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PayPoint net revenue increases 1.8%

By BFN News | 08:12 AM | Thursday 24 May, 2018


PayPoint grew its retail networks net revenue by 1.8% to £119.6 million in the year to 31 March. This was led by underlying net revenue growth of £6.3 million in UK retail services, helped by the rollout of PayPoint One, a 1% increase in UK bill payments and top-ups revenue and a 29.8% rise in net revenue in Romania. Costs declined by £1 million in the second half of the year compared to the second half of the prior year. The full year cost base grew by £2.4 million to £66.6 million reflecting continued investment in PayPoint One, MultiPay, and improving customer service. The gross margin reduced to 46.8% due to the Payzone acquisition. Operating profit increased 0.4% to £53.5 million, with profit before tax down 0.8% at £52.9 million - slightly ahead of expectations. PayPoint has declared a final ordinary interim dividend of 30.6 pence per share, an increase of 2% year-on-year alongside the additional interim dividend of 15.3 pence per share. Dominic Taylor, chief executive officer, said: "There is now strong momentum across PayPoint One, MultiPay and Romania, in addition to a compelling Parcel proposition reflected in a strong pipeline of client deals, all of which will underpin the future growth of our business." Non-recurring items which will impact operating profit performance in the financial year ending 31 March 2019 include the closure by the Department for Work and Pensions of their Simple Payment Service worth c£4.0 million per annum in net revenue and the second-year impact of £1.0 million reduction in net revenue from the agreement to lower Yodel parcel fees. "Despite these headwinds, and whilst final performance for the forthcoming financial year will be influenced by the timing of and volumes from new parcel contracts, the board anticipates a progression in profit before tax in this financial year as the growth drivers in our business continue to develop," Taylor added. At 8:12am: (LON:PAY) PayPoint PLC share price was -2.5p at 913.5p Story provided by StockMarketWire.com

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