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.

Big rise today so something has stirred things up. Figures aren't out until Dec so it's a bit early for good rumours. I think the market boys have just noticed them as the buys are quite chunky. A lot more than I could afford anyway!! Check out NLR--they have risen like a rocket with similar sort of growth prospects. Sellers have moved in big time to take profits but I hope to pick them up again in the next trough.

They (PAY & NLR) look good to me. Need to do a bit more research. I think it's worth a punt in both if cash allows. Let's see what tomorrow brings got to get rid of ULVR held for far too long.

MS

Blimey I cant take this in, theres so many posters interested.

Excelent growth share and could go on to big things.

Cheers GF.

Big fall , just Amvascap selling down from 19% to 15%, we all have to take profits at some time.

Best read the RNS I have put up outlining the company and its fantastic GROWTH.

More to follow on this GEM.

Cheers GF.

Some other interesting points.

PayPoint collects cash payments for all of the five major mobile
telephone networks in the UK (Vodafone, Orange, O2, T-Mobile and Virgin) and
for new mobile telephone network market entrants such as Tesco Mobile and
'3' as well as for all three Irish mobile telephone networks.


PayPoint also collects cash payments for a number of other types of
household bills including water, housing rentals, council tax, television
licensing, fixed line telephone, cable television and others.


The Board believes that over 95 per cent of UK households are situated
within one mile in urban areas, or five miles in rural areas, of a PayPoint
Retail Agent.


PayPoint is the retail collection channel for Transport for London's
('TfL') congestion charge scheme handling approximately 30 per cent of all
daily Congestion Charge payments.

cheers GF.

Current trading

The Company has experienced a good start to the current financial year with
trading demonstrating strong year-on-year growth. Transaction volumes to 31
August 2004 were approximately 29 per cent, ahead of the corresponding period in
2003. Growth has been achieved in mobile telephone top-ups; bills and energy
prepayments; and transport ticketing. Since 31 March 2004, Retail Agent numbers
with Terminals have increased by approximately 700 and EPoS outlets have
increased by approximately 1,200.

In addition, the ATM business continues to be rolled out at the rate of
approximately 50 machines a month, with 601 machines installed as at 31 August
2004.

Accordingly, the Directors view the Group's financial and trading prospects for
the current financial year with confidence.

cheers GF.

BizPlus Ireland





Monday November 1, 11:30 AM



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PAY.L
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Sage Acquires Advanced Paypoint Solutions
Through this acquisition, Sage will obtain a market-leading EPOS product, PayPoint (LSE: PAY.L - news) that integrates point of sale systems with Sage's accounting software products. This acquisition
marks Sage's entry into the specialist retail software market and represents another step in Sage's strategy of providing industry-specific ("vertical") market software to supplement its core accounting and business management software products.

According to research conducted by Sage, 80% of UK retail businesses manually reconcile till receipts with their financial software. By providing customers with software that integrates the EPOS system with the back office accounting system, Sage will be able to increase efficiency, improve resilience and provide improved management information for retailers.

Sage estimates the retail sector in the UK comprises over 230,000 businesses with many of these already using Sage accounting products.

PayPoint is used by small and medium-sized retailers with between 1 and 80 outlets such as department stores and specialist retail and leisure businesses, many of whom already use Sage Line 50, Line 100, MMS, Sage Line 200 and Line 500 products.

As an authorised development partner of Sage for four years, the PayPoint system is already integrated with Sage's financial software products enabling customers to take advantage of the benefits immediately.

PayPoint EPOS consists of PayPoint till application, LaunchPad till manager, a powerful Macro language and a number of PayPort modules to enable the link with different accounting systems.


cheers GF.

Price holding steady against a general market fall. May start rising again as we get nearer the Dec results.

I hold this share and having researched it I am sure the sharp fall was before it floated. I too think there will be a strong run up in the price coming up to the results. It seems a solid long term hold as the market is growing, huge and a barrier to new entrants.

John you are right . It only floated a matter of a few weeks ago at 192p and only 23% of the company was released in the float. I would guess they had to divide the shares hence the fall. 30.1 million shares came to market and the market cap. is 129.5 million. It seems to me this company offers what we all need so it is a potential multi-bagger! IMHO. DYOR. of course.

Down a few points today but no problems long tern its a big winner.

cheers GF.

From todays Daily Express...................

Broker's View:
*Dresdner initiates coverage of Paypoint (PAY.L) with a buy recommendation

cheers GF.

Gained ground in the afternoon, the BUY recommendation from Dresdner should help the price move northwards.

cheers GF.

Up again next week-fingers crossed.

Should rise up to results in December, a fantastic growth share with broker upgrades.

Cheers GF.

Nice buys today but no movement. Watch out tomorrow.

cheers GF.

If it stays put tomorrow despite the big buys I'll have to add a few! I'm confident the market will really take notice of this one after the results in Dec.--following the same pattern as NLR. slow-slow-dead slow---rocket!!

Slow at the momet but your right I think it will rocket aswell. Not on many radars at the moment but soon will be.

cheers GF.

Climbing slowly but surely.

cheers GF.