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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Paypoint Plc | LSE:PAY | London | Ordinary Share | GB00B02QND93 | ORD 1/3P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 3.00 | 0.55% | 553.00 | 550.00 | 554.00 | 565.00 | 546.00 | 554.00 | 95,731 | 16:35:17 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Adjustment & Collection Svcs | 167.72M | 34.71M | 0.4776 | 11.60 | 402.64M |
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PayPoint plc
Results for the six months to 30 September 2018
Financial HIGHLIGHTS
Six months to Six months to
30 September 30 September
2018 2017 Change
Revenue GBP106.1m GBP97.6m 8.7%
Net revenue([1] #_ftn1) GBP55.6m GBP56.5m (1.6)%
Operating margin([2] #_ftn2) 45.8% 43.1% 2.7ppts
Operating profit GBP25.5m GBP24.4m 4.5%
Profit before tax GBP25.3m GBP24.4m 4.0%
Earnings per share 30.1p 29.1p 3.5%
Ordinary interim dividend per share 15.6p 15.3p 2.0%
Additional interim dividend per share 12.2p 12.2p 0.0%
Total dividend per share 27.8p 27.5p 1.1%
Cash generation([3] #_ftn3) GBP27.6m GBP26.5m 4.1%
Net corporate cash at period end GBP0.6m GBP9.5m (93.5)%
Client funds and retailer deposits at
period end GBP32.7m GBP18.1m 81.2%
Good progress against PayPoint's strategic priorities
-- Embed PayPoint in the heart of convenience retail
o PayPoint One installed in 10,242 sites as at 30 September 2018, an
increase of 1,692 since 31 March 2018 with EPoS Pro live in over 400
sites. PayPoint remains on target to achieve 12,400 PayPoint One sites
by 31 March 2019 with 11,246 sites now([4] #_ftn4) installed.
o PayPoint One average weekly service fee per site has grown to
GBP15.01 from GBP14.29 and total service fee revenue has grown by 39.8%
to GBP4.8 million.
-- Become the definitive parcel point solution
o eBay agreement signed and now rolled out to 2,500 Collect+ sites.
o Good progress being made with other parcel opportunities.
o Collect+'s Trust Pilot rating of 9.2, reconfirming Collect+ as
consumers' favourite delivery solution.
-- Sustain leadership in 'pay-as-you' go and grow digital bill
payments
o 11 new UK bill payment and top-up clients were set live with a
further six new clients secured including Monzo Bank which has over 1
million customers.
o Continued strong growth in MultiPay with transaction growth of
55.7%, net revenue up 64.7%, and over 10 million transactions in the
period.
o First phase of the Payzone network migration underway in Romania.
-- Innovate for future growth and profits
o More retailers will be able to manage stores remotely and 'on the
move' with the imminent launch of an iOS mobile app to complement the
existing android app.
Organisation and service delivery
-- Increased the speed of answering retailer calls by 80% through the
implementation of an improved Interactive Voice Response System.
-- PayPoint Retail Operations team have improved PayPoint One installation
efficiency levels by 40% following the introduction of Salesforce CRM to
manage workflow.
Financial highlights
o Net revenue of GBP55.6 million was down by 1.6% on a reported basis,
but with underlying growth of GBP1.8 million, or a 3.2% increase
excluding the GBP2.2 million impact of the closure of the Department of
Work and Pensions' Simple Payment Service (SPS) and the revised Yodel
commercial terms.
o Underlying net revenue growth was driven by strong performance in
UK service fee revenue, up 39.8%, and in Romania, up by 33.2% to GBP6.8
million which was partially offset by the marginal decline of GBP0.3
million in UK bill payment and top-up net revenue.
o Network costs of GBP30.2 million([5] #_ftn5) were GBP1.9 million
lower than last year of GBP32.1 million and include a GBP1.7 million
benefit from improved VAT recovery. Excluding this, costs were slightly
lower than the GBP32.1 million for the same period last year, reflecting
the ongoing improvement in operational efficiencies, partially offset by
GBP1.1 million increase in Romania driven by including Payzone overheads
for six months.
o Profit before tax of GBP25.3 million was up 4.0% including a GBP1.7
million benefit from improved VAT recovery related to prior years.
o Net corporate cash of GBP0.6 million reflects cash balances of
GBP6.6 million less GBP6.0 million financing facility usage.
o Client funds and retailer deposits at period end increased to
GBP32.7 million primarily due to recognising retailer deposits on the
statement of financial position.
o Continued strong cash conversion with GBP27.6 million cash
generated([6] #_ftn6) from profit before tax of GBP25.3 million.
o Ordinary interim dividend of 15.6 pence per share, an increase of
2%. Additional interim dividend of 12.2 pence per share. Total dividend
of 27.8 pence per share.
Dominic Taylor, Chief Executive, said:
"I'm pleased with the progress PayPoint has made over the past six
months. We are executing against the roadmap and our strategic
priorities outlined in May, delivering underlying net revenue growth of
3.2% and reported profit before tax growth of 4.0%. The business also
continues to innovate in an evolving retail and payments environment,
developing new technologies and propositions that are transforming the
way our customers operate and run their businesses.
The roll out of PayPoint One has continued at pace, expanding to
11,246([7] #_ftn7) sites and with EPoS Pro now live in 478(3) sites. We
remain on target to achieve 12,400 PayPoint One sites by 31 March 2019.
Service fee revenue from PayPoint One also grew by 39.8% in the period,
contributing to the increase in underlying net revenue, with the new
terminal providing tangible benefits for our retailers, enabling
retailers to drive increased profitability and efficiency in their
stores.
In parcels, our new carrier partnership with ebay is now live in 2,500
sites ahead of the festive season and we remain focused on delivering at
least two additional carriers in 2019. E-money and MultiPay volumes grew
strongly and a further six clients were secured including one of the
UK's fastest growing digital bank challengers, Monzo. In Romania, we
continue to see good growth as we integrate Payzone.
The good performance of the first half underpins the Board's confidence
that as PayPoint's growth drivers continue to develop there will be
progression in profit before tax for the full financial year to 31 March
2019."
Enquiries
PayPoint plc Finsbury (Tel: 0207 2513
801)
Dominic Taylor, Chief Executive (Tel: 01707 600 Rollo Head
317)
Rachel Kentleton, Finance Director (Tel: 07843 074 Andy Parnis
906)
A presentation for analysts is being held at 11.45am today (29 November
2018) at Canaccord Genuity Limited, 88 Wood Street, London, EC2V 7QR.
This announcement is available on the PayPoint plc website:
www.paypoint.com
Chief Executive Review
PayPoint has made good progress in the first six months of the year and
delivered a financial performance in line with its expectations.
PayPoint One is critical to the evolution of the business and is now in
over half of PayPoint's independent convenience retail estate. This is
the first Christmas with ebay live as a partner on the Collect+ network
and there has been good progress integrating Payzone into the Romanian
business. In addition, there was continued progress in service delivery
and improvements to the organisation. All of this means PayPoint is now
a stronger business with a firm foundation in place to deliver future
growth and cash returns to shareholders.
Net revenue of GBP55.6 million was down 1.6% on a reported basis, but
with underlying growth of GBP1.8 million, or 3.2% increase, excluding
the GBP2.2 million impact of the closure of Department of Work and
Pensions' Simple Payment Service (SPS) and the GBP0.5 million impact
from the revised Yodel commercial terms. Underlying net revenue growth
was achieved from PayPoint's growth areas of UK Retail services which
increased by GBP0.4 million to GBP18.9 million and Romania which
increased by GBP1.7 million to GBP6.8 million partially offset by UK
bill payments and top-ups which reduced by only GBP0.3 million.
Profit before tax improved to GBP25.3 million, an increase of GBP0.9
million from GBP24.4 million for the same period last year, this
included a GBP1.7 million benefit from improved VAT recovery following
the VAT tribunal ruling in 2017. Earnings per share increased to 30.1
pence (September 2017: 29.1 pence).
An interim ordinary dividend of 15.6p per share (2% increase) and an
additional interim dividend of 12.2 pence per share have been declared.
The total dividend of 27.8 pence per share will be paid on 11 January
2019.
Market overview
The markets in which PayPoint operates continued to evolve. Key trends
and changes since the end of the financial year include:
-- Parcels
-- UK parcel volume growth was 12.6% over the eight months to August
driven by growth of online retail sales which increased 14.5%[8]
#_ftn8 .
-- Click and collect market is 118 million parcels per year which is
expected to double by 2025[9] #_ftn9 .
-- Convenience
-- Total convenience sector sales growth was 2.9% and forecasted to
reach over GBP40bn by the end of 2018[10] #_ftn10 .
-- Card payments
-- Total retail card payment transactions increased by 8.5% in
2017[11] #_ftn11 , although average transaction values declined by
3.3%.
-- Legislation banning merchants applying a surcharge to card
payments became effective from January 2018.
-- ATMs
-- LINK's ATM transactions declined by 5.2% to 1,501 million
transactions[12] #_ftn12 and its ATM estate reduced by 400 sites
to 69,610 in 20175.
