July 20, 2022 02:00 ET | Source: PayPoint plc PayPoint plc
WELWYN GARDEN CITY, UNITED KINGDOM
PayPoint Plc Trading update for the three months ended 30 June 20221
A good quarter across the PayPoint Group in line with expectations
Nick Wiles, Chief Executive of PayPoint Plc, said:
“Whilst early in our financial year, we have continued to build on the strong momentum across the Group and remain confident in delivering further progress in the current year. Our focus remains on the delivery of our strategic priorities and a strong operational performance, while maintaining a tight control of our cost base.
In Shopping, we have made further progress in improving engagement with our retailer partners and key trade associations as we enhance our proposition, with the rollout of a number of key initiatives including Counter Cash, FMCG campaigns and a strengthened card proposition.
In E-commerce, our parcel volumes remain strong, reflecting the strength of our Out of Home network, the breadth of our carrier relationships and the investments we have made in technology and the in-store customer experience, with a number of new opportunities coming on stream, including our partnerships with Amazon returns and Wish.com.
In Payments and Banking, we continue to diversify our digital payments client base and strengthen our channel-agnostic payment platform as we expand the range of digital solutions we can deliver to support our clients across multiple sectors, including government, local authorities and housing associations. Our recent partnership and investment in OBConnect, a leading Open Banking software platform, adds to our capabilities in this area and immediately creates the opportunity for us, working with Pay.UK and the Payments Systems Regulator, to offer the Confirmation of Payee name checking service to our local government and energy company clients to enable the secure delivery of cost of living support payments to financially vulnerable people across the UK.
We remain confident, despite some continued headwinds, of the progress we are making in the transformation of our business as we take advantage of the accelerated growth opportunities across our key markets.”
Good performance across the Group with transformation gathering pace
PROGRESS AGAINST OUR STRATEGIC PRIORITIES
PRIORITY 1: EMBED PAYPOINT GROUP AT THE HEART OF SME AND CONVENIENCE RETAIL BUSINESSES
SHOPPING BUSINESS DIVISION – Q1 FY23 net revenue £15.3 million (Q1 FY22: £14.1 million)
PRIORITY 2: BECOME THE DEFINITIVE TECHNOLOGY-BASED E-COMMERCE DELIVERY PLATFORM FOR FIRST AND LAST MILE CUSTOMER JOURNEYS
E-COMMERCE BUSINESS DIVISION – Q1 FY23 net revenue £1.4 million (Q1 FY22: £1.1 million)
PRIORITY 3: SUSTAIN LEADERSHIP IN ‘PAY-AS-YOU-GO’ AND GROW DIGITAL BILL PAYMENTS
PAYMENTS & BANKING BUSINESS DIVISION – Q1 FY23 net revenue £13.1 million (Q1 FY22: £12.9 million)
PRIORITY 4: BUILDING A DELIVERY FOCUSED ORGANISATION AND CULTURE
BALANCE SHEET AS AT 30 JUNE 2022
The Group had net corporate debt of £37.7 million (31 March 2022: £43.9 million) comprising cash balances of £8.6 million (31 March 2022: £7.7 million), less loans and borrowings of £46.3 million (31 March 2022: £51.6 million).
The Board previously declared a final ordinary dividend for the year ended 31 March 2022 of 18.0 pence per share, subject to shareholder approval at the AGM on 20 July 2022, payable in equal instalments of 9.0 pence per share on 25 July 2022 and 30 September 2022.
For tens of thousands of businesses and millions of consumers, we deliver innovative technology and services that make life a little easier.
The PayPoint Group serves a diverse range of organisations, from SME and convenience retailer partners, to local authorities, multinational service providers and e-commerce brands. Our products are split across three core business divisions:
Together, these solutions enable the PayPoint Group to create long-term value for all stakeholders, including customers, communities and the world we live in.
1 PayPoint’s auditors have not been requested to review the performance