Companies: DATA   

We've consistently supported DataCash, the payments service provider that rapidly improving under savvy CEO Terry Cave, who joined the business last July. Preliminary figures to December were exceptional, with adjusted profits rocketing 102% north to £1.52m, and cash more than doubling to £3.2m, thanks to the inherent cash generation of the business, allowing Cave to announce a first ever dividend of 0.5p. Turnover burgeoned 30% higher to £4.6m, which reflected continuing growth in the core 'card-holder not present' transaction volumes, which were up more than 50% year-on-year to 41m. Tellingly, DataCash processed about 8,000 transactions a day when it first joined the market back in 2000. Today 140,000 a day is the norm, rising to 250,000-plus on certain days such as major sporting events like the Grand National (clients in the important gaming sector include Ladbrokes). Over in the 'card-holder present' (chip & PIN) market, DataCash's relationship with IBM and its partners 'is showing good promise', although no contracts have yet been signed. Nevertheless, there's enough going on in the core business to excite investors. For 2005, Investec Securities' Guy Hewett upgraded his profit forecasts from £2.3m to £2.4m, giving earnings of 5.1p and a forward rating of 23. We first backed the company at 71p in Company Watch, and still see plenty of potential here. Add.