-- LINK's interchange fee reductions of 20% spread equally over four
dates have been revised as follows: July 2018 was implemented and
January 2019 remains as planned, however, January 2020 has been
cancelled with the January 2021 reduction is on hold[13] #_ftn13 .
-- The Financial Conduct Authority (FCA) will regulate the new LINK
Over-The-Counter service. Payment Systems Regulator (PSR) will
continue to regulate standard ATM transactions.
-- Bill payments
-- In April 2018 Ofgem increased the pre-pay energy price cap by
GBP57 per year (5.5%) with a further increase of GBP47 per year
(4.3%) on 1 October 2018. New price cap for standard variable
tariffs and default fixed tariffs will be introduced in January
2019.
-- Non-Big Six energy providers combined market share is now c.25%,
larger than any of the Big six.
-- Competition and Markets Authority cleared the merger between SSE
and Npower[14] #_ftn14 and the acquisition of Payzone's bill
payment business by the Post Office[15] #_ftn15 .
Brexit
PayPoint has carried out an assessment of the impact of a no-deal Brexit
scenario and identified key risks to its operating model. Whilst no
business can mitigate against the impact of Brexit, actions to reduce
disruption in the short term are underway including building a buffer of
PayPoint One stocks, maximising intercompany dividends and engaging with
clients and suppliers to determine their own readiness and impact
assessments.
Progress against our strategic priorities
At PayPoint's May 2018 financial results announcement a strategic
roadmap was set out built around four key strategic priorities:
1. Embed PayPoint at the heart of convenience retail.
2. PayPoint becomes the definitive parcel point solution.
3. Sustain leadership in 'pay-as-you-go' and grow digital bill payments.
4. Innovate for future growth and profits.
Progress against these priorities is set out below.
1. Embed PayPoint at the heart of convenience retail
PayPoint will continue to provide and develop new products and services
which enhance the retailer's offer to their customers. PayPoint will
also support retailers with innovation and first-class customer service
to allow them to evolve their stores to achieve their full potential.
Progress in the first half of the year
-- Continued roll out of PayPoint One which was installed in 10,242 sites as
at 30 September 2018, an increase of 1,692 since 31 March 2018. As at 26
November 2018, PayPoint One was in 11,246 sites:
-- Focus in the first quarter was on the roll out of the EPoS Pro
which was in 418 sites as at 30 September 2018, with focus in the
second quarter being on extending PayPoint One penetration which
resulted in more EPoS Base and Core being rolled out.
-- 64%[16] #_ftn16 of PayPoint's independent retailers are now[17]
#_ftn17 using PayPoint One. From the end of the 2019/20 financial
year PayPoint will commence with the process to sunset the legacy
terminal.
-- Average weekly revenue per site increased to GBP15.01 (2017:
GBP14.29) with improved mix within product price points of GBP10,
GBP15, GBP20 or GBP30 per week per site. GBP30 per week is for the
PayPoint's flagship product, EPoS Pro, which was launched in
January 2018.
-- ATM's are an integral part of PayPoint's offering to retailers and its
low-cost operating model has meant that PayPoint delivered a resilient
performance. ATM transactions increased to 21.4 million (September 2017:
20.4 million), an increase of 4.9%, despite general market decline,
reflecting an increase in PayPoint's market share of ATM transactions:
-- Net revenue slightly decreased (GBP0.1 million) to GBP6.5m due to
the reduced interchange rate.
-- We delivered an improvement in cash flow from the ATM product
through a reduction in ATM maintenance costs and an initiative to
optimise the network with ATMs installed at low transacting sites
being removed and held for redeployment to more profitable
locations. As a result, the ATM estate reduced by 163 to 3,983
sites from 31 March 2018.
-- Card payment transactions increased by 19.7% to 57.0 million (September
2017: 47.6 million).
-- Net revenue of GBP3.9 million was flat compared to the prior
period as increased transactions were offset by lower average
transaction values and competitive rates given to new retailers.
The average transaction value was GBP12.81, a reduction from
GBP13.96 achieved in 2017.
-- The card payment estate reduced from 10,252 to 9,951 due to the
focus on rolling out PayPoint One.
-- Net settlement agreement is in place and the solution is now in
pilot.
Ambition for the second half of the year
-- Continue with PayPoint One roll out to achieve the target of 12,400
PayPoint One sites by 31 March 2019.
-- Completion of wholesaler links to Nisa and Booker, allowing retailers to
order stock from the PayPoint One terminal.
-- Commence the roll out of card net settlement in conjunction with the next
phase of the Salesforce CRM implementation.
1. Become the definitive parcel point solution
Online retail shopping will continue its robust growth, increasing the
demand for convenient delivery solutions for consumers. Carriers are
operating in a low-margin competitive market where "last mile" delivery
is challenging. With an extensive network of over 7,000 sites,
PayPoint's parcel solution brings carriers and retailers together for
the benefit of their consumers.
Progress in the first half of the year
-- ebay deal signed and now rolled out to 2,500 Collect+ sites.
-- In the first half, parcel volumes reduced to 10.0 million down 15.9% from
11.9 million, reflecting the existing carrier's performance and
highlighting the strategic importance to expand the parcel service to
other partners.
-- Collect+'s Trust Pilot rating of 9.2 maintained, reconfirming Collect+ as
the consumers favourite solution.
Ambition for the second half of the year
-- Ensuring the operational success of ebay over the parcel peak season.
-- Add one further partner to the Collect+ network.
3.Sustain leadership in 'pay-as-you-go' and grow digital payments
UK
Cash payments will remain a mainstay of the UK economy for many years to
come and PayPoint will continue to retain leadership in this market.
Whilst the general decline in cash as a payment method in the UK economy
means that PayPoint anticipates reducing transaction volumes, this
business is highly cash generative and enables investment in future
growth and innovation across the wider business.
Progress in the first half of the year
-- 11 new clients were set live and a further six new clients were secured,
including Monzo Bank a leading bank challenger with over 1 million
customers.
-- Renewed and extended three major contracts.
-- UK bill payment net revenue of GBP21.1 million was broadly flat
year-on-year excluding the GBP2.2m impact from SPS closing. The
transaction volume decline of 5.2% was mitigated due to client revenue
mix continuing to improve.
-- Continued strong growth in MultiPay with net revenue up by 64.7% driven
by processing over 10 million transactions in the period.
-- UK top-up and e-money net revenue reduced by 2.2% to GBP8.8 million. The
impact on net revenue from the 15.7% decline in transaction volumes to
23.1 million was largely offset by growth in e-money transactions which
have higher margins and higher average mobile top-up values. E-money
transactions increased by 10.3% to 3.7 million.
Ambition for the second half of the year
-- Continue to add more clients to the MultiPay product by extending it to
other sectors specifically housing associations following the development
of PayPoint's direct debit capability.
-- Continue to target bank challengers, e-money and utility challenger
clients where PayPoint can provide digital organisations with a physical
network.
Romania
PayPoint, with its technology platform and unique network strength and
brand recognition, is uniquely placed to drive further opportunity as
the market in Romania continues to evolve. This will include, over time,
growth in automated, digital, parcel and card payments solutions. Cash
bill payment remains a mass market proposition and will continue to be a
robust and growing category.
Progress in the first half of the year
-- The first phase of the Payzone network migration commenced with over 300
sites transitioned to PayPoint systems allowing for improvements in
operational efficiency and profitability, albeit because of the strong
pace of integration, organic and acquisitive growth are now largely
indistinguishable.
-- Payzone network optimised with over 1,500 low performing sites removed
since 31 March 2018. The combined network is now at 18,984 sites.
-- Strong transaction growth of 43.8% to 55.8 million, largely driven by the
Payzone acquisition.
-- Strong growth in net revenue, up 33.2% to GBP6.8 million; net revenue
growth was behind transaction growth as the historic Payzone transactions
were at lower margins.
-- Maintained leadership in the bill payment market with 38% share of
client's cash bill payments, driven by 75% consumer awareness.
-- Cost efficiencies of GBP0.5 million through synergies of merging Payzone
into existing business.
Ambition for the second half of the year
-- Continue optimising the network which will result in the network reducing
to 18,000 sites.
-- Compete the first phase of the Payzone migration which will migrate
almost 1,300 sites to PayPoint's systems.
4. Innovate for future growth and profits
PayPoint will continue to innovate to maintain its competitive advantage,
drive new products and services, improve the retailer experience and
increase efficiency.
Progress in the first half of the year
-- Completed a technical solution in preparation for the LINK
Over-The-Counter service; the trial is pending finalisation of the FCA's
requirements. If this product is successful it will mitigate many of the
barriers to delivering access to cash in underserved communities.
-- More retailers will be able to manage stores remotely and 'on the move'
with the imminent launch of an iOS mobile app to complement the existing
android app.
Ambition for the second half of the year
-- Commence the development of the T4 terminal, in preparation for the
legacy terminal replacement in Romania.
Organisation and service delivery
Underpinning PayPoint's four priorities is the continued development and
investment in PayPoint's people and organisation including the
implementation of Salesforce CRM and a new billing system, delivering a
new agile based technology organisation and developing a performance
based culture, with focus on empowerment and customer service.
