Paypoint Share Discussion Threads

[masurenguy] 16/5/2024 06:09

Banks brace for Post Office showdown over cash access fee
Major lenders expect the Post Office to seek an increase on the £200m annual fee they pay to enable their customers to access its 11,500 branches.

Sky News has learnt that a group of lenders including Barclays and HSBC are in the process of forming a shared interest group to represent the industry in talks with the government-owned company during the coming months. The negotiations will be aimed at thrashing out a new Banking Framework Agreement, the latest iteration of which will expire at the end of next year. Roughly 30 banks and building societies participate in the existing deal, paying in aggregate approximately £200m annually to facilitate customer access to the Post Office's 11,500 branches. The service is particularly valuable to those who still rely on physical cash after a nine-year period in which almost 6,000 bank branches have been closed across Britain.

Banking industry sources say they anticipate a demand from the financially challenged Post Office to hike the fee it charges them for using its sites, with some speculating that they expect it to seek up to £400m-a-year. If such a demand does materialise, they added, the industry was expected to resist it vigorously on the basis of data showing that bank customers' usage of the service has remained broadly flat. In 2023, more than £10bn worth of cash was withdrawn over the counter and £29bn in cash was deposited over the counter, the Post Office said. A Post Office spokesperson said: "Our partnership with 30 banks and building societies ensures that no one who relies on cash is left behind, made possible by our postmasters in almost every community of the country. "This is all the more important following the introduction of the Access to Cash legislation and further highlights the critical role postmasters play today, and in the future, in supporting customers with accessing their cash. We do not comment on ongoing commercial negotiations."

[boonkoh] 15/5/2024 19:01

Latest scoop from sky.... Post office wants to charge banks more for cash services... Opportunity for Paypoint?https://news.sky.com/story/banks-brace-for-post-office-showdown-over-cash-access-fee-13136543?s=09

[shbgetreal] 15/5/2024 16:38

I am the World’s Finest & Most Accomplished Chartist, and having semi-skinned rather than whole milk caused my Weetabix to split prematurely this morning – from this I deduce we are on for a visit from that rare and mysterious animal, the famed Quintuple Top.

Then again, perhaps just looking at the company fundamentals and potential growth areas would make more sense.

[casholaa] 15/5/2024 15:35

I'm not much of a 'chartist' but I also see a double-top if one isn't going by high-precision numbers.

[sidam] 15/5/2024 12:01

I am not a real chartist, but it does look as though there is a complicated reverse head and shoulders pattern. My rudimentary understanding is that if it breaks by 2% then the target is 650p. Let’s hope so.

[stoopid] 15/5/2024 11:31

So frustrating here.With £80m pretax profits already announced, net debt low, 7%/8% divi and lots of cash on the books i was hoping to see PAY back to about 600.

[stoopid] 08/5/2024 12:21

Boom.... 561.....

[doom4gloom] 04/5/2024 20:53

It would need to break above 555 to target 600

[casholaa] 03/5/2024 19:52

It does appear to have broken upward again. We'll find out on tiouzday.

[davebowler] 03/5/2024 17:23

Chart breakout??

[sidam] 01/5/2024 08:08

The trading update states that net debt is below £70m as at 32 March. Companies get into real trouble if they lie in an RNS. Park does build up cash for Christmas but there would not be much this early in the year. So even if the cash is net of Park, total debt will it be much higher, and some of any Park debt will end up as profit. I use £70m as the number. But I do not like buy backs unless there is a surplus of cash. I would rather that was used to increase the dividend. The days of “efficientR21; balance sheets are I think long gone.

[stoopid] 01/5/2024 02:41

Isn't most of that cash (£113m) related to Park Christmas Savings (Appreciate) and is ring-fenced due to it being customers cash?And surely it can't be accounted for against company debt? That would mean accounting wise, debt is actually approx £180m which I'm sure isn't the case.

[carcosa] 29/4/2024 13:43

Paypoint operate a share based incentive scheme so cancelling any Treasury Shares would be inefficient if they were acquired below prevailing market cost.

However even if held in Treasury it boosts EPS as they are not part of the EPS calculation.

'According to Stocko they're cash rich - to the tune of £113m.'
They have that amount in cash but they also have debt. Net debt is 72.4m which is an increase of 65%. However that only represents 0.8x EBITDA and with Paypoint being so cash generative it is, as Stoopid says, not an issue.

[stoopid] 29/4/2024 12:36

"Undervalued" "Dividend yield is higher than the PE" lolA buyback will be good, IF they cancel the shares when doing so instead of sticking them in the treasury. The debt isn't an issue, it's less than a years profits and, as already stated, will be reduced accordingly. Hopefully see a re-rating soon.

[masurenguy] 28/4/2024 17:51

Graham Neary reviews Paypoint at circa 39.40 minutes.

[hawaly] 28/4/2024 17:05

According to Stocko they're cash rich - to the tune of £113m.
GLA

[bend1pa] 27/4/2024 14:38

The last thing they need is buybacks.That's a bad idea in this case.

Their debt is too high at 75% of equity (44.5% p/y), and they will eventually run into trouble like so many other small companies before them if they let that soar at the rate it has done over the last 2 years. They need to start decreasing it.

[stoopid] 26/4/2024 11:58

I know, share price never seems to hold and always drops on small volumes, like someone is just drip feeding the sell side....

[casholaa] 23/4/2024 09:08

Look's like the share price got vertigo

[mr.oz] 22/4/2024 20:12

Buyback should help improve share price over the longer term
Something needs to, as the market isn't helping here enough

[gswredland] 22/4/2024 19:54

Well whatever those results were great and the market thought so. Nearly up 10%

[casholaa] 22/4/2024 19:20

Nahhhh. Buyback is my preference.

[1knocker] 22/4/2024 17:18

Sorry to be a grouch, but I would rather see a raised dividend than a share buy back.