Paypoint delivers in line annual profit

29th May 2014 08:17

Both revenue and profit came in higher for the year ended March 31st, payment transaction group Paypoint revealed on Thursday. The group transaction volume hit a record 768m, up 3.9% after experiencing growth across the Retail, Mobile and Online channels. Revenue for the year came in at £212.2m, up 1.7% from £208.5m a year earlier, while on a net revenue basis the figure was £113.7m, up 7.7% from £105.7m. Consensus estimates were for £115m. Pre-tax tax profit was in line with expectations at £46.0m, having risen 11.5% on the prior year. Diluted earnings per share came to 52.6p, up 16.1% from 45.3p. The retail networks in the UK, Ireland and Romania all delivered profitable growth, while prepaid energy transactions were in line with last year, despite warmer winter weather which reduced gas consumption. Retail services transaction growth was 25.1%.A decline was seen in all three markets for mobile top-ups, although in Romania the network expansion has countered the market decline. The Collect+ joint venture became more profitable, with parcel transactions rising 76.4% to 13.6m. The group proposed a final dividend of 23.9p per share, an increase of 18.3% on last year, excluding the 15.0p special dividend.In the current year, the group has been trading in line with its expectations. Soon-to-retire Chairman David Newlands said: "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 to enhance their competitive advantages and our retail yield. "Mobile and Online is an essential element of our strategy to provide multi-channel payments and services, placing us in fast growing markets and providing a bridge from cash to electronic payments. Together, our businesses provide a strong foundation to deliver value for our shareholders." The share price inched 0.1% higher to 1,051p in the first half an hour of trading. NR