Half-yearly report
 PayPoint plc
Half yearly financial report for the six months ended 26 September 2010
HIGHLIGHTS
    | 6 months 6 months
| ended ended
|26 September 27 September Increase / (decrease)
| 2010 2009
--------------------------+-----------------------------------------------
Transaction value | £4,831m £4,446m 8.7%
|
Revenue | £92.9m £96.4m (3.6)%
|
Net revenue(1) | £38.7m £36.0m 7.6%
|
Gross margin | 35.3% 29.9% Â 5.4ppts
|
Operating profit | £15.3m £14.7m 4.4%
|
Profit before tax | £14.6m £13.8m 5.4%
|
Diluted earnings per share| 14.8p 14.3p 3.5%
|
Interim dividend | 7.8p 7.4p 5.4%
--------------------------+-----------------------------------------------
* Transactions processed have increased by 6%
* In the UK, we have successfully launched our first cash pay-out schemes
which allow clients to refund money to consumers through our retail network
* In Romania, we have processed over 5 million bill payment transactions in
the period (2009: 1.8 million)
* Internet payment transactions have grown by 33%
* Collect+ transactions have reached an annualised run rate of over 1 million
per annum(2)
* 7 million PayByPhone transactions processed in the period
* Consumer satisfaction(3) of 98% (2009: 97%)
David Newlands, Chairman of PayPoint, said: "PayPoint has delivered another
strong set of results with growth in net revenue, operating profit and profit
before tax. Â This has allowed us to increase our interim dividend payment by 5%
to 7.8p per share. Â These results demonstrate our ability to execute strategy,
delivering improved yield in our established business streams and growth in our
developing businesses. Â In our established business streams, we have focused our
attention on growing retail services and contracting with new internet
merchants. Â In Romania, cost reduction and growth in bill payment has put us on
track to profitability. In Collect+, we have contracted with large retail
merchants and in PayByPhone, we have continued to invest as planned.
Taken together, our businesses provide a solid foundation from which we aim to
deliver long term value for shareholders. Trading since the period end is in
line with the company's expectations."
The condensed financial statements cover the six months from 29 March 2010 to
26 September 2010, the last Sunday in the month (2009: 6 months covering the
period 30 March 2009 to 27 September 2009).
1. Net revenue is revenue less the cost of mobile top-ups and SIM cards where
PayPoint is principal and costs incurred by PayPoint which are recharged to
clients and merchants. Â These costs include retail agent commission,
merchant service charges levied by card scheme sponsors and costs for the
provision of call centres for PayByPhone clients. Â Net revenue and operating
margin are measures which the directors believe assist with a better
understanding of the underlying performance of the group.
2. Based on October 2010 transaction volumes.
3. UK terminal sites, source: Ipsos MORI September 2010.
Management report
The management report has been prepared solely to provide additional information
to shareholders as a body to assess PayPoint's strategies and their potential to
succeed and it should not be relied upon for any other purpose. Â It contains
forward looking statements made by the directors in good faith based on the
information available at the time of approval of the half yearly financial
report. Â Such statements should be treated with caution due to the inherent
uncertainties, including both economic and business risk factors, underlying any
such forecast.
PayPoint is a payment service provider for consumer payment transactions and, as
such, has only one operating segment. Â However, reflection on various facets
helps explanation of the execution of our strategy and accordingly, in addition
to the analysis of the number and value of consumer transactions, revenue and
net revenue, we have shown an analysis which separates our developing business
streams (our retail network in Romania, Collect+ and PayByPhone), from our
established business streams (the UK and Irish retail networks and internet
channel).
The channel analysis is as follows:
Retail networks:
Bill and general (prepaid energy, bills and tickets)
Top-ups (mobile, prepaid cards and phone cards)
Retail services (ATM, debit/credit, parcels, money transfer, SIMs and receipt
advertising)
Internet (transactions between consumers and merchants, pre-authorisations and
Fraudguard where separately charged)
PayByPhone (parking and bicycle rental transactions)
Other for revenue and net revenue only (software development, configuration and
settlement of claims)
Growth opportunities include retail services in the UK retail network; new
merchants for internet payments; the expansion of the retail network and new
retail services in Romania; new parking contracts and driving consumer adoption
for PayByPhone and building and developing Collect+.
Operational review
During the period, transactions have increased to 267 million (2009: 252
million) and are up 3% in the established business streams and 180% in the
developing business streams (47% growth in Romania and the first full six months
of PayByPhone).
Transaction value increased to £4.8 billion (2009: £4.4 billion), and is up 7%
in the established business streams and more than doubled in the developing
business streams, despite fewer mobile top-ups in Romania.
Revenue has fallen as a result of fewer mobile top-up transactions, especially
in Romania and Ireland. Â However, net revenue in the established business
streams has increased 4% as a result of growth in retail services and internet
payments. Â Net revenue growth in the developing business streams is over 100%.
Operating profit in the established business streams was £16.1 million, up 2% on
last year. Â The operating loss, including our share of the losses of Collect+,
in the developing business streams was £1.5 million (2009: £2.1 million).  This
improvement results largely from better performance in Romania, which has more
than offset the inclusion in the period of our recently acquired PayByPhone
business, which is loss making this year, as expected.
  | Established Developing
| business business  Adjust
| streams streams (1) Total Collect+ As reported
| (2)
-----------------+--------------------------------------------------------------
Transactions   |
   (000) |
|
6 months 2010| 253,451 13,973 267,424 - 267,424
|
6 months 2009| 246,958 5,030 251,988 - 251,988
|
Year ended 2010| 539,772 12,115 551,887 - 551,887
-----------------+--------------------------------------------------------------
Transaction value|
 £000 |
|
6 months 2010| 4,723,019 108,381 4,831,400 - 4,831,400
|
6 months 2009| 4,398,697 47,679 4,446,376 - 4,446,376
|
Year ended 2010| 9,560,776 127,647 9,688,423 - 9,688,423
-----------------+--------------------------------------------------------------
Revenue      |
    £000 |
|
6 months 2010| 80,337 12,835 93,172 (274) 92,898
|
6 months 2009| 83,403 13,073 96,476 (66) 96,410
|
Year ended 2010| 171,933 24,875 196,808 (205) 196,603
-----------------+--------------------------------------------------------------
Net revenue    |
  £000 |
|
6 months 2010| 35,977 2,973 38,950 (222) 38,728
|
6 months 2009| 34,831 1,211 36,042 (52) 35,990
|
Year ended 2010| 74,589 2,981 77,570 (164) 77,406
 1     Developing business streams include bill payment and mobile top-ups
in Romania, Collect+ and PayByPhone.
