expected.A 40% profit in a short period will do me,will get in again with a few contract announcements.

[cyberian] 05/4/2005 07:41

Silly to sell unless one is top slicing and/or trading....however, the fundamentals, solid management and huge growth will carry this share a great deal higher in time. We still have the Y/E tax situation but that will soon be over and the general markets look reasonable.

[treborbob] 05/4/2005 07:36

Tamaycroked Who cares?

[tamaybroke] 05/4/2005 07:21

saying that i've sold out.

[tamaybroke] 05/4/2005 07:14

NOT bad, profit 1.52 million forecasts were 1.45,sales 4.64 forecasts were 4.62.

[bitterlemontart] 05/4/2005 07:00

RNS Number:6088K Datacash Group PLC 05 April 2005 DataCash Group Plc: DATA / Index: AIM / Sector: Support Services 5 April 2005 DATACASH GROUP PLC ('DataCash' or 'the Company') FINAL RESULTS DataCash Group Plc, the AIM listed payments service provider, announces its results for the 12 months to 31 December 2004. * Turnover up 30% to #4.64m (2003: #3.58m) * Adjusted pre-tax profit * up 102% to #1.52m (2003: #752,000) - equivalent to an underlying EPS of 3.40p (2003:1.71p) * Strong cash balance of #3.21m (2003: #1.55m) * Continued strong growth of the core Card Holder Not Present transaction processing business - transaction volumes increased by more than 50% year-on-year * Ongoing investment in technology infrastructure and new product offerings * Gaming sector continues to play an important role but strong growth also from retail customers - other sectors such as travel and ticketing should provide additional growth * Good start to 2005 with further increases in transaction activity and a healthy pipeline of target customers * Maiden dividend payment of 0.5p per share proposed * before goodwill amortisation, National Insurance provision on share option gain and exceptional items. CHAIRMAN'S STATEMENT 2004 was another encouraging year for DataCash and, as well as increasing pre-tax profits, before goodwill amortisation, National Insurance provision on share option gain and exceptionals ("Adjusted pre-tax profits") by over 100% and more than doubling our net cash balances, I am pleased to announce that we are able to propose the first ever dividend of 0.5p per share, from the Group. Turnover grew from #3.58m to #4.64m in 2004, reflecting the continued growth of the core business of Card Holder Not Present transaction processing. Costs also increased as we recruited a Chief Executive and additional sales staff to enable strong future revenue growth as well as investing in our technology infrastructure to provide enhanced service and support to our existing customers. Adjusted pre-tax profits grew by 102% to #1.52m (2003: #752,000) and underlying earnings per share were 3.40p (2003: 1.71p). We continue to benefit from accumulated tax losses. Cash balances grew by #1.66m and at 31st December 2004 were #3.21m (2003: #1.55m). Despite the historic tax losses, the Group has some modest distributable reserves, and the Board recommends a maiden dividend be paid out of 2004 earnings of 0.5p per share. The core Card Holder Not Present (CNP) payment processing business of DataCash grew strongly in 2004, and transaction volumes increased by more than 50% year-on-year from 27 million to 41 million. That growth rate has continued so far in 2005. Our clients, especially in the gaming arena, are requiring increasingly sophisticated and varied solutions to their global business needs. We have recently announced new product offerings, through our partners, in the areas of Identity Verification and Chargeback Management. These together with other initiatives in, for example, international payments and dynamic currency conversion, are expected to provide new revenue opportunities from both our existing and prospective customers. In 2004 we continued to invest in our production systems in order to provide the world-class reliability, functionality and overall service that our customers require. Our strategy in the Card Holder Present (CHP) market has been to sell via partners and here our relationship with IBM and its partners is showing good promise. We remain committed to offering a complete solution to the payment processing needs of customers who have both an online and high street presence. We believe that our CHP solution offers significant benefits to particular segments of the market and are confident that our investment will reap rewards. None of the achievements of 2004 could have been achieved without the commitment and talent of our employees (36 people as at 31st December 2004). The Board and I would like to thank them for their contribution. Jane Reedy, who was a founder of Corporate Executive Search International, the AIM-listed company into which DataCash merged in March 2000, has indicated her desire to step down from the Board at the AGM in May, although she will remain an employee with the Group, performing her vital role of new business introduction. She has been on the Board since 1997, and I would like to take this opportunity to thank her for the contributions she has made in that period. 2005 has begun strongly and the Board of DataCash Group believe that this will be another successful year of progress for your Company. David Bailey Chairman CHIEF EXECUTIVE'S REPORT When I joined DataCash in July 2004 I was encouraged to find a Card Holder Not Present business that had a strong market position in the UK, reliable technology, growing revenues and plenty of opportunity for growth. Like all service businesses our reputation with customers is key, and I found DataCash had, given the fragmented marketplace, a good reputation. Our gaming customers, in particular, demand very high reliability, service availability and increasingly broad functionality. DataCash has built its reputation on providing a rapid and reliable response to these demands. My task is to build on the achievements so far and develop a platform for increasing our revenue growth, our range of services and enhancing our reputation with both existing and prospective