Paypoint plc Paypoint Plc: Trading Update For The Three Months Ended 30 June 2019
24 Julio 2019 - 01:00AM
UK Regulatory
TIDMPAY
PayPoint plc
Trading update for the three months ended 30 June 2019(1)
24 July 2019
GOOD FINANCIAL AND OPERATIONAL PROGRESS
-- Group net revenue increased by GBP1.0 million (3.6%) to GBP28.7 million.
-- Service fee growth of GBP0.7 million (30.7%) driven by the roll out of
PayPoint One to 13,633 sites at 30 June 2019 and a 2.8% improvement in
the average weekly service fee.
-- UK parcel volumes increased by 11.9% to 5.6 million, due to new partner
relationships converting to volumes, with three of the four new parcel
partners now transacting.
-- UK bill payments net revenue was up by 7.5%, driven by strong growth in
MultiPay and a robust performance in the legacy business.
-- Romania net revenue increased by 5.0%, due to improved client margins and
growth in transactions.
Patrick Headon, PayPoint's CEO, commented:
"PayPoint has delivered a good financial and operating performance
during the quarter, with group revenue increasing 3.6% to GBP28.7
million. PayPoint One is now operating in over 13,920(2) convenience
retailers and we remain on track to meet our year-end target of 15,800
sites. Our parcels business is benefitting from our new partners, which
were secured last year, with parcel volumes now having returned to
growth. Bill payments in the UK and Romania delivered a robust
performance with 12 new clients contracted and we saw continued strong
growth in our MultiPay platform and eMoney services where transactions
grew 38.5% and 16.3% respectively. We continue to believe these
initiatives are key to driving future growth and profits. Consequently,
the Board remains confident that there will be a progression in profit
before tax and exceptional items for the year ending 31 March 2020."
Performance for the first quarter ending 30 June 2019
Net revenue increased by GBP1.0 million from GBP27.7 million to GBP28.7
million driven by an increase in service fees, through the ongoing roll
out of PayPoint One and a robust performance in bill payments in the UK
and Romania.
Progress during the period against our strategic priorities is set out
below:
-- Embed PayPoint at the heart of convenience retail
-- Retail services net revenue grew by 3.5% driven by the continued
strong performance of the PayPoint One rollout. We remain on track
to reach our year-end target of 15,800 PayPoint One sites with
13,633 sites at 30 June 2019, an increase of 752 since the start
of the financial year.
-- Service fee net revenue increased by 30.7% to GBP3.1 million and
PayPoint One's average weekly service fee per site increased by
GBP0.40 (2.8%) to GBP15.70. EPoS Pro installations grew to 770
from 645, as at the 31 March 2019, as we build resilience in the
platform ahead of driving significant penetration of the product.
-- Card payment transactions grew by 17.6% to 32.2 million, card
payment rebate revenue increased 10.1% as lower average
transaction values partially offset the volume growth. Our card
payments service is in 9,788 sites at 30 June 2019, broadly
unchanged from 31 March 2019, and we are planning to extend the
card payment net settlement feature to further sites following the
success of the initial pilot.
-- ATM net revenue decreased by 8.4% to GBP3.0 million due to LINK's
10% reduction in the interchange fee and a 3.0% reduction in
transactions to 10.4 million. We secured a new significant ATM
client and will commence in the second quarter with the rollout of
159 ATMs to its leisure centres.
-- Our retail network remains broadly stable with 28,483 (31 March
2019: 28,435) sites in the UK.
-- Become the definitive parcel point solution
-- Underlying parcel net revenue3 increased by 15.2% and parcel
volumes grew by 11.9% due to volumes from new partners.
-- Three of the four new parcel partners secured last year are now
transacting, with the fourth expected to be live by September
2019.
-- The Collect+ network was in 7,100 sites at 30 June 2019.
-- Sustain leadership in 'pay-as-you go' and grow digital bill payments
UK
-- Bill payment net revenue increased by 7.5% driven by an increase in
transactions of 3.2% to 75.0 million in the quarter.
-- MultiPay continues to grow strongly with transactions up by 38.5% to 7.4
million and net revenue increasing by 36.2%.
-- As announced on 28 June 2019, PayPoint was unable to agree appropriate
renewal terms with British Gas and will cease working with British Gas on
31 December 2019. The impact on net revenue and contribution in the
financial year to 31 March 2020 is expected to be around GBP1.4 million
and in the financial year to 31 March 2021 is expected to be
approximately GBP3.5 million. As previously referenced, plans are
underway to mitigate this in part.
-- As expected, UK top-up and eMoney transactions reduced by 12.3% due to
the declining prepaid mobile sector which resulted in a 6.3% decrease in
net revenue. eMoney transactions increased by 16.3% driven by continued
growth from existing clients which led to a 16.8% increase in eMoney net
revenue.
-- Nine new clients were contracted in the period, including Utility
Warehouse and Nabuh energy.
Romania
-- Transactions increased by 1.5% from the same period last year to reach
28.2 million. Net revenue increased by 5.0%4 driven by successful ongoing
work to improve client margins.
-- Sites increased to 18,610 from 18,466 at 31 March 2019 and card payment
sites increased to 1,518 sites at 30 June 2019.
-- Three new clients were contracted in the period.
Organisation and service delivery
-- PayPoint and eBay won "Best Domestic or International Delivery Options"
award at MetaPack's Delivery Excellence Awards 2019.
-- PayPoint One also won the "Best Use of Digital Devices and Software" at
the UK Digital Experience Awards 2019.
-- Development of the Salesforce CRM lead to sales feature has progressed
well and remains on track for release in the second half of this
financial year.
Balance sheet as at 30 June 2019
The Group had net cash of GBP36.1 million (31 March 2019: GBP37.5
million) including the balance held in respect of short term client
settlement obligations which totalled GBP31.6 million (31 March 2019:
GBP34.0 million).
Dividends
The final ordinary dividend of 23.6 pence per share will be paid in
equal instalments of 11.8 pence per share on 29 July 2019 and 30
September 2019. The additional dividend of 18.4 pence per share will be
paid in equal instalments of 9.2 pence per share and paid to
shareholders on the same dates as the ordinary dividend.
Enquiries
PayPoint plc Finsbury (Tel: 0207 251 3801)
Patrick Headon, CEO (Tel: 01707 600 317)
Rollo Head
Rachel Kentleton, Finance Director (Tel: 07843 074 906) Andy
Parnis
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 13,900 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 28,400 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) PayPoint's auditors have not been requested to review the
performance.
(2) As at 22 July 2019.
3 Underlying net revenue excludes the impact of GBP0.2 million from the
reduced Yodel parcel fees.
(4) There was no change in net revenue when reported in constant
currency.
Attachment
-- Trading update Q1 2019 20 (Final) (002)
https://ml-eu.globenewswire.com/Resource/Download/86ef4434-a688-443b-9d49-e07a02b87d58
(END) Dow Jones Newswires
July 24, 2019 02:00 ET (06:00 GMT)
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