Paypoint plc Paypoint Plc : Statement Regarding Mobile Payments Business

 
TIDMPAY 
 
 
   23 December 2016 
 
   ANNOUNCEMENT OF SALE OF PAYPOINT'S MOBILE PAYMENTS BUSINESS 
 
   PayPoint plc announces the sale of Mobile Payments to Volkswagen 
Financial Services AG for GBP26.5 million paid in cash at completion 
today. A dividend of the gross sale proceeds, which amounts to 38.9p per 
share, will be paid on 11 January 2017 to shareholders on the register 
on 6 January 2017. 
 
   This sale marks the conclusion of the restructuring set out in the 
announcement made in May 2015 and follows the sale of Online Payments in 
January this year.  The mobile payments business is performing better 
than expected, with record transaction volumes and mobile app downloads 
driving growth in revenue.  However, its sale is in line with PayPoint's 
strategy of narrowing our focus on multi-channel payments in territories 
in which we have retail networks. 
 
   The mobile payments business comprised PayByPhone Technologies Inc., 
PayByPhone Limited, Mobile Payment Services SAS and Adaptis Solutions 
Limited. The aggregate loss before tax of the mobile business was GBP2.6 
million for the year ended 31 March 2016. The gross assets were GBP5.2 
million at 30 September 2016. The business contracts with parking 
authorities to provide mobile phone payment of parking charges in the UK, 
USA, Canada, France and Switzerland.  The net book value at completion 
was GBP2.3 million and there was an adverse balance on the exchange 
translation reserve of GBP2.0 million, in relation to the non-UK mobile 
payment subsidiaries. 
 
   Dominic Taylor, Chief Executive said: "I am delighted to have found such 
a well suited company to acquire our PayByPhone business and take it 
forward. We wish the buyer and the employees of PayByPhone the best for 
the future.  With the major restructuring completed in line with our 
strategy, we can now direct our entire focus on the development of our 
retail business, including the continued rollout of our new PayPoint One 
terminal and EPoS." 
 
   Deloitte LLP acted as corporate finance adviser and Mills & Reeve LLP as 
legal adviser to PayPoint on the sale. 
 
   The information contained in this announcement includes inside 
information for the purposes of the Market Abuse Regulations (EU) 
No.596/2014 
 
   ABOUT PAYPOINT 
 
   PayPoint is an international leader in payment technologies, its 
solutions transforming payments for everyone from consumer and financial 
services companies to retailers, utilities, media, e-commerce, gaming 
and government clients. 
 
   PayPoint delivers payments and services by taking the complexity of 
multi-channel payments and translating it into convenient, simple, 
value-added solutions. It handles almost GBP10 billion from over 694 
million transactions annually. 
 
   With the backing of 24/7 operations centres with dual site processing, 
PayPoint is widely recognised for its leadership in payment systems, 
smart technology and service. 
 
   Retail networks 
 
   The PayPoint retail network across the UK numbers over 28,200 local 
shops (including Co-op, Spar, McColls, Costcutter, Sainsbury's Local, 
Tesco Express, One Stop, Asda, Londis and thousands of independents), 
where it processes energy meter pre-payments, bill payments, benefit 
payments, mobile phone top-ups, transport tickets, BBC TV licences, cash 
withdrawals and a range of other transactions. In Romania, the retail 
network numbers 9,700 terminals in local shops, helping people to make 
cash bill payments, money transfers, road tax payments and mobile phone 
top-ups. In the Republic of Ireland, over 500 terminals in shops and 
credit unions process mobile top-ups and bill payments. 
 
   Collect+, a joint venture with Yodel, provides a parcel drop-off and 
pick-up service at 5,800 PayPoint retailers. PayPoint's ATM network 
numbers more than 4,000 'LINK' branded machines across the UK, and 
10,000 PayPoint terminals enable retailers to accept credit and debit 
cards. 
 
   Mobile Payments 
 
   PayPoint Mobile Payments (trading as PayByPhone and Adaptis) handles 
over 118 million payments for parking, payments and consumer services. 
In major cities in the UK, Canada, USA, France, Switzerland and 
Australia, its parking solutions make it easy for people to pay for 
parking by mobile, as well as providing electronic parking permits, 
automatic number plate recognition systems for car parks and penalty 
charge notices. 
 
   Statement regarding Mobile Payments Business : 
http://hugin.info/137093/R/2067690/776409.pdf 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq 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 
 
 
  http://www.paypoint.co.uk/default.htm 
 

(END) Dow Jones Newswires

December 23, 2016 04:17 ET (09:17 GMT)

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