 2     Collect+  revenue and net revenue is included in developing business
streams' revenue and net revenue, but as Collect+ is reported in the
Consolidated Income Statement on a profit before tax only basis, revenue and net
revenue needs to be eliminated to reconcile to reported revenue and net revenue.
Analysis of transactions
There has been growth in transaction volumes across most sectors except mobile
top-up volumes, which have decreased in declining markets in all territories.
 | 6 months 6 months  Year
 | ended ended  ended
 |26 September 27 September Increase / (decrease) 28 March
| 2010 Â 2009 % 2010
| thousands thousands thousands
----------------------+---------------------------------------------------------
Retail networks |
|
  Bill and general | 152,286 148,674 2.4 339,801
payments |
|
  Top-ups | 60,597 65,782 (7.9) 128,887
|
  Retail services | 22,658 18,527 22.3 38,901
|
Internet payments | 25,326 19,005 33.3 43,536
|
PayByPhone | 6,557 Â Â 762
----------------------+---------------------------------------------------------
Total | 267,424 251,988 6.1 551,887
----------------------+---------------------------------------------------------
Bill and general payment transactions are ahead of last year as a result of a
3% increase in prepaid energy volumes and from strong growth in Romania, where
we processed over 5 million transactions (2009: 1.8 million). Â In addition, we
have introduced a new service, which allows clients to refund money to consumers
via our retail agents. Â Whilst the number of transactions in the period under
review is relatively immaterial, we have processed over 400,000 transactions,
with a value of over £6 million by the end of October 2010.
Mobile top-ups in the UK, Ireland and Romania are down nearly 8% overall,
against an 11% decline this time last year. Â E-currency volumes continue to grow
and were up 45% on the same period last year, with nearly two million
transactions processed.
Retail services volumes have increased as a result of growth in credit and debit
card transactions on PayPoint terminals, a full six months of mobile SIM
transactions and an increase in parcel transactions.
Internet transactions of 25 million were up 33% on the first half of last year,
as we continue to add large merchants and through organic growth in our existing
merchants. Â Included in the internet are transactions for large energy clients,
where consumers can top up their pre-payment gas or electric meters at home via
the internet. Â During the period, we processed 0.3 million of these transactions
with a value of £4.4 million and the current October run rate is already more
than double this.
PayByPhone transactions were 7 million for the first full six months since
acquisition.
Transaction value
There has been growth in the transaction value paid by consumers, primarily in
bill and general, internet payments and as a result of the acquisition of
PayByPhone.
 | 6 months 6 months  Year
| ended  ended  ended
|26 September 27 September Increase / (decrease) 28 March
| Â 2010 2009 Â Â Â Â Â Â % Â 2010
| £000 £000 £000
-------------------+---------------------------------------------------------
Retail networks |
|
  Bill and general| 2,759,418 2,657,269 3.8 5,925,249
|
  Top-ups | 573,689 582,600 (1.5) 1,166,507
|
  Retail services | 194,174 190,122 2.1 377,271
|
Internet payments | 1,277,867 1,016,385 25.7 2,216,319
|
PayByPhone | 26,252 - - 3,077
-------------------+---------------------------------------------------------
Transaction value | 4,831,400 4,446,376 8.7 9,688,423
-------------------+---------------------------------------------------------
The bill and general transaction value increase results from higher transaction
volumes and a small increase in the average transaction value.
The reduction in top-ups is primarily as a result of prepay mobile market
decline but is offset by increases in the average transaction values in the UK
and Ireland and an increase in e-currency transactions.
Retail services include ATMs, where transaction value is flat. There is no
transaction value for credit and debit card transactions as the merchant
acquirer settles direct with the retail agent, nor for parcels as merchants
charge consumers directly. Â The increase in value is due to money transfer
transactions, up 24% on last year.
Internet consumer spend has increased by nearly 26%, but at a lower rate than
the transaction growth as the average transaction value has decreased to £50.46
(2009: £53.48).
PayByPhone reflects the value of consumers' parking transactions and bicycle
rentals.
Revenue analysis
 | 6 months 6 months  Year
| ended ended   ended
|26 September 27 September (Decrease) / Â Increase 28 March
| 2010 2009 Â Â Â Â Â Â Â % 2010
| £000 £000 £000
-------------------+---------------------------------------------------------
Retail networks |
|
  Bill and general| 25,429 26,056 (2.4) 58,564
|
  Top-ups | 50,177 56,327 (10.9) 108,508
|
  Retail services | 9,437 7,813 20.8 16,168
|
Internet payments | 4,190 4,634 (9.6) 9,968
|
PayByPhone | 2,183 - - 283
|
Other | 1,482 1,580 (6.2) 3,112
-------------------+---------------------------------------------------------
Revenue | 92,898 96,410 (3.6) 196,603
-------------------+---------------------------------------------------------
Bill and general payment revenue is lower than last year, as the amount billed
to clients in respect of retail agent commission has reduced, mainly as a result
of a recent contract with British Gas, which is designed to drive more footfall
to our retail agents.
In Romania and Ireland, PayPoint acts as principal for mobile top-ups and, as a
result, the sales value of the top-up is recorded as revenue, with the cost of
the top-up recorded in cost of sales. Â In the UK, PayPoint is not the principal
and the commission income only is recorded as revenue. The decline in mobile
volumes, as a result of mobile operators offering more airtime, has a greater
effect on revenue from Romania and Ireland than the UK.
Retail services revenue has increased as a result of an increase in the number
of sites processing credit and debit transactions, a full six months of SIM card
sales, increased parcel volumes and receipt advertising. Â Also included in
retail services is ATM revenue, which has benefited from an increase in the cash
withdrawal fee.
Internet payment revenue is down as merchant service charges, which were
formerly included in revenue and cost of sales, this period £nil (2009: £1.3
million), are now charged direct to our bureau merchants by their card scheme
sponsor. Â This change was effective from the start of the period when we changed
credit card scheme sponsor.
