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Paypoint plc (PAY)

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Thursday 16 August, 2007

Paypoint plc

Interim Management Statement

PayPoint plc
Interim Management Statement
16 August 2007

The board is pleased  to report on  events, transactions and  trading
since last year end.  Over the period, a number of key contracts have
been  renewed  and  good  progress  made  on  a  number  of  business
initiatives to expand our product offering.

Material events and transactions

As noted in our  annual report, since the  end of our last  financial
year on 25 March 2007 PayPoint acquired Pay Store SRL.  Pay Store  is
a leading  Romanian mobile  top-up supplier  selling both  electronic
top-ups and scratch cards through over 6,000 retail outlets, 4,000 of
which have electronic terminals.   The consideration for the  company
was ¤16 million with the potential  for a further ¤1 million  payable
or recoverable subject to performance post-acquisition.

Terminal sites (excluding Romania) have increased by over 1,000 since
the year end.  We have  renewed contracts with Spar and extended  our
retail coverage  with new  contracts  for multiples  and  independent

Five regional transport companies signed contracts with PayPoint, all
of which are exclusive.  Contracts have been concluded with the Light
Agency (Shop Scan Save electronic  vouchers), with Coinstar for  gift
cards and with several  prepay debit card  providers.  Western  Union
money transfer volumes have  continued to grow and  we now have  more
than 500 agents.

Performance[1] for the  period from  26 March to  29 July  2007[2]and
financial position1 as at 29 July 2007[3]

Bill and general payment transaction volume was 95 million (up  28%).
The BBC TV Licence contract, which was exclusive from 1 August  2006,
contributed strongly to this growth.

Mobile volume was 48  million (up 12  %), mainly as  a result of  the
increase in terminals sites.

ATM volume  was 5  million  (up 20  %), mainly  as  a result  of  the
increase in ATMs to 1,979 at 29 July 2007.

The reorganisation and restructuring  of the newly acquired  internet
payment and Romanian businesses are proceeding according to plan.

Earnings to date are in line with market expectations.

After the payment of the consideration  for Pay Store of £10  million
and the final dividend  of £6 million,  net cash at  29 July was  £15
million (including client cash of £7 million).


Finsbury                                                          020
7251 3801

Don Hunter


PayPoint is the leading cash and internet payments company in the  UK
and Ireland, handling  in excess of  £5 billion in  over 400  million
transactions annually for more than 5,000 clients and merchants.  The
company operates with several significant payment streams:

§          The PayPoint branded  retail network  numbers over  18,500
terminals located in local shops  (including Co-op, Spar, Costcutter,
Sainsburys Local, One Stop, Londis and thousands of independents)  in
all parts of the UK and Ireland. Terminals handle gas and electricity
meter  prepayments,  cash  bill   payments,  mobile  phone   top-ups,
transport tickets, London Congestion Charges,  BBC TV licences and  a
wide variety of other payment types for all of the leading utilities,
telecommunications suppliers  and  many consumer  service  companies.
This network is  used by consumers,  free of charge,  over 7  million
times a week.  The network  has 97.3% population  cover on  a 1  mile
urban or 5 miles rural measure;

§       Additional multiple retailer connections into the  electronic
till systems of  nearly 4,000  outlets including  BP, Somerfield  and
Superdrug for mobile top-ups and selected payments from the  PayPoint

§        The PayPoint ATM  network has 1,979 'LINK' branded  machines
across the UK, also typically in convenience stores;

§          PayPoint  Internet Payment  Services (PPIPS),  trading  as
Metacharge and SECPay, provides secure credit and debit card payments
for over 4,000 web merchants linking into all the major UK  acquiring
banks; and

§          PayPoint International  has recently  acquired a  Romanian
mobile top-up operator to which a bill payment service will be added,
emulating the UK branded retail network. PayPoint International  also
operates Irish bill payment and top-up services.

PayPoint floated on the London Stock Exchange in September 2004.  The
company's market capitalisation  at 25 March  2007 was £464  million.
PayPoint has been  awarded the  Queen's Award for  Enterprise and  is
widely recognised  for its  leadership in  prepayment systems,  smart
technology and consumer service.

[1]  PayPoint's auditors have not been requested to review the
performance or financial position
[2] Comparative data is given for the similar period last year ( i.e.
27 March to 30 July 2006)
[3] Comparative data is given as at 30 July 2006



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