Paypoint Share Discussion Threads

[cryptotrade] 05/11/2020 11:02

My only question is , has their dividend policy changed at all and does anyone know expected profits. Paypoint is a cash cow. Lovely company making cash but it's low growth for many not growing at exciting pace. Visa, MasterCard could buy them one day but not yet.

[togglebrush] 05/11/2020 08:56

RNS acquisition synopsis
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War Chest from sale of Romania has been spent on duo of SME merchant card leasing firms in £70m acquisitiont to acquire Handepay and Merchant Rentals from a consortium of private investors.
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Operating in the UK since 2006, Handepay provides card payment services to SMEs, as well as establishing leasing agreements with SME merchants for card payment terminals through Merchant Rentals.

[washbear] 28/10/2020 09:04

Thanks TB . Provides some clarity.I guess competition rules mean that Pay pointvwill never buy out Payzone.By the way your " name is familar. Where you a Telford Homes holder ?.

[deuchar] 27/10/2020 09:04

I can't help comparing paypoint to Ant thus making it massively undervalued

[togglebrush] 23/10/2020 15:38

PAYZONE v PAYPOINT
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There are only eight references to PAYZONE in the last Annual Report



One is competition “following the Post Office’s acquisition of Payzone” … in UK
Others are Paypoints business "Payzone" which is used in Romania
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Note that PAYZONE in UK are the Competition who took the British Gas contract
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Google Search gives PAYZONE has a limited company
Payzone Bill Payments Limited CW9 7YL with sister company
takepayments Limited SK3 0ET

[jbizzle1] 23/10/2020 11:24

So is this tumble in the share price more or less entirely related to that Ofgem letter received from a few weeks ago? Are we basically just holding our breath to see if a fine/what kind of fine is levied against Paypoint and then we’ll see how the share reacts after that?

Everything I see points to a very healthy business that is operating well but quite undervalued.

[washbear] 23/10/2020 10:28

Here s a question..The Romanian disposal includes Payzone SA ..But we are led to believe Payzone in UK is a separate entity to Paypoint.So who owns who ?..

[togglebrush] 21/10/2020 14:16

Sale of Romanian assets gives £47 million and last time I saw Company "cash and assets" it was £96 million. So appears Paypoint are not short of cash.
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Do they need a "War-chest" for Mergers & Acquisitions ???
Rumour mill must be starting about a target company of nearly equal size where that would make a tasty part payment.

[joepublic1] 21/10/2020 14:03

WTF, So why are they selling the Romanian business at less than its asset value and at a PE of 7 when it is quite profitable with a 10% margin ?
Do we have an idiot in charge, or am I missing something ?

[siriusfund] 11/10/2020 22:29

Page 21 of the 2020 annual report they report net retail partner 5.8% churn rates. Seems a sticky product and service. Multipay could be a growth area for them providing payment solutions to companies who want payment solutions for their in house apps and online payments.

[m_kerr] 10/10/2020 16:01

just crunched a few simple numbers - return on capital of 146% and cash (Free cash flow) return on capital of 118% - and these numbers are relatively stable. these are numbers of an outstanding business, and virtually all the profit is cash that goes straight to shareholders in ordinary and special dividends. does anyone know why they haven't looked to expand abroad (other than the small business in romania)? one concern i have is that their customers (retailers) give them very low ratings - they think they're being ripped off and not being given good service by paypoint. i'm always very wary of businesses that overcharge customers (gillette being a good example) - as soon as a viable alternative pops up, they wont stick around for old times sake. they charge about £26 a week, so over a 3 year period that's about £4k, but they do offer lots of good services like stock management, which makes me think their customer base is very sticky.

[joepublic1] 06/10/2020 09:42

Yes I am at a loss to understand this share price reaction. People talking about a fine being up to 10% of total turnover seem to be over reacting. The British Gas contract turnover was £3.5M pa. Not sure of the total energy market turnover, but if it were 10 times that it would be £35M pa. 10% of that would be a fine of £3.5M. Not enought to knock 20% off the value of the business.
Competition with Payzone has always been there and is not new. Retailers moving to Payzone will find themselves competing with Post Offices though - not something I would have thought was good for their footfall and business. There might also be competition questions regarding post offices if they exclusively operate Payzone and not Paypoint.

[silvercrescent1] 01/10/2020 16:12

Payzone has similar contract deals with retailers so dont know what the fuss is all about.

[simba_] 01/10/2020 13:08

Anyone know who are the competition in this line of business?

[notknowing] 01/10/2020 12:36

Fundamentally I think we're on a sound footing. I just think the uncertainty will be leveraged to take this to where the chartist need it to go.

[janhar] 01/10/2020 12:33

IMO British Gas will have done its own due diligence before signing the exclusivity contract - this should be thrown out. On current valuation can't see much downside even with a small fine.

[notknowing] 01/10/2020 12:12

That's the auto correction complete. I think we have one more leg to go, maybe around 450p.

A good buying opportunity awaits at those levels.

[big_cat] 01/10/2020 10:40

Looking at the share price movement over 1 week, 4 weeks, 3 months, year and five years the stock has consistently lost value. Could someone tell me why the share is considered to be undervalued when the figures show a different picture?

[fairtrader66] 30/9/2020 23:53

@Togglebrush best insight and comments I've seen on this so far.

Looks like the fine will be manageable if imposed but it sounds like they have a fair argument for it being dramatically reduced if the service was for bespoke conduit payment processes.

This stock is still undervalued even with a covid hit plus a fine.

[wllmherk] 30/9/2020 21:21

Recent purchase myself too ttrader so I'm feeling your pain.

wllm :(

[postme] 30/9/2020 20:41

#NCYT #BMN #MTR #SMS #PAY #PRTC #SLP #APP #CNCT Ten ‘magic formula’ stocks for investors looking for value and quality -

[t-trader] 30/9/2020 14:33

Just my luck, only bought these last week 😂

[farnesbarnes] 30/9/2020 14:20

I'm sure ST will have something to report soon.