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Paypoint plc (PAY)

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Thursday 19 November, 2009

Paypoint plc

Half-yearly report





                            PayPoint plc
                    Half yearly financial report
              for the 6 months ended 27 September 2009

HIGHLIGHTS


                             6 months     6 months
                                ended        ended
                         27 September 28 September         Increase /
                                 2009         2008         (decrease)
                             £million     £million                  %
Throughput(1)                   4,446        4,041                 10
Revenue                          96.4        109.3               (12)
Net revenue(2)                   36.0         35.6                  1
Operating profit(3)              14.7         14.2                  3
Profit before tax                13.8         15.3               (10)
Diluted earnings per            14.3p        16.0p               (11)
share
Interim dividend                 7.4p         6.0p                 23


*          In the traditional UK business(4), net revenue was up 2%
  and operating profit was up 8%

*          UK and Ireland terminal network expanded by nearly 700
  sites to 22,669.

*          Processed over 1.8 million Romanian bill payment
  transactions with 2,260 branded PayPoint sites.

*          Collect+, our joint venture, started trading during the
  period, and already has over 3,500 sites live.

*          Consumer satisfaction(5) 97% (82% very satisfied).

*          Profit before tax lower than prior period due to the
  investment in Collect+ and the much reduced interest on cash
  balances.

David Newlands, Chairman of  PayPoint, said: "PayPoint has  delivered
first half operating  profits ahead of  market expectations,  despite
the economic downturn.   New products and  services, developments  in
technology, and  new  contracts  have  strengthened  the  traditional
business. We are continuing to  invest in parcels, internet  payments
and Romania and these will contribute to future growth.  The  outlook
for the year is in line with market expectations."

"We have again increased the dividend as there is ample capacity to
do so without adversely affecting growth prospects."



The condensed financial statements cover  the 6 months from 30  March
2009 to 27  September 2009,  the last Sunday  in the  month (2008:  6
months covering the period 31 March 2008 to 28 September 2008).

1          Throughput represents payments made by consumers using the
PayPoint service for bill and general payments,
            online,  cash  withdrawals from  ATMs  and the  value  of
transactions via the internet.
2          Net revenue  is revenue  less commissions  paid to  retail
agents, acquiring bank charges and the cost of mobile top
            ups  where PayPoint  is the  principal. Net  revenue  and
operating margin are measures which the directors believe
            assist  with a  better  understanding of  the  underlying
performance of the group.
3          Operating profit excludes start up losses incurred in  the
current six months for our parcel joint venture Collect+
4          The group excluding  PayPoint plc, PayPoint.net,  PayPoint
Ireland, Collect+ and PayPoint Romania.
5         UK terminal sites, source: Ipsos MORI September 2009.

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. It contains  forward looking statements that  have
been made by  the directors in  good faith based  on the  information
available at the time of approval of the half yearly financial report
and such  statements  should  be  treated with  caution  due  to  the
inherent uncertainties,  including both  economic and  business  risk
factors, underlying any such forecast.

Review of results

Substantial increases in the value paid by consumers (throughput)
were recorded in bill and general and internet payments. Revenue
decreased as a consequence of lower mobile top-ups.  Net revenues(1),
however, increased slightly as the increase in other sources of net
revenue was more than the impact of the reduction in mobile top-ups.
As a consequence, operating profits increased.  Start up losses in
our new parcels joint venture and lower interest received caused a
reduction in profit before tax.

Execution of strategy

*          We aim to continue increasing economic value for
  shareholders by expanding:

*          UK retail payments and services (cash payments for bills,
  general payments, mobile top-ups, ticketing, money transfer,
  parcels and ATM cash withdrawals) building on the strength of our
  brand;


  * e-commerce payments and services through PayPoint.net and new
    PayPoint products across the retail and internet businesses; and



  * international developments in selected developing countries for
    cash payment networks and as an e-commerce payment service
    provider.


UK retail payments and services

PayPoint has created the strongest retail payment collection  network
in the UK, enabling the company to deliver its services through  over
22,000 outlets with  over 99% population  coverage(2) and  unrivalled
opening hours. This network provides  an ideal footprint for a  broad
range of payments and consumer services delivered to and through  the
retail outlets. UK bill  and general payment growth  was offset by  a
decline of 8% in  mobile transactions, a lower  rate of decline  than
suffered by the retail channel as a whole, because of the increase in
the terminal estate and the strength of independent retailers in  the
economic recession.  PayPoint aims to  maintain its lead in bill  and
general payments (with further  growth in local authority  payments),
transport  tickets  and  its  strong  position  in  mobile   top-ups,
including   mobile  virtual   network  operators   (MVNOs)  and   the
prepayment card sector,  in which  PayPoint is  the pre-eminent  cash
loading channel  (working with  many  leading brands,  including  O2,
PayPal and  Virgin Money).  However,  recent developments  in  energy
prepayment infrastructure have enabled clients to choose to negotiate
agreements with better  transaction pricing  with individual  payment
networks rather  than  working  with  all  three  networks.  PayPoint
expects to  grow share,  but at  lower margin  through this  dynamic.
Retailers, from small corner stores to major multiples, including the
major grocers, increasingly value  the footfall that PayPoint  drives
and the unique  range of payments  and services. Client  developments
include working with major utilities on plans for the next generation
smart meters, which will be rolled out during the next decade.