customers. The number of transactions processed in 2004 grew by more than 50% from 27m to 41m. Interestingly, when DataCash first came to the market in March 2000, it processed about 8,000 transactions per day. We now process about 140,000 on a normal day, with exceptional days exceeding 250,000 transactions. DataCash's Card Holder Not Present (CNP) business continued to perform well in 2004 with adjusted pre-tax profits up over 100% to #1.52m (before goodwill amortisation, National Insurance provision on share option gain and exceptionals) and revenues up by #1.07m to #4.64m. The National Insurance provision relates to employer's NI on share option gains. This liability will not occur on any new share options issued in future. The majority of the revenue growth was from transactions and we expect further good growth in transaction volumes in 2005. Although the vast majority of these transactions related to standard credit and debit card processing, we were encouraged by the growth of transactions from our other products including direct debits and direct credits which in total grew by 300% to 840,000. These products act as revenue streams and also as differentiators from our competitors. While the majority of our transactions continue to come from the gaming sector and growth from our gaming customers has been strong, the relative importance of other vertical market sectors grew. In particular we saw strong growth from our retail customers. Other sectors such as travel and ticketing should provide further non-gaming related growth in 2005. The different requirements of sectors such as travel and ticketing has resulted in DataCash further developing its 'partner' model to enable us to more effectively target sectors where either the end-users are individually too small for DataCash to deal with directly or where there is a requirement to integrate with an industry standard 'platform' where payments are an embedded part of that solution. Consequently DataCash has been recruiting personnel with experience of selling via the partner model to further exploit the exciting opportunities in these sectors. During the year DataCash continued to add to its product set by developing both new products and services and continuing to integrate with 'best of breed' third party services that are accessible by customers through a single integration with the DataCash Payment Gateway. These enhancements and extensions help differentiate DataCash from its direct competitors and provide evidence of the advantages of the outsourced ASP model. We currently offer fraud screening, 3D Secure services, chargeback management, gift vouchers and age/identity verification. Further products such as Dynamic Currency Conversion and links to a variety of payment 'wallets' are expected to be added shortly. Some of our customers are increasingly requiring an international dimension to the payment service, in particular the gaming, e-tail and travel sectors. This functionality is being added by developing commercial relationships with partners where transactional volumes are not significant enough to warrant direct development of these services. Integration with payment wallets is part of this strategy, solving the problem of taking payments in the more remote part of the world where direct integration with the banking networks is not justifiable for cost or practical reasons. In our statements in 2004 we talked about our efforts to make inroads into the Card Holder Present (CHP) market. We have completed the initial phase of our strategy, which is to build, deliver and maintain an outsourced, hosted payment platform. We are now signing up a number of channel partners which will extend the IBM and Triangle relationships announced last year. These partners will use the DataCash processing platform as a key component in a fully integrated point of sale solution to address the CHP market. We are confident this strategy will deliver good revenue opportunities though we cannot announce any contracts at this stage. A large part of our mid-tier retail target market is still reviewing the various options, and there are very specific market opportunities where our proposition is particularly suitable. Operationally DataCash had another good year with minimal system downtime. This remains one of the differentiators to our service. The most significant infrastructure investment DataCash made in the last year was in the deployment of a second independent payment gateway designed to further enhance our system availability and reliability and to eliminate maintenance and upgrade downtime. During 2004 we also implemented DDoS attack prevention measures, built an MPLS backbone between the two data centres, developed a CHP solution so that we are now Chip and PIN enabled and invested in additional operations staff to further reinforce our operational excellence. This investment, along with the expansion of our salesforce and management, increased costs from 2003 by approximately 13% to #3.2m. A similar increase in our cost base is expected in 2005. 2005 has started well, with further increases in transaction activity and a good pipeline of target customers. DataCash is in a strong position, with rising cash balances and good profitable revenue growth. It is also pleasing that we have been able to announce our first dividend payment out of our 2004 earnings. The Group is looking to the future with confidence. Terry Cave Chief Executive

[melville28] 05/4/2005 06:33

looks like a very good set of results to me! Great profit and cash growth and starting to pay a dividend - always a good sign for belief in future. Strong start to 2005. Key is that there are talking about widening relationships with a number of parties outside gaming (i.e. expect news flow on new deals similar to those announced last week) and the chip and pin proposition is set up to deliver just as its key retail target base is now starting to look at solutions - this could transform profitability very quickly. That recent newsletter targetting 200p this year looks spot on!

