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.

Only 400p now. More downtrend on the cards.

Keep on selling PAY as its profits will be largely affected by price cuts in electricity by Centrica and British Gas. I think a profit warning on the way as the electricity and gas company will have a price war soon and PAY will suffer even more.
Now 366p but more down trend to come. Sell now.

E.on cuts gas prices - bad news for Paypoint


Eon today became the third British energy provider to cut gas prices, reducing household tariffs by 6 per cent.

The average dual fuel bill will fall from 1,232 to 1,185, but the reduction will affect only 1.9 million of Eons 5.5 million British customers. Electricity-only customers or those on fixed-rate deals will not benefit from the cut.

Last week, Scottish & Southern Energy announced a 4 per cent cut to gas bills after a 7 per cent reduction by British Gas. EDF, ScottishPower and RWE npower have yet to adjust their rates.

The decline follows a sharp drop in wholesale gas prices over the past 18 months, which have tumbled from more than 1 per therm in mid-2008 to below 40p.

This is so expected. Yippee!

The cost of gas will have risen considerably since the last couple of posts
A good medium/long term punt imho
dyor

not much more than steady for the time being imo - maybe a few points north perhaps short term

wasnt overly impressed with the director buy of 35 shares!? matched by 35 free shares - maybe he can add some zeros to the 35

The £508 million cap is forcast to grow pre-tax profit by 11.3% to £41.4 million in 2013
rising to £44.9 million in 2014. It is trading on a 4% dividend yield.

Shares in Paypoint have had a great year, gaining nearly 60% over the past 12 months, and hit a new 52-week high of 800p today. The company, which operates retail payment networks in the UK, Ireland and Romania, issued an upbeat trading statement in July, and is due to report interim figures on 29 November

If the full year meets current forecasts, we should be looking forward to a dividend yield of 3.8% on top of all that nice share price appreciation.

Interim results Thursday

Half Yearly Report

Paypoint reports jump in transactions
By Michael Millar

Thu 29 Nov 2012

PAY - PayPoint

Latest Prices
Name Price %
PayPoint 857.00p +0.23%

FTSE 250 12,003 +0.94%
FTSE 350 3,122 +0.84%
FTSE All-Share 3,057 +0.83%
Support Services 5,226 +1.06%

LONDON (SHARECAST) - Paypoint, the electronic payments business, reported revenues and profits up in the first half after strong growth in the number of transactions it processed.

Revenue increased £6m - or 6% - overall to £101.7m, with pre-tax profits coming in at £18.3m, up 15.5%.

A lower tax charge boosted earnings per share growth 21% to 20.2p and the company hiked its interim dividend 17.2% to 10.2p.

The firm processed 345m transactions in the period, up 18% on the the year before.

This included UK and Ireland retail network transactions increasing 17% overall, with retail services showing growth of 24%.

Prepaid energy transactions increased 19%, helped by increases in prepaid meter numbers and tariffs.

However, its top-ups arm was hit by a decline in mobile top-up volumes in the UK and Ireland of 8%.

The company added that over 11.6m Romanian bill payment transactions were made in the period, up 38%, and the Romanian network continued to grow profitably.

Chairman David Newlands said Paypoint was trading is in line with the company's expectations for the current financial year.

"We intend to pursue further opportunities to enhance UK retail yield and to grow the Romanian retail network, thereby increasing market share in bill payment and retail services in both countries," he said.

"We expect continued progress in the internet and mobile payment channels."

The company said its parcels service had been profitable in the first half of the year, ahead of market expectations, with transactions more than doubling to 3.3m.

It added that Internet transactions were up 22% on the first half of last year to 41m as PayPoint.net added large merchants and grew organically in existing retailers.

:-))

certainly got clanged a bit this morning along with most other stocks

one bright spot for me is C+M Index which perversely is nicely blue

Certainly puts 1200p entry point further back in time.

StockMarketWire.com
Paypoint said overall trading, taking seasonality into account, for the period to 30 June 2014 was in line with the company's expectations.

"Our retail businesses are continuing to generate satisfactory growth this year. Combining the Mobile and Online businesses under the unified group brand should unlock better growth opportunities for the group over time," Paypoint said in a statement.

"We have increased development, marketing and IT spend in the first half, the benefits of which are expected in the second half of the year and therefore, profit growth will be lower than net revenue growth in the first half."

Of the Q1 performance, Paypoint said the overall transactions processed for the 91 day period since year end were 189.3 million, up 5% on the 179.9 million transactions processed in the same period last year.

Revenues of £53 million were up 4% on last year. PayPoint's net revenues were £29 million, up 9% against £27 million last year with growth seen in bill and general, top-ups, retail services and Mobile and Online.

UK and Irish bill and general transactions were down 4% on last year due to lower gas consumption. Retail services transactions (ATMs, debit/credit cards, parcels, money transfer and mobile phone SIM cards) were up 29% on last year.

Mobile top-ups continue to decrease as a result of the decline in the prepaid mobile sector. Other top-ups are growing. UK and Irish retail sites at 30 June numbered 27,705, up 463 since the financial year end.

In Romania, profitable growth continues. We have processed 12.3 million bill payments in the period, up 65% on last year. We have increased our terminal estate since the year end by 173 sites to 8,527. Our Romanian business continues to add new clients and services, including the recently launched service allowing Romanians to pay for their road tax at PayPoint sites.

Collect+ volumes increased by 43% to over 4.0 million transactions in the period, compared to 2.8 million last year, but costs have increased. There has been a small decline in Collect+ sites by 67 to 5,515, whilst we have been planning the next stage of our network expansion, which will be in place ahead of the Christmas peak.