During the first half the year, with the help of BluePrint for Business,
the whole PayPoint team defined its organisational purpose as:
'We exist to help make a positive difference to people's lives'
This is done through:
-- Bringing together consumers, local retailers, big businesses and
government.
-- Using smart technology to create services that people love.
-- Balancing the needs of every customer served to ensure success for all.
-- Being there whenever and wherever customers need us.
-- Offering a supportive, fulfilling place to work for our people.
This purpose statement has been a key support to our effort to improve
the service to and engagement with retailers. PayPoint's commitment to
retailers has been articulated in a public pledge which is as follows:
-- 'Listen and communicate openly with you.'
-- 'Support you and deliver excellent service.'
-- 'Always innovate to improve our products and services.'
-- 'Champion the importance of convenience retailers.'
Progress in the first half of the year
-- Increased the speed of answering retailer calls by 80% through the
implementation of an improved Interactive Voice Response System.
-- PayPoint's Retail Operations team have improved efficiency levels by 40%
following the introduction of Salesforce CRM to manage workflow.
-- Launch of a programme to ensure all the PayPoint team are aligned to
delivering good quality service to retailers.
On 21 July 2018 there was a technical incident that impacted
approximately one-third of the UK retail network. During the incident
coverage was maintained across our network to 98% of households and
services were fully restored on the day. The root cause was identified
and resolved and further enhancements implemented to the incident
response and communications policies and processes.
Ambition for the second half of the year
The sign-up and billing elements of Salesforce CRM will go live towards
the end of the financial year. This will allow further improvements to
retailer service, sales capability and operational efficiencies. The
PayPoint website will be further developed and together with the first
significant phase of Salesforce CRM will create the ability for
retailers to self-serve and order PayPoint One terminals and services
on-line.
Outlook
The good performance of the first half underpins the Board's confidence
that as PayPoint's growth drivers continue to develop there will be
progression in profit before tax for the full financial year to 31 March
2019.
Financial review
Trading performance
Six months to Six months to 12 months to
30 September 30 September Change 31 March
2018 2017 % 2018
Group
Total transactions
(million) 308.5 295.3 4.5 643.5
Transaction value (GBPm) 4,920.9 4,721.9 4.2 10,450.3
Revenue (GBPm) 106.1 97.6 8.7 213.5
Net revenue([18] #_ftn18)
(GBPm) 55.6 56.5 (1.6) 119.6
UK and Ireland
Total transactions
(million) 252.7 256.4 (1.4) 547.1
Transaction value (GBPm) 3,838.5 3,996.8 (4.0) 8,537.4
Revenue (GBPm) 69.5 75.6 (8.0) 155.9
Net revenue(1) (GBPm) 48.8 51.4 (5.2) 107.7
Romania
Total transactions
(million) 55.8 38.8 43.8 96.4
Transaction value (GBPm) 1,082.4 725.1 49.3 1,912.9
Revenue (GBPm) 36.6 22.0 66.3 57.6
Net revenue(1) (GBPm) 6.8 5.1 33.2 11.9
Transaction volumes have increased by 13.2 million (4.5%) to 308.5
million largely due to the Payzone business which was acquired in
October 2017 and is therefore not included in the comparative period.
Transaction value was GBP4.9 billion for the six months to 30 September
2018, an increase of 4.2% from the same period last year and was broadly
in line with the increased transaction volumes.
Gross revenue increased by GBP8.5 million (8.7%) to GBP106.1 million,
with Romania revenue increasing by GBP14.6 million through a combination
of the Payzone acquisition and organic growth. Payzone had a large
mobile top-up element for which PayPoint acts as principal and is
accordingly recognised on a gross basis. Other growth areas of the
business included PayPoint One service fee revenue which increased by
GBP1.4 million and e-money which increased by GBP0.5 million. Offsetting
the above was UK bill payment and top-up revenue reducing revenue by
GBP4.9 million due to the general decline in the cash payments and the
closure of SPS worth GBP2.2 million.
Net revenue is gross revenue of GBP106.1 million (2017: GBP97.6 million)
less retailer commission of GBP22.0 million (2017: GBP23.9 million) and
the cost of mobile top-ups of GBP28.5 million (2017: GBP17.2 million).
Retailer commissions reduced by GBP1.9 million following the decline in
UK bill payments and top-ups. The cost of mobile top-ups increased as a
result of the Payzone business. Net revenue of GBP55.6 million was
GBP0.9m lower than the GBP56.5 million achieved last year however growth
of underlying([19] #_ftn19) net revenue of GBP1.8 million or 3.2% was
achieved.
At At At
Retail network sites([20] 30 September 30 September Change 31 March
#_ftn20) 2018 2017 % 2018
UK & Ireland Retail network;
Of which 28,886 28,286 2.1 29,114
-- PayPoint One[21] #_ftn21 10,242 6,181 65.7 8,550
-- Legacy terminal 10,080 13,544 (25.6) 11,980
-- PPoS[22] #_ftn22 8,564 8,561 0.0 8,584
Romania Retail network 18,984 11,771 61.3 20,514
Total sites 47,870 40,057 19.5 49,628
At At At
30 September 30 September Change 31 March
UK retail services sites 2018 2017 % 2018
PayPoint One 10,242 6,181 65.7 8,550
Collect+ 7,084 6,794 4.3 7,436
Card payments 9,951 9,684 2.8 10,252
ATM 3,983 4,153 (4.1) 4,146
The UK retail network reduced to 28,886 sites, 258 lower than at 31
March 2018 with emphasis on the launch and rollout on EPoS Pro in the
first quarter which was in over 400 sites as at 30 September 2018. In
the second quarter focus has been on the PayPoint One roll out, with
10,242 sites installed as at 30 September 2018, an increase of 1,692
since 31 March 2018 with a consequential small reduction in the number
of card payment sites. More of PayPoint's independent retailers are now
using PayPoint One than the legacy terminal.
Romania's retail network stood at 18,984 sites on 30 September 2018 with
over 1,500 low performing sites removed since 31 March 2018 from the
Payzone network which will improve future profitability.
Included in the above results and site numbers is the Ireland retail
network which closed at the end of October 2018. Ireland contributed
cGBP0.5 million net revenue per annum and had 426 sites on 30 September
2018.
Trading performance by sector
Six months to Six months to 12 months to
30 September 30 September Change 31 March
Bill and general 2018 2017 % 2018
Group
Total transactions
(million) 189.8 182.9 3.7 419.5
Transaction value (GBPm) 3,928.0 3,750.4 4.7 8,502.9
Revenue (GBPm) 35.3 36.8 (3.9) 82.5
Net revenue([23] #_ftn23)
(GBPm) 25.4 26.7 (4.8) 60.0
UK and Ireland
Total transactions
(million) 140.7 148.4 (5.2) 334.2
Transaction value (GBPm) 2,920.1 3,079.3 (5.2) 6,717.6
Revenue (GBPm) 28.8 32.0 (10.0) 71.0
Net revenue1 (GBPm) 21.1 23.4 (9.7) 52.3
Romania
Total transactions
(million) 49.1 34.5 42.4 85.3
Transaction value (GBPm) 1,007.9 670.7 50.3 1,785.3
Revenue (GBPm) 6.5 4.8 36.7 11.5
Net revenue1(GBPm) 4.3 3.3 33.0 7.7
Bill and general transactions increased to 189.8 million, up 3.7%
(September 2017: down 6.1%) compared to the same period last year driven
by Romania. Romania had strong transaction volume growth of 42.4%
(September 2017: 6.2%) to 49.1 million transactions (September 2017:
34.5 million) as a result of the Payzone acquisition and continued
organic growth including adding 10 new clients in Romania. Romania
market share([24] #_ftn24) had increased to 38% (September 2017: 23.6%).
The MultiPay service continued to perform well and increased
transactions by 55.7% to over 10 million in the period.
Net revenue of GBP25.4 million decreased by GBP1.3 million or 4.8%
(September 2017: increased 1.0%), largely due the closure of SPS worth
GBP2.2 million. Excluding this, underlying net revenue increased by 3.5%
in line with transaction volume growth. The improved client mix which
increased the margin per transaction in the UK was offset by the lower
margins achieved from the Payzone acquisition.
Six months to Six months to 12 months to
30 September 30 September Change 31 March
Top-ups and e-money 2018 2017 % 2018
Group
Total transactions
(million) 29.2 31.3 (6.7) 62.6
Transaction value (GBPm) 344.5 349.5 (1.4) 698.3
Revenue (GBPm) 43.6 32.6 33.6 75.3
Net revenue1 (GBPm) 10.7 10.3 2.7 20.8
UK and Ireland
Total transactions
(million) 23.1 27.4 (15.7) 52.2
Transaction value (GBPm) 308.2 326.2 (5.5) 639.1
Revenue (GBPm) 14.4 16.1 (10.5) 30.8
Net revenue1 (GBPm) 8.8 9.0 (2.2) 17.7
Romania
Total transactions
(million) 6.1 3.9 55.7 10.4
Transaction value (GBPm) 36.3 23.3 56.0 59.2
Revenue (GBPm) 29.2 16.5 76.5 44.5
Net revenue1 (GBPm) 1.9 1.3 44.8 3.1
Top-up and e-money transactions reduced by 6.7% (September 2017: 12.4%)
as a result of the expected ongoing decline in the UK mobile top-up
volumes. This was partly offset by good growth of 10.3% in UK e-money
transactions and Romania's top-up growth of 55.7% which increased
Romania's transactions to 6.1 million.
