Final Results

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





DataCash Group plc

Consolidated Profit and Loss Account
For the year ended 31 December 2004


                                                                                   Year ended             Year ended
                                                                                  31 December            31 December
                                                                                         2004                   2003
                                                                                         £000                   £000

Turnover                                                                                4,643                  3,575

Administrative expenses
        Amortisation of Goodwill                                                       (1,975)                (1,975)
        National insurance on share option charge                                        (125)                   (17)
        Release of provisions - exceptional                                                 -                    729
        Other operating expenses                                                       (3,210)                (2,846)
                                                                                       _______                _______
Total administrative expenses                                                          (5,310)                (4,109)

Operating loss                                                                           (667)                  (534)

Interest receivable and similar income                                                     87                     23

Amounts written off investments - exceptional                                               -                   (160)
                                                                                       _______                _______
Loss on ordinary activities before taxation                                              (580)                  (671)

Taxation                                                                                  228                    930    
                                                                                       _______                _______
(Loss)/profit on ordinary activities after taxation                                      (352)                   259

Dividend                                                                                 (224)                     -
                                                                                       _______                _______
Retained (loss)/profit for the year                                                      (576)                   259
                                                                                       =======                =======
Basic (loss)/earnings per share                                                         (0.79)p                 0.59 p
Diluted (loss)/earnings per share                                                       (0.79)p                 0.58 p

Diluted adjusted earnings per share                                                      3.91 p                 3.75 p



Consolidated Balance Sheet
As at 31 December 2004
                                                                                  31 December            31 December
                                                                                         2004                   2003
                                                                                         £000                   £000

Fixed assets
Intangible assets                                                                      10,312                 12,287
Tangible assets                                                                           190                    126
Investments                                                                                 -                      -
                                                                                      _______                _______
                                                                                       10,502                 12,413
                                                                                      _______                _______    
                                                                                        
Current assets
Debtors                                                                                   741                    653
Debtors - deferred tax asset                                                            1,175                    930
Cash at bank and in hand                                                                3,206                  1,548
                                                                                      _______                _______
                                                                                        5,122                  3,131
                                                                                      _______                _______ 
Creditors
Amounts falling due within one year                                                    (1,411)                  (908)
                                                                                      _______                _______    
                                                                                       
Net current assets                                                                      3,711                  2,223
                                                                                      _______                _______    
                                                                                      
Total assets less current liabilities                                                  14,213                 14,636

Provisions for liabilities and charges                                                   (125)                   (22)
                                                                                      _______                _______    
                                                                                       14,088                 14,614
                                                                                      =======                =======
Capital and reserves
Called up share capital                                                                   448                    447
Share premium account                                                                   9,750                  9,701
Merger reserve                                                                           (124)                  (124)
Other reserve                                                                          18,889                 18,889
Profit and loss account                                                               (14,875)               (14,299)
                                                                                      _______                _______    
Equity shareholders' funds                                                             14,088                 14,614
                                                                                      =======                =======    
                                                                                        


Company Balance Sheet
As at 31 December 2004
                                                                                  31 December            31 December
                                                                                         2004                   2003
                                                                                         £000                   £000

Fixed assets
Investments                                                                               472                    472
                                                                                      _______                _______    
                                                                                          472                    472
                                                                                      _______                _______    
Current assets                                                                           
Debtors                                                                                 7,613                  8,812
Debtors - deferred tax asset                                                               40                      -
Cash at bank and in hand                                                                2,785                  1,383
                                                                                      _______                _______    
                                                                                       10,438                 10,195
                                                                                      _______                _______    

Creditors                                                                                 
Amounts falling due within one year                                                      (346)                   (95)
                                                                                      _______                _______    
Net current assets                                                                     10,092                 10,100
                                                                                      _______                _______    
Total assets less current liabilities                                                  10,564                 10,572
                                                                                              
Provisions for liabilities and charges                                                      -                      -
                                                                                      _______                _______    
                                                                                       10,564                 10,572
                                                                                      =======                =======    
                                                                                                               
                                                                                              
Capital and Reserves                                                                      
Called up share capital                                                                   448                    447
Share premium account                                                                   9,750                  9,701
Profit and loss account                                                                   366                    424
                                                                                      _______                _______    
Equity shareholders' funds                                                             10,564                 10,572
                                                                                      =======                =======    
                                                                                              


Consolidated Cash Flow Statement
For the year ended 31 December 2004
                                                                                   Year ended             Year ended
                                                                                  31 December            31 December
                                                                                         2004                   2003
                                                                                         £000                   £000

Net cash inflow from operating activities                                               1,678                    736
                                                                                               
Returns on investments and servicing of finance
Interest received                                                                          87                     23
                                                                                      _______                _______    
                                                                                                  
Net cash inflow from returns on investments
and servicing of finance                                                                   87                     23
                                                                                      _______                _______    
                                                                                                  
Capital expenditure and financial investment
Purchase of tangible fixed assets                                                        (158)                   (79)
Sale of tangible fixed assets                                                               1                      -
                                                                                      _______                _______    
Net cash outflow from capital expenditure and financial investments                      (157)                   (79)
                                                                                      _______                _______    
                                                                                               
