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.

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."

StockMarketWire.com
Paypoint's H1 pretax profit has tumbled to GBP3.2m, from a year-earlier profit of GBP22.5m. Revenue was lower at GBP102.8m, from GBP104.3m. The just-finished period included a GBP18.2m goodwill impairment.

Interim dividend was hiked 14.5% to 14.2p.

"Looking ahead to the second half, we expect to conclude current Collect+ joint venture discussions with our partner Yodel and complete the sale of our Mobile and Online businesses," said CEO Dominic Taylor.

"Overall, we expect to make further progress across the business, with trading since 30 September in line with our expectations.

"Our dividend increase anticipates double digit growth in the dividend for the year as a whole and reflects our confidence in the business and its long term prospects."

OPERATIONAL HIGHLIGHTS:
- Record first half group transaction volumes at 399 million, up 6.9%

- Romanian bill payment transactions grew 15.6%

- Total retail network sites increased to 38,000 and Collect+ to 6,000 going into Christmas peak

- Mobile and Online transactions up 22.2% to 85.9 million

Numis comment today:
"A disappointing set of results/news. Continuing net revenue at £52m missed our £55m estimate, partly reflecting a decrease in prepaid electricity consumption. PBT was just £3.2m vs. -85% vs. our estimate of £21.9m, reflecting another significant write down in the value of M&O which management did not manage to sell in H1 as planned (now planned for H2 at a lower price) and the collect+ JV swinging back into loss reflecting courier cost increases. Excluding the goodwill writedown, PBT was £21.4m, slightly below our £21.9m estimate. The dividend at 14.2p was 3% higher than our 13.8p estimate, reflecting a higher payout ratio. We would anticipate downgrading our earnings forecasts to reflect weaker underlying trading, further M +O/Collect+ losses, possibly partly offset by some cost reductions, albeit we expect to increase dividend forecasts (reflecting an apparent willingness to increase the payout ratio).
● Numbers: Continuing net revenue was £52.3m (our est. £54.5m), explained as bill/ gen £26.2m (£28.5m), topups £11.1m (£11.1m) and retail £15.1m (£14.9m). PBT was £3.2m (£21.9m), explained as D&A -£2.9m (-£3.2m), other CoS -£5.4m (-£5.5m), admin costs/M+O losses -£23.3m (-£24.4m), collect+ JV -£0.4m (+£0.5m), further write down in M+O value -£18.2m (not expected) and net interest +£0.0m (+£0.1m). DPS was 14.2p (13.8p).
● M&O: Management said "Offers on the Online Payments business have not met expectations and accordingly, we have impaired the entire goodwill on this business." The balance sheet value is now £36m, having previously been written down to £55m and compares to the minimum £53m (acquisition prices paid only, i.e. not including management time, subsequent investment, time value of money, etc.) the company paid for those businesses."

Announcement of sale of Online Payment businesses
PayPoint is pleased to announce the sale of its Online Payment businesses comprising PayPoint.net and Metacharge to Capita, for a consideration of £14 million satisfied in cash at completion today.

Dominic Taylor, PayPoint's Chief Executive, said: "In line with our strategy, we are pleased to have agreed the sale of our Online Payment businesses. We announced our intention to sell our Mobile and Online businesses at our full year results last May, in order to focus on multi-channel payments where we have retail networks, to concentrate on our best prospects for future growth. We believe that Capita is a good owner to take these businesses forward and I would like to thank the management and employees for their contribution to PayPoint and wish them well for the future. We will update on the sale of the Mobile Payments business in due course."

Deloitte LLP acted as corporate finance adviser and Mills & Reeve LLP as legal adviser to PayPoint on the sale.

Jefferies International today reaffirms its buy investment rating on PayPoint PLC (LON:PAY) and cut its price target to 1100p (from 1330p).

StockMarketWire.com
PayPoint continued to make progress across the businesses in Q3. Retail services grew strongly, and the outfit's new terminal is in pilot in the UK. The company has made progressed development of its core epos software.

CEO Dominic Taylor said:
"Since the end of the quarter, we have also concluded the sale of our Online Payments business, further strengthening our balance sheet.