Net revenue increased by 2.7% (September 2017: 7.6%) to GBP10.7 million,
despite lower transaction volume as a result of increased e-money
transactions which have a higher margin per transaction. Similar to bill
payments, the margins earned from Payzone transactions were lower than
that of the existing business, and therefore the net revenue growth of
44.8% in Romania was behind the 55.7% growth in transactions.
Six months to Six months to 12 months to
30 September 30 September Change 31 March
Retail services 2018 2017 % 2018
Group
Total transactions
(million) 89.5 81.0 10.5 161.4
Transaction value (GBPm) 648.4 622.4 4.2 1,249.1
Revenue (GBPm) 27.2 28.2 (3.5) 55.7
Net revenue([25] #_ftn25)
(GBPm) 19.5 19.5 0.2 38.8
UK and Ireland
Total transactions
(million) 88.9 80.7 10.2 160.7
Transaction value (GBPm) 610.2 591.3 3.2 1,180.7
Revenue (GBPm) 26.3 27.5 (4.3) 54.1
Net revenue (GBPm) 18.9 19.0 (0.6) 37.7
ATM 6.5 6.6 (1.1) 12.8
Services fees 4.8 3.4 39.8 7.7
Card payments rebate 3.9 3.9 1.1 7.5
Parcels and other 3.7 5.1 (27.7) 9.7
Romania
Total transactions
(million) 0.6 0.3 98.3 0.7
Transaction value (GBPm) 38.2 31.1 22.8 68.4
Revenue (GBPm) 0.9 0.7 28.2 1.6
Net revenue (GBPm) 0.6 0.5 31.9 1.1
Retail services' transaction volumes increased 10.5% (September 2017:
6.1%) driven by the strong growth from card payment transactions of
19.3%. ATM transactions also increased by 4.9%, despite overall ATM
market conditions. Parcel volumes declined by 15.9% due lower volumes
from the existing partner.
Net revenue was flat at GBP19.5 million and reflects the revised Yodel
commercial terms with an impact of GBP0.5 million on a like-for-like
volume basis. Excluding this, net revenue increased by GBP0.5 million
(2.2%) with strong growth of GBP1.4 million (39.8%) in service fee
revenue, driven by the roll out of the PayPoint One terminal, partially
offset by lower SIM activation net revenue and reduced parcel volumes.
Network costs
Network costs of GBP30.2 million([26] #_ftn26) were GBP1.9 million lower
than last year of GBP32.1 million and includes a GBP1.7 million benefit
from improved VAT recovery. Excluding this, costs were slightly lower
than the GBP32.1 million for the same period last year, reflecting the
ongoing improvement in operational efficiencies from the new Interactive
Voice Response System and reorganisation to implement an agile
development programme, partially offset by GBP1.1 million increase in
Romania driven by including Payzone overheads for six months and
additional investment to drive future growth areas.
The changes in net revenue and costs described above has led to an
improved operating margin([27] #_ftn27) of 45.8% (September 2017:
43.1%).
Profit before tax and taxation
Profit before tax was GBP25.3 million (September 2017: GBP24.4 million).
The conversion of Romania's results into sterling had a negligible
impact on profit before tax and was converted at an average exchange
rate of 5.19 (September 2017: 5.25). IFRS 15 was implemented at the
commencement of the period using the modified retrospective method and
accordingly prior period comparatives have not been restated. During the
current period the impact of IFRS 15 was to increase profit before tax
by less than GBP0.1 million.
The tax charge was GBP4.8 million (September 2017: GBP4.6 million)
resulting in an effective tax rate([28] #_ftn28) of 19.0% (September
2017: 18.8%), in line with the UK statutory rate. The lower Romanian tax
rate has been offset by a small amount of non-deductible expenses.
Statement of financial position and capital expenditure
The statement of financial position remains strong with net assets of
GBP45.7 million (September 2017: GBP56.6 million). This is a reduction
of GBP15.6 million from 31 March 2018 and was a result of the additional
dividend program.
Gross assets increased to GBP233.6 million (September 2017: GBP198.7
million), an increase of GBP34.9 million from September last year due to
an additional day of client funds held by retailers compared to last
year. This was caused by the period end falling over both days of the
weekend. A corresponding liability towards clients is included in trade
and other payables. Gross assets also increased with the acquisition of
Payzone, which included goodwill of GBP3.9 million.
During the period retailer deposits of GBP9.5 million held as security
were transferred to new banking arrangements. These arrangements differ
from the previous facilities which under IFRS are now included within
cash and cash equivalents on the statement of financial position with
corresponding liability included as a retailer deposit liability within
trade and other payables. These funds will continue to be held and
operated separately from corporate cash balances with the view of
limiting PayPoint and client exposure to retailer credit risk.
IFRS 15 - Revenue from contracts was adopted from 1 April 2018 using the
modified retrospective method, therefore the prior period comparatives
have not been restated. The cumulative impact from prior periods was to
increase net assets by GBP1.0 million which was adjusted through the
opening retained earnings on 1 April 2018.
Cash flow and liquidity
There was continued strong conversion of profit to cash with GBP27.6
million (September 2017: GBP26.5 million) generated([29] #_ftn29) from
profit before tax of GBP25.3 million.
Working capital, excluding the movement in client funds, absorbed GBP1.1
million (September 2017: GBP3.0 million), predominantly reflecting
pre-payments which occur in the first half of the year but are related
to full year activities. These are expected to reverse in the full year.
Furthermore, as highlighted in the 2017/18 full year results, the
working capital benefit relating to the VAT tribunal ruling of GBP3.0
million will reverse in the second half of this year.
Corporation tax payments of GBP4.4 million (September 2017: GBP5.0
million) represent the regular payments on account. Capital expenditure
of GBP3.7 million (September 2017: GBP8.1 million) relates to ongoing
investment in the PayPoint One terminal roll out and development of EPoS,
MultiPay and Salesforce CRM. Capital expenditure is expected to increase
in the second half of the year, with full year capex expected to be
between GBP12 million and GBP13 million.
PayPoint had net corporate cash of GBP0.6 million at the period end
(2017: GBP9.5 million) and comprised of cash balances of GBP6.6 million
less the GBP6.0 million utilised from PayPoint's GBP75.0 million
financing facility. Client funds and retailer deposits amounted to
GBP32.7 million (2017 GBP18.1 million), the increase driven primarily by
recognising retailer deposits on the statement of financial position.
PayPoint is a profitable business and together with its cash and
borrowing capacity has sufficient resources to adequately meet its
foreseeable requirements, therefore the financial statements have been
prepared on a going concern basis.
Dividend
An interim dividend of 15.6p per share (September 2017: 15.3p) and an
additional dividend of 12.2p (September 2017: 12.2p) per share have been
declared. Both dividends will be paid on 11 January 2019 to shareholders
on the register at 7 December 2018. This is the last dividend payment
under the current dividend payment profile. From April 2019 PayPoint
will move to a quarterly payment profile with the first quarter dividend
paid in July 2019.
Total dividends of GBP37.6 million (55.1p per share) were paid during
the period and comprised the final ordinary dividend for the year ended
31 March 2018 totalling GBP20.9 million (30.6p per share) and the final
additional dividend of GBP16.7 million (24.5p per share).
