Paypoint Share Discussion Threads

[mr.oz] 22/6/2024 09:43

Come across this analysis of PAY results

[mr.oz] 21/6/2024 16:36

Thanks for sharing.
Not a lot to invest £10m, but still interesting

[se81] 21/6/2024 15:38

Full story

hxxps://news.sky.com/story/parcel-delivery-giant-yodel-seeks-new-funding-months-after-rescue-13156575

[boonkoh] 21/6/2024 12:53

Interesting breaking news from Sky.Paypoint to invest and take a stake in Yodel?

[shbgetreal] 21/6/2024 09:50

Yes here - let me check my cornflakes then I'll update

[stoopid] 18/6/2024 06:06

With the buybacks over the next three years, further debt reduction, business expansion and a board target of 100m EBITDA by 2025/26 this is 800 - 1000 a share easy, if you are prepared to hold....

[mr.oz] 17/6/2024 16:24

free stock charts from uk.advfn.com

This could run further
Any TA specialists here, pls ?

[rolo7] 14/6/2024 08:46

This could make a move for fste250 entry would need 800p a share and rest of market to pull back a bit.

[mr.oz] 13/6/2024 12:53

DIVIDENDS

We have declared an increase of 3.2% in the final dividend to 19.2 pence per share (2023: 18.6 pence per share) payable in equal instalments of 9.6 pence per share (2023: 9.3 pence per share) on 6 August 2024 and 27 September 2024 to shareholders on the register on 5 July 2024 and 30 August 2024 respectively. The final dividend is subject to the approval of shareholders at the annual general meeting on 1 August 2024.

[casholaa] 13/6/2024 10:23

Luvlijubli

[davebowler] 13/6/2024 10:00

Liberum adds..
Also in February, PayPoint announced a partnership with Royal Mail across its Collect+ network. The multi-year agreement will enable parcel drop off for Royal Mail customers at 5,000 Collect+ stores in communities across the UK by the summer. This is clearly a coup for PayPoint as the Royal Mail is the largest parcel carrier in the UK, and it is a blow to the Post Office, which is PayPoint’s largest competitor in the Pick-up & Drop-off (PUDO) network. It strengthens and diversifies PayPoint’s delivery network. If the volume grows as expected we would expect PayPoint to increase the number of Collect + stores.

[sidam] 13/6/2024 09:58

Woozie
I also held appreciate but took the small holding from the bid to a reasonable sized holding sub 500p. So far so good!
Share action looks good.

se81
Thanks for the liberum update, helps my case above.

[woozle1] 13/6/2024 09:04

sidam, you are right. But I think the main contributory factor to its low valuation is it's so difficult to understand (most analysts admit this!) and the love2shop deal (which I think is good - I used to own appreciate) has not helped.

we got these shares as part of the appreciate deal and have held onto them. so far, that was a good idea.

w1

[se81] 13/6/2024 08:58

From Liberum

"FY 24 organic net revenue growth of 3.3% and underlying Group FD EPS increased 3.8%. Strong growth in parcels and digital payments, with further progress in Open Banking, card processing and retailer community services. Group remains on track to deliver £100m of EBITDA by end of FY26. Management announces a three year buy-back with at least £20m to be bought back over the next twelve months, with a final dividend of 19.2p. EBITDA is increased 4% in FY 25, but our better understanding of non-cash DA results in a 4% reduction in FD EPS; we expect 12% FD EPS growth in FY 25 with cost savings and Parcels growth. We make three key points: 1) We have re-modelled the business in much more detail, which highlights the growth drivers, including a new partnership with Lloyds launching in H2 FY 25; 2) Parcels is a key driver: the expanded partnership with Yodel and Vinted may be transformational, and the change in ownership for Yodel and deal with Royal Mail de-risk distribution; 3) Love2shop has delivered a return to growth in Park Christmas Savings billings for the first time in six years, and there are further opportunities for growth. PayPoint’s position on the high street differentiates it in the crowded payment space; a CY 24 P/E of 8.3x and ordinary yield of 6.8% are too cheap."

EDIT: Liberum have 89.1p pencilled in for FY27 but they have only included a £20m buyback in FY24 and nothing further in FY25 & FY26

[sidam] 13/6/2024 08:53

Some thoughts. Some years ago, Goldman Sachs did research on share buybacks. This was of course US centric, but the conclusion was that buybacks did not lead to outperformance in a bull mRket but did in a bear one.

However looking at the company’s targets, the growth in EPS will be enhanced by the buyback which could reduce shares by 10% or more. That means for 2027 we could be looking at EPS of 90p and a twice covered dividend of 45p. A prospective PE of 10 and yield of 5% would give a target of £9. That would equate with a total return of 20% compound. That, in my view, has all the hallmarks of a strong buy.

Hope I am right as I have a decent unit.

[cerrito] 13/6/2024 07:53

I see last year dividends paid were £27m in cash.
As Mirabeau says the £20m buyback a well targeted use of funds.

[masurenguy] 13/6/2024 07:52

Yes PAY seems quite undervalued at the moment with a PER of circa 9, a yield of 7.1%, a 32% increase in EBITDA, a share buyback programme and a reduction in net debt.

[se81] 13/6/2024 07:22

The shareholder returns here are starting to get a little stunning- reads a minimum of £60m buyback over the next 3 years- current mkt cap £410m!!

[masurenguy] 13/6/2024 07:06

Solid set of results and share buyback program !

Results for the year ended 31 March 2024

Further progress towards £100m EBITDA by end of FY26. Three-year share buyback programme commencing with at least £20m over the next 12 months

GROUP FINANCIAL HIGHLIGHTS

Underlying EBITDA1 of £81.3m (FY23: £61.3m) increased by £20.0m (32.6%)
Underlying profit before tax2 of £61.7m (FY23: £50.8m) increased by £10.9m (21.5%)
Net corporate debt7 of £67.5m reduced by £4.9m from opening position of £72.4m
Final dividend of 19.2p vs final dividend for the year ended 31 March 2023 of 18.6p per share.

Nick Wiles, Chief Executive of PayPoint Plc, said:“This has been another year of progress for PayPoint where we have delivered a robust financial performance and made further progress towards delivering £100m EBITDA by the end of FY26. These results reflect both the resilience of our businesses and the transformation delivered over the past three years as we unlock further opportunities and growth across our four business divisions. In the current year, consumer behaviour across a number of our businesses remains subdued, reflecting continued tighter family budgets and a generally flat economy. Our expectation is that the consumer outlook will improve during the course of the year. Against this background, our streamlined organisational structure and cost base will support the delivery of our medium-term growth plans. Strong earnings growth and cash flow generation, combined with a sustainable dividend policy provide a robust platform for the Board to propose further steps to enhance shareholder returns through a share buyback programme of at least £20m over the next 12 months, all underpinned by the delivery of further progress in the current year.”

[mirabeau] 13/6/2024 07:05

£20m buy back program. PAY is illiquid so such a program should prove very supportive especially competing with retail

[mr.oz] 11/6/2024 17:05

13th June, for Prelims and details of pending Buyback programme

[iconista] 06/6/2024 08:16

This stock is like the Weeping Angel in my portfolio. If I watch it, it doesn't move, but as soon as I look away, it goes up again.

[doom4gloom] 04/6/2024 22:53

It already broke out in May. Next targets 600 followed by 640

[stoopid] 04/6/2024 15:38

Breaking out??