Paypoint shows resilience

Transaction volume rose 8 per cent to 545m and the company continues to benefit from a migration away from customers making payments at a post office, due in part to the continued branch closure programme. Bill and general payment volumes rose as a result of higher gas and electricity prices and higher usage because of the very cold winter. However, support from both of these is likely to unravel as the weather improves and utility prices fall. The number of transactions at Paypoint's 2250 ATMs was flat at 15m despite a net 19 new cash machines being added per month, but internet payments rose by 36 per cent on a like-for-like basis to 36m.

Paypoint continues to expand its revenue stream and has launched a joint venture with Home Delivery Network to provide parcel delivery and collection using the company's retail network of agents as drop-off and collection points. However, start-up costs will leave the operation making a loss this year. The Romanian operation is expected to be loss-making in the first half as a result of technical delays and a reduction in transaction volumes, but it should be trading profitably by the end of the financial year.

WH Ireland expects pre-tax profits for the current financial year to fall to £31.8m with EPS of 33.3p (2009: £34.6m and 35.6p), reflecting start-up losses and the impact of the recession.

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