Paypoint plc Paypoint Plc :trading Update For The Three Months Ended 31 December 2017

 
TIDMPAY 
 
   PayPoint plc 
 
   Trading update for the three months ended 31 December 2017 
 
   25 January 2018 
 
   Continued profitable growth across UK retail services and Romania 
 
   For the three months ended 31 December 2017 
 
 
   -- Group1 like-for-like2 net revenue3 grew 3.6% to GBP31.8 million 
 
   -- UK retail services like-for-like2 net revenue grew by 4.6% driven 
      by PayPoint One 
 
   -- PayPoint One now in 7,4594 sites, of which 1094 sites are operating our 
      EPoS Pro proposition 
 
   -- Continued momentum in MultiPay with transactions up 80.1% to 5.6 million 
 
   -- Romania net revenue grew by 42.2% mainly driven by the acquisition of 
      Payzone 
 
   Dominic Taylor, PayPoint's Chief Executive, commented: 
 
   'We are pleased with our performance this quarter as we have continued 
to drive profitable growth in UK retail services and in Romania. In 
November we launched our PayPoint One mobile app and EPoS Pro which is 
already successfully operating in over 100 retailers. PayPoint One is on 
target to exceed 8,000 installations by the end of this financial year, 
with over 7,400 sites now live. MultiPay has continued to grow with over 
125,000 transactions processed on 22 December 2017, our peak trading day, 
an increase of 67% compared to last year. Together with the revenue 
benefit we have been driving from an improved client mix has resulted in 
a solid performance in UK bill and general. In Romania, the acquisition 
of Payzone has further strengthened our position with its integration 
into our existing operations progressing well. Overall performance for 
the quarter met our expectations therefore the full year outlook remains 
in line with previous guidance.' 
 
   Performance(5)  for the three months ended 31 December 2017 
 
   Group retail networks(1) net revenue(3) declined 4.3% from GBP33.3 
million to GBP31.8 million, as last year there was a one-off VAT 
recovery of GBP2.4 million. Excluding the VAT recovery, like-for-like(2) 
net revenue would have increased 3.6%. The decline was partially offset 
by strong growth in PayPoint One service fees and Romania. Group retail 
networks(1) transaction volume reduced, as expected, by 1.7% to 172.7 
million transactions due to lower UK bill and general volumes partially 
offset by strong volume growth in Romania. 
 
   UK retail services net revenue(3) decreased by 18.1% reflecting the 
revised commercial terms with Yodel and the card payment VAT recovery. 
Excluding these items, net revenue(3) increased by 4.6% driven by 
PayPoint One service fees. PayPoint One is now in 7,459(4) sites, with 
EPoS Pro already successfully operating in 109 sites following its 
launch in November. We remain on target to reach over 8,000 sites by 31 
March 2018. Card payment transactions grew by 3.4% to 23.4 million and 
ATM transactions grew 1.4% to 10.2 million. In light of the performance 
with some of our ATM sites and LINK's proposals to reduce the 
interchange rate, we have commenced an initiative to reallocate a 
portion of our ATM estate to better performing locations. Collect+ 
parcel service volumes declined by 3.1% to 7.0 million as a result of 
reduced volumes in Yodel, validating our strategy to expand the parcel 
service to other carriers and to reduce our dependence on any single 
carrier. As at 31 December 2017, Collect+ was in c. 7,200 sites. 
 
   UK bill and general net revenue(3) decreased, as anticipated, by 3.3% as 
transaction volumes declined by 10.5%. This was driven by a 13.9% 
reduction in prepay energy volume, offset somewhat by continued momentum 
in MultiPay where transactions increased by 80.1% to 5.6 million. Our 
strategy of pursuing an increased mix of smaller but higher yielding 
clients continues to perform well, partly offsetting the impact of 
reduced transactions. UK top-up transactions declined by 15.9% from 15.5 
million to 13.1 million as result of UK prepaid mobile transactions 
reducing by 19.1%, partially offset by increased eMoney top-ups. 
 
   Romania net revenue(3) grew by 42.2%, mainly driven by the acquisition 
of Payzone in October 2017. Total transactions increased by 49.2% to 
reach 28.7 million. As at 31 December 2017, our Romanian network 
consists of 11,755 PayPoint and 9,714 Payzone sites. 
 
 
 
   Balance sheet at 31 December 2017 
 
   The group had net cash of GBP48.4 million (30 September 2017: GBP27.6 
million) which includes client cash of GBP48.1 million (30 September 
2017: GBP18.1 million). The increased proportion of client cash was due 
to the Christmas trading period which was settled on 2 January 2018. The 
interim dividend of GBP10.5 million (2017: GBP10.2 million) and the 
additional dividend of GBP8.3 million were both paid in the quarter. 
 
 
 
 
Enquiries 
PayPoint plc                                        Finsbury (Tel: [phone]) 
Dominic Taylor, Chief Executive (Tel: [phone]     Rollo Head 
317) 
Rachel Kentleton, Finance Director (Tel: [phone]  Andy Parnis 
 906) 
 
 
   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 7,400 stores 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 stores 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 500 consumer service providers to 
save time and money while making it easier for their customers to pay - 
via any channel and on any device. 
 
 
   1. Group retail networks consists of our UK, Ireland and Romanian retail 
      networks and excludes PayByPhone which was sold on 23 December 2016. 
      PayByPhone generated net revenue of GBP1.8 million in the third quarter 
      of last year. 
 
   2. Like-for-like comparison excludes the impact of the revised commercial 
      terms with Yodel for parcels with an impact of GBP0.1 million on a like 
      for like volume basis and the one-off card payment VAT recovery of GBP2.4 
      million included the third quarter of last year. 
 
   3. 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 and card payment merchant service charge. Net revenue is a 
      measure which the directors believe assists with a better understanding 
      of the underlying performance of the group. 
 
   4. As at 15 January 2018. On 31 December 2017 PayPoint One sites were 7,252 
      and PayPoint Pro sites were 91. 
 
   5. PayPoint's auditors have not been requested to review the performance or 
      financial position. 
 
 
   PayPoint Trading update : http://hugin.info/137093/R/2163597/832334.pdf 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions 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

January 25, 2018 02:00 ET (07:00 GMT)

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