Paypoint Share Discussion Threads

[gabsterx] 31/5/2020 12:38

They did not reduce the ordinary dividend, they have suspended the additional dividend program that was ongoing until Dec 2021. (1) Since commencement of the additional dividend programme and up to 31 March, £83.5m was paid. This was suspended in March 2020 and will not be reinstated - From page 14 of their results presentation

[3rd eye] 29/5/2020 15:16

Extract from Roland Head Cube midcap Daily report May 28, 2020. PAY Paypoint. Dividend: PayPoint is not participating in any government support programmes and has not furloughed any staff. So this fabulously cash-generative company is still able to make dividend payments. A final dividend of 15.6p per share has been declared, representing a 34% reduction from the equivalent payout last year. My view Last year’s results highlight PayPoint’s profitability. The group’s underlying operating margin was 47% and my sums suggest a return on capital employed of 145%. When combined with a balance sheet that’s largely free of debt, these metrics make for fantastic cash generation. The risk is that we don’t yet know whether the company will be able to return to this happy state of affairs as the pandemic recedes. However, my view is that the firm should be able to adapt to the decline of cash by becoming the de facto payment services provider for convenience stores and perhaps other retailers. PayPoint currently has a UK network of 26,800 stores out of a total addressable market of 62,600. I believe this network will continue to have value and am happy to allow newly-confirmed chief executive Nick Wiles to navigate this changing market. At current levels, I’d guess that the company could offer a dividend yield of 4%-5% going forwards. I think this is could be an attractive entry point and remain happy to hold.

[3rd eye] 29/5/2020 13:06

PAYPOINT POSTS RISE IN FY PROFIT, SAYS CURRENT TRADING RESILIENT (Sharecast News) - Payment services group PayPoint reported a rise in full-year profit and revenue on Thursday, with growth across most business areas. In the year to the end of March 2020, pre-tax profit increased 3.8% to £56.8m on revenue of £213.3m, up 0.8% on the year. Revenue in the UK retail services, which now represents 34% of group net revenue, grew by £3.2m during the year, driven by increased service fees from adding more than 3,000 new PayPoint One sites. The company said its parcel business delivered volume growth of 12.7% as its new partners, particularly eBay and Amazon, were rolled out to more sites within its network and awareness of the service developed. Meanwhile, UK bill payments and top-ups net revenue "showed continued resilience in the face of the current decline in cash payments in the UK" and the previously announced ending of the British Gas contract. The company proposed a final dividend of 15.6p a share, down from 23.6p in 2019. PayPoint said current trading has demonstrated "good resilience" in the bill payments and top-ups businesses. ATMs and parcels have been more severely affected, although card payments have benefitted from increased sales in the convenience sector. Chief executive Nick Wiles said: "The Covid-19 crisis began to escalate late into our financial year with limited financial impact in the results we are reporting. We took swift action across our business in response to the unfolding crisis. "The core characteristics of the business remain unchanged, with a strong balance sheet, clear business model, a broad and resilient earnings' base with the opportunity to use technology to adapt our business model and strong cash generation which supports the payment of a dividend."

[3rd eye] 29/5/2020 12:22

PAY Paypoint.... Latest broker views Date Broker Recomm. Current Price Price when issued Old price New price 28 May 20 Liberum Capital Buy 748.00 722.00 800.00 1,000.00 24 Apr 20 Jefferies International Buy 748.00 552.00 1,280.00 800.00 27 Jan 20 Panmure Gordon Buy 748.00 1,014.00 1,257.00 1,263.00