Rachel Kentleton
Finance Director
29 November 2018
Condensed Consolidated Statement of Profit or loss and Other
comprehensive income
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 September 30 September 31 March
Note 2018 2017 2018
GBP000 GBP000 GBP000
Continuing operations
Revenue 2,3 106,134 97,593 213,515
Cost of revenue 4 (59,605) (50,244) (113,565)
Gross profit 46,529 47,349 99,950
Administrative expenses (21,048) (22,978) (46,489)
Operating profit 25,481 24,371 53,461
Finance income 176 47 95
Finance costs (312) (48) (609)
Profit before tax 25,345 24,370 52,947
Tax 5 (4,815) (4,570) (10,012)
Profit for the
period([30] #_ftn30) 20,530 19,800 42,935
Other comprehensive
income
Exchange differences on
translation of foreign
operations 229 314 67
Total comprehensive
income for the period1 20,759 20,114 43,002
Earnings per share
Basic 6 30.1p 29.1p 63.0p
Diluted 6 30.0p 28.9p 62.7p
Notes 1 to 15 form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
30 September 30 September 31 March
2018 2017 2018
Note GBP000 GBP000 GBP000
Non-current assets
Goodwill 12,372 8,406 12,171
Other intangible assets 14,464 13,769 13,586
Property, plant and equipment 27,273 28,868 28,047
Deferred tax assets 400 438 414
54,509 51,481 54,218
Current assets
Inventories 193 327 279
Trade and other receivables 8 139,561 119,358 161,987
Cash and cash equivalents 9 39,359 27,574 46,040
179,113 147,259 208,306
Total assets 233,622 198,740 262,524
Current liabilities
Trade and other payables 10 176,959 137,407 196,562
Current tax liabilities 4,629 4,249 4,213
Loans and borrowings 6,000 - -
187,588 141,656 200,775
Non-current liabilities
Other liabilities 10 322 471 390
Deferred tax liability 54 - 66
376 471 456
Total liabilities 187,964 142,127 201,231
Net assets 45,658 56,613 61,293
Equity
Share capital 11 227 227 227
Share premium 3,351 2,907 2,907
Share-based payment reserve 2,221 2,305 2,771
Translation reserve (20) (2) (249)
Retained earnings 39,879 51,176 55,637
Total equity([31] #_ftn31) 45,658 56,613 61,293
Notes 1 to 15 form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share
capital premium Share- based payment reserve Translation reserve Retained earnings Total equity
Note GBP000 GBP000 GBP000 GBP000 GBP000 GBP000([32] #_ftn32)
Audited equity
31 March 2017 227 2,633 4,404 (316) 66,197 73,145
Profit for the
period - - - - 19,800 19,800
Equity-settled
share-based
payment expense - - 848 - - 848
Exchange
differences on
translation of
foreign
operations - - - 314 - 314
Dividends paid - - - - (37,150) (37,150)
Vesting of share
scheme 12 - 274 (2,925) - 2,329 (322)
Deferred tax on
share-based
payments - - (22) - - (22)
Unaudited equity
30 September 2017 227 2,907 2,305 (2) 51,176 56,613
Profit for the
period - - - - 23,135 23,135
Equity-settled
share-based
payment expense - - - - (18,748) (18,748)
Exchange
differences on
translation of
foreign
operations - - - (247) - (247)
Movement in share
based payment
reserve - - 719 - - 719
Dividends paid - - (74) - 74 -
Deferred tax on
share based
payments - - (179) - - (179)
Audited equity
31 March 2018 227 2,907 2,771 (249) 55,637 61,293
Adoption of IFRS 15 975 975
Profit for the
period - - - - 20,530 20,530
Equity-settled
share-based
payment expense - - 886 - - 886
Exchange
differences on
translation of
foreign
operations - - - 229 - 229
Dividends paid - - - - (37,565) (37,565)
Vesting of share
scheme 12 - 444 (1,439) - 302 (693)
Deferred tax on
share-based
payments - - 3 - - 3
Unaudited equity
30 September 2018 227 3,351 2,221 (20) 39,879 45,658
Notes 1 to 15 form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
Note GBP000 GBP000 GBP000
Net cash flow from operating activities 14 28,299 19,457 62,990
Investing activities
Finance income 176 47 95
Purchase of property, plant and equipment (1,583) (4,136) (7,112)
Intangible asset development (2,112) (3,922) (6,258)
Net proceeds from disposal of property, plant and
equipment 7 3 -
Acquisition of subsidiary - - (2,480)
Acquisition of subsidiary - client cash - - 1,554
Net cash used in investing activities (3,512) (8,008) (14,201)
Financing activities
Dividends paid (37,565) (37,150) (55,898)
Movement in financing facility 6,000 - -
Decrease in cash and cash equivalents (6,778) (25,701) (7,109)
Cash and cash equivalents at 1 April 46,040 53,080 53,080
Effect of foreign exchange rate changes 97 195 69
Cash and cash equivalents at period end 39,359 27,574 46,040
Reconciliation of cash and cash equivalents
Corporate cash 6,617 9,501 18,547
Client funds and retailer deposits 32,742 18,073 27,493
Cash and cash equivalents at period end 39,359 27,574 46,040
Notes 1 to 15 form part of these financial statements.
NOTES TO condensed FINANCIAL STATEMENTS
1. Accounting policies
Reporting entity
PayPoint plc ('the company') is a company domiciled in the United
Kingdom. These consolidated interim financial statements ('interim
financial statements') as at and for the six months ended 30 September
2018 comprise the company and its subsidiaries (together referred to as
the 'group'). The group is primarily involved in providing innovative
and time-saving technology to retailers and is a service provider for
consumer transactions (see note 2).
Basis of preparation
These interim financial statements have been prepared in accordance with
IAS 34 Interim Financial Reporting, and should be read in conjunction
with the group's last annual consolidated financial statements as at and
for the year ended 31 March 2018 ('last annual financial statements').
They do not include all the information required for a complete set of
IFRS financial statements. However, selected explanatory notes are
included to explain events and transactions that are significant to an
understanding of the changes in the group's financial position and
performance since the last annual financial statements. The interim
financial statements contained in this report are unaudited, but have
been formally reviewed by the auditor and their report to the company is
set out on page 30.
The information shown for the year ended 31 March 2018, which is
prepared under International Financial Reporting Standards (IFRS), does
not constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006. The report of the auditor on the statutory
accounts for the year ended 31 March 2018, prepared under IFRS, was
unqualified, did not draw attention to any matters by way of emphasis
and did not contain a statement under sections 498 (2) or (3) of the
Companies Act 2006 and has been filed with the Registrar of Companies.
By order of the Board, these interim statements were authorised for
issue on 29 November 2018.
The directors are satisfied that the group has adequate resources to
continue in operational existence for the foreseeable future, a period
of not less than 12 months from the date of this report.
The accounting policies are consistent with those included in the annual
report 2018, except for revenue recognition which has been changed to
IFRS 15 requirements.
Adoption of IFRS 15 Revenue from Contracts with Customers
IFRS 15 was adopted from 1 April 2018 using the modified retrospective
method, therefore the prior period comparatives have not been restated.
The cumulative impact from prior periods of GBP975k was adjusted through
the opening retained earnings on 1 April 2018, which is detailed in the
table below. There was a minimal impact on the profit before tax for the
interim period.
Impact on retained earnings
Notes GBP000
Deferral of setup and development revenue a (440)
Deferral of costs associated to setting up clients
and retailers on PayPoint's network b 1,703
Contracts with tiered pricing structures c (288)
Impact at 1 April 2018 975
(a) Deferral of setup and development revenue
Prior to the adoption of IFRS 15 revenue recognition for setup and
development revenue was dependent on contracted terms resulting in
certain fees being recognised as contractually earned. Under IFRS 15,
fees earned in advance of the provided services will initially be
deferred and subsequently recognised as the performance obligations are
satisfied.
(b) Deferral of costs associated to setting up clients and retailers on
PayPoint's network
Costs for setting up clients and retailers, to the extent they were not
capitalised under other accounting policies, were previously expensed as
incurred. The setup costs directly attributable to contracts with
clients and retailers incurred prior to providing the services
(satisfying the performance obligations) will now be capitalised and
recognised as an expense as the performance obligation is satisfied.
(c) Contracts with tiered pricing structures
Prior to the adoption of IFRS 15, transaction fees were recognised as
the transaction was processed at the contractual fee attributable to
those transactions. Under IFRS 15, estimates of the average transaction
fee over the life of the contract is estimated. Revenue is now
recognised at that estimated transaction fee with any revisions to that
estimated fee at each reporting period.
Apart from the above IFRS 15 did not have a significant impact on the
group's accounting policies with respect to other revenue streams from
clients and retailers.
The impact on the consolidated statement of profit and loss and
consolidated statement of financial position in the six-month period was
as follows:
Extract from the condensed consolidated statement of financial position
As reported
30 September 2018 Adjustments Amounts without the adoption of IFRS 15
GBP000 GBP000 GBP000
Current assets
Trade and other
receivables 139,561 (3,205) 136,356
Current liabilities
Trade and other
payables 176,959 (2,156) 174,803
Equity
Retained earnings 39,879 (1,048) 38,831
Extract from the condensed consolidated statement of profit and loss
As reported for 6 months
ended
30 September Adjustments Amounts without the adoption of IFRS 15
GBP000 GBP000 GBP000
Continuing
operations
Revenue 106,134 109 106,243
Cost of revenue (59,605) (15) (59,620)
Gross profit 46,529 94 46,623
Administrative
expenses (21,048) (167) (21,215)
Operating profit 25,481 (73) 25,408
Finance income 176 - 176
Finance costs (312) - (312)
Profit before
tax 25,345 (73) 25,272
Tax (4,815) - (4,815)
Profit for the
period 20,530 (73) 20,457
The group has also adopted IFRS 9 'Financial Instruments' which had no
significant impact to the balance sheet.
Use of judgements and estimates
In the application of the group's accounting policies, the directors are
required to make judgements, estimates and assumptions about the
carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going
basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision
affects both current and future periods.
The critical accounting judgement at the balance sheet date that has a
significant risk of causing a material adjustment to the carrying amount
of assets and liabilities through estimation uncertainty is the
evaluation of capitalised development expenditure shown in intangible
assets.
