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PayPoint PLC (PAY)

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Thursday 10 March, 2005

PayPoint PLC

Trading Statement

PayPoint PLC
10 March 2005

10th March, 2005

                                  PayPoint plc
                                Trading Statement
                      for the year ending 31st March, 2005

Ahead of PayPoint entering its close period, the board of directors is providing
the following trading update.

Transaction volumes and the margin mix in the second half are ahead of

Net revenue from bill payments is approximately £0.4 million ahead of
expectations, driven primarily by market share gains combined with higher energy
transaction volumes.

The rate of growth in mobile phone e top-up volumes in the second half has
slowed as expected. Net revenue is ahead of expectations by nearly £1million, as
a result of the delay in the forecast migration of transactions from PayPoint's
own terminals to retailer owned electronic point of sale (epos) till systems,
which produce lower revenues for PayPoint. As a result, the reduction in second
half margins, anticipated at the time of our interim announcement has not yet
occurred. However, the migration should occur in the first half of next year.

ATM roll out continues at about 50 new ATMs per month. Transaction levels,
whilst satisfactory, are marginally lower than expected, divided equally between
balance enquiries and cash withdrawals.

The roll out of our new terminal continues on track and we have over 4,000 new
terminals operating at retail agents.

The roll out of our new point of sale marketing materials to the independent
retail estate has commenced. The successful retail acceptance of this programme
has encouraged some multiple retailers to seek similar upgraded point of sale
materials and this will drive some increased refurbishment spend into next year.

Overall, the expected outturn for the year is therefore ahead of market
expectations, and positions PayPoint for continued growth in 2006.

Rollo Head                                         020 7251 3801
Don Hunter

This announcement is available on the PayPoint plc website:

About PayPoint

PayPoint is a leading branded payment collection network used, primarily, for
the cash payment of bills and services and prepayments for mobile telephones and
energy meters. There are over 12,000 retail outlets using PayPoint's payment

PayPoint began trading in 1996 and initially collected payments through its
network of retail agents for its founder client investors, who included British
Gas, BT, BBC TV Licensing, London Electricity (now part of EDF Energy) and four
water companies.

It now has more than 400 clients including many of the UK and Ireland's major
energy, cable, mobile and fixed line telephony companies. Its blue chip client
list also extends to numerous water companies, local authorities and housing
associations and a growing transport and travel base.

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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