Our retail network is also providing a strong base from which to grow
value added optional services  for the convenience retail  community,
including ATMs (now  offered through 2,300  sites), debit and  credit
card acceptance through the PayPoint terminal (offered through  4,600
sites) and Western Union Money  Transfers (currently rolling out  the
first 400 sites).   PayPoint also generates transaction-based  income
through selling advertising space on the bottom of consumer receipts,
which is attracting  significant interest from  fast moving  consumer
goods brands and  government agencies,  in addition  to our  existing
client base to promote their services and deliver public information.
The network is  being used to  support physical product  distribution
for the first time,  with the successful, recent  launch of SIM  card
sales on behalf of the mobile networks (active in 1,000 sites).



1      Net revenue is revenue less commissions paid to retail agents,
acquiring bank charges and the cost of mobile
        top-ups  where PayPoint  is the  principal. Net  revenue  and
operating margin are measures which the directors
        believe assist with a better understanding of the  underlying
performance of the group.
2      99% of consumers are within 5 miles rural and 1 mile urban  of
a PayPoint retailer.

The most significant  new initiative using  the PayPoint network  has
been Collect+, a joint venture with a leading UK parcel carrier, Home
Delivery Network,.  Collect+  allows  home shoppers  to  receive  and
return their purchases through over 3,500 local outlets. The  ability
for consumers  to send  parcels  to each  other with  collection  and
delivery at Collect + outlets has also been launched since the end of
the period. Already, after  only a few  months, Collect+ has  handled
over 100,000 parcels and is well placed  to be a major player in  the
UK market.

PayPoint  has  continued  to  develop  its  technology  and   process
efficiencies to increase  productivity and  control, particularly  at
the retailer. These include innovative and complementary alternatives
to the highly successful PayPoint terminal, which up to now, has been
central to  all full  service retailers.    New EPOS-linked  modules,
known as PPods, will allow full functionality to be provided  through
the retailers' own tills, reducing deployment costs, enabling  faster
transactions  (via  broadband)   and  improving  reconciliation   and
control.  This new  technology will  be adopted  by the  Co-operative
Group and  is being  sold into  other multiple  retailers,  releasing
terminals to be reprogrammed and deployed internationally.

e-commerce

PayPoint recognised the growth potential  in this market in  creating
PayPoint.net from  the acquisitions  of two  smaller Payment  Service
Providers (PSPs). Both of them  link internet merchants to  acquiring
banks for credit card acceptance. PayPoint.net will also stand in for
the bank in managing debt risk with the merchant, enabling us to work
with a broader range of merchants than other PSPs. This has  provided
us with differentiation through specialisation in risk management and
fraud  screening,   both  highly   regarded  services   provided   by
PayPoint.net. This differentiation is extended through our ability to
link  internet  merchants  to  cash  payments  through  the  PayPoint
terminal network  via  PayCash,  attracting  new  business  including
MoonPig, Firebox  and  PKR  over  the  past  few  months.  PayPoint's
conviction that blue chip clients  from our retail business would  be
attracted by  the  ability to  add  an internet  dimension  is  being
confirmed through the use of  PayPoint.net platforms in the  delivery
of home vending for the new smart meters.
Within  PayPoint.net,  there  has  been  encouraging  growth  in  the
underlying business, which has been substantially offset by merchants
moving from our  Bureau product  (where we take  the merchant  credit
risk and are rewarded  with higher margins) to  the lower margin  ISO
product reflecting greater willingness among sponsoring banks to take
on such merchants' credit risk.  All these merchants will have  moved
by the end of the financial year.
There are good  prospects for  PayPoint.net in  the UK  and in  other
countries. To support this, the  range of payment types processed  by
the company is growing and the scale of operations is allowing keener
wholesale rates to be negotiated with banks, thus widening the  range
of merchant accounts over which PayPoint.net can be competitive.

International developments

The ability to  recreate PayPoint's  success in  internet and  retail
payments and services in other countries has major potential for  the
group's development. PayPoint has  already developed retail  networks
in Ireland (organically) and Romania (building from an  acquisition).
This experience  puts  PayPoint  in  a  good  position  to  roll  out
selectively or acquire retail and/or internet based services in other
countries, using system solutions and operational processes that  are
already proven.

Whilst bill payment  volume is delivering  high growth, our  Romanian
business has suffered  this year from  substantial reductions in  the
mobile top-up  market,  as  the mobile  networks  have  offered  more
airtime for the same  or lower top-up values.   There are some  signs
that  this  adverse  dynamic  has  slowed.  Romania  should  move  to
break-even in 2010 as the linkage of bill payment and mobile  volumes
to give  differentiation  allows  PayPoint to  secure  higher  volume
outlets. This has  been coupled  with a  focus on  costs and  margin,
which has  resulted in  PayPoint reducing  the volume  of low  margin
physical scratch cards and increasing penetration of cash banking  in
our retail base, thereby removing the  need to collect the cash  from
retailers. In Romania, nearly all the major utilities are now working
with PayPoint,  with some  only recently  launched. PayPoint  Romania
recently processed its three millionth bill payment transaction  from
a standing start in just over  12 months and currently has an  annual
run rate in excess of five million bill payment
Transactions per annum.

Operational review

During the period, PayPoint processed 252 million transactions,  with
a value of £4.4 billion (2008: 249 million transactions with a  value
of £4.0 billion), an increase of 1% in transactions and 10% in value.
Commissions paid  to  retail agents  were  reduced to  £36.2  million
(2008: £41.2million),  a result  of lower  mobile top-ups  which  pay
higher than average commissions to retail agents in the UK.

Analysis of transactions

Bill and general  payments comprises energy  prepayments, budget  and
other utility bill payments  and transport tickets.  Online  includes
mobile top-ups as well as other online products such as international
calling cards, e-currency and pre-pay debit cards.  ATM  transactions
comprise cash withdrawals and  balance enquiries.  Internet  payments
include consumer payments on the internet.