"However, our progress has been partially offset by the unseasonably warm weather and its impact on energy consumption, an extension of the additional costs in Collect+ to facilitate the shareholder discussion and a delay in the sale of our Mobile Payments business. The restructuring of our business continues apace.

"We aim to resolve the Collect+ joint venture arrangements and complete the sale of our Mobile Payments business by the time we report our full year results in May, so we can focus all our effort on the development of our retail networks."

Group net revenues were £35.0 million, up 1.8% from net revenues for the third quarter last year3 whilst revenues of £58.1 million were down 3%3. We saw strong growth in retail services of 22.7% and Mobile and Online of 9.6% offset by declines in top ups of 13.7% and bill and general of 2.4%, the latter mainly due to lower energy consumption.

Overall transactions processed during the quarter were 225.4 million, up 3.9% on the 216.9 million transactions in the same period last year. The adverse VAT ruling from HMRC, as previously reported, along with the unseasonably warm weather, has slowed the improvement in our results.

StockMarketWire.com
Paypoint has seen its FY pretax profit tumble 83.6% to GBP8.2m, from GBP49.6m, thanks to GBP48.99m of impairments, versus nil. Revenue was lower at GBP212.6m, from GBP218.5m.

Total dividend was 42.4p, from 38.5p.

"Following our decision to sell the mobile and online payments businesses, we have reviewed our capital requirements and allocation," the company said in a statement.

"Focussing on multi-channel payments where we have retail networks, simplifies our business and reduces the capital headroom we require. Given the high level of current changes in the business, we are adopting a cautious approach to the return of capital and plan to release the surplus over a period of five years at £25 million per annum.

"We will continue with a progressive dividend policy. It is our current intention not to borrow more than one times our earnings before interest, taxes, depreciation and amortisation. The first special dividend is planned for December this year.

"If there is a potential acquisition which offers better returns, we may defer the special dividend as appropriate. In addition, we will distribute the sale proceeds from the sale of online payments business, together with the final dividend from the year under review.

"We also intend to distribute sale proceeds from the mobile payments business once the sale is completed."

Canaccord Genuity today reaffirms its buy investment rating on PayPoint PLC (LON:PAY) and raised its price target to 1063p (from 1035p).

StockMarketWire.com
PayPoint said overall trading for Q1 remains in line with its expectations.

"We continue to make good progress on our strategy," said CEO Dominic Taylor.

"The commercial trial of PayPoint One is encouraging.

"Together with MultiPay, which is also progressing well, I am confident we have the platforms for extending and enhancing our proposition for clients and retailers."

PayPoint will release its half yearly financial report for the period ended 30 September on 24 November 2016.

These are doing quite well at the moment.

StockMarketWire.com
PayPoint has today reached agreement with Yodel Delivery Network Ltd for a new arrangement with respect for Collect+, which will put the framework in place for long-term growth in the premier parcels click and collect and returns network.

StockMarketWire.com
PayPoint (PAY), which offers a bill paying system in the UK and Romania, grew organic net revenue by 4.2% to £28.4 million in the three months to 30 June.

This was despite a 4.5% reduction in transaction volumes to 150.3 million, as a result of a decline in UK prepay energy volume.

UK retail services net revenue grew by 10.5%, driven by PayPoint One, card payment transactions and ATM transactions.

Romania net revenue grew by 16.1% at constant currency.

UK parcel volumes grew by 16.6% to 6.1 million.

Net revenue in bill and general decreased by 2.7% as transaction volume declined by 11.2%, driven mainly by a 15.1% reduction in prepay energy volume.

Dominic Taylor, PayPoint's chief executive, said: "The successful roll out of our innovative new PayPoint One terminal in the UK continues, following its launch last September. We are on target to achieve 8,000 installations by the end of this financial year, with 5,000 terminals already in service. This good progress underpins the board's confidence in our strategy and our full year outlook remains in line with previous guidance."

StockMarketWire.com
PayPoint's revenue fell by 4.1% to £97.6 million in the six months to 30 September, following the sales of PayByPhone and Drop and Collect.

