Pre-Close Trading Update

9 Jan 2007 07:01

Datacash Group PLC09 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 31December 2006. DataCash continued to make good progress in 2006 with strong growth across thebusiness. The acquisition of ProcCyber Services (UK) Limited (PCS) in June 2006has delivered significant benefits, broadening our service offering, creatingfurther international sales opportunities and enhancing our customer base. We are pleased to report that the results for the year to 31st December 2006 areexpected to be in line with market expectations, showing strong revenue andprofit growth over the previous year. Effective cash balances at the year endexceeded £15m (16.5p per share). The Group is looking forward optimistically but prudently at the prospects for2007. Those customers affected by the passing of the US Safe Ports Act inOctober (which limits the ability of US citizens to use the banking networks tosettle gaming transactions) are refocusing their marketing efforts away from theUS. We are currently seeing these customers' non-US transaction volumes growingat a monthly compound rate in excess of 6%. Meanwhile, the rest of the businesscontinued to grow strongly, with transaction volumes increasing by approximately50% in the last year. The Group delivered on its commitment to provide a solution for the Card HolderPresent market (Chip and PIN) in 2006 and won a number of significant multi-yearcontracts with High Street companies, including Odeon Cinemas and Laura Ashley.The sales pipeline for cardholder present outsourced services is continuing togrow in response to the increased security standards required by the cardschemes and acquiring banks. The fundamental strength of the DataCash business model remains unchanged.Strong underlying growth in internet commerce, together with good cashgeneration and international growth opportunities leave the Directors confidentabout the outlook for 2007 and beyond. Final results are expected to be released in early April. * * ENDS * * For further information contact: DataCash Group plcAshley Head - Executive Chairman 0870 7274760Paul Burton - Chief Financial Officer 0870 7274760 MJ2 Business CommunicationsAlice 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