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.

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.

From Saturdays Financial Times..............

My Portfolio (p.M28):
* Peter Temple adds to Erinaceous and Planestation and buys Paypoint, Murgitroyd Group and Phytopharm.

cheers GF.

Looks ready to tick up.

cheers GF.

Results coming very soon, its going to jet beleive me.

cheers GF.

This one is likely to be like NLR--a slow wakeup in the market before take off. Results early December so time to accumulate. IMO.

Moving up this morning.

cheers GF.

Just when are the results anyone?.

cheers GF.

7th Dec I think. Not a good day so far anywhere on the market!

Dont worry MP we are OK.

cheers GF.

Moving up nicely.

cheers GF.

Results soon--hope they make the analysts and mags take notice. Buy while a bargain price, fingers crossed!

Results this tuesday MP. Fingers crossed.

cheers GF.