Critical estimate: Useful economic lives
The useful life used to amortise intangible assets relates to the
expected future performance of the assets and management's judgement of
the period over which economic benefit will be derived from the asset.
For development costs, the group has determined the useful life based on
historical experience with similar products and platforms controlled by
the group as well as anticipation of future events which may impact
their life such as changes in technology. Historically, changes in
useful lives have not resulted in material changes to the group's
amortisation charge.
Impact of future standards IFRS 16
IFRS 16 'Leases' is effective for annual periods beginning on or after 1
January 2019. IFRS 16 provides a single lessee accounting model,
requiring lessees to recognise right of use assets and lease liabilities
for all applicable leases. On adoption of IFRS 16 the group will
recognise on the balance sheet a right to use an asset and lease
liability for all leases under which it is a lessee. In the income
statement depreciation of the asset and interest expense arising from
the lease liability will be recognised in place of the operating lease
rental expense. This will result in an increase in cost of revenue,
finance costs and a decrease in administrative expenses.
The impact of IFRS 16 on implementation may change as a result of
alterations to existing lease contracts terms or new contracts entered
into before the standard's implementation. If the standard was adopted
in the current financial year the right to use the asset would increase
gross assets by GBP0.9 million and lease liabilities increasing total
liabilities by GBP1.0 million. However, the overall impact on earnings
would not be significant, as total operating lease charges would broadly
be similar to the depreciation and finance costs recognised. The group
does not have any leases where it is a lessor.
Alternative performance measures
Non-IFRS measures or alternative performance measures are used by the
directors and management for performance analysis, planning, reporting
and incentive setting purposes which have remained consistent with prior
periods. These measures are included in these interim financial
statements to provide additional useful information on performance and
trends to shareholders.
These measures are not defined terms under IFRS and therefore they may
not be comparable with similarly titled measures reported by other
companies. They are not intended to be a substitute for, or superior to,
IFRS measures. These measures include net revenue, Retail networks
earnings per share and effective tax rate.
Net revenue (non-IFRS measure)
Net revenue is revenue less the cost of mobile top-ups (where PayPoint
is principal), SIM cards and other costs incurred by PayPoint which are
recharged to clients and merchants. These costs include retail agent
commission, card payment merchant service charge.
Net revenue reflects the benefit attributable to PayPoint's performance
eliminating pass-through costs and further assists with comparability of
performance where PayPoint acts as a principal for some clients and as
an agent for others. Net revenue is a reliable indication of
contribution on a business sector and product basis and is shown in the
operating and financial review.
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
The reconciliation of revenue GBP000 GBP000 GBP000
Service revenue 74,371 76,867 164,519
Sale of goods 31,262 20,131 47,809
Royalties 501 595 1,187
Revenue 106,134 97,593 213,515
less:
Retail agent commissions (22,043) (23,912) (49,100)
Cost of mobile top-ups and SIM cards
as principal (28,509) (17,174) (44,844)
Net revenue 55,582 56,507 119,571
Cash generation (non-IFRS measure)
Cash generation reflects operating cash flows including movements in
working capital, but excluding movement in client funds and retailer
deposits as detailed in note 14 to the interim financial statements.
Effective tax rate (non-IFRS measure)
Effective tax rate is the tax cost as a percentage of net profit before
tax excluding significant items including profit or loss on business
disposals and impairments. Effective tax better reflects the underlying
tax rate because it excludes the effect of significant items.
Operating margin (non-IFRS measures)
Operating margin is calculated by dividing operating profit by net
revenue. This measure reflects the efficiency of converting revenue into
profits.
1. Segmental reporting
PayPoint provides innovative and time-saving technology to retailers and
is a service provider for consumer transactions through various
distribution channels, involving the processing of high volume
transactions, the management of retailers and clients, the settlement of
funds (collection and transmission) and transmission of data in a secure
environment by the application of technology. The application of
technology is directed on a group basis by the group's executive board
to develop products across the business, prioritised on an economic
value basis (generally by product), rather than on a subsidiary by
subsidiary basis and therefore the group has only one operating segment.
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Revenue by country
UK 68,306 73,447 152,225
Ireland 1,238 2,151 3,727
Romania 36,590 21,995 57,563
Total 106,134 97,593 213,515
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Non-current assets (excluding deferred
tax)
UK 36,172 41,631 39,997
Romania 17,937 9,412 13,807
Total 54,109 51,043 53,804
1. Revenue
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
Disaggregation of revenue GBP000 GBP000 GBP000
Bill and general 35,312 36,756 82,478
Top-ups and e-money 43,610 32,624 75,400
Retail services 27,212 28,213 55,637
Total 106,134 97,593 213,515
Seasonality of operations
PayPoint operates in many sectors each within their own form of
seasonality. The energy bill payment and parcel sectors are the most
seasonal sectors with the energy sector generating more transactions
during the winter months and parcels generating higher volumes in the
lead up to Christmas. As a result, higher revenue and
operating profits are usually expected in the second half of the year
rather than in the first six months. This does not constitute "highly
seasonal" as considered by IAS 34 Interim Financial Reporting.
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
Contract balances GBP000 GBP000 GBP000
Trade receivables 19,699 13,521 18,425
Accrued income 2,496 7,020 3,644
Contract assets 3,205 - -
Contract liabilities (2,307) (151) (721)
Total 23,093 20,390 21,348
1. Cost of revenue
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Cost of revenue
Commission payable to retail agents 22,043 23,912 49,100
Cost of mobile top-ups and SIM cards 28,509 17,174 44,844
Cost of revenue deducted for net
revenue 50,552 41,086 93,944
Depreciation and amortisation 4,509 4,606 10,195
Other 4,544 4,552 9,426
Other costs of revenue 9,053 9,158 19,621
Total cost of revenue 59,605 50,244 113,565
1. Tax on profit
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Current tax 4,811 4,676 10,286
Deferred tax 4 (106) (274)
Total 4,815 4,570 10,012
Tax for the six month period was charged on profits at an effective tax
rate([33] #_ftn33) of 19.0% (September 2017: 18.8%), which is in line
with the UK statutory rate. The lower Romanian tax rate has been offset
by a small amount of non-deductible expenses.
1. Earnings per share
The basic and diluted earnings per share are calculated on the following
profit and number of shares.
The earnings for calculating the earnings per share is the net profit
attributable to equity holders of the parent.
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Profit for basic and diluted earnings per share is
the net profit attributable to equity holders of the
parent 20,530 19,800 42,935
Number of Number of Number of
Shares shares shares
Weighted average number of ordinary shares in issue
(for basic earnings per share) 68,158,612 68,156,122 68,112,815
Potential dilutive ordinary shares:
Long-term incentive plan 171,280 235,449 260,078
Deferred annual bonus scheme 25,934 37,107 47,795
SIP and other 11,978 3,629 28,719
Diluted basis 68,367,804 68,432,307 68,449,407
Earnings per share
Basic 30.1p 29.1p 63.0p
Diluted 30.0p 28.9p 62.7p
1. Dividends
On 29 November an interim dividend of 15.6p per share (September 2017:
15.3p) and an additional dividend of 12.2p (September 2017: 12.2p) per
share were declared. Both dividends will be paid on 11 January 2019 to
shareholders on the register at 7 December 2018. Total dividends of
GBP37.6 million (55.1p per share) were paid during the period and
comprised of the final ordinary dividend for the year ended 31 March
2018 totalling GBP20.9 million (30.6p per share) and the final
additional dividend of GBP16.7 million (24.5p per share).
1. Trade and other receivables
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Trade receivables 19,699 13,521 18,425
Items in the course of collection(1) 112,915 98,335 139,666
Revenue allowance (3,203) (4,278) (3,862)
129,411 107,578 154,229
Other receivables 495 606 1,208
Contract assets 3,205 - -
Accrued income 2,496 7,020 3,644
Prepayments 3,954 4,154 2,906
139,561 119,358 161,987
(1) Items in the course of collection represent amounts collected for
clients by retail agents, but not yet remitted to PayPoint.
9. Cash and cash equivalents
The group operates cash pooling amongst its various bank accounts in the
UK and therefore individual accounts can be overdrawn without interest
being incurred so long as the overall position is in credit. At 30
September 2018, the corporate cash was GBP6.6 million (2017: GBP18.1
million).
Separate to corporate cash, PayPoint also holds client funds and
retailer deposits of GBP32.7 million (September 2017: GBP18.1 million)
where PayPoint has title to the client's funds and retailer's deposits.
An equivalent balance is included within trade payables.
Funds which are held in trust for clients in the UK and Ireland are not
included within cash and cash equivalents.
1. Trade and other payables
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Client funds and retailer's deposits(1) 32,741 18,073 27,493
Settlement payables(2) 112,915 98,335 139,666
Client and retailer payables 145,656 116,408 167,159
Trade payables 9,902 7,114 8,010
Other taxes and social security 5,087 1,967 7,286
Other payables 2,937 2,433 2,823
Accruals 11,392 9,805 10,953
Contract liabilities 2,307 151 721
177,281 137,878 196,952
Disclosed as:
Current 176,959 137,407 196,562
Non-current 322 471 390
Total 177,281 137,878 196,952
(1) Relates to funds collected on behalf of clients and retailer's
deposits where PayPoint has title to the funds. An equivalent balance is
included within cash and cash equivalents.
