Paypoint picks up more delivery work while mobile top-ups drop

PAYMENT system Paypoint posted a rise in half-year revenues and profits yesterday as its parcel delivery venture Collect+ became profitable.

Paypoint said revenues rose 0.4 per cent to £102.2m while pre-tax profits jumped 16.6 per cent to £21.3m.

However, the firm said some of the gains in the first half were caused by moving some costs, like marketing and IT, into the second half.

Paypoint’s share of Collect+, which allows customers to pick up parcels from local stores, swung to a profit of £200,000. The firm runs the service with delivery business Yodel.

But revenue at its phone top-up business fell 18 per cent to £36m, as the popularity of pay-as-you-go mobile phones continues to decline.

“Looking ahead, our retail networks in the UK and Romania should continue to deliver profitable growth from our strong client base and breadth of services. We will continue to invest in network expansion, innovative technology and new services to improve the quality of these retail networks,” chairman David Newlands said.

The firm also hiked its dividend 11.8 per cent to 11.4p.

Paypoint allows customers to pay household bills at 33,896 corner shops and convenience stores across Europe.