PayByPhone revenues of £2.2 million are up 5% against the same period last year,
prior to acquisition. Our investment in more resources should accelerate
business development, benefiting next year.
Net revenue analysis
Net revenue is revenue less commissions paid to retail agents, the cost of
mobile top-ups and SIM cards where PayPoint is principal and costs incurred by
PayPoint which are recharged to clients and merchants. Â These costs include
retail agent commission, merchant service charges levied by card scheme sponsors
and costs for the provision of call centres for PayByPhone clients. Â Net revenue
is a measure which the directors believe assists with a better understanding of
the underlying performance of the group and is shown in the table below.
 | 6 months 6 months  Year
| ended ended   ended
|26 September 27 September Increase / (decrease) 28 March
| 2010 2009 % 2010
| £000 £000 £000
-------------------+--------------------------------------------------------
Retail networks |
|
  Bill and general| 14,892 14,734 1.1 33,586
|
  Top-ups | 11,539 12,153 (5.0) 24,272
|
| )
|
  Retail services | 5,137 4,161 23.5 8,684
|
Internet payments | 4,190 3,362 24.6 7,469
|
PayByPhone | 1,488 - - 283
|
Other | 1,482 1,580 (6.2) 3,112
-------------------+--------------------------------------------------------
Net revenue | 38,728 35,990 7.6 77,406
-------------------+--------------------------------------------------------
Net revenue on bill and general payments has increased from volume growth in
energy prepayment, local authority housing in the UK and bill payment in
Romania, mitigated by the loss of congestion charging. Net revenue is lower than
the transaction growth as a result of energy clients in the UK which have taken
advantage of developments in energy prepayment infrastructure enabling them to
negotiate agreements with better transaction pricing.
Top-up net revenue has decreased less than revenue because the reduction in top-
ups in Romania and Ireland only reduces net revenue marginally. Â In addition,
there was a richer mix of e-money transactions with a higher than average net
revenue per transaction.
Retail services net revenue has a larger increase than revenue, as credit and
debit card transactions and receipt advertising do not attract any retail agent
commission.
Net revenue from internet transactions is up on last year, primarily as a result
of the increase in transaction numbers and value and better margins from our new
card scheme sponsor. Â Net revenue is the same as revenue in the period as a
result of merchant service charges now being charged directly to our bureau
merchants by the card scheme sponsor.
Network growth
Terminal sites have increased to 28,033 (March 2010: 27,459), an increase of
574 sites. Â In the UK and Ireland, net terminal sites increased by 352, as we
focus our attention on retail agent yield. Â In Romania, we have installed over
1,800 new full service terminals and removed over 1,600 of the old mobile top-up
only terminals, leaving c.300 old mobile top-up terminals for removal in the
second half of the year.
In our internet channel, we have added over 750 new merchants during the period
but additional churn of small merchants, in particular churn resulting from the
change of credit card scheme sponsor, led to a net reduction of 96 merchants.
 Despite this decrease in merchant numbers, transaction volume, value and net
revenue have all increased.
Analysis of sites |
| At At Increase / At
|26 September 27 September (decrease) 28 March
| 2010 2009 % 2010
-----------------------------+---------------------------------------------
UK and Ireland terminal sites| 23,021 22,669 1.6 22,643
|
Romania terminal sites | 5,012 5,744 (12.7) 4,816
-----------------------------+---------------------------------------------
Total terminal sites | 28,033 28,413 (1.3) 27,459
-----------------------------+---------------------------------------------
Internet merchants | 5,522 5,243 5.3 5,618
-----------------------------+---------------------------------------------
Collect+
Our 50:50 UK joint venture with Yodel (formerly Home Delivery Network and DHL
Express UK Limited), offers consumers a more convenient solution for parcel
delivery and returns through selected PayPoint retail agents. Collect+ offers
services to internet and mail order catalogue merchants for the delivery of
parcels to consumers and for returns, a key issue for online retailers. Collect+
has recently introduced a service for consumers to send parcels from PayPoint
retail agents to recipient homes or for collection at local PayPoint retail
agents. Â During the period, Collect+ has signed a number of large retailers and
online e-commerce merchants, either for the full service or for a trial period.
These merchants include ASOS, Very, New Look, Dorothy Perkins and House of
Fraser. Â With the introduction of these new clients, transaction volumes for the
parcel returns service and the new parcel collection service have grown
strongly. Â Current transaction volumes have reached a run rate of over 1 million
transactions per annum with 0.3 million processed in the period.
PayByPhone
On 9 March 2010, PayPoint acquired 100% of the share capital of Verrus Mobile
Technologies Inc. and Verrus UK limited (together PayByPhone) for £29 million
(including deferred consideration of £4 million) with a further potential £4
million payable, dependent on results to March 2013.
PayByPhone is a leading international provider of services to parking
authorities, allowing consumers to use their mobile phones to pay for car
parking by credit or debit card. Â It has contracts in the UK, Canada, the USA
and France. Â During the period, PayByPhone processed nearly 7 million
transactions. Â We have added resources in sales, development and finance and
have invested in infrastructure to bring the operations to PayPoint group
standards and to provide the foundations for future growth. Â In particular,
investment has been made to replicate the main transaction processing system for
disaster recovery.
Financial review
Revenue for the first six months was £92.9 million (2009:  £96.4 million), down
3.6%, driven mainly by the decline in transaction volumes in mobile top-ups
where PayPoint acts as principal(1).
Cost of sales was £60.1 million (2009: £67.6 million), a decrease of 11.1%,
which is greater than the rate of decrease in revenue, mainly due to the
reduction in mobile top-ups where PayPoint is principal(1) and the reduction in
commission payable to retail agents. Â The recent contract with British Gas
drives additional footfall to our retail agents but in with lower commission
earnings and reduced mobile top-up volumes have caused commission payable to
retail agents to fall.  Depreciation and amortisation were £1.9 million (2009:
£2.6 million), down 27.3%, mainly due to some ATMs and intangible assets which
have become fully written down. Â PayPoint no longer incurs merchant service
charges as these are now charged direct to our bureau merchants following our
change of credit card scheme sponsor.
Net revenue(2) of £38.7 million (2009: £36.0 million) was up 7.6%, driven
primarily by PayByPhone volume growth. Excluding PayByPhone, net revenue is up
3.5%.  Gross profit improved to £32.8 million (2009: £28.9 million), 14% ahead
of the same period last year, with a gross margin of 35.3% (2009: 29.9%).