[britishbear] 04/4/2005 19:02

Markets are so poor at the moment - DAT release good results and get pounded. DATA will have to really release some good figures to get much of a rise - I suspect a lot will already be in the price. Let us hope... It is really all about the forward looking statement and whether they are up beat about Chip and pin. Any aquisition talk would also be of interest.

[tamaybroke] 04/4/2005 16:26

good to see the recent rise holding today,bodes well for tommorrow.

[sawbones] 04/4/2005 13:37

cheers evs- thought that I was the only one here!

[everton448] 04/4/2005 13:36

Yes - results tomorrow

[sawbones] 04/4/2005 13:35

Is it correct that the results are out tomorrow?? In answer to your questions,I am indeed the Chairman of DataCash, which makes it effectively impossible to talk on any other iii bulletin boards! The results are anticipated for April 5th. William Hill are not customers of DataCash and never have been. ( I believe that they built their own system in the early days) We do support on-line poker transactions for those of our customers who offer poker, but I am not able to name customers who use us without their express permission, so I cannot be more helpful than that. This post on iii is presumably from the main man

[davidhel] 29/3/2005 20:21

Or, to put it another way: -) DataCash offers fail-safe to gambling operators? By Alex Tanner 29-03-2005 02:56 PM http://www.netimperative.com/2005/03/29/Datacash_verification_deal Payment services provider DataCash today signed a deal with BT that could help detect underage gambling on the internet. The deal allows DataCash customers to access BT's identity verification service, URU(Trade Mark), otherwise known as URUTM, which works by asking potential users a series of questions. Answers are then cross-referenced with information held on various national databases such as mortality, utility and financial records, and passport and driving licence details. The reference databases do not disclose personal data but instead rank each answer as "match" or "no match". An independent audit trail is also created to show that checks have been made. Subsequentely, DataCash will be able to provide age, identity and fraud screening of credit and debit cards in a single check. The company is hoping that the service will be of particular interest to online gambling operators, who have been looking for a fail-safe system to verify their users are of legal age to gamble.

[everton448] 29/3/2005 13:37

http://sourcewire.com/releases/rel_display.php?relid=21062&hilite= Interesting story - just the sort of value added services that will power furture growth

[britishbear] 29/3/2005 12:13

The tip that was posted over easter with a £2 price target will be driving this forward. £2 seems a fair valuation to me and is my 1 year from now price target

[shirishg] 29/3/2005 07:50

Post removed by ADVFN

[everton448] 29/3/2005 07:02

Strong rise looking likely today - backed up by results a week today acting as a disincentive to profit takers.

[easytimes] 28/3/2005 12:59

IMO PE ratios of between 20-30 should be the norm for a highly profitable small cap this is one of many that are reporting nice profits with plenty of growth to come and are not being priced accordingly by the market. Others to have a look at are BDI, MSQ both have large growth potential and there are many more if you have a look. BDI for example has a forward EPS of 9.1p (upgraded by their house broker) and is currently trading on a future PE (for this year) of 11! If we have a slump in small caps like we did last year then you should be able to pick up some amazing bargains during the summer months IMO. A fair price for DATA would be around the £1.80 IMO but DYOR.

[treborbob] 28/3/2005 12:46

insidersloshpot wishful thinking on your part?

[everton448] 28/3/2005 09:30

The dirctors sold at 70 ish (I seem to remember) just under a year ago (and retained very substantial holdings). As for the sector, I don't think comparisons are helpful for two reasons (i) DATA is the only quoted payments processor in Europe, and (ii) the anticipated pofits growth jusitifies a high PE. Always keen to test my buys by hearing contrary arguments so any thoughts by way of rebuttal?

[insiderinside] 28/3/2005 08:22

The sector average PER is 14. This is trading at around 21. Two directors sold out large amounts of shares last year. I would expect a fall to the 90p support level before very long.

[ftsefetish] 28/3/2005 08:14

Very useful. Thanks chipperfd

[easytimes] 28/3/2005 08:04

Based on these figures: 2005 profits should be £2.3m (pe = 23) 2006 profits should be £3.2m (pe = 21) (this should be 16.5) as (3.2 * 100)/44000000 give an EPS of 7.273p, using the current share price of 120p/7.273 gives a PE ratio of 16.5

[chipperfrd] 28/3/2005 06:49

Yes, I thought that about the pe, but it was the figure quoted in the FSL. Typo maybe?