Net cash inflow before management of liquid resources and financing                     1,608                    680

Management of liquid resources
Decrease/(increase) in short term bank deposits                                           112                   (453)
                                                                                      _______                _______    
Net cash inflow/(outflow) from management of liquid resources                             112                   (453)
                                                                                      _______                _______    
                                                                                                 
Financing
Exercise of share options                                                                  50                    201
                                                                                      _______                _______    
Net cash inflow from financing                                                             50                    201
                                                                                      _______                _______    
                                                                                                  
Increase in cash in the year                                                            1,770                    428
                                                                                      =======                =======    
                                                                                               

Reconciliation of Net Cash Flow to Movement in Net Funds
For the year ended 31 December 2004
                                                                                   Year ended             Year ended
                                                                                  31 December            31 December
                                                                                         2004                   2003
                                                                                         £000                   £000

Increase in cash in the year                                                            1,770                    428

Cash inflow/(outflow) from management of liquid resources                                (112)                   453
                                                                                      _______                _______    
                                                                                                
Movement in net funds                                                                   1,658                    881
                                                                                                
Opening net funds                                                                       1,548                    667
                                                                                      _______                _______    
                                                                                                
Closing net funds                                                                       3,206                  1,548
                                                                                      =======                =======    
                                                                                                


DataCash Group plc

Notes To the Financial Statements
For the year ended 31 December 2004

1. Basis of Preparation

The results for the year ended 31 December 2004 have been prepared on accounting
bases and policies which are consistent with those used in the preparation of
the financial statements of the Group for the year ended 31 December 2003

The above financial information does not constitute statutory accounts as
defined by section 240 of the Companies Act 1985. It is an extract from the 2004
financial statements, which have not yet been filed with the Registrar of
Companies. The Auditors' Report, dated 05 April 2005, on the financial
statements for the year ended 31 December 2004, which received an unqualified
opinion, does not contain a statement under section 237(2) or (3) of the
Companies Act 1985. The comparative information is an extract from the statutory
accounts for the financial year ended 31 December 2003. Those accounts, on which
the Auditors issued an unqualified opinion, in accordance with section 235 of
the Companies Act 1985, have been filed with the Registrar of Companies.

2. Loss per Share

The Basic and Diluted Loss Per Share is based on the loss on ordinary activities
after tax of £352,000 (December 2003: profit £259,000). The weighted average
number of ordinary shares outstanding during the period used in the calculation
of Basic Loss Per Share was 44,737,684 (December 2003: 43,981,347).

A fully diluted earnings per share, which assumes the full exercise of share
options, has been calculated on 44,737,684 (2003:44,883,672) Ordinary shares.
Due to the loss incurred in 2004, there is no dilutive effect from the issue of
share options.

An adjusted earnings per share figure is presented below. The directors believe
that the adjusted Earnings Per Share figure assists in the presentation of the
group's underlying performance.

                                                                                   Year ended             Year ended
                                                                                  31 December            31 December
                                                                                         2004                   2003
                                                                                         £000                   £000

Profit/(Loss) on ordinary activities after taxation                                      (352)                   259

Amortisation of Goodwill                                                                1,975                  1,975
Provision for national insurance on share option gains                                    125                     17
Release of provisions - exceptional                                                         -                   (729)
Provision for investment - exceptional                                                      -                    160
                                                                                      _______                _______    
Profit/(loss) on ordinary activities before administration items                        1,748                  1,682
                                                                                      =======                =======    
                                                                                No. of shares          No. of shares

Weighted average number of shares                                                  44,737,684             43,981,347
Dilutive effect of options                                                                  -                902,325
                                                                                   __________             __________    
                                                                                   44,737,684             44,883,672
                                                                                   ==========             ==========


3. Reconciliation of operating loss to operating cash flows

                                                                                   Year ended             Year ended
                                                                                  31 December            31 December
                                                                                         2004                   2003
                                                                                         £000                   £000

Operating loss                                                                           (667)                  (534)

Amortisation                                                                            1,975                  1,975
Depreciation                                                                               94                    123
(Profit) / loss on disposal of fixed assets                                                (1)                     -
Increase in debtors                                                                       (88)                   (12)
Increase/(decrease) in creditors                                                          262                    (51)
Increase/(decrease) in provisions                                                         103                   (765)
                                                                                      _______                _______    
Net cash inflow from operating activities                                               1,678                    736
                                                                                      =======                =======    


NOTE

A copy of the full accounts will be sent to shareholders on the Register Of
Members as at 05 April 2005 or can be obtained from the Secretary, DataCash
Group plc, Descartes House, 8 Gate Street, London WC2A 3HP.

ANNUAL GENERAL MEETING

The Company's AGM will be held on Tuesday, 24 May 2005 at 12.00 noon at
Descartes House, 8 Gate Street, London WC2A 3HP


Contacts:

Keith Butcher                FD, DataCash Group Plc            0870 7274 760
Isabel Crossley              St Brides Media & Finance Ltd     020 7242 4477




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