Operating costs (administrative expenses) were £17.5 million (2009: £14.2
million, six months to 28 March 2010: £15.2 million).  Operating costs were up
5% excluding PayByPhone on the six months to 28 March 2010, mainly as a result
of legal costs relating to the National Lottery Commission and other one-off
items.
Operating profit was £15.3 million (2009: £14.7 million), up 4%, excluding
PayPoint's share of losses in Collect+. Â The operating margin(3) decreased to
39.5% (2009: 40.7%) mainly as result of the losses in PayByPhone.
Our share, in the period, from the loss in our parcels joint venture, Collect+,
decreased to £0.7 million (2009: £1.0 million).
Profit before tax was £14.6 million (2009: £13.8 million), up 5% on the same
period last year notwithstanding the losses in PayByPhone. Â The tax charge was
£4.5 million (2009: £4.1 million) and the effective tax rate was 30.9% (28 March
2010: 32.2%).
Operating cash flow was £9.4 million (2009: £6.6 million), after corporation tax
payments of £5.9 million (2009: £9.5 million).  Capital expenditure of £1.1
million (2009: £1.6 million) comprised expenditure on new terminals in the UK
and Romania and on ATMs.  Collect+ funding was £0.4m (2009: £0.9 million), and a
further £4.0 million (2009: £nil) was drawn down on the loan facility.  Equity
dividends paid were £9.8 million (2009: £7.8 million). Net cash(4) and cash
equivalents at the period end were £12.9 million (2009: £32.2 million) including
client cash of £6.7 million (2009: £7.2 million), down from £14.8 million at 26
March 2010 as expected.
Related party transactions
Related party transactions are disclosed in note 5.
Risks
Risks to PayPoint's business, financial condition or operations are disclosed on
page 23.
 1    In Ireland and Romania, PayPoint is principal in the sale of mobile top-
ups and, accordingly, the face value of the top-up is included in sales and the
corresponding cost in cost of sales.
 2     Net revenue is revenue less the cost of mobile top-ups and SIM cards
where PayPoint is principal and costs incurred by PayPoint which are recharged
to clients and merchants. These costs include retail agent commission, merchant
service charges levied by card scheme sponsors and costs for the provision of
call centres for PayByPhone clients.
 3     Operating margin is operating profit (which excludes Collect+) as a
percentage of net revenue.
 4    Net cash is cash net of short-term borrowings
Dividend
We propose to pay an interim dividend of 7.8p per share (2009: 7.4p) on 21
December 2010 to shareholders on the register at 3 December 2010.
Liquidity and going concern
The group has cash of £22.9 million and a loan of £10 million drawn down on its
unsecured loan facility of £35 million, which expires in August 2011.  We are
discussing the replacement of the facility with our bankers. Â On 12 October
2010, the group repaid £4 million of the loan, leaving a balance of £6 million
outstanding which is expected to be repaid well before the loan facility
expires. Â Cash and borrowing capacity is adequate to meet the foreseeable needs
of the group, taking account of the risks set out on page 23. Â The condensed
financial statements have therefore been prepared on a going concern basis.
Economic climate
Bill and general payments sector, which accounts for 38% (2009: 40%) of our net
revenue, has continued to be resilient, as consumers' discretion in expenditure
is limited for essential services. Utility providers continue to install new
prepay gas and electricity meters, which will have a beneficial impact on our
transaction volumes. Â The internet payment market continues to grow
substantially. Â There has been an adverse impact on mobile top-ups.
PayPoint's exposure to retail agent debt is limited as credit granted to retail
agents is restricted by daily direct debiting for all UK and Irish transactions
other than EPoS mobile top-ups (which are collected weekly), although there is
some concentration of risk in multiple retail agents. Â Most of the group's
clients in the UK, other than mobile operators, bear the cost of retail agent
bad debt. Â In PayPoint Romania, the risk of bad debt lies with the company. Â In
PayPoint.net, exposure is limited to receivables from merchants for fees, except
in the case of bureau internet merchants, where PayPoint.net retains credit risk
on merchant default for credit card charge backs by cash retention.
National Lottery Commission
The National Lottery Commission (NLC) announced on 16 July 2010 that it was
minded not to permit Camelot's proposal to provide ancillary services (energy
prepayments, utility bill payment, mobile top-ups and credit and debit card
payments). Â The NLC asked for further comments, initially by 17 September 2010,
but subsequently extended to 20 October 2010. We have provided the NLC with a
robust response to Camelot's original application and subsequent amendments.
Whatever the decision, we are well prepared and our retail services, internet
and new developing business streams, are all unaffected by this threat, and
together they provide opportunity for strong profitable growth.
Outlook
Trading since the period end has been in line with the company's expectations.
Our established business is strong, with opportunities to enhance the retail
yield and increase the number of online merchants we serve. Â In our developing
businesses, there is growth potential as we continue to roll out services to a
wider base. Â Taken together, our businesses provide a solid foundation from
which we aim to deliver long term value for shareholders.
