PayPoint operates a string of machines that are installed in retail outlets - principally in the UK, Ireland and Romania - that allow customers to pay utility bills, obtain cash and top up their mobile phones. It's a business that continues to do well and the company processed a record 659m transactions last year, up from 590m the year before, with a combined value of £12.1bn.
That represented a 14 per cent rise year on year, led by a 33 per cent increase in internet payments which totalled £3.8bn, while bill and general payments saw transaction values rise 9 per cent to £6.76bn. Income from mobile top-ups declined as expected as more and more people migrate to mobile phone contracts, but net revenue from this segment still increased marginally due to the introduction of the Health Lottery and increased e-money top-ups. Overall group net revenue, which is revenue after deducting things such as retail agent commissions and merchant service charges, rose 9.3 per cent to £90.4m.
Current developments include the launch of a Simple Payment service to replace cheque payments made by the Department of Works & Pensions. Additional services such as money transfer have also been introduced in Romania.
Broker Numis Securities forecasts pre-tax profits of £40.3m and EPS of 42.2p in the year to March 2013, up from £37.2m and 39.8p in 2012.
| PAYPOINT (PAY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 633p | MARKET VALUE: | £429m | |
| TOUCH: | 629-636p | 12-MONTH HIGH: | 677p | LOW: 432p |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 135p* | NET CASH: | £35.5m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 212 | 30.4 | 31.1 | 15.7 |
| 2009 | 224 | 34.6 | 35.6 | 17.6 |
| 2010 | 197 | 32.6 | 32.9 | 21.8 |
| 2011 | 193 | 34.5 | 35.2 | 23.4 |
| 2012 | 200 | 37.2 | 39.8 | 26.5 |
| % change | +4 | +8 | +13 | +13 |
Ex-div: 27 Jun Payment: 30 Jul *Includes intangible assets of £58m, or 86p a share | ||||
