As expected the payments service provider, a Company Watch recommendation in this month's Growth Company Investor, has chimed in with extremely encouraging numbers for 2003, delivering its first profitable full year results.

DataCash reported a profit before tax, exceptionals and goodwill of £735,000 against last year's £391,000 loss. Turnover rocketed up 32% to £3.58m, and year-end cash balances came in at £1.55m (£667,000) thanks to DataCash's minimal working capital requirements. During the year the company enjoyed strong transaction growth – the last quarter was particularly strong – thanks to the success of online selling by its high street retailer clients. But DataCash is no one trick pony. It also saw good growth in the gaming sector thanks to the rise of on-line casinos and poker, and has good prospects in the travel and ticketing markets. Crucially 2003 saw a focus on the 'cardholder not present' market, which generated all the year's revenues. But the introduction of fraud busting 'Chip and Pin' technology into the high street, 'bank mandated' from next January, has spurred DataCash into the huge cardholder present market, which accounts for 98% of retail sales. DataCash has teamed up with computer giant IBM and others as part of a group that will offer a credit and debit card fraud processing package for 'mid-tier' retailers. On 2004 estimates, the shares are on a racy forward p/e of 23.1 times, but the growth in online trading and the 'Chip and Pin' potential makes this a strong buy.

Related Articles:
Support service stars by James Crux	02/11/2004
DataCash	06/04/2004
DataCash to cash in on credit card law	01/04/2004
Johnson Service	12/03/2004
CHEAP AS CHIPS – Smallcap bargains to feast on	02/03/2003
People who read this article also read ...
E-pay Asia	05/05/2006
RC Group	05/05/2006
Inter Link Foods	04/05/2006
Company Watch News	13/03/2006
Davenham	23/11/2005