David Newlands Dominic Taylor
Chairman Chief Executive
25 November 2010
CONDENSED CONSOLIDATED INCOME STATEMENT
  Unaudited Unaudited Audited
  6 months 6 months Year
  ended ended ended
  26 September 27 September 28 March
  2010 2009 2010
Continuing operations Note £000 £000 £000
-----------------------------------------------------------------------
Revenue 2 92,898 96,410 196,603
Cost of sales 2 (60,079) (67,555) (133,110)
-----------------------------------------------------------------------
Gross profit  32,819 28,855 63,493
Administrative expenses  (17,510) (14,195) (29,421)
-----------------------------------------------------------------------
Operating profit  15,309 14,660 34,072
Share of loss of joint venture  (726) (964) (1,601)
Investment income  38 118 224
Finance costs  (64) (3) (50)
-----------------------------------------------------------------------
Profit before tax  14,557 13,811 32,645
Tax 3 (4,496) (4,102) (10,513)
-----------------------------------------------------------------------
Profit for the period  10,061 9,709 22,132
-----------------------------------------------------------------------
Earnings per share
-----------------------------------------------------------------------
Basic 4 14.9p 14.4p 32.9p
-----------------------------------------------------------------------
Diluted 4 14.8p 14.3p 32.7p
-----------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
  Unaudited Unaudited Audited
  6 months 6 months Year
  ended ended ended
  26 September 27 September 28 March
  2010 2009 2010
 Note £000 £000 £000
Exchange differences on translation of
foreign operations 8 (837) 140 35
--------------------------------------------------------------------------------
Other comprehensive (loss) / income for
the period (837) 140 35
Profit for the period  10,061 9,709 22,132
--------------------------------------------------------------------------------
Total comprehensive income for the  9,224 9,849 22,167
period
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
  Unaudited Unaudited Audited
  26 September 27 September 28 March
  2010 2009 2010
 Note £000 £000 £000
------------------------------------------------------------------------
Non-current assets
Goodwill  56,058 27,767 56,872
Other intangible assets  1,277 1,658 1,400
Property, plant and equipment  13,851 15,639 14,767
Investment in joint venture  - 64 326
Deferred tax asset  904 1,300 1,167
Investment  405 405 405
------------------------------------------------------------------------
  72,495 46,833 74,937
------------------------------------------------------------------------
Current assets
Inventories  1,582 1,253 1,567
Trade and other receivables  18,470 23,013 23,482
Cash and cash equivalents 7 22,928 32,180 20,769
------------------------------------------------------------------------
  42,980 56,446 45,818
------------------------------------------------------------------------
Total assets  115,475 103,279 120,755
------------------------------------------------------------------------
Current liabilities
Trade and other payables  30,563 35,886 37,926
Current tax liabilities  3,930 4,110 5,684
Short-term borrowings  10,000 - 6,000
Obligations under finance leases  11 1 22
------------------------------------------------------------------------
  44,504 39,997 49,632
------------------------------------------------------------------------
Non-current liabilities
Other liabilities  175 293 379
------------------------------------------------------------------------
  175 293 379
------------------------------------------------------------------------
Total liabilities  44,679 40,290 50,011
------------------------------------------------------------------------
------------------------------------------------------------------------
Net assets  70,796 62,989 70,744
------------------------------------------------------------------------
Equity
Share capital 8 226 226 226
Investment in own shares 8 (216) (370) (370)
Share premium 8 25 25 25
Share based payment reserve 8 2,476 2,239 2,684
Translation reserve 8 (294) 648 543
Retained earnings 8 68,579 60,221 67,636
------------------------------------------------------------------------
Total equity  70,796 62,989 70,744
------------------------------------------------------------------------
Condensed Consolidated statement of changes in equity
  Unaudited Unaudited Audited
  6 months 6 months Year
  ended ended ended
 Note 26 September 27 September 28 March
 2010 2009 2010
 £000 £000 £000
--------------------------------------------------------------------------------
Opening equity  70,744 60,967 60,967
Profit for the period  10,061 9,709 22,132
Dividends paid  (9,765) (7,848) (12,856)
Movement in own shares 5 154 556 556
Exchange differences on translation of
foreign operations (837) 140 35
Movement in share based payment reserve
(208) (250) 195
Adjustments on share schemes vesting  647 (285) (285)
--------------------------------------------------------------------------------
Closing equity  70,796 62,989 70,744
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
  Unaudited Unaudited Audited
  6 months 6 months Year
  ended ended ended
 Note 26 September 27 September 28 March
2010 2009 2010
£000 £000 £000
--------------------------------------------------------------------------------
Net cash flow from operating activities 9 9,444 6,591 24,986
--------------------------------------------------------------------------------
Investing activities
Investment income  30 85 224
Purchase of property, plant and
equipment (1,051) (1,634) (2,700)
Proceeds from disposal of property,
plant and equipment - 39 93
Acquisition of subsidiary   - - (28,942)
Investment 5 - (30) (30)
Loan to joint venture 5 (400) (850) (1,750)
Purchase of own shares  - (490) (490)
--------------------------------------------------------------------------------
Net cash used in investing activities  (1,421) (2,880) (33,595)
--------------------------------------------------------------------------------
Financing activities
Repayments of obligations under  finance
leases (3) - (8)
Receipt of short-term borrowings  4,000 - 6,000
Dividends paid  (9,765) (7,848) (12,856)
--------------------------------------------------------------------------------
Net cash used in financing activities  (5,768) (7,848) (6,864)
--------------------------------------------------------------------------------
Net  increase  / (decrease)  in cash and
cash equivalents 2,255 (4,137) (15,473)
Cash and cash equivalents at beginning
of period 20,769 36,345 36,345
Effect of foreign exchange rate changes  (96) (28) (103)
--------------------------------------------------------------------------------
Cash and cash equivalents at end of
period 22,928 32,180 20,769
--------------------------------------------------------------------------------
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. Accounting policies
These condensed financial statements have been prepared in accordance with IAS
34 as adopted by the European Union on an historical cost basis and the same
accounting policies, presentation methods and methods of computation are
followed in this condensed set of financial statements as applied in the group's
latest annual audited financial statements.
Basis of preparation
The condensed financial statements contained in this report are unaudited, but
have been formally reviewed by the auditors and their report to the company is
set out on page 24. Â The information shown for the year ended 28 March 2010,
which is prepared under International Financial Reporting Standards (IFRS), does
not constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. Â The report of the auditors on the statutory accounts for
the year ended 28 March 2010, prepared under IFRS, was unqualified, did not draw
attention to any matters by way of emphasis and did not contain a statement
under sections 498 (2) or (3) of the Companies Act 2006 and has been filed with
the Registrar of Companies.
The directors are satisfied that the group has adequate resources to continue in
operational existence for the foreseeable future, a period of not less than 12
months from the date of this report. Â The group's liquidity and going concern
review can be found in the Management Report on page 10.
2. Segmental reporting, net revenue analysis and cost of sales
 (i)Segmental information
PayPoint is a service provider for consumer payment transactions (payments and
receipts) through various distribution channels, involving the processing of
high volume transactions, the management of retail agents and clients, the
settlement of funds (collection and transmission) and transmission of data in a
secure environment, by the application of technology.
The application of technology is directed on a group basis from the group's
executive team (consisting of the Chief Executive Officer, Finance Director,
Business Development Director and Chief Information Officer) to develop products
across the business, prioritised on an economic value basis (generally by
product), rather than on a subsidiary by subsidiary basis. Â As the business has
high fixed operating costs, the company regards the analysis of net revenue as
the most reliable indication of contribution on a product by product basis and
net revenue analysis is shown in the Management Report.
