Certainly got a lot going for it with a lot of post offices closing down. Im sure you have seen the bill payment service at a local shop were you can pay your utility bills, council tax, top up on your mobile cards, withdraw money from a ATM and a awfull lot more.

This type of business is usually low margin where the shopkeeper and paypoint get a cut of each transaction but they are moving into higher margin business that bodes well and people always have to pay their bills so its not like there is going to be a fall of in trade.

Heres a snap shot of the historical performance.

Summary financial information

Year ended 31 March
2002 2003 2004
m m m
Gross revenue 23.6 43.8 67.1
ABT deferred revenue release* 2.5 6.5 0.0
----- ----- -----
26.1 50.3 67.1

Net Revenue before ABT deferred revenue release** 14.0 21.1 28.6
Operating profit/(loss) before depreciation and (0.2) 4.0 8.1
amortisation ***
Operating profit/(loss)*** (1.4) 2.7 6.1
Profit/(loss) before tax*** (2.4) 1.8 6.0
Net cash flow before financing (0.1) 1.7 10.9

So you can see that they are profitable and in fact have tax credits to shelter future profits.

The company is also highly cash generative which is a very big plus.

The one thing that does look unatractive is the historical P/e, but with operting profits in the last year growing by 130% and this year the business is just booming along(50 new ATMS per month) Im sure we are going to see an attractive P/E come December when results are out.

Heres the link towards all the nitty gritty about the company. Note the name of the large blue chips which are its customers.

http://www.uk-wire.com/cgi-bin/articles/200409210700311519D.html

All in all a very fast growing company and should be worth a punt over the medium term.

DYOR.

What I was really driving at was that we are not expecting a buttock clenching rollercoaster ride with the sp - Or are we?
Thanks for the welcome mat m343.

You never know HC, I see US futures are down because of worries on US manufacturing, place that alongside the worsening housing market over the pond....... well it could be better. Mind having said that itl affect every stock on the market. Hoping we get some better news from the Yanks next week.

Cheers GF.

By the way Yes I agree with that type of stock picking boring and safety as she goes along. Peter Lynchs 'One Up On Wall Street' is well worth a read to anyones whos not yet seen it.

SP is rising nicely against a negative trend in the market. Always a highly promising indicator. A reassuring end to a fine week.

Couldnt agree more m343, by the way how are you doing in that competion?.

Which competition is that, Goldfinger?

Sorry getting you mixed up with another m142 on another board. My appologies.

A tip for these shares in Shares Mag this week - not the first if I remember rightly! I bought into these shares at 618.5p and I think there is more room for growth to come. (one of my few blue shares at the moment!)

4% down??? Just general market trend today or something I haven't yet spotted?

Interim results are due on Wednesday, 15th November.
Could get lively beforehand.

Ian

PayPoint plc announces that at the Extraordinary General Meeting held
today the proposed special resolution was passed unanimously on a
show of hands.
Any idea what the topic was?

HARRYCAT...

13 October 2006

NOTICE OF EGM

PayPoint plc (the "Company") advises that it will issue a shareholder
circular today relating to the proposed cancellation of the entire
amount standing to the credit of each of its share premium account
and capital redemption reserve and an amendment of its articles of
association ("Articles").

More here.

http://www.moneyam.com/action/news/showArticle?id=1609549

An interesting purchase by Sage this morning.

I think the whole payment services sector will be ripe for consolidation over the next year or two.

Ian

I am not sue that buying Metacharge was a particularly good idea. Why not use Neteller or similar who are now desperate for new customers following the demise of U.S. internet gambling. Presumably Metacharge is being run as a subsidiary company??? However, I wasn't aware that it was such a profitable sector, so you may be right on the consolidation theory.

Have no guaranteed stop on this share and there was a sudden drop at the end of the day starting to get a bit worried! - was just wondering if people had any thoughts on how tomorrows 3rdQ Interims will go?

i think there has been some odd activity on the books this past week. there's not much out on loan but there has certainly been a seller holding it back. don't expect anything at all nasty tomorrow, still see this heading north.

I have the divi date as the 30th Nov, so sp should increase up to that date, followed by the usual dip.

The interims are out ...... and they are excellent.

http://moneyam.uk-wire.com/cgi-bin/articles/200611150701060913M.html


PayPoint plc

Interim results
For the six months ended 30 September 2006



HIGHLIGHTS
6 months 6 months
ended ended
30 September 30 September
2006 2005
million million Increase
Revenue 71.0 54.1 31%
Net revenue (1,3) 25.8 21.3 21%
Operating profit 10.4 8.2 27%
Profit before tax 11.0 8.4 31%
11.3p 10.5p 8%

Basic earnings per share
Interim dividend 4.6p 3.0p 53%



Consumer transactions processed up 27% at 178 million with strong growth in
all sectors

Operating margins (2,3) increased to 40% from 38%

PayPoint terminal outlets have increased to over 16,000 up 16% on September
2005 and up 7% on March 2006

Exclusive TV licensing contract live since August 2006

Prompted consumer awareness now 60% up from 36% in the previous year (4)

David Newlands, Chairman of PayPoint, said 'Transaction volumes have continued
to drive strong revenue growth and the operational gearing delivers strong
profit growth to the bottom line. PayPoint's investment in new signage and the
publicity surrounding the TV Licensing win have improved consumer-prompted brand
awareness to 60%, which is driving an increase in market share in all sectors.
PayPoint's retail network continues to expand, as do PayPoint's Epos
relationships, in which PayPoint connects to the retailers' till systems.
Investment in new communication infrastructure and expansion of our operating
base in Welwyn Garden City have given us a sound base for future growth.

Our acquisition of Metacharge will enable PayPoint to offer an internet payment
solution alongside our physical payment collection network, allowing our clients
a more comprehensive payment proposition. We are confident that this acquisition
will provide us with further growth opportunities.'

Ian

it's the sort of company that you can't imagine posting duff results!

more good news: LONDON (AFX) - Paypoint, the cash machine operator, said it has signed a three-year contract with Somerfield which will enable Paypoint to provide mobile phone electronic top-ups through their till systems in the majority of stores across the country from Nov 2006.