                           6 months     6 months  Increase/      Year
                              ended        ended (decrease)     ended
                       27 September 28 September          %  29 March
                               2009         2008                 2009
                          thousands    thousands            thousands
Bill and general            159,640      151,954          5   351,476
payments(1)

Online (2)                   65,924       73,778       (11)   142,823
ATMs                          7,419        7,236          3    14,645
Internet payments            19,005       16,341         16    35,653
Total                       251,988      249,309          1   544,597



PayPoint has continued to perform well in bill and general  payments,
with an increase of  7.7 million transactions,  of which 1.8  million
are in  Romania following  the introduction  of bill  payment in  the
latter half of last year.  The  increase in the UK has resulted  from
network growth  and previous  increases  in domestic  energy  prices,
partially offset by an increase in average transaction values.  There
has been particularly good growth in the council and local  authority
payment sector. A new  long term contract with  British Gas has  been
signed which provides that, in the second half of this year, new  gas
cards and electricity keys issued by British Gas will only operate on
the PayPoint  and  Post Office  networks.  From 2011,  this  will  be
extended to all British Gas over-the-counter payments for cards, keys
and regular bill payments.

Online volumes have declined 8% in the UK, 37% in Romania and 29%  in
Ireland.  In the UK, in the second half of the year, transactions are
expected to benefit from the combined  effect of the roll out of  new
sites and the  recent new  contract with McColls,  which added  1,400
sites to our network  from July.  E-currency  and pre-pay debit  card
volumes have increased 35% on the same period last year. In  Romania,
we have deliberately reduced sales of our mobile scratch cards, which
are low  margin  products  and  prone  to  shrinkage,  in  favour  of
electronic mobile  top-ups, which  deliver better  margins. This  has
contributed to the decline  in the number  of transactions. The  roll
out of new sites in Romania and the re-siting of existing low  volume
terminals should improve performance.

ATM transactions have increased by 3%,  a rate lower than the 7%  net
increase in ATM  sites, as  the number  of transactions  per ATM  has
declined.  New  machines, whilst  profitable,  are not  reaching  the
volumes of ATMs  placed in earlier  years.  Balance enquiries,  which
produce a lower income than cash withdrawals, are a slightly  greater
proportion of the transactions than in the same period last year.

Internet payments have increased both in existing merchants and  from
new merchants that have been signed in the last 12 months,  including
moneysupermarket.com, Severn Trent Water,  Ann Summers, Pacel2Go  and
Fair FX.



1    Includes debit/credit transactions
2    Online consists mainly of  mobile top-ups but also prepay  debit
cards, e-money schemes, international calling cards
      and the sale of mobile phone SIMs.

Throughput

Throughput represents payments made  by consumers using the  PayPoint
service  for  bill  and  general  payments,  online  (mainly   mobile
top-ups), cash withdrawals  from ATMs and  the value of  transactions
via the internet.


                           6 months     6 months Increase /      Year
                              ended        ended (decrease)     ended
                       27 September 28 September          %  29 March
                               2009         2008                 2009
                               £000         £000                 £000
Bill and general          2,657,269    2,421,747         10 5,549,154
payments
Online(1)                   600,363      625,300        (4) 1,234,662
ATMs                        172,359      171,089          1   343,238

Internet payments         1,016,385      822,810         24 1,754,286

Throughput                4,446,376    4,040,946         10 8,881,340


The  increase  in  bill  payment  value  reflects  the  increase   in
transactions processed  and an  increase in  the average  transaction
value.  Online payments reflect the reduction in the overall value of
mobile top-ups as  a consequence  of mobile  operators offering  more
airtime for the same or less cost to consumers.  The increase in ATMs
was offset  by lower  average number  of cash  withdrawals.  Internet
throughput has  increased  at a  greater  rate than  the  transaction
growth, as average  consumer spend per  transaction has increased  by
6%.

Revenue analysis

Revenue comprises the value of sales (excluding VAT) of services  and
includes commissions billed to clients  and then passed on to  retail
agents, the sales value to retailers of mobile top-ups in Romania and
Ireland where  PayPoint acts  as  principal and  external  processing
charges on internet payments billed  to merchants that are passed  on
to the sponsoring banks.

                            6 months     6 months                Year
                               ended        ended  Increase/    ended
                        27 September 28 September (decrease) 29 March
                                2009         2008          %     2009
                                £000         £000                £000
Bill and general              26,661       25,436          5   61,301
payments
Online(1)                     56,600       70,297       (19)  135,013
ATMs                           6,808        6,780          -   13,615

Internet payments              4,634        5,295       (12)   11,798

Other                          1,707        1,533         11    2,624
Revenue                       96,410      109,341       (12)  224,351


Bill payment revenue has increased broadly in line with the number of
transactions.  Online revenue (mainly  mobile top-ups) has  decreased
as mobile operators continue to  increase the airtime offered at  the
same or lower cost to the  consumer.  ATM revenue has increased,  but
average revenues per ATM have declined as a consequence of lower cash
withdrawals on more recently placed ATMs and lower rental income,  as
five  year  term  rental  agreements  expire  and  fully  depreciated
machines are rolled over on lower rentals.  Internet payment revenues
are lower, largely as a result  of the migration of larger  merchants
to a lower  margin service,  which will complete  this year.  Overall
revenue in the UK is down 7%  and in Romania and Ireland 28% and  19%
respectively. The decline in revenue  is greater than the decline  in
transactions, because of the impact of acting as principal in  mobile
top-ups in Romania and Ireland.