Whilst the group has a number of different products, these do not meet the
definition of different segments under IFRS 8 and, therefore, the group has only
one reportable class of business, being a payment service provider for consumer
payment transactions.
(ii) Reconciliation of revenue to net revenue, analysis of cost of sales
Revenue comprises the value of sales (excluding VAT and sales taxes) of services
in the normal course of business and includes: amounts billed to clients that
are passed on to retail agents as commission payable, the sales value to retail
agents of mobile top-ups and SIMs where PayPoint acts as principal, merchant
service charges levied by card scheme sponsors and the revenue charged for the
provision of call centres to PayByPhone clients.
Net revenue is revenue less the cost of mobile top-ups and SIM cards where
PayPoint is principal and costs incurred by PayPoint which are recharged to
clients and merchants. Â These costs include retail agent commission, merchant
service charges levied by sponsors and cost for the provision of call centres to
PayByPhone clients.
Net revenue
 6 months 6 months Year
ended ended  ended
26 September 27 September 28 March
2010 2009 2010
£000 £000 £000
--------------------------------------------------------------------------------
Revenue - transaction processing 92,135 95,607 195,008
        - rental income of ATMs 763 803 1,595
--------------------------------------------------------------------------------
Revenue 92,898 96,410 196,603
less:
Commission payable to retail agents (34,579) (36,172) (73,178)
Cost of mobile top-ups and SIM cards as
principal (18,896) (22,976) (43,520)
Other(1) (695) (1,272) (2,499)
--------------------------------------------------------------------------------
Net revenue 38,728 35,990 77,406
--------------------------------------------------------------------------------
Cost of Sales
 6 months 6 months Year
 ended ended  ended
26 September 27 September 28 March
2010 2009 2010
£000 £000 £000
--------------------------------------------------------------------------------
Cost of sales
Commission payable to retail agents 34,579 36,172 73,178
Cost of mobile top-ups and SIM cards as
principal  18,896 22,976 43,520
Depreciation and amortisation 1,912 2,631 4,820
Other(1) 4,692 5,776 11,592
--------------------------------------------------------------------------------
Total cost of sales 60,079 67,555 133,110
--------------------------------------------------------------------------------
  1  Other revenue consists of costs incurred for merchant service charges and
costs for the provision call centre charges that are recharged to clients and
merchants. Â The cost of these items is included in other cost of sales.
 Geographical information:
 6 months 6 months Year
ended ended  ended
26 September 27 September 28 March
2010 2009 2010
£000 £000 £000
-------------------------------------------------------------------
Revenue
UK 71,675 70,699 147,658
Ireland(1) 11,204 12,577 24,476
Romania(1) 9,559 13,134 24,386
North America 460 - 83
-------------------------------------------------------------------
Total 92,898 96,410 196,603
-------------------------------------------------------------------
Non-current assets
UK 70,486 Â Â Â Â Â 45,194 73,290
Ireland 44 Â Â Â Â Â Â Â Â 37 14
Romania 1,711 Â Â Â Â Â Â 1,602 1,422
North America 254 - 211
-------------------------------------------------------------------
Total 72,495 Â Â Â Â Â 46,833 74,937
-------------------------------------------------------------------
 1   The decline in the prepay mobile market in Ireland and Romania adversely
affects revenue. Â The impact on net revenue was less severe, as margins on these
top-ups are low.
3. Tax on profit of ordinary activities
 6 months 6 months Year
 ended ended ended
 26 September 27 September 28 March
 2010 2009 2010
£000 £000 £000
-------------------------------------------------------
Current tax 4,233 4,274 10,572
Deferred tax (172) (59)
 263
-------------------------------------------------------
Total 4,496 4,102 10,513
-------------------------------------------------------
The rate of corporation tax will change from 28 per cent to 27 per cent from 1
April 2011. As deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the periods of reversal, we have restated
all deferred tax closing balances using a rate of 27 per cent. The change of
rate in the year decreased the net deferred tax asset by £34,000 (2009: £nil).
The Government has also indicated that it intends to enact future reductions in
the main rate of corporation tax of 1 per cent each year down to 24 per cent by
1 April 2014. The future 1 per cent main rate of corporation tax reductions are
expected to have a similar impact on our financial statements as outlined above.
 However, the actual impact will be dependent on our deferred tax position at
that time.
4. Â Earnings per share
The basic and diluted earnings per share are calculated on the following profit
and number of shares.
 6 months 6 months Year
 ended ended ended
 26 September 27 September 28 March
 2010 2009 2010
£000 £000 £000
--------------------------------------------------------------------------------
Profit for the purposes of basic earnings
per share being net profit attributable to 10,061 9,709 22,132
equity holders of the parent and for
diluted earnings per share.
--------------------------------------------------------------------------------
 Number of Number of Number of
Shares shares shares
--------------------------------------------------------------------------------
Weighted average number of shares
(for basic earnings per share) 67,675,017 67,384,136 67,170,830
Potential dilutive ordinary shares:
Deferred share bonus 117,565 112,486 133,313
Long term incentive plan - 490,573 427,415
--------------------------------------------------------------------------------
Diluted basis 67,792,582 67,987,195 67,731,558
--------------------------------------------------------------------------------
5. Related party transactions
Collect+
PayPoint has entered into a loan agreement with its 50:50 joint venture Drop and
Collect Limited (trading as Collect+) and during the period it has lent Drop and
Collect Limited £400,000 bringing
the total amount of the loan outstanding to £2,150,000 (28 March 2010:
£1,750,000).  This has been treated as part of the investment in the joint
venture. In the period, there were £49,000 of unrecognised losses in Collect+
(28 March 2010: £nil).
Investment in OB10
PayPoint owns shares in OB10, a company that specialises in electronic invoicing
and our shareholding at 26 September 2010 was 1.04% (28 March 2010: 1.04%).
 6 months 6 months Year
 ended ended ended
 26 September 27 September 28 March
 2010 2009 2010
£000 £000 £000
-------------------------------------------------------------
Investment at cost 405 405 405
-------------------------------------------------------------
In the view of the directors, the aggregate cost of £405,000 represents the fair
value of the investment in the shares.
