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.

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.

Up approx 245% since first posting here so taken a few bobs profit off the top.

cheers GF.

Interesting little jump up at close today, news due????? anybody got any idea's.

still holding long

cheers Rob

results due tomorrow.
the trading update at the end of March was superb.
Barring any general market nonsense like last week we should see at least 7 again very shortly.

Ian

.

http://moneyam.uk-wire.com/cgi-bin/articles/200605250701055561D.html


David Newlands, Chairman of PayPoint, said 'We have had an excellent year. The
improvements in our range of products and services, brand awareness and the
increase in our network all stimulated revenue growth. Our operational gearing
has delivered most of the growth in net revenue to the bottom line. The BBC TV
Licence contract awarded to PayPoint in March, marks a major milestone in the
Company's development, reinforcing our credibility as a sole provider of a
national service. We are securing capacity for future profitable growth by
investing in infrastructure including new communications and polling hardware,
development of new peripheral information technology systems and the
refurbishment and extension of our operating base. We are confident of
continuing growth in the current year in which trading has started well.'

Superb results. The prospects also look very very good indeed.

Ian

Yes excelent results Ian. Im thinking of adding more here whilst the price looks under pressure due to recent market correction.

cheers GF.

CEO was on Bloomberg this morning talking about the results and future.... I have no holding but very impressive results all the same.

I think that BBC licence award will ultimately be seen as company transforming.
I certainly think excellent organic growth is pretty much guaranteed (in as far as anything can be guaranteed) over the next couple of years.
The BBC contract should also lead to similar high profile contracts being won.
I bought yesterday in anticipation of excellent results.
This morning I topped up !!!

Ian

News filtering from the agm suggests company is firing on all cylinders. The BBC TV licence contract is doing well.
Analyst upgrades should follow very soon.

Ian

Ian

What is your target for the share price in the next 6 months or so ?

What news do you have from the AGM Ian?.

Hello chaps.
Apologies for the delay in replying.
From what I have been told the agm was attended by a couple of analysts and one or two private investors.
I hope to have a more detailed posting of the meeting over the weekend but one of the attendees assures me that the noises eminating from management suggests that the business is performing ahead of the company's own expectations
and subsequently the analysts following Paypoint should be revising their forecasts in the near future.
Hopefully more substance to follow over the weekend.

Ian

A little bit more news ......

feedback from many Paypoint agents suggest that there has been increased use of the payment facility by people who have traditionally paid bills etc by queueing up at their banks at lunchtimes etc.
As many agents are the likes of newsagents (who are open until quite late in the evening) the convenience of, for example, paying bills on the way home from work has taken the Company pleasantly by surprise. Up to now the main customer profile has perhaps been from a lower socio-economic background.
The eps upgrades for the y/e 3/2007 and 3/2008 are going to be around 27.0p and 35.0p respectively putting the shares on a forward p/e of 25 or next year and 22 for 2008.
Not cheap but excellent value for a quality holding.

Ian

Yup, and thats the beauty of the stock Ian and why I have gone in heavily.

Cheers Gf.

Hi Ian/Goldfinger

I was wondering why the sp has dropped so much this week? any thoughts?

Market in general, cant think of anything else KS.

Amvescap raised their holding as notified yesterday.

A bit of related news today also:

http://uk.biz.yahoo.com/01082006/250/ukash-announces-fsa-authorisation-e-money-status.html

I think the shares are now pretty much close to the bottom.

Ian