PayPoint (PAY)

Sector:

Support

Index:

FTSE Small Cap

770.00p
   
  • Change Today:
    -5.00p
  • 52 Week High: 777.90
  • 52 Week Low: 453.50
  • Currency: UK Pounds
  • Shares Issued: 71.95m
  • Volume: 394,052
  • Market Cap: £554.02m
  • RiskGrade: 152

PayPoint revenues rise as it repositions itself post-pandemic

By Josh White

Date: Thursday 25 Nov 2021

LONDON (ShareCast) - (Sharecast News) - PayPoint reported net revenue from continuing operations of £56.1m in its first half on Thursday, up 20.9% year-on-year, which it said was driven by a "proactive recovery" from the prior year impacts of Covid-19.
The London-listed payment handling firm also cited a "positive contribution" from Handepay and merchant rentals, supported by the acquisitions of i-movo and RSM 2000.

Profit before tax from continuing operations, excluding exceptional items, totalled £21.9m for the six months ended 30 September, making for a year-on-year improvement of 30%.

PayPoint said the disposal of its Romanian business was completed on 8 April, delivering a profit before tax from the discontinued operation of £30m, with final cash proceeds net of disposal costs totalling £47.6m.

The acquisition of RSM 2000, meanwhile, completed on 12 April for an initial cash consideration of £5.9m, with £1m deferred, which the board said enhanced its digital payments capability, added innovative mobile payment products, and would enable further reach into "new and existing" sectors.

Those sectors would include charities, housing, not-for-profit organisations, events and small-to-medium enterprises in the UK, the board said.

PayPoint made an investment in Snappy Group on 7 July for cash of £6.7m, positioning it to take advantage of the rapid growth in consumer demand for local home delivery over the last 18 months.

Total costs from continuing operations, excluding exceptional items, totalled £34.2m for the period, which was up 15.5% year-on-year.

The board put that down to the £7.1m additional cost base in relation to newly-acquired businesses, partially offset by £1.5m reductions in operational costs and £1m of one-off acquisition costs in the 2021 financial year.

Net corporate debt stood at £36.5m at the end of the first half, up from £6.1m year-on-year, which the board said reflected corporate cash balances of £7.2m, less borrowings of £43.7m.

It said net corporate debt had reduced by £31.7m since the end of last year, as the proceeds received on the sale of the Romanian business were used to repay most of the revolving credit facility.

PayPoint's board increased the interim dividend to 17p per share, up 2.4% over the final dividend declared on 27 May, and 9% higher than the interim dividend a year ago.

"The group has continued to perform well in the first half of the year, with further progress made on the numerous growth opportunities across our expanded business," said chief executive officer Nick Wiles.

"We have delivered this positive performance against the backdrop of continued uncertainty in our energy markets and its impact on our clients, as well as responding in a number of areas of the business to the impact of changing consumer behaviours as Covid-19 restrictions have eased.

"Good progress has been made on our strategic priorities: we've continued to enhance our proposition to help our retailer partners respond to key consumer demand trends, such as local store to door delivery and FMCG rewards, backed up by increased engagement with them and key trade associations."

Wiles said the company also started the rollout of its 'Counter Cash' solution, providing "vital access" to cash in communities across the UK.

"We've secured more client wins for our digital payments solutions and i-movo has launched a major new service with the Department for Work and Pensions replacing the Post Office Card Account; and we've diversified our e-commerce offering to launch more services with existing clients whilst building out our consumer Parcel Send service.

"Many of these new services have underlined the need to grow consumer awareness directly for our expanded proposition, with a further shift away from the B2B2C model of our legacy markets.

"Strategically, in the half year, we have continued to build on the transformative changes we delivered last year to expand growth opportunities and leverage our strengthened capabilities by completing the acquisition of RSM 2000 for an initial cash consideration of £5.9m, enhancing our digital payments capability, and making a strategic £6.7m investment in Snappy Group, positioning us to support the convenience sector in response to consumer demand for local store to door delivery."

Nick Wiles said that across the company's "expanded universe" of more than 60,000 SME and retailer partner locations, it was "well-placed" to support its partners in response to the wider trends that had accelerated through the pandemic.

Those included the continued shift from cash to digital payments, the growing demand for online shopping fulfilment, and the increase in shopping local.

"Overall, the board's expectations for the full year remain unchanged."

At 0939 GMT, shares in PayPoint were down 0.46% at 647p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

PayPoint Market Data

Currency UK Pounds
Share Price 770.00p
Change Today -5.00p
% Change -0.65 %
52 Week High 777.90
52 Week Low 453.50
Volume 394,052
Shares Issued 71.95m
Market Cap £554.02m
RiskGrade 152

PayPoint Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
76.49% below the market average76.49% below the market average76.49% below the market average76.49% below the market average76.49% below the market average
64.44% below the sector average64.44% below the sector average64.44% below the sector average64.44% below the sector average64.44% below the sector average
Price Trend
87.06% above the market average87.06% above the market average87.06% above the market average87.06% above the market average87.06% above the market average
83.84% above the sector average83.84% above the sector average83.84% above the sector average83.84% above the sector average83.84% above the sector average
Income
52.07% above the market average52.07% above the market average52.07% above the market average52.07% above the market average52.07% above the market average
38.98% above the sector average38.98% above the sector average38.98% above the sector average38.98% above the sector average38.98% above the sector average
Growth
54.61% above the market average54.61% above the market average54.61% above the market average54.61% above the market average54.61% above the market average
41.30% above the sector average41.30% above the sector average41.30% above the sector average41.30% above the sector average41.30% above the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 0
Sell 1
Strong Sell 0
Total 4
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

PayPoint Dividends

  Latest Previous
  Final 3rd Interim
Ex-Div 29-Aug-24 04-Jul-24
Paid 27-Sep-24 06-Aug-24
Amount 9.60p 9.60p

Trades for 31-Oct-2024

Time Volume / Share Price
16:35 17,758 @ 770.00p
16:35 1 @ 770.00p
16:35 67 @ 770.00p
16:35 78 @ 770.00p
16:35 129 @ 770.00p

PayPoint Key Personnel

CEO Nick Wiles
Chair Giles Kerr
CFO Rob Harding

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