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.

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.

After results blues as usual MP. Should be on our way again soon though.

cheers Gf.

This one has really woken up today! maybe a trading update coming?? hang on for some good rises something is behind it.

Your right MP.

cheers Gf.

Up and down again but ended blue-nice rise, I sold a while back but could be time to get back in.

Anybody else still in these?????. Now starting to really motor.

cheers GF.

sorry I sold now--seems a bit late to buy back in after the strong sp rise- good solid company though. my mistake I thought it was too boring for the market to notice-I made the same stupid mistake with HBG!! no wonder I'm a stock market failure. If you'd like a list of my cast offs lately just ask!!

LOL, MP. We all think that way.

Its just a game of patience really.

One chap on the other big board made the remark on the SMC thread, that the market was just an exchange for transfering money from the impatient investor to the patient investor.

Must say at times I think he as a point.

Chin up MP, cheers GF.

I wish I'd held on here-the sp has really done well after a slow start. anyone still in?

I am. Superb growth story so far.

cheers GF.

Another good day.

cheers GF.

I thought this one was as good as NLR but ran out of patience! I think this one has a lot further to go now the market has woken up to it, well done GF for holding on. check out EDA--ADA--and CLE they will all do well when the market gets to like them, I've moved on as I needed the funds but will watch them.

Ill have a look at those MP, many thanks.

cheers GF.