1         Online consists  mainly of mobile  top-ups but also  prepay
debit cards, e-money schemes, international calling
          cards and the sale of mobile phone SIMs.

Net revenue analysis

Net revenue  is  revenue  less commissions  paid  to  retail  agents,
acquiring bank charges and the cost of mobile top-ups where  PayPoint
is the  principal.  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  Increase/    ended
                        27 September 28 September (decrease) 29 March
                                2009         2008          %     2009
                                £000         £000                £000
Bill and general              15,030       14,174          6   34,388
payments
Online(1)                     12,588       13,025        (3)   25,692
ATMs                           3,303        3,331        (1)    6,641

Internet payments              3,362        3,498        (4)    8,053

Other                          1,707        1,533         11    2,624
Net revenue                   35,990       35,561          1   77,398


Net revenue on bill payments is broadly in line with transaction  and
revenue growth.   Online net  revenue has  not decreased  as much  as
throughput or revenue  as a consequence  of a richer  mix of  e-money
transactions at higher  net revenue per  transaction and  independent
retailers maintaining  mobile top-up  volumes.  ATM net  revenue  has
fallen as a  consequence of  lower average transactions  per ATM  and
lower rental income.  Internet payment net revenues have fallen as  a
consequence of the lower margin from ISO product sales that  migrated
from the Bureau product.

Net revenue in the UK is up 1%, in Romania up 12% and in Ireland down
16%.

Collect+

At the end  of the last  financial year, PayPoint  announced a  50:50
joint venture with Home  Delivery Network, a  leading UK carrier,  to
provide consumers with a more convenient solution for parcel delivery
and collection, through a national  network of outlets selected  from
within the PayPoint network. The service has been launched with  some
of the leading  mail order  and online  e-commerce brands,  including
Littlewoods, Very, Great Universal and Marshall Ward from within  the
Shop  Direct  Group.  These  retailers  make  the  Collect+   outlets
available to their  customers as alternative  delivery addresses  and
for returning goods. These services  should also prove attractive  to
other major e-commerce retailers and to online marketplaces including
eBay Power Sellers.

At the  end of  the period,  we  had 3,063  parcel sites  within  our
existing retailer base. We have launched a C2C (consumer to consumer)
service booked and paid for over the internet (www.collectplus.co.uk)
as well  as  the returns  service  for Shop  Direct  Group.   Initial
volumes are encouraging and we plan to have c.4,000 sites live by the
end of this financial year.  Collect+ parcels are tracked  throughout
the delivery process from dispatch to delivery.


1      Online consists mainly of mobile top-ups but also prepay debit
cards, e-money schemes, international calling cards
        and the sale of mobile phone SIMs.



Network growth

Terminal sites have increased  to 28,413 (29  March 2009: 27,692)  an
increase of 721. The retail network  in the UK and Ireland has  grown
to 22,669 (29 March 2009: 21,990) an increase of 3% on last year end.
Following the appointment  of an  administrator to  two medium  sized
multiple retailers, we have revised the target for terminal growth in
the UK to 1,100 from 1,500.


Analysis of sites                   At           At                At
                          27 September 28 September Increase 29 March
                                  2009         2008        %     2009
UK and Ireland terminal         22,669       20,772        9   21,990
sites
PayPoint Romania terminal        5,744        4,743       21    5,702
sites
Total terminal sites            28,413       25,515       11   27,692
ATM sites                        2,306        2,165        7    2,249
Internet merchants               5,243        5,111        3    5,160



Financial review

Revenue for the  first six  months was £96.4  million (2008:   £109.3
million), down  12%,  driven mainly  by  the decline  in  transaction
volumes in mobile top-ups where PayPoint acts as principal(1).

Cost of sales was £67.6 million (2008: £80.9 million), a decrease  of
17%, 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.
Depreciation and amortisation have  decreased to £2.6 million  (2008:
£3.2 million),  down 17%,  mainly  due to  some ATMs  and  intangible
assets becoming fully  written down  in the  period.  Acquiring  bank
charges are down 29% as internet merchants are moving from the Bureau
product to ISO.

Net revenue(2)  of £36.0  million (2008:  £35.6 million)  was up  1%,
driven primarily  by volume  growth and  mix of  transactions.  Gross
profit improved to £28.9 million  (2008: £28.4 million), 2% ahead  of
the same  period last  year,  with a  gross  margin of  29.9%  (2008:
26.0%).

Operating costs (administrative expenses)  were £14.2 million  (2008:
£14.2 million). Operating costs in the UK terminal and ATM businesses
were down 3% on last year, whilst costs in PayPoint.net and  PayPoint
Romania have increased, as we continue to invest in these companies.

Operating profit  was £14.7  million (2008:  £14.2 million),  up  3%,
excluding the losses in  Collect+. The operating margin(3)  increased
to 40.7% (2008: 39.8%).

Our share of  the loss in  the period of  our parcels joint  venture,
Collect+, was, as expected, £1.0 million (before tax relief).

Profit before tax was £13.8  million (2008: £15.3 million), down  10%
on the same period last year as a consequence of the start up loss in
Collect+ and substantially  lower investment income  on surplus  cash
balances. The tax charge  was £4.1 million  (2008: £4.5 million)  and
the effective tax rate was 30% (2008: 29%).

Operating  cash  flow  was  £6.6  million,  (2008:  £13.3   million),
reflecting corporation  tax  payments  of £9.5  million  (2008:  £5.1
million). Capital expenditure  of £1.6 million  (2008: £2.1  million)
reflected spend on new terminals in  the UK and Romania and on  ATMs.
Collect+ funding was £0.9m  and the purchase of  own shares for  Long
Term Incentive Plans  cost £0.5 million  (2008:£2.5 million).  Equity
dividends paid were £7.8 million  (2008: £7.0 million). Net  interest
received reduced to £0.1 million (2008: £1.0 million) as a result  of
lower interest rates. Net cash and cash equivalents at the period end
were £32.2 million  (2008: £28.2  million) including  client cash  of
£7.2 million (2008: £8.0 million).

