Paypoint plc Paypoint Plc : Trading Update For The Three Months Ended 30 June 2018
26 July 2018 - 4:00PM
UK Regulatory
TIDMPAY
PayPoint plc
Trading update for the three months ended 30 June 2018([1] #_ftn1)
26 July 2018
Further STRATEGIC AND OPERATIONAL PROGRESS
-- Continued progress in roll out of EPoS Pro, our flagship product, in 292
sites at 30 June 2018. Wholesaler links with NISA now live and Booker in
pilot programme.
-- eBay now added as a second partner to Collect+ network, expected to go
live before Christmas.
-- Continued addition of new clients onto the platform including a leading
UK bank challenger, Tide. MultiPay volumes increased 62.8%.
Dominic Taylor, PayPoint's Chief Executive, commented:
"I am pleased with PayPoint's performance in the first quarter with
further progress made in executing our strategic priorities. In parcels
we have now added eBay as a partner to our Collect+ network which we
anticipate will drive higher parcel volumes, helping to drive further
footfall and commissions for our retailers. We also continue to make
good progress in embedding PayPoint at the heart of convenience retail,
with PayPoint One now in 9,260 sites, of which 292 are taking our EPoS
Pro solution. We remain on target to have PayPoint One in 12,400 sites
by 31 March 2019. In the UK, we have implemented several improvements to
enhance our retailers' experience when working with us, including a new
interactive voice response technology. In Romania, growth continued to
benefit from the Payzone acquisition and solid growth in the underlying
business. The progress over the past three months underpins the Board's
confidence in our strategy and our full year outlook remains in line
with previous guidance."
"Following the quarter end, we had a technical incident on Saturday 21
July 2018 that impacted, at peak, approximately one-third of our retail
terminal estate. During this period, customers were able to undertake
services at alternative local sites during the day as we were able to
continue to provide coverage across our network to 98% of households. We
fully restored services during the course of the day and are confident
that it was a one-off, isolated incident and we are sorry for any
inconvenience that the outage caused to our retailers and their
customers during the affected time."
Performance for the first quarter period ending 30 June 2018
As anticipated, Group net revenue reduced by GBP0.7 million from GBP28.4
million to GBP27.7 million reflecting the closure of Simple Payment
Service (SPS) by the Department for Works and Pensions, the second-year
impact of reduced Yodel parcel fees and the implementation of IFRS
15([2] #_ftn2) . These factors had a combined impact of GBP1.4 million
on net revenue in the first quarter. Transactions increased to 155.6
million, an increase of 3.6% from 150.3 million achieved in Q1 last
year. The strong increase of 8.4 million (43.9%) transactions in Romania
was partially offset by the expected lower transaction volume in the UK
of 3.1 million (2.4%).
Our retail network remains robust with 29,043 (31 March 2018: 29,114)
sites in the UK and Ireland and 19,802 (31 March 2018: 20,514) in
Romania as at 30 June 2018.
In the UK and Ireland like-for-like([3] #_ftn3) retail services net
revenue was up 3.3% driven by service fees which increased 46.1% to
GBP2.3 million. In the quarter our focus has been on the roll out of our
flagship product, EPoS Pro, which was in 292 sites at 30 June 2018, an
increase of 138 since the beginning of the financial year. Wholesaler
links with NISA are now live and are in a pilot programme with Booker,
with their retailers now ordering stock directly from their PayPoint One
terminal. Overall, our PayPoint One terminal was in operation in 9,260
sites, an increase of 710 since the beginning of this financial year. We
remain on track to reach our target of 12,400 sites by 31 March 2019.
Card payment transactions grew by 13.8% to 27.4 million. On 13 January
2018, the government ban on all surcharges for card payments came into
effect. As a consequence, the increased transaction volume was offset by
reduced average transaction values which decreased from GBP14 to GBP13
resulting in a slight reduction in card payment rebate revenue. ATM
transactions increased by 4.5% to 10.7 million driving an increase in
ATM net revenue. Our Collect+ network was in 7,456 sites on 30 June 2018
with parcel volumes down by 17.1% reflecting a reduction in parcel
volumes from our current partner, although we anticipate returning to
growth once our new parcel partners begin to introduce volumes. eBay has
been added as a second partner to Collect+ network and is expected to go
live before Christmas.
As anticipated, net revenue in bill and general decreased by 12.8%, in
large part due to the closure of the SPS scheme. However, there was a
strong performance in the energy sector where net revenue increased by
3.3%. In addition, eight new clients were added during the quarter
including a leading UK bank challenger, Tide, enabling consumers to
manage payments to their Tide e-money accounts through a UK wide network
which is larger than any high street bank. Bill and general transactions
reduced by 4.8% to 72.7 million in the quarter. MultiPay volumes
increased 62.8% to 5.3 million transactions.
Top-up transactions declined by 15.5% as the prepaid mobile sector
continued to contract. Net revenue however, only reduced by 1.9% as
average top-up values and e-Money transactions, which have a higher net
revenue per transaction rate, continued to grow.
In Romania, transactions increased 43.9% from last year to reach 27.8
million and net revenue increased by 37.1%([4] #_ftn4) driven largely
from the integration of Payzone. Organically, Romania continued to grow
strongly with net revenue up by 7.0%.
Balance sheet at 30 June 2018
The group had net cash of GBP48.5 million (31 March: GBP46.0 million)
including the balance held in respect of short term client settlement
obligations which was GBP22.2 million (31 March: GBP27.5 million). The
final ordinary dividend of 30.6 pence per share together with the
additional dividend of 24.5 pence per share will be paid to shareholders
on 30 July 2018.
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 9,200 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] #_ftnref1) PayPoint's auditors have not been requested to review
the performance.
([2] #_ftnref2) PayPoint adopted IFRS 15 - Revenue from contracts with
customers (IFRS 15) effective from 1 April 2018. Under IFRS 15, revenue
and net revenue are affected by the deferral of setup and development
revenue and phasing of revenue from contracts which contain tiered
pricing structures. IFRS 15 has been adopted using the cumulative effect
method and as a result has not been applied to the comparative reported
period presented. The impact on net revenue in the 3 months to 30 June
2018 was to defer net revenue of GBP0.1 million. IFRS 15 also required
the deferral of costs associated to setting up clients and retailers on
PayPoint's network and as such has not had a significant impact on
profit before tax.
([3] #_ftnref3) Like-for-like retail services net revenue excludes the
GBP0.3 million impact from the second-year impact of reduced Yodel
parcel fees.
([4] #_ftnref4) Reported in constant currency, net revenue increased by
37.5%.
PayPoint Trading Update: http://hugin.info/137093/R/2207252/858105.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
July 26, 2018 02:00 ET (06:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Paypoint (LSE:PAY)
Historical Stock Chart
From Apr 2024 to May 2024
Paypoint (LSE:PAY)
Historical Stock Chart
From May 2023 to May 2024