Take a gamble on SafeCharge

SafeCharge only joined London's junior Aim market in April, so the company is still in an early-growth stage, but it has a seasoned entrepreneur behind it in the form of Israeli billionaire Teddy Sagi. Love him or loathe him, since Mr Sagi floated gambling software outfit Playtech (PTEC) back in March 2006, its shares have rewarded backers with a 262 per cent total return (share price movement plus dividends) compared with 50 per cent from the FTSE All-Share. SafeCharge raised $125m (£78m) of new money when it floated, and Mr Sagi still owns about two-thirds of the company. SafeCharge's main clients are gambling companies, including high-street bookie Ladbrokes (LAD), so it's likely Mr Sagi's previous experience will help drive new business and contract wins for SafeCharge.

With the successful IPO behind it, all eyes were on the company's inaugural set of half-year results in early September. The market wasn't disappointed. With adjusted cash profits (which exclude IPO costs) up 117 per cent at $10.8m, chief financial officer Tim Mickley said first-half numbers "spoke for themselves". In fact, the first-half performance was so strong the first dividend payment was announced six months ahead of schedule and management said 2014 numbers would "materially exceed" current market forecasts. The half-year dividend, worth 2.88p a share, was announced early to reflect the board's confidence in the rest of the year, Mr Mickley said. But accelerated shareholder returns should come as no surprise for Mr Sagi's followers. Playtech is well known for generous payouts (excluding dividends Playtech's return since float is almost 30 per cent lower at 188 per cent), perhaps not least because Mr Sagi has been a major recipient over the years.

The second half is certainly off to a good start. The company secured so-called "principal member status for merchant acquiring" with VISA Europe. This means it can process VISA transactions for merchants in the UK and across Europe. It was granted a similar status with Mastercard in 2013. The majority of future revenue growth will be organic, as new contracts come on stream.

SafeCharge says it enables merchants to "simplify and secure" their online payments process. By using SafeCharge's check-out technology, referred to as the "Cashier solution", its clients can personalise their payment page, as well as present it in different languages and currencies. What's more, the single solution can be customised across many different digital devices, including mobile and tablet. It also offers clients a risk management service, as well as online analysis tools and security measures to keep credit card details safe.