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.

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.

Hi there what do you think we are likely to
expect from the results(looking into your crystal ball)?

Dont mean to be funny, but lets just wait please.

cheers GF.

Very good results and price up on the market.................

PayPoint PLC
07 December 2004


PRESS RELEASE

PayPoint plc

Interim Results
for the 6 months ended 30 September 2004

HIGHLIGHTS
6 months 6 months
ended ended
30 September 30 September
2004 2003
m m
------------------------------------------------------------------------------

Turnover 39.9 29.7
Net revenue (1),(4) 16.5 12.5
Operating profit before exceptional items (4) 4.7 1.2
Operating profit 0.1 1.2
Adjusted earnings per share (2),(4) 6.1p 1.7p
Basic (loss)/earnings per share (0.8p) 1.7p

Comparing the first six months of 2004 and 2003:

Turnover of 39.9 million up 35%
Consumer transactions processed up 29% at 112 million with strong growth
in all sectors
Net revenues up 33% with operating margins (3), (4) increased to 28%
Operating profit before exceptional items of 4.7 million up 277%
Adjusted earnings per share were 6.1p up 249%
PayPoint outlets have increased to over 14,600 up 11% on March 2004
New terminal roll out to agents started in October - progressing well

David Newlands, Chairman of PayPoint, said: 'Our first set of results as a listed
company is strong and shows growth in all sectors. We are delighted to see
further expansion in the range of payments for which we are able to cater and
remain excited about the prospects for continued growth.'

(1) Net revenue is turnover net of the deduction of commissions paid to retail
agents.
(2) Adjusted earnings per share are based on profits before exceptional items
after taxation.
(3) Operating margins are calculated as operating profit before exceptional
items as a percentage of net revenue.
(4) Net revenue, operating profit before exceptional items, adjusted earnings
per share and operating margins are measures which the directors believe
assist with a better understanding of the underlying performance of the
group. The reconciliation to statutory amounts can be found in notes 2, 3,
6 and on the face of the profit and loss account.

Enquiries:

PayPoint plc 01707 600 300
Dominic Taylor, Chief Executive
George Earle, Finance Director

Finsbury 020 7251 3801
Rollo Head
James Leviton
Don Hunter

There will be a presentation today to analysts at 11.00am at Cazenove & Co
Limited, 20 Moorgate, London EC2R 6DA.

This announcement is available on the PayPoint plc website:
www.paypoint.co.uk

cheers GF.

Somebody enlighten me on this company. I don't see the prospects in this company that others do. If you've ever used a PayPoint key for bills/utilities you'll realise how inconvenient it can be. Far better to settle using direct debits (for which you may get a discount) or using an online account. The only growth I can see is in uptake by landlords of (low rent ?) tenanted property, which appears to be on the wane currently. As for mobile phone top-ups they'll have to win business from the many swipe card operators already out there. Too pessimistic ?

Hi Theed, its all in the thread already . Not heard of post offices especially rural ones closing down. Many people still prefer to manage their bills without the need for a bank.

Growth opportunities are fantastic.

cheers GF.

Ended up nicely.

cheers GF.

Interesting that part of the exceptional expenses was 0.3 mill fighting off an unwanted bidder! I expect that there will be a bit of a drop now if the SP follows the usual patterns. good figures= sp down for a while!

Rotten market today anyway MP, but still no downer yet. Fingers crossed.

cheers GF.

Some quite large buys and NO red!! Clever people accumulating methinks!!

Did lose a little at the end of last week. Expect it to move north again now that the results are out of the way.

cheers GF.

All quiet- not many buys or sells, price has slipped a bit. The punters are taking a while to wake up to the potential of this company.