PayPoint (PAY) - which operates a network of terminals in retail outlets that allow customers to pay utility bills, draw out cash and top-up mobiles phones - grew first-half operating profit by 10.9 per cent to £20.9m. Transaction volume rose by 7.2m to 351.9m, too, and the total value of these grew from £6.6bn to £6.9bn.
Bill and general transactions grew net revenue 18 per cent to £23.7m, thanks to a 40.9 per cent rise in Romanian bill payment transactions. Retail services net revenue jumped 12.6 per cent to £9.7m - driven by a 13.3 per cent rise in credit and debit transactions and a 26.2 per cent jump in SIM card sales. Internet transactions rose 17 per cent to 48.5m, although average transaction values fell 11.1 per cent to £50.22, leaving net revenue down 3 per cent at £4.79m. PayByPhone, which covers transactions such as parking fees, saw transaction numbers jump 43.1 per cent to 14.7m - pushing net revenue up 35 per cent to £2.6m.
As expected, top-up transactions fell 24.3 per cent to 49.6m as more people switched to mobile phone contracts, although that was partly offset by a small increase in Romanian mobile top-ups. Even so, net revenue there fell 13.7 per cent to £9.94m.
Broker Numis Securities expects full-year pre-tax profit of £46.6m, giving EPS of 51.8p (from £41.3m and 45.2p in 2013).
| PAYPOINT (PAY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,075p | MARKET VALUE: | £730m | |
| TOUCH: | 1,056-1,075p | 12-MONTH HIGH: | 1,216p | LOW: 791p |
| DIVIDEND YIELD: | 2.9%† | PE RATIO: | 22 | |
| NET ASSET VALUE: | 137p* | NET CASH: | £23.5m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 102 | 18.3 | 20.2 | 10.2 |
| 2013 | 102 | 21.3 | 24.1 | 11.4 |
| % change | - | +16 | +19 | +12 |
Ex-div: 4 Dec Payment: 19 Dec *Includes intangible assets of £61m, or 90p a share †Excludes 15p special dividend | ||||
