PayPoint posts drop in revenue but profits jump in first half

 
Caitlin Morrison
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PayPoint is continuing to focus more on the retail sector

PayPoint saw revenues dip in the six months to 30 September, but the payment systems company reported increased profits and said this year has been pivotal for its plans to switch focus to the retail market.

The figures

Revenue was down 1.1 per cent to £101.7m from £102.8m, and net revenue fell 1.5 per cent to £59.3m to £58.4m.

Adjusted operating profit before impairment was up 15.6 per cent to £24.7m from £21.3m.

Meanwhile, operating profit after impairment was up 589.3 per cent to £24.2m from £3.5m.

Earnings per share rose to 28.7p from 24.8p, and the interim dividend was hiked to 15p from 14.2p.

Why it's interesting

The company, which owns delivery service Collect+, is continuing with its strategy of refocusing on the retail sector, with PayPoint One and Core EPoS launched in September. PayPoint said that in the second half it expects to have PayPoint One at around 4,000 sites by the end of the financial year.

It's also planning to develop Advanced EPoS and to step up installations of ATMs and card payment, requiring increased costs as expected, to deliver our full year results.

What PayPoint said

"As set out in our last full year results announcement, this year is proving to be pivotal as we change the focus of the organisation towards our retailers," said chief executive Dominic Taylor.

"In the first half, the commercial trial of our new PayPoint One terminal and Core EPoS were successfully concluded with the official launch in September. The platform has been well received and will enable us to drive further growth in retail services which is central to our strategy.

"Whilst we will continue to improve the client offering, our main development focus will continue on enhanced versions of our new EPoS product and implementing organisational improvements and process efficiencies to improve our retailer offering."

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