TIDMPAY
PayPoint Plc
Trading update for the three months ended 30 June 2023(1)
28 July 2023
A positive quarter across the PayPoint Group with further
revenue growth and strategic progress delivered
Nick Wiles, Chief Executive of PayPoint Plc, said:
"This has been another positive quarter for the PayPoint Group
where we have delivered further net revenue growth across the Group
and continued the strong performance seen in FY23. Our enhanced
platform and expanded capabilities across the Group, combined with
our business-wide partnership philosophy and intensity of
execution, give the Board confidence in delivering further progress
in the year and meeting expectations.
In Shopping, our enhanced retailer proposition has continued to
drive further value and opportunities to earn for our retailer
partners, with more FMCG campaigns delivered, the further rollout
of Counter Cash and our Net Promoter Score moving from negative to
positive. Our sales momentum across the Group has also continued to
grow in the quarter across both Handepay and PayPoint, with strong
site growth in our EVO card processing estate driven by further
proposition enhancements, including EPoS and loyalty, and supported
by positive results from our increased focus on customer
retention.
In E-commerce, the positive momentum built in FY23 has
continued, with strong volumes delivered over the quarter and
detailed plans in place with all our carrier partners to drive
further growth. We have seen excellent volumes in Vinted parcels,
which is being supported by the expansion of Zebra printers into
more stores and the launch of our new Store to Store service in
partnership with Yodel.
In Payments and Banking, our integrated digital payments
platform, MultiPay, continues to deliver positive revenue and
transaction growth, with two major new clients in Housing launched
in the quarter. Our Open Banking solutions continue to attract
strong demand, delivered in partnership with OBConnect, with 13
clients signed for Confirmation of Payee services, Ovo becoming our
first client live for Payment Information Services (PISP) and both
Ovo and Citizens Advice signed up for Account Information Services
(AIS).
In Love2shop, there has been growing momentum over the quarter
in Love2shop Business, with a strong pipeline of new clients and a
positive performance and retention of existing clients delivered.
Park Christmas Savings is on track for a return to growth this
year, supported by an enhanced proposition, increased agent
engagement and reinforcing the important role this service can play
in helping consumers budget during the current economic challenges.
We were also delighted to launch our partnership with The Fed
(Federation of Independent Retailers) to create a network of 1,500
Super Agents over the coming months for the Christmas 2024 savings
season.
Our compelling characteristics of strong cash flow and resilient
earnings remain constant, and our materially enhanced platform is
positioned to deliver sustainable and profitable growth for our
shareholders, and further progress in the delivery of these
objectives in the current year."
HIGHLIGHTS
Positive performance across the Group
PayPoint Group
Group net revenue increased by 19.7% in the quarter to GBP35.8
million (Q1 FY23: GBP29.9 million)
Shopping
Shopping divisional net revenue increased by 3.4% to GBP15.8
million (Q1 FY23: GBP15.3 million), driven by the growth of our
PayPoint One estate, the annual RPI increase and further
enhancements to our retailer and SME propositions.
-- Retail services net revenue increased by 5.3% to GBP7.8 million (Q1 FY23:
GBP7.4 million), reflecting growth in the number of revenue-generating
PayPoint One sites to 18,612 (31 March 2023: 18,453) and the impact of
the annual RPI increase
-- Card payment net revenue increased by 1.5% to GBP8.0 million (Q1 FY23:
GBP7.8m), with further enhancements to our Handepay proposition delivered,
including EPoS, loyalty and legal support, as well as positive results
from our increased focus on customer retention driven by AI and data
analytics
-- Card payment sites in the Handepay EVO estate grew strongly to 18,941 (31
March 2023: 18,397) driven by the enhanced proposition, expanded range of
features delivered via our Android terminal and the increased
optimisation of our sales and retention efforts
-- Strong quarter of FMCG activity, leveraging our consumer engagement
solution, PayPoint Engage, and partnering with Coca-Cola, Amazon, AG Barr
and JTI
-- Positive progress on retailer partner Net Promoter Score, moving from
negative to positive, driven by our enhanced proposition and additional
value and opportunities to earn delivered over the past year
-- UK retail network increased to 28,489 sites (31 March 2023: 28,478), with
70.0% in independent retailer partners and 30.0% in multiple retail
groups
E-commerce
E-commerce divisional net revenue increased strongly by 65.9% to
GBP2.4 million (Q1 FY23: GBP1.4 million) and transactions grew by
68.4% to 19.2 million (Q1 FY23: 11.4 million) through our
e-commerce technology platform, Collect+.
-- Excellent transaction volumes driven by continued growth in Vinted, the
launch of Consumer Send for FedEx and an increase in Amazon sites to
7,109 in time for Prime Day 2023
-- Store to store service launched for Yodel/Vinted, averaging circa 100k
parcels per week
-- New partnership launched with OOHPod in Northern Ireland, enabling Yodel
Click & Collect customers to have their parcels delivered to secure
lockers when checking out online
-- Zebra printer expansion plans underway to rollout a further 2,000 devices
ahead of Christmas Peak 2023
Payments & Banking
Payments & Banking divisional net revenue decreased by 5.8%
to GBP12.4 million (Q1 FY23: GBP13.1 million), driven by continued
growth in digital transactions, but offset by a reduction in cash
bill payments as consumer behaviour has adjusted following the end
of government support schemes.
