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Paypoint plc (PAY)

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Thursday 14 July, 2011

Paypoint plc

Interim Management Statement

PayPoint plc
Interim Management Statement
14 July 2011

Ahead  of  PayPoint's  annual  general  meeting  to  be held tomorrow, the board
reports on events, transactions and trading since the last financial year end on
27 March 2011.
Performance(1) for the first quarter period ending 26 June 2011(2)
Overall   transactions  processed  for  the  period   were  146 million,  up  7%
 compared  to 136 million for the same period last year.
Revenues  of £47.7 million  are up 2% on  last year.  PayPoint's net revenues(3)
for  the period were  up 4% to £20.8  million as a  result of the growth in bill
payment and retail services, partially offset by a decline in mobile top-ups.
Established business streams
UK  and Irish bill and general payment  transactions were 3% up on last year, in
line  with our  expectations.  Retail  services transactions  from ATMs, debit /
credit  cards, parcels  and mobile  phone SIM  cards were  up 29% on  last year.
Mobile top-ups continue to be adversely affected by the reduction in the prepaid
sector.   UK and Irish retail sites (including virtual terminals which are being
rolled  out to two UK national convenience retailers in over 1,500 sites) at 26
June numbered 23,851, up 338 since the financial year end.
Internet  transactions increased 37% to 17 million over last year, driven by new
and existing merchants.
Developing Businesses
In  Romania, we have processed 4 million bill  payments in the period, up 74% on
last year. We have increased our terminal estate since the year end by 378 sites
to  6,373.  Encouragingly, our Romanian business  has reached breakeven over the
last two months.
PayByPhone  transactions processed in the period  were 4 million, up 24% on last
Collect+  volumes have more than quadrupled  to over 617,000 transactions in the
period  compared to  135,000 last year.   We have  increased the number of sites
offering Collect+ since the year end by 193 to 3,861.
Balance sheet
The  group has maintained  a strong balance  sheet. Net cash  at 26 June was £23
million  (excluding  client  cash  of  £2.8  million), compared to £20.3 million
(excluding client cash of £6.1 million) at 27 March 2011.  The final dividend of
£10.6  million is due  for payment on  22 July 2011, subject to  approval at our
annual general meeting on 15 July.
Dominic Taylor, PayPoint's Chief Executive, said:
"Overall  trading  for  the  period  to  26 June  2011 was  in  line with market
expectations,  taking seasonality of trading into  account.  We are pleased with
the  continuing  growth  of  our  established  business  streams  this year. The
momentum  in our developing  businesses is also  encouraging and we have reached
breakeven  in Romania over  the last two  months.  We look  forward to improving
returns on our invested capital in these businesses."

1  PayPoint's auditors have not been requested to review the performance or
financial position
2  Comparative data is given for the similar 13 week period last year (i.e. 29
March to 27 June 2010)
3  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.

Finsbury+44 207 251 3801
Rollo Head/Don Hunter


PayPoint is a leading international provider of convenient payments and value
added services to major consumer service organisations in the utility, housing,
water, telecoms, media, financial services, transport, retail, e-commerce,
gaming and public sectors.

PayPoint delivers payments and services through a uniquely strong combination of
local shops, internet and mobile distribution channels and handles over £10
billion from 590 million transactions annually for more than 6,000 clients and

Retail networks
The PayPoint branded retail network in the UK is located in over 23,000 local
shops (including Co-op, Spar, McColls, Costcutter, Sainsbury's Local, One Stop,
Londis and thousands of independents). Its ATM network numbers 2,500 'LINK'
branded machines across the UK, mainly in the same sites as PayPoint terminals.
Collect+, a joint venture with Yodel, provides a parcel collection and drop off
service at nearly 4,000 PayPoint retailers.
In Romania, the branded retail network numbers over 6,000 terminals located in
local shops, processing cash bill payments for utilities and mobile phone top-
ups. In Ireland, over 500 outlets in shops and credit unions process mobile top-
ups and bill payments.

Internet is an internet payment service provider linking into all major UK
acquiring banks to deliver secure online credit and debit card payments for over
5,300 web merchants. It offers a comprehensive set of products ranging from a
transaction gateway through to a bureau service and FraudGuard, an advanced
service to mitigate the risk of fraud.

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.  It has contracts in the UK, France, Canada and
the USA.

PayPoint is widely recognised for its leadership in prepayment systems, smart
technology and consumer service.

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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