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 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....

Well done Hlyeo98.

Nicely profitable already.

Forgot to say I think they will make a nice return on handing out State Benefits.

I think thats just over a year down the line. No doubt it will be an ATM which handles that for them with a juicy commision.

Havent had time to delve deeper after my week at the racing last week .

Just catching up today.

Lovely to see the break through the 700p barrier today.

A top quality share.

Ian

http://moneyam.uk-wire.com/cgi-bin/articles/20070515123900H7010.html

Expansion into Romania just announced.

Results out in a couple of days.

Exciting times (hopefully !!)

;o)

Fingers crossed Ian.

The volume today suggests that the figures will be just fine (he said hopefully !!)

Ian

The figures were fine:

HIGHLIGHTS


* Strong growth in both revenues and operating profit ahead 31%
driven by 29% increase in transactions
* Operating margin[2],[3], increased by 2 percentage points to 44%
* Earnings per share of 27.7p, up 11% notwithstanding an increase
in the effective tax rate from 17% to 30% as prior year losses
are fully utilized
* Total dividends for year 13.7p per share, up 30%
* Terminal network expanded by 15% to 17,537
* Bill and general payments transaction growth enhanced by
exclusive BBC TV Licensing contract
* Entry into rapidly growing internet payment service market
through acquisitions of Metacharge and SECPay
* International expansion through acquisition of Pay Store SRL in
Romania since the year end
* Brand continuing to gain traction with prompted consumer
awareness[4] over 70%

The reaction ...............

a complete lack of interest (as usual !!!)

;o)

Not from me Ian.

Still in and holding one mighty profit.

Sound solid results and the outlook statement is very exciting.

Holding with confidence even though it is on a fairly high rating, but hoping brokers will revamp their predictions.