-- Continued digital payments growth to 12.3 million transactions (Q1 FY23:
11.0 million) and net revenue increasing by 14.7% to GBP3.4 million (Q1
FY23: GBP2.9 million)
-- Further client wins for our integrated digital payments platform,
MultiPay, and Open Banking services: 2 major new clients in Housing
(Network Homes and POBL), first Open Banking client live for PISP (Ovo),
2 clients signed for AIS services (Ovo and Citizens Advice) and 13
clients signed for Confirmation of Payee. In addition, we successfully
tendered for the new government framework (DPS) through the Crown
Commercial Service.
-- Over GBP263 million of Energy Bills Support Scheme vouchers were redeemed
across PayPoint's extensive network of over 28,000 retailer partners by
the end of the government support scheme in June 2023, providing a GBP400
payment to households across the UK, leveraging our Cash Out digital
capability
-- Cash through to digital net revenue decreased slightly by 4.5% to GBP1.7
million (Q1 FY23: GBP1.8 million) and transactions decreased to 2.1
million (Q1 FY23: 2.2 million). In addition to the range of digital
brands we work with, we are launching new partnerships with neo-banks,
including JPMorgan Chase, enabling withdrawals and deposits across our
extensive network of retailer partners
-- Cash payments net revenue decreased by 13.2% to GBP7.3 million (Q1 FY23:
GBP8.4 million) and transactions decreasing by 17.1% to 35.8 million (Q1
FY23: 43.2 million), with growth seen in housing and a stable performance
in mobile top ups, but offset by a reduction in energy transactions
Love2shop
Love2shop divisional net revenue of GBP5.2 million, driven by
positive performance in Love2shop Business and continued momentum
in Park Christmas Savings as it returns to growth.
-- Love2shop Business growing momentum over the quarter, with building
pipeline of new clients, strong retention and performance of existing
clients and reshaped Business Development team to focus on small/medium
accounts and drive opportunities ahead of seasonal peak
-- Park Christmas Savings on track to return to growth for first time since
2018, with an enhanced proposition bringing more choice, partner offers
and value for customers and increased engagement activity with Agents
leading to improved saver retention
-- Partnership launched with the Fed (Federation of Independent Retailers)
to create a Super Agent network of 1,500 stores within the PayPoint
retailer partner network, with pilot launched in June 2023 to test
appetite, review tools and best practices ahead of rollout over the
summer
-- 8 new partners onboarded to our multi-retailer products to ensure our
products continue to offer choice and flexibility, including B&Q, WHSmith,
Robert Dyas and Matalan
BALANCE SHEET AS AT 30 JUNE 2023
The Group had net corporate debt of GBP74.8 million (31 March
2023: GBP72.4 million) comprising cash balances of GBP14.7 million
(31 March 2023: GBP22.0 million), less loans and borrowings of
GBP89.5 million (31 March 2023: GBP94.4 million).
DIVID
The Board have declared an increased dividend of 18.6 pence per
share, consistent with our progressive dividend policy, and
representing an increase of 3.3% vs the final dividend declared on
26 May 2022 of 18.0 pence per share. The dividend is payable in
equal instalments of 9.3 pence per share on 1 September 2023 and 22
September 2023
Enquiries
PayPoint plc FGS Global
Nick Wiles, Chief Executive (Mobile: 07442 Rollo Head
968960)
Alan Dale, Finance Director (Mobile: 07778 James Thompson
043962)
(Telephone: 0207 251 3801)
(Email:
PayPoint-LON@fgsglobal.com)
ABOUT PAYPOINT GROUP
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,
government, multinational service providers and e-commerce brands.
Our products are split across four core business divisions:
-- In Shopping, we enhance retailer propositions and customer experiences
through EPoS services via PayPoint One, card payment technology, Counter
Cash, ATMs and home delivery technology partnerships in over 60,000 SME
and retailer partner locations across multiple sectors. Our retail
network of over 28,000 convenience stores is larger than all the banks,
supermarkets and Post Offices put together
-- In E-commerce, we deliver best-in-class customer journeys through
Collect+, a tech-based delivery solution that allows parcels to be picked
up, dropped off and sent at thousands of local stores
-- In Payments and Banking, we give our clients and their customers choice
in how to make and receive payments quickly and conveniently. This
includes our channel-agnostic digital payments platform, MultiPay,
offering solutions to clients across cash, card payments, direct debit
and Open Banking. PayPoint also supports its eMoney clients with purchase
and redemption of eMoney across its retail network.
-- In Love2shop, we provide gifting, employee engagement, consumer incentive
and prepaid savings solutions to thousands of consumers and businesses.
Love2shop is the UK's number one multi-retailer gifting provider,
offering consumers the choice to spend at more than 140 high-street and
online retail partners. Park Christmas Savings is the UK's biggest
Christmas savings club, helping over 350,000 families manage the cost of
Christmas, by offering a huge range of gift cards and vouchers from some
of the biggest high street names.
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
Attachment
-- Trading update Q1 FY24 - Final
https://ml-eu.globenewswire.com/Resource/Download/ff5d4e65-5af9-4715-8e96-c718481b7598
(END) Dow Jones Newswires
July 28, 2023 02:00 ET (06:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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