Paypoint plc Paypoint Plc :trading Update For The Three Months Ended 31 December 2017
25 January 2018 - 6:00PM
UK Regulatory
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: 0207 2513 801)
Dominic Taylor, Chief Executive (Tel: 01707 600 Rollo Head
317)
Rachel Kentleton, Finance Director (Tel: 07843 074 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
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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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