Paypoint plc Paypoint Plc : Interim Management Statement

 
TIDMPAY 
 
 
 
 
   PayPoint plc 
 
   Interim Management Statement1 
 
 
 
   28 July 2016 
 
   Ahead of PayPoint's annual general meeting today, the board reports on 
events, transactions and trading for the three months ended 30 June 
2016. 
 
   Performance2  for the first quarter 
 
   Transactions increased to 172.8 million, up 1%, excluding transactions 
for the online payments business, which was sold on 8 January 2016, from 
the prior year comparative. 
 
   Revenue increased to GBP51 million, up 3%, and net revenue3 increased to 
GBP29 million, up 8%, excluding the online payments business revenues in 
the prior year comparative. 
 
   In the UK and Ireland, retail services transactions (ATMs, debit/credit 
cards, parcels, money transfers and mobile phone SIM cards) growth 
continued, up 11.7% on last year. Bill and general transactions were 5% 
lower than last year primarily due to reduced levels of energy 
consumption. Top-ups decreased 17.3% from last year as a result of the 
decline in top-ups other than e-money. UK and Irish retail sites at 30 
June numbered 28,896, down 191 sites since the year end as a consequence 
of natural churn and the decision to pause the roll out of sites pending 
the introduction of the new PayPoint One terminal. Sites are expected to 
increase in the balance of the year. 
 
   In Romania, profitable growth continued. The business processed 16.0 
million bill payments in the period, up 10% on last year. The terminal 
estate increased by 197 sites since the year end to 10,338 sites. The 
business continues to add new clients and services. 
 
   Collect+ volumes increased by 5.8% to 5.2 million transactions in the 
period, compared to 4.9 million last year. There has been a small 
decrease in Collect+ sites by 10 to 5,926 since year end. Discussions 
with Yodel about Collect+ are progressing. 
 
   In the mobile payments business, transactions increased by 35.1% to 15.5 
million in the period, compared to 11.5 million last year, mainly as a 
result of additional volumes from existing clients. The sale of this 
business is ongoing. 
 
   Balance sheet 
 
   The group has maintained a strong balance sheet. Net cash at 30 June was 
GBP74million4, compared to GBP81 million4 at 31 March 2016. The final 
dividend of GBP19 million is due for payment on 29 July 2016, subject to 
approval at our annual general meeting today. The gross proceeds from 
the sale of the online payments business of GBP14 million, will also be 
paid on this date. We expect to distribute the sale proceeds of the 
mobile payments business, when sold. We will also pay the first part of 
the GBP25 million special annual dividend announced in the last year's 
results, which will amount to GBP8.3 million with the interim dividend 
in December this year. 
 
   Outlook 
 
   Dominic Taylor, PayPoint's Chief Executive, said: 
 
   "Overall trading for the first quarter remains in line with our 
expectations. We continue to make good progress on our strategy. The 
commercial trial of PayPoint One is encouraging. Together with MultiPay, 
which is also progressing well, I am confident we have the platforms for 
extending and enhancing our proposition for clients and retailers." 
 
 
   1. This announcement contains insider information for the purposes of 
      Article 7 of Regulation (EU) No. 596/2014. 
 
   2. PayPoint's auditors have not been requested to review the performance or 
      financial position. 
 
   3. 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 other costs include retail 
      agent commission, card payment merchant service charges and costs for the 
      provision of call centres for PayByPhone. 
 
   4. Including client cash of GBP7 million (31 March: GBP22 million), but 
      excluding cash held in Mobile of GBP2 million (31 March: GBP2 million), 
      which is held for sale. 
 
 
 
 
PayPoint plc                       Finsbury 
 (telephone: [phone])         (telephone: [phone]) 
 
  Dominic Taylor, Chief Executive    Rollo Head 
George Earle, Finance Director     Andy Parnis 
 
 
   ABOUT PayPoint 
 
   We support market leading national networks across 39,000 convenience 
stores in the UK and Romania so that our customers are always close to a 
PayPoint store. In thousands of locations, as well as at home or on the 
move, people use us better to control their household finances, 
essential payments and in-store services, like parcels. Our UK network 
contains more branches than all banks, supermarkets and Post Offices 
together, putting us at the heart of communities for over 10 million 
regular weekly customers. 
 
   We have a proven track record of decades of tech-led innovation, 
providing retailers with tools that attract customers into their shops. 
Our industry-leading payments systems give first class service to the 
customers of over 1,500 clients - utility companies, retailers, 
transport firms and mobile phone providers, government and more. 
 
   We are on and offline; providing for payments by cash, card including 
contactless; retail, phone and digital; at home, work and whilst out and 
about from Land's End to the highlands and islands - helping to keep 
modern life moving. 
 
   Multichannel payments 
 
   We offer clients streamlined consumer payment processing and transaction 
routing in one, seamlessly integrated solution, through MultiPay. This 
gives customers the flexibility to pay in the way that best suits them; 
including mobile app, online, text, phone/IVR and cash in-store. 
 
   MultiPay is live with Utilita, a fast growing challenger energy 
supplier. We have signed several other energy companies, a framework 
agreement with Procurement for Housing and, significantly, Scottish and 
Southern Energy, our first Big 6 energy client. 
 
   Retail networks 
 
   In the UK, our network includes 29,000 local shops including Co-op, Spar, 
Sainsbury's Local, Tesco Express and thousands of independent outlets. 
These outlets are quick and convenient places to make energy meter 
prepayments, bill payments, benefit payments, mobile phone top-ups, 
transport tickets, TV licenses, cash withdrawals and more. 
 
   Our Romanian network continues to grow profitably. We have over 10,000 
local shops, helping people to make cash bill payments, money transfers, 
road tax payments and mobile phone top- ups. Our clients include all the 
major utilities and telcos and many other consumer service companies. 
 
   In the UK, our Collect+ joint venture with Yodel offers parcel drop-off 
and pick-up services in nearly 6,000 convenience stores. Customers use 
Collect+ to handle parcels from major retailers including Amazon, eBay, 
ASOS, New Look, John Lewis, House of Fraser, M&S and Very. 
 
   The UK network also includes 4,200 LINK branded ATMs, and 10,000 of our 
terminals enable retailers to accept debit, credit and contactless 
payments, including Apple Pay. 
 
   We operate over 3,000 Western Union agencies in the UK and Romania for 
international and domestic money transfers. 
 
   Interim Management Statement: 
http://hugin.info/137093/R/2031221/755726.pdf 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: PayPoint plc via Globenewswire 
 
   HUG#2031221 
 
 
  http://www.paypoint.co.uk/default.htm 
 

(END) Dow Jones Newswires

July 28, 2016 02:00 ET (06:00 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.