LONDON (ShareCast) - Secure payments service provider DataCash announced its first dividend payment this morning as it reported a sharp increase in profits.

In the first half of this year the group made a pre-tax profit of £5.3m before non-recurring items, compared with a profit of £2.25m in the corresponding period of 2006. Revenues doubled to £10m from £5m, as the company recorded significant contract wins in the retail and travel sectors.

The company’s cash position improved substantially, with cash balances at the half-year stage of £19.4m, compared with £11.4m at end-June 2006. In view of the company’s strong cash position the board has declared a maiden dividend of 0.3p.

Chairman Ashley Head expressed confidence in the future growth of the business with global expansion likely to play an increasing part.

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