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 commissions paid to retail agents,
acquiring bank charges and less the cost of mobile
        top-ups where PayPoint is the principal
3      Operating margin is operating profit (which excludes Collect+)
as a percentage of net revenue


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 20.

Dividend

The board has reviewed the dividend  and in the light of the  group's
ability to generate  strong operating cash  flows, its cash  reserves
and undrawn borrowing facilities, has  concluded that there is  ample
capacity to increase  substantially the  dividend, without  adversely
affecting the group's growth  prospects.  Accordingly, the  directors
have declared  an interim  dividend of  7.4p per  share (2008:  6.0p)
payable on 15 December to shareholders on the register at 4  December
2009.

Liquidity and going concern

The group has  cash of  £32 million, no  debt and  an unsecured  loan
facility of £35 million  with a remaining term  of nearly two  years.
Cash and borrowing capacity is adequate to meet the foreseeable needs
of the group taking account of any risks (see page 20). The condensed
financial statements have therefore been prepared on a going  concern
basis.

Economic climate

The bill and general payments sector is robust in a recession,  where
consumers'  discretion  in  expenditure  is  limited  for   essential
services.      The  internet   payment  market   continues  to   grow
substantially.   Adverse  impact  on  mobile  top-ups  in   developed
economies and in ATM cash withdrawal rates is evident.

PayPoint's exposure to  agent debt  is limited as  credit granted  to
retailers 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
retailers.  Most of the group's clients in the UK, other than  mobile
operators, bear the cost of agent bad debt.  In PayPoint Romania, the
risk of bad debt lies with the company. 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  chargebacks  but this  is  mitigated  by  cash
retention.

Outlook

We expect further growth  in transaction volumes  and net revenue  in
the UK  from increases  in our  market share  and the  growth in  our
network. In Romania, we have already completed signing up most of the
major utilities for  bill payment  and installed  2,260 bill  enabled
terminals and  we  plan  to  roll out  a  further  700  bill  payment
terminals in  the second  half.   We expect  PayPoint Romania  to  be
break-even next  financial year.  In PayPoint.net,  the migration  of
large merchants to our ISO  product at lower margins, which has  held
back results,  will complete  in the  second half,  following  which,
growth will resume.

Trading since  28  September has  been  in line  with  the  company's
expectations and the  directors are confident  that the company  will
meet market expectations.




David Newlands             Dominic Taylor
Chairman                   Chief Executive

19 November 2009






CONDENSED CONSOLIDATED INCOME STATEMENT


                                    Unaudited    Unaudited    Audited
                                     6 months     6 months Year ended
                                        ended        ended   29 March
                                 27 September 28 September       2009
                                         2009         2008       £000
Continuing operations       Note         £000         £000
Revenue                        2       96,410      109,341    224,351
Cost of sales                  2     (67,555)     (80,931)  (160,496)
Gross profit                           28,855       28,410     63,855
Administrative expenses              (14,195)     (14,244)   (30,171)
Operating profit                       14,660       14,166     33,684
Share of loss of joint                  (964)            -      (323)
venture
Investment income                         118        1,142      1,275
Finance costs                             (3)          (4)       (34)
Profit before tax                      13,811       15,304     34,602
Tax                            3      (4,102)      (4,475)   (10,818)
Profit for the period                   9,709       10,829     23,784
Earnings per share

Basic                          4        14.4p        16.1p      35.6p
Diluted                        4        14.3p        16.0p      35.3p






CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


+-------------------------------------------------------------------+
|                         |      | Unaudited | Unaudited |  Audited |
|                         |      |  6 months |  6 months |     Year |
|                         |      |     ended |     ended |    ended |
|                         |      |        27 |        28 | 29 March |
|                         |      | September | September |     2009 |
|                         | Note |      2009 |      2008 |     £000 |
|                         |      |      £000 |      £000 |          |
|-------------------------+------+-----------+-----------+----------|
| Exchange differences on |      |           |           |          |
| translation of foreign  |    8 |       140 |      (19) |      190 |
| operations              |      |           |           |          |
|-------------------------+------+-----------+-----------+----------|
| Net  income / (loss)    |      |       140 |      (19) |      190 |
| recognised directly in  |      |           |           |          |
| equity                  |      |           |           |          |
|-------------------------+------+-----------+-----------+----------|
| Profit for the period   |      |     9,709 |    10,829 |   23,784 |
|-------------------------+------+-----------+-----------+----------|
| Total comprehensive     |      |           |           |          |
| income for the period   |      |     9,849 |    10,810 |   23,974 |
+-------------------------------------------------------------------+



CONDENSED CONSOLIDATED BALANCE SHEET

                                      Unaudited    Unaudited  Audited
                                   27 September 28 September 29 March
                                           2009         2008     2009
                              Note         £000         £000     £000
Non-current assets
Goodwill                                 27,767       27,428   27,628
Other intangible assets                   1,658        2,264    1,973
Property, plant and equipment            15,639       12,235   16,161
Investment in joint venture                  64            -      177
Deferred tax asset                        1,300        1,530    1,128

Investment                                  405          375      375
                                         46,833       43,832   47,442
Current assets
Inventories                               1,253        1,865    1,213
Trade and other receivables              23,013       24,257   26,260
Cash and cash equivalents        7       32,180       28,224   36,345
                                         56,446       54,346   63,818
Total assets                            103,279       98,178  111,260
Current liabilities

