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.

I hold this stock, but am very surprised by the erratic movement of the sp over the last year. I would have thought that a FTSE 250 stock, which is showing huge signs of growth, would have shown a much stronger, sustained upward trend. No complaints, but it seem to be two steps forward & one step back all the time.

Well it would have been a whoosh if that darned seller had not appeared yet again. Someone either has too much stock or no faith in the company, or even both. Has to be the former methinks.

I am told that there are some big traders sitting on quite hefty profits having bought at below 550p during that dip in the summer. They are the ones getting out at the moment hence the mildly subdued shareprice.
Having said that we are expecting at least two broker notes early next week that will be rather positive on the Company.
When the sellers are out of the way (and it should not be too long) then expect the rise to over 700p (barring any general market calamaties of course).

We were buying heavily (for trading purposes) on Monday and Tuesday at up to 625p and were sellers of this trading position yesterday at 652p and 655p.

The core holding remains intact and, indeed, if there is a dip to below 640p today or tomorrow, we could indeed be buying again.

The long term outlook is still superb.

Ian

Cheers Ian - i was wondering how long that selling could last. Can't complain as i also bought cheaply in the summer, sold at 630p and bought back at 600p, except i'm a minnow and my trades matter not a jot to the price!

Any other players in while the going is good{this week}.

Am still holding this stock, but am amazed at how much the sp fluctuates, though I believe PAY went ex-divi on 30th Nov, so the sp was bound to compensate.
Am happy to continue holding, but would like to see an upward trend on the graph.

The next scheduled announcement fom the Company is a trading statement in early March.


Ian

wOULD YOU RECOMMEND PURCHASE NOW FOR SHORT TO MEDIAM TERM PROFIT?

I have been very disappointed with the performance of this stock.
If the price was to reach 650p, I would be very tempted to sell & take a small profit.
The graph is now struggling to break through the 200 DMA & is starting to show a downward trend.
PAY went ex-divi on the 30th Nov & paid 4.6p which was less that 1% of the sp, also disappointing, imo.
Personally, I would not recommend it if you are looking for short term profit. There are others which will give you a better return. But, on the plus side, this is not a high risk stock & long term may well produce good results.

agree this is low risk - if you buy in around 6 you've a good chance of making 5% short term if your canny enough.

These have been marked down heavily in today's malaise.

Very good value at current levels.

There should be a trading update in the second week of March.

Ian

Get in early doors in the morning,hold for a few months,easy money,with a big bounce in march to boot in the sp..

Buy big in Paypoint tomorrow...very good bargain at 560p

I could of stayed in bed no action here.

Steaming ahead towards 600p now !!!!

Was indeed marked down too much yesterday morning.

Ian

Didn't I say buy BIG at 560p? Yippee!

The trading statement is next Thursday I believe (15th March).

Ian

The trading update was excellent - the share price performance beyond my best expectations !!!!

Ian

Yep going great guns and further business to be passed over by the PO.

Yahoo! PAY approaching 700p. Got in at 560p during the correction 3 weeks ago (post 149 above) and more to come....