Mobile and Online transactions increased by 14% to 36.1 million in the period, compared to 31.8 million last year with mobile transactions of 10.3 million up 45% and online transactions of 25.8 million up 5%. The business has rolled out the first phase of parking payment services in central Paris in the period, which in total has 155,000 parking spaces and will help mitigate the end of the Westminster contract earlier this month.

StockMarketWire.com
Barclays Capital downgrades PayPoint to underweight from equal weight.

StockMarketWire.com
Paypoint has improved its H1 pretax profit to £22.5m, from £21.3m a year ago. Revenue was £104.3m, from £102.2m. It proposed an interim dividend of 12.4p a share, from 11.4p.

CEO Dominic Taylor was pleased to report continued growth in net revenue and operating profits in the first half of this financial year, demonstrating the quality of the businesses and its retail channels.

"Our Collect+ joint venture continues to grow and the combination of our Mobile and Online business, which we announced in March this year, is progressing satisfactorily," he said in a statement.

"Looking ahead, we expect our retail networks in the UK and Romania to continue to deliver profitable growth from our breadth of services and extensive client base.

"We will continue to invest in network expansion, innovative retail technology and new services to improve retail network quality further. We anticipate that this will enhance our competitive advantage and increase retail yield.

"The integration of our Mobile and Online businesses under the unified group brand and investment in product development is expected to unlock better growth opportunities for the group. Trading since 30 September 2014 is in line with our expectations."

Highlights:
⬢ Good performance from retail networks, net revenue up 8.1%

⬢ Romanian bill payment transactions grew 53.0% including contribution from new road tax contract

⬢ Total retail network sites up, to 36,753 and Collect+ now over 5,800 going into Christmas peak

⬢ Mobile and Online transactions up 11.3% to 70.3 million, with strong parking transaction growth

⬢ New developments in areas including smart meters and advanced payments platforms

⬢ Record first half group transaction volumes at 373.4 million, up 6.1%

⬢ Operating profits up 6.0%, lower than net revenue growth due to investments made in the first half

⬢ Robust balance sheet with cash of £28.7 million

StockMarketWire.com
PayPoint expects to deliver FY results within the range of market expectations, despite lower than expected energy volumes in the third quarter.

Overall Q3 transactions processed for the quarter were 216.9 million, up 5% on the 205.6 million transactions processed in the same period last year.

Q3 revenues of £58 million were up 2% on last year. Net revenues2 were £32 million, up 4% from last year with continued strong growth in retail services offset by declines in top-ups and Mobile and Online.

"Bill and general net revenue was slightly higher than last year. Romanian bill payments continued to grow strongly. UK energy payments were held back, despite further growth in prepayment meters and increased PayPoint market share, as utilities have reported significantly reduced gas consumption. Furthermore, last year, we benefited from non-recurring set up revenues for the DWP's Simple Payment services.

"UK and Irish bill and general transactions were up 1% on last year notwithstanding the lower than expected gas consumption. Retail services transactions (ATMs, debit/credit cards, parcels, money transfer and mobile phone SIM cards) grew substantially, up 29% on last year.

"Mobile top-ups continued to decrease as the prepaid mobile sector declined, partially offset however, by an increase in other top-ups. UK and Irish retail sites at 31 December numbered 28,292, up by 295 since the half year end.

"In Romania, profitable growth continued. We processed 13.8 million bill payments in the period, up 27% on last year. We increased our terminal estate since the half year end by 268 sites to 9,024 and continue to add new clients.

"Collect+ volumes increased by 37% to over 5.8 million transactions in the period, with a record Christmas week of 598,000 transactions. Our Collect+ network continued to expand with an increase of 205 sites to 5,822 since the half year end.

"Mobile and Online transactions increased by 9% to 36.5 million in the period, compared to 33.4 million last year, with parking transactions up 17% to 9.6 million, despite the loss of Westminster, and online payment transactions up 7% to 26.9 million. Progress has been made in the aggregation of the Mobile and Online business. Nonetheless, net revenues in the quarter were lower than last year."

StockMarketWire.com
PayPoint said overall Q1 trading was in line with its expectations. Transactions processed for the quarter were 201.6 million, up 6% on the 189.3 million transactions processed in the same period last year.

Net revenues were £29 million, up 1% on last year with growth in retail services partially offset by a decline in Mobile and Online, mobile top-ups and bill and general. Revenues of £51 million were down 2% on last year.

UK and Irish bill and general transactions were in line with last year with a continuation of low levels of energy consumption. Retail services transactions (ATMs, debit/credit cards, parcels, money transfer and mobile phone SIM cards) were up 24% on last year.

While mobile top-ups continue to decrease as a result of the decline in the prepaid mobile sector, other top-ups are growing. UK and Irish retail sites at 30 June numbered 28,702, up 395 since the financial year end.

"In Romania, profitable growth continues. We have processed 14.5 million bill payments in the period, up 18% on last year. We have 9,272 outlets in Romania, up 38 since the financial year end and continue to add new clients and services," PayPoint said.

"Collect+ volumes increased by 22% to over 4.9 million transactions in the period, from 4.0 million last year. We continue our discussions with Yodel with respect to its proposed cost increases to Collect+. There has been a small increase in Collect+ sites by 25 to 5,856 since the financial year end.

"Mobile and Online transactions increased by 16% to 41.8 million in the period, compared to 36.1 million last year with parking transactions up 11% to 11.5 million and online payment transactions up 18% to 30.3 million."