iCash shares climb 18 per cent on FY11 guidance

Electronic payment company iCash (ASX:ICP) is forecasting a 161 per cent increase in FY11 profit to $12m, on the performance of its Korean ATM production unit

Shares in electronic payment company iCash (ASX:ICP) have jumped 17.6 per cent since the company forecast a 161 per cent profit increase for FY11.

The company is expecting profit of $12 million, on 72 per cent higher revenue of $73 million. Ebitda is expected to grow 166 per cent to $17.3 million.

The strong guidance is down to an increased pipeline of supply agreements for the sale of ATMs in Korea, iCash said in a statement.

Production output of Korean subsidiary neoICP increased to over 600 per month in FY10 - compared to 150 per month from the prior year - and is being maintained at this level, the company said. The goal is for the unit to consistently generate 15 per cent of iCash's overall sales.

“Acquiring neoICP in 2007... has led to a near quadrupling of revenue since FY09,” executive chairman James Manny said.

Sales of ATMs in Australia have also been buoyant, Manny added.

ICP shares closed the day's trade at $0.400.

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Tags businessiCash

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