Trade and other payables                 35,886       39,999   40,853
Current tax liabilities                   4,110        6,536    9,153


Obligations under finance                     1           28        9
leases
                                         39,997       46,563   50,015
Non-current liabilities

Other liabilities                           293          317      278
                                            293          317      278
Total liabilities                        40,290       46,880   50,293

Net assets                               62,989       51,298   60,967
Equity

Share capital                    8          226          226      226
Investment in own shares         8        (370)        (926)    (926)
Share premium                    8           25            -       25
Share based payment reserve      8        2,239        1,996    2,489

Translation reserve              8          648          299      508
Retained earnings                8       60,221       49,703   58,645
Total equity                             62,989       51,298   60,967



Condensed Consolidated statement of changes in equity


                                      Unaudited    Unaudited  Audited
                                       6 months     6 months     Year
                                          ended        ended    ended
                              Note 27 September 28 September 29 March
                                           2009         2008     2009
                                           £000         £000     £000
Opening equity                           60,967       49,587   49,587
Profit for the period                     9,709       10,829   23,784
Dividends paid                          (7,848)      (7,023) (11,077)

Investment in own shares         5        (490)      (2,489)  (2,489)
Exchange differences on                     140         (19)      190
translation of foreign
operations
Increase in share based
payment                                     511          413      947
 reserve
New shares issued                             -            -       25
Closing equity                           62,989       51,298   60,967




CONDENSED CONSOLIDATED CASH FLOW STATEMENT


                                      Unaudited    Unaudited  Audited
                                       6 months     6 months     Year
                                          ended        ended    ended
                              Note 27 September 28 September 29 March
                                           2009         2008     2009
                                           £000         £000     £000
Net cash from operating          9        6,591       13,322   32,619
activities

Investing activities
Interest received                            85        1,016    1,192
Purchase of property, plant             (1,634)      (2,128)  (9,158)
and equipment

Proceeds from disposal of                    39           31       40
property, plant and equipment

Acquisition of subsidiary                     -      (2,108)  (2,108)

Investment                       5         (30)            -    (500)
Loan to joint venture            5        (850)            -        -
Purchase of own shares           5        (490)      (2,489)  (2,489)
Net cash used in investing              (2,880)      (5,678) (13,023)
activities



Financing activities

Repayments of obligations                     -         (41)     (61)
under  finance leases

Dividends paid                          (7,848)      (7,023) (11,077)

Net cash used in financing              (7,848)      (7,064) (11,138)
activities
Net (decrease)  / increase in           (4,137)          580    8,458
cash and cash equivalents
Cash and cash equivalents at             36,345       27,727   27,727
beginning of period

Effect of foreign exchange                 (28)         (83)      160
rate changes
Cash and cash equivalents at             32,180       28,224   36,345
end of period



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 21. The information  shown
for  the  year  ended  29   March  2009,  which  is  prepared   under
International  Financial   Reporting  Standards   (IFRS),  does   not
constitute statutory accounts  within the meaning  of section 240  of
the Companies Act 1985. The report  of the auditors on the  statutory
accounts for the year ended 29  March 2009, prepared under IFRS,  was
unqualified, did not draw attention to any matters by way of emphasis
and did not contain  a statement under section  237 of the  Companies
Act 1985 and has been filed with the Registrar of Companies.

The adoption  of  IFRS  8  Operating Segments  has  resulted  in  the
segmental disclosures previously required by IAS 14 Segment Reporting
being  replaced  by  those  required  under  IFRS  8.  The   segments
identified in accordance with IFRS 8 have not been changed from those
previously identified as business segments under IAS 14.

The  adoption  of  the  revision  to  IAS  1  has  resulted  in   the
consolidated statement  of changes  in equity  being presented  as  a
primary  statement   (previously   disclosed   as   a   note   titled
Reconciliation of changes in equity) and disclosure of the tax impact
of individual items  in the consolidated  statement of  comprehensive
income. In addition, the group has  elected to continue to present  a
separate income statement and statement of comprehensive income.

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.  The
group's liquidity  and  going concern  review  can be  found  in  the
Management Report on page 8.

2. Segmental reporting, net revenue analysis, cost of sales and gross
throughput

(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 retailers 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.  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 and geographical information

Revenue comprises the value of  sales (excluding VAT) of services  in
the  normal  course  of  business  and  includes  amounts  billed  to
customers to be passed on to retail agents as commission payable, the
sales value to  retailers of  mobile top-ups where  PayPoint acts  as
principal and,  for the  bureau sales  of PayPoint.net,  it  includes
external processing  charges which  are amounts  billed to  merchants
that are passed on to the sponsoring bank.

Revenue performance of the business is measured by net revenue, which
is calculated  as  the total  revenue  from clients  less  commission
payable to  retail agents,  acquiring bank  charges and  the cost  of
mobile top-ups where PayPoint is the principal in the supply chain.

Cost of sales includes the cost  to the group of the sale,  including
commission to  retail  agents,  the  cost  of  mobile  top-ups  where
PayPoint is the  principal in  the supply chain  and sponsoring  bank
charges.




