PayPoint plc Preliminary results Year ended 31 March 2016

The full announcement is available here

 

HIGHLIGHTS

	Year ended 31 March 2016	Year ended 31 March 2015	Change
Revenue	£212.6m	£218.5m	(2.7%)
Net revenue1	£123.6m	£123.1m	0.4%
Gross margin	49.9%	48.1%	1.8ppts
Adjusted operating profit2	£50.1m	£49.5m	1.2%
Profit before tax	£8.2m	£49.6m	(83.6%)
Adjusted earnings per share3	58.4p	57.4p	1.9%
Ordinary dividend per share	42.4p	38.5p	10.1%
Disposal proceeds dividend per share	21.0p	-	-

 

Continued progress in our strategic priorities

• Success in MultiPay, our multi-channel payment solution, with 7 contracted, including our first Big 6 energy client
• PayPoint One - next generation point-of-sale terminal, has now entered commercial trials
• Sale of the online payments business in January 2016 for £14.4 million in cash
• Negotiations for sale of the mobile payments business continue but impairment of £30.8 million recorded in absence of sale
• Discussions continue with Yodel on Collect+, with reduced profitability from temporary cost increases
• Special annual dividend of £25 million, one third from December 2016, two thirds in July 2017

Operating highlights 

• Retail services transactions grew by 17.8% to 140.0 million
• Romanian bill payments up by 12.7% to 60.2 million
• Total retail network sites increased to 39,000, with over 10,000 sites in Romania
• Profit before tax £8.2 million after £42 million impairment net of profit on sale of Online

Financial highlights

• Net revenue up 1.9% in retail networks
• Adjusted operating profit before impairment and profit on disposal grew by 1.2%
• Increase in adjusted diluted earnings per share by 1.9% to 58.4p
• Final dividend increased to 28.2p, a total ordinary dividend for the year of 42.4p, an increase of 10.1%
• Online payments business sale gross proceeds distribution 21.0p, payable with the final dividend

 

Enquiries

PayPoint plc (telephone: 01707 600 317)
Dominic Taylor, Chief Executive
George Earle, Finance Director                      

Finsbury (telephone: 0207 2513 801)
Rollo Head
Andy Parnis

A presentation for analysts is being held at 11.45am today (26 May 2016) at Finsbury Group, Tenter House, 45 Moorfields London EC2Y 9AE.

 

The full announcement is available here

 

1. Net revenue is revenue less the cost of mobile top-ups (where PayPoint is principal), SIM cards and other costs incurred by PayPoint, which are recharged to clients and merchants.  These costs include retail agent commission, card payment merchant service charges and costs for the provision of call centres for PayByPhone.  

2. Adjusted operating profit excludes impairments of £49.0 million and profit on disposal of the online payments business of £7.0 million and includes our share of joint venture results. 
3. Adjusted earnings per share excludes impairments of £49.0 million and the profit on disposal of the online payments business of £7.0 million. 

Net revenue, adjusted operating profit and adjusted earnings per share are measures the directors believe will assist with a better understanding of the underlying performance of the group.