(2) Payable in respect of amounts collected for clients by retail
agents.
1. Share capital
Share capital as at 30 September 2018 was GBP227,431. During the period
the PayPoint plc issued 48,777 (September 2017: 37,016) shares for the
2014 DSB and SIP schemes.
1. Share-based payments
The total charge of GBP1.4 million (September 2017: GBP2.9 million)
recognised directly to equity for schemes which have lapsed or vested
was transferred from the share-based payments reserve to retained
earnings during the period.
On 4 June 2018, 197,298 shares under the LTIP scheme were granted with
50% of the vesting based on total shareholder return (TSR) and 50% on
earnings per share (EPS) growth. The performance condition for the TSR
element is the same as the vesting period. The performance period for
the EPS element is for the three financial years up to 31 March 2020. A
further 48,444 shares were issued under the DABS scheme with vesting
over three years to 4 June 2021.
1. Fair value of financial assets and liabilities
The directors consider there to be no material difference between the
book value and the fair value of the group's financial instruments at 30
September 2018, 30 September 2017 and 31 March 2018.
1. Notes to the statement of cash flows
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Profit before tax 25,345 24,370 52,947
Adjustments for: -
Depreciation on property, plant and
equipment 3,057 3,028 6,362
Amortisation of intangible assets 1,633 1,579 4,155
Loss on disposal of fixed assets - - 52
Net interest income charge 137 1 514
VAT and R&D credits (1,730) - (166)
Share-based payment charge 886 848 (322)
Cash-settled share-based remuneration (703) (322) 1,567
Earnings before interest,
depreciation and amortisation 28,625 29,504 65,109
Working capital movements
Inventories 86 38 148
Trade and other receivables (1,403) (520) (424)
Contract assets 182 - -
Trade and other payables 181 (2,535) 3,650
Contract liabilities (deferred
income) (109) - -
Cash generation (non-IFRS measure) 27,562 26,487 68,483
Client funds and retailer deposits
movement([34] #_ftn34) 5,365 (2,004) 5,401
Cash generated from operating
activities 32,927 24,483 73,884
Corporation tax paid (4,405) (4,978) (10,285)
Finance charges paid (223) (48) (609)
Net cash from operating activities 28,299 19,457 62,990
1. Post balance sheet events
There were no significant events occurring after the balance sheet date.
PRINCIPAL RISKS AND Uncertainties
Since the publication of the Annual Report, a further review of the key
risks that could prevent PayPoint meeting its strategic objectives, its
risk appetite and the risk management framework was undertaken. Key
risks are highlighted below with changes in risk level denoted as
follows: risk level has not changed; risk level has increased; risk
level has reduced.
Risk area Potential impact Mitigation strategies Change
Business
Innovation and market changes The group could fail to adapt to changes in consumer The group monitors technological and consumer trends risk
behaviour, competitor activity or to commercialise through its monthly strategy committee and twice-yearly level
and develop innovation that is scalable and meets Board strategy reviews. The group is committed to has not
the requirements of clients and retailers. continued research and investment in technology and changed
The inability to implement new products and services products to support its continued growth. Our product
effectively may impact PayPoint's ability to drive portfolio and the progress of new initiatives are
growth and profitability. reviewed at the monthly product committee that contains
representatives from commercial, product, technology,
finance and legal.
PayPoint also has an active sales function and client
teams which are incentivised to promote and sell PayPoint
products and services in the regions in which PayPoint
operates to expand our client and retailer base. Furthermore,
appropriate client and retailer contracts are in place
which in combination with focus on improving service
standards are aimed at retaining our current retailer
and client base.
risk
Culture The strategic objectives and values of the group are The PayPoint strategic objectives and values are defined level
focused on retailer and consumer-centric products and advocated by the Executive Board. These values has not
and services. If employees are not aligned with these are linked to strategic, team and individual employee changed
objectives or empowered to realise opportunities, objectives and performance appraisals. The group's
deliver performance or mitigate risks this could lead ethical principles are published on its website and
to poor service quality, a loss in revenue, increased intranet. A whistleblowing policy and procedures are
cost or failure by employees to escalate concerns published and a third-party service if available for
or issues to senior management and the Executive Board. employees to report wrongdoing. The Retailer Pledge
is published and all employees made aware of its requirements.
risk
Dependence on key clients and retailers The consolidation of major clients or multiple retailers The group monitors client and retailer concentration level
could adversely affect revenue. Insolvency, liquidation, risk to ensure that no one client or retailer accounts has not
administration or receivership of retailers could for a disproportionate share of the group's net revenue. changed
lead to PayPoint being unable to recover some or all In addition, the group continues to acquire new clients
of the client monies processed by the retailer. PayPoint and retailers to reduce reliance on existing sources
would be liable to account to those clients where of revenue. All major clients are covered by specific
PayPoint bears the risk of collection. contracts or agreements. Contract end dates and start
of notice periods are scheduled and regularly reviewed
by client management teams. Retail teams maintain
and develop the relationship with retailers.
risk
Partners & suppliers Reliance on third parties for the provision of key The group selects and negotiates agreements with strategic level
parts of the PayPoint services (e.g. Payment Service suppliers and agents based on criteria such as delivery has not
Providers) could lead to extended outages if the supplier assurance and reliability. Single points of failure changed
fails to meet required SLAs or goes into administration. are avoided, where practicable and economically feasible.
Specifically, for our MultiPay product we are adding
a second payment service provider which will enhance
the resilience of the service. Controls are regularly
reviewed and improved to minimise risk of retailer
churn caused by financial loss to retailers through
fraudulent third-party activity. Suppliers are selected
on merit following tendering, procurement and due
diligence processes.
risk
Interruptions in processes and systems The group's ability to provide reliable services largely Resilience is built into systems and contingency plans level has
depends on the efficient and uninterrupted operation are in place should systems fail. These plans are increased
of our computer network systems, financial settlement exercised regularly. Programmes are in place to remove
systems, data and call centres, as well as maintaining technical debt and to automate manual processes. Payment
sufficient staffing levels. System or network interruptions, files are automatically imported into settlement systems.
recovery from fraud or security incidents or the unavailability All payments are checked / authorised by nominated
of key staff or management resulting from a pandemic signatories. There is segregation of duties maintained
outbreak could delay and disrupt our ability to develop, between settlement & corporate accounts. Invoices
deliver or maintain our products and services, causing are recorded and approved by authorised managers.
harm to our business and reputation and resulting Daily reconciliation of client settlement accounts
in loss of customers or revenue. and weekly reconciliation of PayPoint corporate accounts
A technical incident occurred on Saturday 21 July is carried out. Audited controls for supplier and
2018 that impacted approximately one-third of our client account set-up are in place.
retail terminal estate. During this period, customers Following the technical incident, the Major Incident
were able to undertake services at alternative local Response Plan was reviewed with an incident categorisation
sites and were able to continue to provide coverage matrix defined which provides a clearer action plan
across our network to 98% of households. Services for the incident management team whose responsibilities
were fully restored during the course of the day. have been thoroughly defined. The incident communications
process was also enhanced including active monitoring
of social media and emergency contacts clearly identified.
Operational
Legislation or regulatory reforms and risk of non-compliance PayPoint is required to comply with relevant legal The group's legal department works closely with senior risk
and regulatory requirements. Any breach of these obligations managers to adopt strategies to educate legislature, level has
could lead to costly and damaging legal or corrective regulators, consumer and privacy advocates and other not
actions to return to compliance e.g. Health & Safety stakeholders to support the public policy debate, changed
at Work Act, Data Protection Act / GDPR, Stock Market where appropriate, to ensure regulation does not have
listing rules, Financial Conduct Authority requirements, unintended consequences over the group's services.
anti-money laundering legislation, employment law A central compliance department co-ordinates all compliance
etc. It could also lead to the prosecution of individual monitoring and reporting. Subsidiary managing and
company officers or employees. finance directors are required to sign annual compliance
statements.
risk
Cyber security, data protection, resilience and business System or network interruptions, recovery from fraud Service delivery is constantly monitored with technical level has
continuity or cyber security incidents or poorly implemented support teams in place to address service outages not
change could delay and disrupt our ability to develop, or errors. Contact Centre, Service Management and changed
deliver or maintain our products and services, causing Technical Services Helpdesk are in place to assist
harm to our business and reputation and resulting with and resolve issues. Client Management and Retail
in loss of customers or revenue. PayPoint's ability Management teams are in place to interface with clients
to provide reliable and secure services largely depends and retailers. Resilient systems are in place across
on the availability and uninterrupted operation of the group. Disaster recovery and business continuity
its network of retailer terminals, computer systems, plans are maintained and exercised regularly to ensure
financial settlement and key business processes. contingencies are in place in the case of failure.
risk
Attracting and retaining key talent Future success is substantially dependent on the continued Effective recruitment programmes are on-going across level has
services and performance of executive directors, senior all business areas, as well as personal and career not
management, competent and qualified personnel. The development initiatives. The executive management changed
failure to attract the right candidates, loss of key reviews talent potential twice a year and retention
personnel or failure to adequately train employees plans are put in place for individuals identified
could damage the group's business or lead to non-compliance at risk of leaving. Compensation and benefits programmes
with legal and regulatory requirements. are competitive and reviewed regularly.