[3rd eye] 29/5/2020 11:28

PAY Paypoint......... Liberum: growth opportunities at PayPoint Payment company PayPoint (PAY) has matured into a business with ‘exciting growth opportunities’, according to Liberum. Analyst Joe Brent retained his ‘buy’ recommendation and increased the target price from 800p to £10 on the stock, after full-year results came in ahead of expectations due to management waiving their bonuses and proposing a final dividend. The shares gained 2.55%, or 18p, to 740p on Thursday. ‘The business model has developed from utility in a mature industry to a retail solutions provider with some exciting growth opportunities and high operational gearing,’ he said. ‘PayPoint trades on a current year 2020 price/earnings of 15x...which is attractive given the cash generation and growth opportunities.’ ========================================================================== All these forecast unemployed joining the dole que, should mean a lot more business for PAY going forward. Yield 2020 8,16%.............and contradicting broker above....... P/E ratio 2020 11,3x Yield 2020 8,16% Sales 2021 106 M Net income 2021 31,0 M Net Debt 2021 0,78 M P/E ratio 2021 10,9x Yield 2021 4,34% Bullish update, yesterday....... https://www.investegate.co.uk/paypoint-plc--pay-/gnw/paypoint-plc--preliminary-results-and-update-on-the-impact-of-covid-19--year-ended-31-march-2020/20200528070000H9581/ Business Summary PayPoint plc PayPoint plc is a United Kingdom-based holding company. The Company's subsidiaries provide specialist consumer payment, and other services and products, transaction processing and settlement. It offers clients streamlined consumer payment processing and transaction routing in an integrated solution, through MultiPay. MultiPay gives users the flexibility to choose channels depending on their customers' needs, including mobile application, online, text, phone/interactive voice response, cash in-store and cash out. Its platform, PayPoint One, combines PayPoint services, integrated card payments and electronic point of sale (EPoS) all in a device. Its retails payments and services offerings include bill and general (prepaid energy, bills and cash out services); top-ups (mobile, e-money vouchers and lottery), and retail services (payment card, parcels and money transfer). Its mobile and online offerings include parking, permits, tolling, ticketing and bicycle rental transactions.

[bolo25] 28/5/2020 12:25

Thoughts on latest numbers from PAY here: hTTps://cube.investments/cube-midcap-report-28-may-2020-cineworld-needs-a-blockbuster/

[deadly] 28/5/2020 09:00

Yes very confident statement and next dividend of 15.6p should help convince.

[gabsterx] 28/5/2020 08:04

Nice results this morning, happy I held on and added more in April.

[simba_] 13/5/2020 21:55

I sold out completely this morning. Wasn't willing to let the profits from this one slip. Would reconsider buying again at £4-5 range.

[trident5] 13/5/2020 15:38

Not all trades are reported though.

[porsche1945] 13/5/2020 15:17

No volumes are small, something else

[trident5] 13/5/2020 15:09

More sellers than buyers.

[porsche1945] 13/5/2020 14:55

Why have these tanked today?

[simba_] 11/5/2020 15:35

Sold half into this strength today. Not sure theres much upside from here. I'll keep a close eye on the remaining..Not a bad day for holders, though.

[simba_] 10/5/2020 12:08

Apologies. Gabster. Not checked in here since. I dont remember now specifically but I had modelled the forecasted drop in revenues then returning to growth for FY22 and beyond. Used 8% rate and I think 2-3% terminal rate. .I plan on selling down at least half my position when market opens. Upside to my IV is failry limited now. I'll keep some on the table incase I'm wrong..PAY will of course gap down 10% on the open now.

[gabsterx] 16/4/2020 11:03

Simba, always happy to share analysis ideas! What metrics did you use for your DCF? I used the below: Next 5 years FCF: 36M (last 5 year average was 43M) Next 5 years FCF growth: 0% Long term FCF growth rate 1% Discount rate: 8% I get a fair value of 745p. Taking FY 2020 at 26M FCF (40% decrease) then FY 2021 at 23M, returning to normal afterwards gives me 726p.

[simba_] 15/4/2020 23:35

Interesting, Gabster. I'm getting similar implied share price with DCF. But when checked back against turnover, it seems off. .Typical FCF margin implies turnover would have to compound at over 4% to get us there, which just hasn't happened. Highly profitable business but just doesn't look like it can grow the top line. .Im seeing 2020 turnover forecasted to fall around by 40%. Then again by 8% for 2021.

[farnesbarnes] 15/4/2020 14:20

Looking to pick some up circa 500p

[gabsterx] 15/4/2020 12:43

Added a few more shares today. Low debt, strong margins, very high ROE and ROCE. Even a pessimistic DCF puts a fair price of 750p on the shares implying a 30% discount to fair value.

[mr.oz] 07/4/2020 08:28

Long way to go

[gabsterx] 16/3/2020 13:21

-17% today.. I would have thought that the parcels business would benefit from all the in-line deliveries, although one can argue that the market is far from rational at this point.

[togglebrush] 16/3/2020 08:00

EPOS systems have grown since introduction in the 1980's from being an intelligent till to being the core business computer... handling the worldwide credit and debit cards, calculating wages, stocktaking and ordering stock, plus. Company supplies these to small businesses making the essential efficient business connections in addition to other services. EPOS systems are now the key of small retail, catering, and hospitality businesses.

[rik shaw] 16/3/2020 07:46

That statement would apply to any share on the market.....

[mr.oz] 15/3/2020 20:38

Divi could be under pressure if revenue hit over coming months