David Newlands, who is also Chairman of OB10, Dominic Taylor, George Earle, Eric
Anstee and Nick Wiles all hold shareholdings in OB10 as follows:
 6 months 6 months Year
 ended ended ended
Directors' shareholding in OB10 26 September 27 September 28 March
 2010 2009 2010
% % %
--------------------------------------------------------------------------
David Newlands 4.73 4.73 4.73
Dominic Taylor 1.42 1.42 1.42
George Earle 0.42 0.42 0.42
Nick Wiles 1.04 1.04 1.04
Eric Anstee 0.08 0.08 0.08
Share based payments
During the period, a Deferred Share Bonus plan (DSB) vested and, as a result,
28,933 treasury shares were released to the relevant executive directors and
senior managers at a value of £154,000.
 6. Dividend
The interim dividend of 7.8p (2009: 7.4p) was declared on 25 November 2010 and,
accordingly, has not been recorded as a liability as at 26 September 2010. Â The
total dividend in respect of the year ended 28 March 2010 was 21.8p per share.
7. Cash and cash equivalents
Included within cash and cash equivalents is £6.7 million (September 2009: £7.2
million, March 2010:       £6.8 million) relating to monies collected on
behalf of PayPoint clients where PayPoint has title to the funds (client cash).
 An equivalent balance is included within trade payables.
The group operates cash pooling amongst its various bank accounts in the UK and,
therefore, individual accounts can be overdrawn without penalties being incurred
so long as the overall position is in credit. Â At 26 September 2010, the group's
cash was £22.9 million (28 March 2010: £20.8 million).
At 26 September 2010, the group had a loan of £10 million (September 2009: £nil,
                March 2010: £6 million) drawn on its unsecured
loan facility of £35 million.  On 13 October 2010, the group repaid £4 million,
leaving a remaining balance of £6 million outstanding which is anticipated to be
repaid by the end of the financial year. Â We are discussing replacement of the
facility with our bankers which expires in August 2011.
8. Share capital and reserves
 6 months 6 months Year
 ended ended ended
 26 September 27 September 28 March
 2010 2009 2010
£000 £000 £000
--------------------------------------------------------------------------------
Authorised share capital
4,365,352,200 ordinary shares of 1/3p each 14,551 14,551 14,551
--------------------------------------------------------------------------------
Called up, allotted and fully paid share
capital
67,775,979 ordinary shares of 1/3p each 226 226 226
--------------------------------------------------------------------------------
Investment in own shares
At start of period (370) (926) (926)
Acquired in period - (490) (490)
Used on share scheme vesting  154 1,046 1,046
--------------------------------------------------------------------------------
At end of period (216) (370) (370)
--------------------------------------------------------------------------------
Share premium
At start of period 25 25 25
--------------------------------------------------------------------------------
At end of period 25 25 25
--------------------------------------------------------------------------------
Share based payment reserve
At start of period 2,684 2,489 2,489
Additions in period 558 460 942
Released in period (801) (761) (761)
Current tax on awards - 51 34
Other adjustments 35 - (20)
--------------------------------------------------------------------------------
At end of period 2,476 2,239 2,684
--------------------------------------------------------------------------------
Translation reserve
At start of period 543 508 508
Movement in the period (837) 140 35
--------------------------------------------------------------------------------
At end of period (294) 648 543
--------------------------------------------------------------------------------
Retained earnings
At start of period 67,636 58,645 58,645
Profit for the period 10,061 9,709 22,132
Dividends paid (9,765) (7,848) (12,856)
Adjustment on share scheme vesting 647 (285) (285)
--------------------------------------------------------------------------------
At end of period 68,579 60,221 67,636
--------------------------------------------------------------------------------
9. Notes to the cash flow statement
 6 months 6 months Year
 ended ended ended
 26 September 27 September 28 March
 2010 2009 2010
£000 £000 £000
--------------------------------------------------------------------------------
Profit before tax 14,557 13,811 32,645
Adjustments for:
Depreciation on property, plant and equipment 1,753 2,316 4,286
Amortisation of intangible assets 159 315 534
Share of losses in joint venture 726 964 1,601
Net interest expense / (income) 26 (115) (174)
Share based payment expense 593 460 942
--------------------------------------------------------------------------------
Operating cash flows before
movements in working capital 17,814 17,751 39,834
--------------------------------------------------------------------------------
Increase in inventories (15) (39) (373)
Decrease in receivables 4,732 610 2,385
Increase / (decrease) in payables
- client cash 224 (335) (729)
- other payables (7,389) (1,895) (2,386)
--------------------------------------------------------------------------------
Cash generated by operations 15,366 16,092 38,731
Corporation tax paid (5,886) (9,501) (13,702)
Interest and bank charges paid (36) - (43)
--------------------------------------------------------------------------------
Net cash from operating activities 9,444 6,591 24,986
--------------------------------------------------------------------------------
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
a. the condensed set of financial statements which has been prepared in
accordance with IAS 34 Interim Financial Reporting gives a true and fair
view of the assets, liabilities, financial position and profit of the Group
as required by DTR 4.2.4R;
b. the half yearly financial report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first 24
weeks and description of principal risks and uncertainties for the remaining
28 weeks of the year); and
c. the half yearly financial report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and
changes therein).
By order of the board.
David Newlands Dominic Taylor
Chairman Chief Executive
25 November 2010
RISKS
PayPoint's business, financial condition or operations could be materially and
adversely affected by the risks summarised below. Â Although management takes
steps to mitigate risks where possible or where the cost of doing so is
reasonable in relation to the probability and seriousness of the risk, it may
not be possible to avoid the crystallisation of some or all of such risks.
