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.

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.

If this carries on up you'll be able to retire on it GF!! well done for holding. I'm now in NSAM and hoping for the same performance not much comment about the co. but the sp is doing very nicely without it---look out when the market wakes up!!

gf,

great call!!!

Its going well again this morning aswell guys.

Taking on all the previous work and more that post office counters used to do. Boring type stocks like this are the place to be, let the momentum boys chase the next big thing, but you can be sure following stocks like this we'l be around even in the bear market when it comes, they wont and thats for sure.

cheers GF.

PayPoint PLC
16 March 2006


16 March 2006

PRESS RELEASE


PayPoint plc

Trading Statement

The directors of PayPoint are pleased to announce that profits before tax are
running ahead of expectations. Trading since the half year results were
announced has continued strongly with growth in all sectors.

Bill and general payment transactions and revenues in the year to date are up
20% and 26% respectively, over the same period last year. Both bill payment and
energy prepayment have increased due to market share gains, with the latter also
benefiting from the combined impact of cold weather and energy price increases.

Mobile transactions and revenues in the year to date have grown by 20% and 13%
respectively, over the same period last year, on the back of market share gains
arising primarily from the continuing roll out of our retail network, which at
more than 15,000 sites, is now larger than the Post Office network. There are a
further 3,000 epos only sites, the growth in which has been held back by
retailer development delays. The slower than expected migration of mobile
top-ups from two major multiple retailers from our terminals to their own till
systems has benefited PayPoint's revenues. For one of these retailers, the
migration is largely complete. The other retailer has advised us to expect
migration early in the next financial year.

We plan to expand the PayPoint terminal estate by some 2,000 to 2,500 terminals
next year to service our increasing bill and general payment volumes and to
continue the growth in our mobile top-up market share.

The ATM roll out continues, at a net rate of about 40 per month (similar to the
first half of this year), and the average number of transactions per ATM has
remained constant, split evenly between cash withdrawals and balance enquiries

The new terminal will be substantially rolled out by the end of the current
financial year at the predicted cost of 5million, to be depreciated over 5
years.

We have signed a new 15 year lease on our Welwyn Garden City office, extending
our occupation to the ground floor. Refurbishment, which (including a new higher
capacity communications and processing suite) is underway at a total cost of
5million, with completion expected in August. The refurbishment will be partly
financed by a capital contribution from our landlord.

We have completed a review of our information technology requirements which has
confirmed the scalability of our core systems. The review has concluded that
efficiency can be enhanced by developing some of the peripheral systems to
introduce greater levels of automation, exception reporting and ease of
operation together with the replacement of software in languages that may no
longer be supported in the medium term. This will cost 6million, mainly
capital, over three years.

We continue to make steady progress in extending our client and retail
relationships and broadening our product portfolio. This, together with the
improvements to our infrastructure and systems, should provide a secure basis
for continued growth for our shareholders.

Enquiries:

Finsbury 020 7251 3801
Rollo Head
Don Hunter

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


cheers GF.