                                       6 months     6 months     Year
                                          ended        ended    ended
                                   27 September 28 September 29 March
                                           2009         2008     2009
                                           £000         £000     £000
Revenue - transaction processing         95,607      108,494  222,693
               - rental income of           803          847    1,658
ATMs
Revenue                                  96,410      109,341  224,351

less:

Commission payable to retail           (36,172)     (41,234) (83,891)
agents
Cost of mobile top-ups as              (22,976)     (30,749) (59,317)
principal

Acquiring bank charges                  (1,272)      (1,797)  (3,745)

Net revenue                              35,990       35,561   77,398



                                       6 months     6 months     Year
                                          ended        ended    ended
                                   27 September 28 September 29 March
                                           2009         2008     2009
                                           £000         £000     £000
Cost of sales

Commission payable to retail             36,172       41,234   83,891
agents
Cost of mobile top-ups as                22,976       30,749   59,317
principal

Acquiring bank charges                    1,272        1,797    3,745
Depreciation and amortisation             2,631        3,177    5,698
Other                                     4,504        3,974    7,845
Total cost of sales                      67,555       80,931  160,496


Geographical information:

                          6 months           6 months            Year
                             ended              ended           ended
                      27 September       28 September        29 March
                              2009               2008            2009
                              £000               £000            £000
Revenue
UK                          70,699             75,762         159,290
Ireland                     12,577             15,429          29,579
Romania                     13,134             18,150          35,482
Total                       96,410            109,341         224,351

Non-current
assets
UK                          45,194             41,451          45,423
Ireland
                                37                 74              61
Romania                      1,602              2,307           1,958
Total                       46,833             43,832          47,442


3. Tax on profit of ordinary activities

                 6 months     6 months     Year
                    ended        ended    ended
             27 September 28 September 29 March
                     2009         2008     2009
                     £000         £000     £000
Current tax         4,274        4,433   10,355
Deferred tax        (172)           42      463

Total               4,102        4,475   10,818


4.  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
                                 27 September 28 September   29 March
                                         2009         2008       2009
                                         £000         £000       £000
Profit for the purposes of basic        9,709       10,829     23,784
earnings per share being net
profit attributable to equity
holders of the parent and for
diluted earnings per share
                                    Number of    Number of  Number of
                                       Shares       shares     shares

Weighted average number of         67,384,136   67,236,551 66,754,486
shares
(for basic earnings per share)
Potential dilutive ordinary
shares:                               112,486       99,693    111,828
Deferred share bonus
Long term incentive plan              490,573      409,654    515,410
Diluted basis                      67,987,195   67,745,898 67,381,724


5. Related party transactions

On 5 June 2009, PayPoint released the second tranche of its long term
incentive plan  awards to  the three  executive directors  and  seven
senior managers. PayPoint Network  Limited Employee Investment  Trust
(the Trust) acquired 23,701 ordinary shares at 532.4 pence per  share
in the open  market. 68,273  shares were then  sold by  participating
directors and managers to the Trust at 532.4 pence per share.

Accordingly, PayPoint has funded £490,000 (excluding deal costs)  for
the purchase  of its  own shares.    The excess  of the  cost of  the
shares acquired over their fair value determined at the date of grant
in accordance with IFRS 2 of £285,000 has been charged to reserves.

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 £850,000.

Investment in OB10

In March  2008, PayPoint  purchased shares  in OB10,  a company  that
specialises in  electronic  invoicing. During  the  period,  PayPoint
subscribed for  a further  £30,000 of  shares under  a rights  issue,
resulting in a shareholding at 27  September 2009 of 1.04% (29  March
2009: 1.05%).


                       6 months     6 months     Year
                          ended        ended    ended
                   27 September 28 September 29 March
                           2009         2008     2009
                           £000         £000     £000
Investment at cost          405          375      375


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    27 September 28 September 29 March
                                           2009         2008     2009
                                              %            %        %
David Newlands                             4.73         4.10     4.10
Dominic Taylor                             1.42         0.42     0.42
George Earle                               0.42         0.42     0.42

Nick Wiles (appointed 22 October           1.04
2009)
Eric Anstee                                0.08                     -


6. Dividend
The interim dividend of 7.4p (2008: 6.0p) was declared on 19 November
2009 and, accordingly, has not been recorded as a liability as at  27
September 2009. The total  dividend in respect of  the year ended  29
March 2009 was 17.6p per share

7. Cash and cash equivalents

Included within cash and cash equivalents is £7.2 million  (September
2008: £8.0  million, March  2009: £7.5  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.

8. Share capital and reserves

                                       6 months     6 months     Year
                                          ended        ended    ended
                                   27 September 28 September 29 March
                                           2009         2008     2009
                                           £000         £000     £000
Authorised share capital

4,365,352,200 ordinary shares of         14,551       14,551   14,551
1/3p each
Called up, allotted and fully paid
share capital

67,737,619 ordinary shares of 1/3p          226          226      226
each
Investment in own shares


At start of period                        (926)        (935)    (935)
Acquired in period (see note 6)           (490)      (2,489)  (2,489)
Used on share scheme vesting              1,046        2,498    2,498
At end of period                          (370)        (926)    (926)
Share premium
At start of period                           25            -        -
Arising on issue of shares                    -            -       25
At end of period                             25            -       25
Share based payment reserve
At start of period                        2,489        2,281    2,281
Additions in period                         460          413      759
Released in period                        (761)        (698)    (764)
Current tax on awards                        51            -      515
Other adjustments                             -            -    (302)
At end of period                          2,239        1,996    2,489
Translation reserve
At start of period                          508          318      318
Movement in the period                      140         (19)      190
At end of period                            648          299      508
Retained earnings

At start of period                       58,645       47,697   47,697
Profit for the period                     9,709       10,829   23,784
Dividends paid                          (7,848)      (7,023) (11,077)
Adjustment on share scheme vesting        (285)      (1,800)  (1,759)
(see note 6)
At end of period                         60,221       49,703   58,645

