PayPoint PlcTrading update for the three months ended 31 December 20211
20 January 2022
A positive quarter across the PayPoint Group in line with expectations
Nick Wiles, Chief Executive of PayPoint Plc, said:
“Our third quarter has been an important period for the business as we build on the positive trading performance delivered in the first half. We have continued to perform well over the quarter despite the impact of exceptionally mild weather on our energy business, and with a strong performance from our e-commerce business through the key Christmas peak trading period, in terms of both parcel volumes and customer satisfaction. Our cost management and capital discipline over the quarter has also remained strong.
“Our focus on operations and strategic priorities has been relentless: the home delivery partnership with Snappy Shopper continues to grow with more than 190 stores now live and over £1m of store sales since launch in July 2021; and our new Counter Cash solution is now live in over 1,700 sites, providing vital access to cash in communities across the UK.
“We also secured our first major housing client with Optivo, a leading UK housing association, for our complete digital payments solution, and we continue to grow the new Payment Exception Service for the Department for Work and Pensions as consumers migrate away from Post Office Card Accounts. Furthermore, we diversified our e-commerce offering further with an expansion of our partnership with Randox, providing vital Covid-19 testing services throughout our Collect+ and multiple retailer network.
“We continue to demonstrate agility and drive to respond quickly to changing consumer demands and new opportunities in our markets. As a result, we remain well-placed to support our partners in response to the wider trends that have accelerated through the pandemic, including the continued shift from cash to digital payments, the growing demand for online shopping fulfilment and the increase in shopping local. The Board’s expectations for the full year remain unchanged.”
HIGHLIGHTS
Good performance across the Group building on positive first half
PayPoint Group
Shopping
E-commerce
Payments & Banking
BUSINESS DIVISION NET REVENUE AND MIX
PROGRESS AGAINST OUR STRATEGIC PRIORITIES
PRIORITY 1: EMBED PAYPOINT GROUP AT THE HEART OF SME AND CONVENIENCE RETAIL BUSINESSES
SHOPPING BUSINESS DIVISION – Q3 FY22 net revenue £14.5m (Q3 FY21: £9.2m)
Retail services
Card payments
PRIORITY 2: BECOME THE DEFINITIVE TECHNOLOGY-BASED E-COMMERCE DELIVERY PLATFORM FOR FIRST AND LAST MILE CUSTOMER JOURNEYS
E-COMMERCE BUSINESS DIVISION – Q3 FY22 net revenue £1.5m (Q3 FY21: £1.1m)
PRIORITY 3: SUSTAIN LEADERSHIP IN ‘PAY-AS-YOU-GO’ AND GROW DIGITAL BILL PAYMENTS
PAYMENTS & BANKING BUSINESS DIVISION – Q3 FY22 net revenue £13.6m (Q3 FY21: £14.1m)
Digital
Cash through to digital
Cash
PRIORITY 4: BUILDING A DELIVERY FOCUSED ORGANISATION AND CULTURE
PAYPOINT GROUP
OFGEM
BALANCE SHEET AS AT 31 DECEMBER 2021
The Group had net corporate debt of £47.5 million (31 March 2021: £68.2 million) reflecting cash balances of £9.5 million (31 March 2021: £18.4 million), less loans and borrowings of £57.0 million (31 March 2021: £86.6 million).
DIVIDEND
The Board previously declared an increased interim dividend of 17.0 pence per share (September 2020: 15.6 pence) payable in equal instalments of 8.5 pence per share on 30 December 2021 (to shareholders on the register on 3 December 2021) and 7 March 2022 (to shareholders on the register on 4 February 2022). This is an increase of 2.4% compared to the final dividend declared on 27 May 2021 of 16.6 pence per share, and an increase of 9.0% compared to the same period last year (September 2020: 15.6 pence).
Enquiries
PayPoint plc Finsbury Nick Wiles, Chief Executive (Mobile: 07442 968960) Rollo HeadAlan Dale, Finance Director (Mobile: 07778 043962) James Thompson (Telephone: 0207 251 3801) (Email: [email protected])
ABOUT PAYPOINT GROUP
For tens of thousands of businesses and millions of consumers, we deliver innovative technology and services that make life a little easier.
The PayPoint Group serves a diverse range of organisations, from SME and convenience retailer partners, to local authorities, multinational service providers and e-commerce brands. Our products are split across three core business divisions:
Together, these solutions enable the PayPoint Group to create long-term value for all stakeholders, including customers,communities and the world we live in.
1 PayPoint’s auditors have not been requested to review the performance
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