Risk |Future prospects depend on our ability
|to:
----------------------------------------+---------------------------------------
Managing growth of the business |manage growth through the employment of
|adequate skilled resources, whilst
|maintaining financial controls
----------------------------------------+---------------------------------------
Major contract loss or renewal at |renew contracts at expiry on attractive
unattractive margins |terms
----------------------------------------+---------------------------------------
Dependence on key executives |retain and recruit key staff through a
|mixture of basic salary, plus short and
|long-term incentive schemes
----------------------------------------+---------------------------------------
Failure of systems |maintain financial controls, defend
|against natural disasters, terrorist
|attacks, sabotage and hacking
----------------------------------------+---------------------------------------
Competition |hold and gain market share
----------------------------------------+---------------------------------------
Insolvency of a major multiple retail |mitigate the consequences of insolvency
agent |both in terms of the bad debt risk and
|the impact of such insolvency on our
|network coverage
----------------------------------------+---------------------------------------
Technological changes |keep pace with technological changes
|and introduce new developments to
|compete effectively
----------------------------------------+---------------------------------------
Reliance on intellectual property |stop third parties from using our
|products and defend the use of our
|products from any challenge
----------------------------------------+---------------------------------------
The need to raise capital in future |access any future capital on
|sufficiently attractive terms,
|particularly in view of prevailing
|economic conditions and the
|availability of credit
----------------------------------------+---------------------------------------
Economic, political, legislative, |to deal with the impact of any changes
taxation or regulatory changes |without affecting the growth or
|profitability of the business
----------------------------------------+---------------------------------------
Taxation |ensure the impact of any adverse
|changes is mitigated by enhanced
|performance
----------------------------------------+---------------------------------------
Fraudulent or criminal activity |avoid loss of client money by the
|rigorous application of controls
----------------------------------------+---------------------------------------
Consumers  reduce number or value of |establish new products and services and
payments via the PayPoint network |keep abreast of technological and
|market changes
|
INDEPENDENT REVIEW REPORT TO PAYPOINT PLC
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the period ended 26 September
2010 which comprises the condensed consolidated income statement, the condensed
consolidated statement of comprehensive income, the condensed consolidated
balance sheet, the condensed consolidated statement of changes in equity and the
condensed consolidated cash flow statement and related notes 1 to 9. Â We have
read the other information contained in the half-yearly financial report and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial
Information Performed by the Independent Auditor of the Entity issued by the
Auditing Practices Board. Â Our work has been undertaken so that we might state
to the company those matters we are required to state to them in an independent
review report and for no other purpose. Â To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the company for
our review work, for this report or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. Â The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. Â The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, Interim Financial Reporting, as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the United Kingdom. Â A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. Â A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Â Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the period ended 26 September 2010 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditors
London, United Kingdom
25 November 2010
DIRECTORS & KEY CONTACTS
Directors Dominic Taylor (Chief Executive)
George Earle (Finance Director)
Tim Watkin-Rees (Business Development
Director)
Eric Anstee*
David Morrison*
David Newlands* (Chairman)
Andrew Robb*
Stephen Rowley*
Nick Wiles *
* non-executive directors
Registered office 1 The Boulevard
Shire Park
Welwyn Garden City
Hertfordshire
AL7 1EL
United Kingdom
Registered in England and Wales number
3581541
Registrars Capita Registrars
Registration Services
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire
HD8 0LA
Telephone 0870 162 3100
Press and investor relations enquiries Finsbury
Tenter House
45 Moorfields
London
EC2Y 9AE
Telephone No. 020 7251 3801
ABOUT PAYPOINT
PayPoint is a leading international provider of convenient payments and value
added services to major consumer service organisations in the utility, telecoms,
media, financial services, transport, retail, gaming and public sectors. We
handle over £10 billion from almost 570 million transactions annually for more
than 6,000 clients and merchants. Â We deliver payments and services through a
uniquely strong combination of local shops, internet and mobile distribution
channels.
Retail networks
PayPoint operates branded retail networks in the UK, Ireland and Romania. Â The
network in the UK numbers over 22,000 terminals located in local shops
(including Co-op, Spar, McColls, Costcutter, Sainsburys Local, One Stop, Londis
and thousands of independents) in all parts of the UK. Our terminals process
energy meter prepayments, cash bill payments, mobile phone top-ups, transport
tickets, BBC TV licences and a wide variety of other payment types for most
leading utilities and many telecoms and consumer service companies.
In Romania, the branded retail network numbers over 5,000 terminals located in
local shops across Romania and is expanding. Â Our terminals process cash bill
payments for utilities and mobile phone top-ups. In the Republic of Ireland, we
have over 500 outlets in shops and Credit Unions processing mobile top-ups and
bill payments.
We also supply added value services to our retail agents to improve the yield
from our network. Â In the UK, we have recently introduced a consumer parcel drop
off and collection service using PayPoint's retail network through Collect+, a
joint venture with Yodel (formerly Home Delivery Network and DHL Express UK
Limited). This service is already available in 3,400 of our convenience retail
agents. Clients include ASOS, Littlewoods, Woolworths, New Look, Dorothy
Perkins, Very, Mobile Phone Xchange, Virgin Media and Great Universal. Â In
addition, in the UK, we have over 2,400 LINK branded ATMs, mainly in the same
sites as our terminals.
Internet channel
PayPoint.net is an internet payment service provider, linking into all major UK
acquiring banks to deliver secure online credit and debit card payments for over
5,500 web merchants, including PKR, Betsson, Moneysupermarket.com, Severn Trent
Water, Ann Summers and British Gas Home Vend. Â We offer a comprehensive set of
products ranging from a transaction gateway through to a bureau service, in
which we take the merchant credit risk and manage settlement for the merchants.
 We offer real-time reporting for merchant transactions and Fraudguard, an
advanced service to mitigate the risk of fraud for card not present
transactions.
Mobile channel
We recently acquired PayByPhone (Verrus Mobile Technologies Inc and Verrus UK
Limited). Â PayByPhone is a leading international provider of services to parking
authorities allowing consumers to use their mobile phones to pay for their
parking by credit or debit card. Â It has contracts in the UK, Canada, USA and
France.
PayPoint is widely recognised for its leadership in payment systems, smart
technology and consumer service. Our high quality services are backed by a 24/7
operations centre with dual site processing for business continuity.
PayPoint sustains its competitive differentiation by aiming to meet clients'
payment needs, not just through a wide spectrum of payments, but also with
products that span payment channels. Â For example, PayCash enables cash payment
for internet transactions at PayPoint retail agents and our new home vending
solutions allow consumers to pay across the internet as well as through our
retail network. Â Our combination of distribution channels makes us unique in
this regard.
25 November 2010
Enquiries:
PayPoint plc                    01707 600 300
Dominic Taylor, Chief Executive
George Earle, Finance Director
Finsbury020 7251 3801
Rollo Head
Don Hunter
This announcement is available on the PayPoint plc website: www.paypoint.com
[HUG#1465427]
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Paypoint plc via Thomson Reuters ONE
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