The number of transactions processed slipped from 337.2 million to 295.2 million, with transaction value down from £4.9 billion to £4.7 billion.

The previous six month figures include the results of the mobile payments business PayByPhone, which was sold on 23 December 2016, and Drop and Collect before the company's renegotiation with Yodel, which completed on 16 December.

The ongoing retail networks business grew revenue by 2.3% to £97.6 million, but pre-tax profit fell by 3% to £24.4 million as a result of higher costs associated with its investment in PayPoint One, MultiPay and improving customer service.

The company said progress is being made in reshaping the business towards future growth opportunities in retail services.

The company has declared an interim ordinary dividend of 15.3p per share, an increase of 2% year-on-year, alongside the additional interim dividend of 12.2 pence per share, resulting in an incremental payment of £18.7 million to shareholders.

Liberum Capital today reaffirms its buy investment rating on PayPoint PLC (LON:PAY) and raised its price target to 1000p (from 980p).

"In addition, we have an excellent professional relationship with many top rated banks, stock brokers, financial institutions and consultants all over the globe."

BUT NOT ON HERE!

Don't wreck our threads with your unpaid for advertising!

Go through the proper MoneyAM channel: Advertise with MoneyAM

Blimey, that's a bit of a cheek!

StockMarketWire.com
Paypoint said revenue fell 1.6% to £55.6m in the six months to 30 September.

The company revealed underlying growth of £1.8m, or a 3.2% increase excluding the £2.2m impact of the closure of the Department of Work and Pensions' Simple Payment Service (SPS) and revised Yodel commercial terms.

HIGHLIGHTS:
- Underlying net revenue growth was driven by strong performance in UK service fee revenue, up 39.8%, and in Romania, up by 33.2% to £6.8m, which was partially offset by the marginal decline of £0.3m in UK bill payment and top-up net revenue

- Network costs of £30.2m were £1.9m lower than last year of £32.1m and include a £1.7m benefit from improved VAT recovery. Excluding this, costs were slightly lower than the £32.1m for the same period last year, reflecting the ongoing improvement in operational efficiencies, partially offset by £1.1m increase in Romania driven by including Payzone overheads for six months

- Profit before tax of £25.3m was up 4% including a £1.7m benefit from improved VAT recovery related to prior years

- Net corporate cash of £0.6m reflects cash balances of £6.6m less £6m financing facility usage

- Client funds and retailer deposits at period end increased to £32.7m primarily due to recognising retailer deposits on the statement of financial position

- Continued strong cash conversion with £27.6m cash generated from profit before tax of £25.3m

- Ordinary interim dividend of 15.6p per share, an increase of 2%. Additional interim dividend of 12.2p per share. Total dividend of 27.8p per share

CEO Dominic Taylor said: "I'm pleased with the progress PayPoint has made over the past six months.

"We are executing against the roadmap and our strategic priorities outlined in May, delivering underlying net revenue growth of 3.2% and reported profit before tax growth of 4%.

"The business also continues to innovate in an evolving retail and payments environment, developing new technologies and propositions that are transforming the way our customers operate and run their businesses.

"The roll out of PayPoint One has continued at pace, expanding to 11,246 sites and with EPoS Pro now live in 4783 sites.

"We remain on target to achieve 12,400 PayPoint One sites by 31 March 2019.

"Service fee revenue from PayPoint One also grew by 39.8% in the period, contributing to the increase in underlying net revenue, with the new terminal providing tangible benefits for our retailers, enabling retailers to drive increased profitability and efficiency in their stores.

"In parcels, our new carrier partnership with ebay is now live in 2,500 sites ahead of the festive season and we remain focused on delivering at least two additional carriers in 2019.

"E-money and MultiPay volumes grew strongly and a further six clients were secured including one of the UK's fastest growing digital bank challengers, Monzo.

"In Romania, we continue to see good growth as we integrate Payzone.

"The good performance of the first half underpins the board's confidence that as PayPoint's growth drivers continue to develop there will be progression in profit before tax for the full financial year to 31 March 2019."