Brexit The effect on inter-company transactions and the group's PayPoint has carried out an assessment of the impact risk
international expansion plans may be adversely affected of a no-deal Brexit scenario and identified key risks level has
by the outcomes of the negotiations between the UK to its operating model. Whilst no business can mitigate not
government and the other member countries during the against the impact of Brexit, actions to reduce disruption changed
UK's exit from the European Union. in the short term are underway including building
a buffer stock of PayPoint One terminals, maximising
intercompany dividends and engaging with clients and
suppliers determining their own readiness and impact
assessments.
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
1. the set of interim financial statements has been prepared in accordance
with IAS 34 Interim Financial Reporting;
2. the half yearly financial report includes a fair review of the
information required by DTR 4.2.7R (indication of important events during
the first half and description of principal risks and uncertainties for
the remaining half of the year); and
3. the half yearly financial report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
Dominic Taylor Rachel Kentleton
Chief Executive Finance Director
INDEPENT REVIEW REPORT TO PAYPOINT PLC
Conclusion
We have been engaged by the company to review the condensed set of
financial statements in the half-yearly financial report for the six
months ended 30 September 2018 which comprises the condensed
consolidated income statement, the condensed consolidated statement of
comprehensive income, the condensed consolidated statement of financial
position, the condensed consolidated statement of changes in equity, the
condensed consolidated cash flow statement and the related explanatory
notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the
half-yearly financial report for the six months ended 30 September 2018
is not prepared, in all material respects, in accordance with IAS 34
Interim Financial Reporting as adopted by the EU and the Disclosure
Guidance and Transparency Rules ("the DTR") of the UK's Financial
Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International Standard on
Review Engagements (UK and Ireland) 2410 Review of Interim Financial
Information Performed by the Independent Auditor of the Entity issued by
the Auditing Practices Board for use in the UK. A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. We read the other information
contained in the half-yearly financial report and consider whether it
contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing
the half-yearly financial report in accordance with the DTR of the UK
FCA.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with International Financial Reporting Standards
as adopted by the EU. The directors are responsible for preparing the
condensed set of financial statements included in the half-yearly
financial report in accordance with IAS 34 as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the
condensed set of financial statements in the half-yearly financial
report based on our review.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the company in accordance with the terms
of our engagement to assist the company in meeting the requirements of
the DTR of the UK FCA. Our review has been undertaken so that we might
state to the company those matters we are required to state to it in
this report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than
the company for our review work, for this report, or for the conclusions
we have reached.
Michael Harper
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
Canary Wharf
London
E14 5GL
29 November 2018
ABOUT PAYPOINT
In thousands of retail locations, at home and on the move, we make life
more convenient for everyone.
For retailers, we offer innovative and time-saving technology that
empowers convenience retailers in the UK and Romania to achieve higher
footfall and increased spend so they can grow their businesses
profitably. Our innovative retail services platform, PayPoint One, is
now live in over 11,000 sites in the UK and offers everything a modern
convenience store needs, from parcels and contactless card payments to
EPoS and bill payment services. Our technology helps retailers to serve
customers quickly, improve business efficiency and stay connected to
their stores from anywhere.
We help millions of people to control their household finances, make
essential payments and access in-store services, like parcel collections
and drop-offs. Our UK network of 29,000 sites is bigger than all banks,
supermarkets and Post Offices together, putting us at the heart of
communities nationwide.
For clients of all sizes we provide cutting-edge payments technologies
without the need for capital investment. Our seamlessly integrated
multichannel payments solution, MultiPay, is a one-stop shop for
customer payments. PayPoint helps over 400 consumer service providers to
save time and money while making it easier for their customers to pay -
via any channel and on any device.
DIRECTORS & KEY CONTACTS
Directors Dominic Taylor (Chief Executive)
Rachel Kentleton (Finance Director)
Gillian Barr*
Giles Kerr*
Rakesh Sharma*
Nick Wiles* (Chairman)
* non-executive directors
Registered office 1 The Boulevard
Shire Park
Welwyn Garden City
Hertfordshire
AL7 1EL
United Kingdom
Registered in England and Wales number 3581541
Registrars Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Press and investor relations Finsbury
enquiries Tenter House
45 Moorfields
London
EC2Y 9AE
United Kingdom
Auditors KPMG LLP
15 Canada Square
Canary Wharf
London
E14 5GL
United Kingdom
([1] #_ftnref1) Net revenue is an alternative performance measure. Refer
to note 2 to the interim financial statements for a reconciliation to
revenue.
([2] #_ftnref2) Operating margin is an alternative performance measure
and is calculated by dividing operating profit by net revenue.
([3] #_ftnref3) Cash generation reflects operating cash flows including
movements in working capital, but excluding movement in client and
retailer deposits as detailed in note 14 to the interim financial
statements.
([4] #_ftnref4) As at 26 November 2018.
([5] #_ftnref5) Network costs consist of GBP21.0m administration
expenses, other cost of revenue GBP9.1m (Note 4) and net finance costs
of GBP0.1m.
([6] #_ftnref6) Cash generation reflects operating cash flows including
movements in working capital, but excluding movement in client and
retailer deposits as detailed in note 14 to the interim financial
statements.
([7] #_ftnref7) As at 26 November 2018.
([8] #_ftnref8) IMRG MetaPack UK Delivery Index Report September 2018. ([9] #_ftnref9) IMRG UK Click and Collect Report 2018 ([10] #_ftnref10) ACS Local Shop Report 2018 ([11] #_ftnref11) https://www.ukfinance.org.uk/wp-content/uploads/2017/12/Card-Expenditure-Statistics-October-2017.pdf ([12] #_ftnref12) https://www.link.co.uk/about/statistics-and-trends/ ([13] #_ftnref13) https://www.link.co.uk/about/news/link-update-to-interchange-rate-implementation/ ([14] #_ftnref14) https://www.gov.uk/government/news/ssenpower-merger-receives-final-clearance-after-consultation ([15] #_ftnref15) https://www.gov.uk/cma-cases/post-office-limited-payzone-uk-limited-merger-inquiry ([16] #_ftnref16) Excludes retailers using the PPoS terminal and Multiple retailers using the legacy terminal. ([17] #_ftnref17) As at 26 November 2018. ([18] #_ftnref18) Net revenue is an alternative performance measure. Refer to note 2 to the interim financial statements for a reconciliation to revenue. ([19] #_ftnref19) Underlying net revenue excludes the impact of the closure of SPS of GBP2.2 million and the revised commercial terms with Yodel for parcels of GBP0.5 million on a like for like volume basis. ([20] #_ftnref20) Retail networks consists of our UK, Ireland and Romanian retail businesses. ([21] #_ftnref21) PayPoint One will replace the legacy terminal and is the platform from which we can grow our retail services by offering additional products and services. ([22] #_ftnref22) PPoS is a plug-in device and virtual PayPoint terminal used on larger retailers' own EPoS systems who still want to use PayPoint services. ([23] #_ftnref23) Net revenue is an alternative performance measure. Refer to note 2 to the interim financial statements for a reconciliation to revenue. ([24] #_ftnref24) Market share in Romanian bill payments is our share of the bill payments expressed as a percentage of the total bills issued by our clients. ([25] #_ftnref25) Net revenue is an alternative performance measure. Refer to note 2 to the interim financial statements for a reconciliation to revenue. ([26] #_ftnref26) Network costs consist of GBP21.0m administration expenses, other cost of revenue GBP9.1m (Note 4) and net finance costs of GBP0.1m. ([27] #_ftnref27) Operating profit margin is operating profit as a percentage of net revenue. ([28] #_ftnref28) Effective tax rate is the tax cost as a percentage of net profit before tax. ([29] #_ftnref29) Operating cash flows before working capital movements from note 14 to the interim financial statements. ([30] #_ftnref30) All subsidiaries were 100% owned over the period, therefore profit for the period was entirely attributable to equity holders of the parent ([31] #_ftnref31) All subsidiaries were 100% owned over the period, therefore Equity is entirely attributable to equity holders of the parent ([32] #_ftnref32) All subsidiaries were 100% owned over the period, therefore equity is entirely attributable to equity holders of the parent ([33] #_ftnref33) Effective tax rate is the tax cost as a percentage of net profit before tax. ([34] #_ftnref34) Items in the course of collection and settlement payables are included in this reconciliation on a net basis through the client funds and retailer deposits line. The directors have included these items on a net basis to best reflect the operating cash flows of the business. PayPoint: Results for the six months to 30 September 2018 http://hugin.info/137093/R/2227268/874367.pdf This announcement is distributed by West Corporation on behalf of West Corporation 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
November 29, 2018 02:00 ET (07:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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