9. Notes to the cash flow statement

                                       6 months     6 months     Year
                                          ended        ended    ended
                                   27 September 28 September 29 March
                                           2009         2008     2009
                                           £000         £000     £000
Operating profit                         14,660       14,166   33,684
Adjustments for:

Depreciation on property, plant           2,316        2,700    4,907
and equipment

Amortisation of intangible assets           315          477      791

Share based payment expense                 460          413      759
Operating cash flows before              17,751       17,756   40,141
movements in working capital
(Increase)/decrease in inventories         (39)        (609)      155
Decrease  in receivables                    610        4,454    6,178
Decrease in payables

- client cash                             (335)         (18)    (454)
- other payables                        (1,895)      (3,187)  (5,433)
Cash generated by operations             16,092       18,396   40,587
Corporation tax paid                    (9,501)      (5,074)  (7,940)
Interest and bank charges paid                -            -     (28)
Net cash from operating activities        6,591       13,322   32,619





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

19 November 2009



RISKS
PayPoint's business,  financial  condition  or  operations  could  be
materially and  adversely affected  by  the risks  summarised  below.
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 materialisation of some or all of such risks.

+-------------------------------------------------------------------+
| Risk                       | Future  prospects   depend  on   our |
|                            | ability to:                          |
|----------------------------+--------------------------------------|
| Managing  growth  of   the | manage growth through the employment |
| business                   | of   adequate   skilled   resources, |
|                            | whilst     maintaining     financial |
|                            | controls                             |
|----------------------------+--------------------------------------|
| Major  contract  loss   or | renew   contracts   at   expiry   on |
| renewal  at   unattractive | attractive terms                     |
| margins                    |                                      |
|----------------------------+--------------------------------------|
| Dependence     on      key | retain and recruit key staff through |
| executives                 | 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 | mitigate   the    consequences    of |
| multiple retail agent      | insolvency 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 | stop third  parties from  using  our |
| property                   | products and defend  the use of  our |
|                            | products from any challenge          |
|----------------------------+--------------------------------------|
| The need to raise  capital | access   any   future   capital   on |
| in future                  | sufficiently    attractive    terms, |
|                            | particularly in  view of  prevailing |
|                            | economic    conditions    and    the |
|                            | availability of credit               |
|----------------------------+--------------------------------------|
| Economic,       political, | to  deal  with  the  impact  of  any |
| legislative,  taxation  or | changes without affecting the growth |
| regulatory changes         | or profitability of the business     |
|----------------------------+--------------------------------------|
| Taxation                   | ensure the  impact  of  any  adverse |
|                            | changes  is  mitigated  by  enhanced |
|                            | performance                          |
|----------------------------+--------------------------------------|
| Fraudulent   or   criminal | avoid loss  of client  money by  the |
| activity                   | rigorous application of controls     |
|----------------------------+--------------------------------------|
| Consumers reduce number or | establish new products and  services |
| value of payments via  the | and keep  abreast  of  technological |
| PayPoint network           | 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  27  September  2009,  which  comprises  the  condensed
consolidated income  statement,  the condensed  consolidated  balance
sheet, the condensed consolidated statement of comprehensive  income,
the condensed  consolidated  statement  of  changes  in  equity,  the
condensed consolidated cash flow statement and related notes 1 to  9.
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.   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.  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.   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  IFRS as  adopted by  the  European
Union.  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.
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. 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.  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 27 September  2009
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 Registered Auditor
19 November 2009
London, UK

DIRECTORS & KEY CONTACTS



Directors
                          George Earle (Finance Director)
                          Dominic Taylor (Chief Executive)
                          Tim Watkin-Rees (Business Development
                          Director)
                          Eric Anstee*
                          David Morrison*
                          David Newlands* (Chairman)
                          Andrew Robb*
                          Stephen Rowley*
                          Nick Wiles *  (appointed 22 October 2009)
                          Roger Wood*

                          * 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        Finsbury
relations enquiries       Tenter House
                          45 Moorfields
                          London
                          EC2Y 9AE
                          Telephone No. 020 7251 3801




ABOUT PAYPOINT
PayPoint is the leading cash and internet payments company in the UK,
with  operations  also  in  Ireland  and  Romania.  It  handles  over
£9.3billion from almost  550 million transactions  annually for  more
than 6,000  clients  and  merchants.  The  company  operates  several
businesses:
*          The PayPoint branded retail network numbers over 22,600
  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 and Ireland. The terminals
  process gas and electricity 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,
  telecommunications suppliers and many consumer service companies;

  * An ATM network which has over 2,300 'LINK' branded machines
    across the UK, typically in convenience stores;
  * PayPoint.net, an internet payment service provider, delivers
    secure online credit and debit card payments for over 5,200 web
    merchants, linking into all major UK acquiring banks;
  * PayPoint Romania, a branded national retail network of over 2,260
    terminals located in local shops which process cash bill payments
    for all the major utilities and mobile top-ups and a further
    3,500 terminals that process mobile top-ups only; and
  * Collect+, a joint venture with Home Delivery Network Limited,
    provides a parcel collection and drop off service at PayPoint
    retailers.

PayPoint floated on the London  Stock Exchange in September 2004  and
the company's market capitalisation at 27 September was £318 million.
PayPoint is  widely  recognised  for  its  leadership  in  prepayment
systems, smart technology and consumer service.

19 November 2009


Enquiries:

PayPoint plc                                                    01707
600 300
Dominic Taylor, Chief Executive
George Earle, Finance Director


Finsbury
020 7251 3801
Rollo Head
Don Hunter

This announcement is available on the PayPoint plc website:
www.paypoint.com.

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