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.

4% down??? Just general market trend today or something I haven't yet spotted?

Interim results are due on Wednesday, 15th November.
Could get lively beforehand.

Ian

PayPoint plc announces that at the Extraordinary General Meeting held
today the proposed special resolution was passed unanimously on a
show of hands.
Any idea what the topic was?

HARRYCAT...

13 October 2006

NOTICE OF EGM

PayPoint plc (the "Company") advises that it will issue a shareholder
circular today relating to the proposed cancellation of the entire
amount standing to the credit of each of its share premium account
and capital redemption reserve and an amendment of its articles of
association ("Articles").

More here.

http://www.moneyam.com/action/news/showArticle?id=1609549

An interesting purchase by Sage this morning.

I think the whole payment services sector will be ripe for consolidation over the next year or two.

Ian

I am not sue that buying Metacharge was a particularly good idea. Why not use Neteller or similar who are now desperate for new customers following the demise of U.S. internet gambling. Presumably Metacharge is being run as a subsidiary company??? However, I wasn't aware that it was such a profitable sector, so you may be right on the consolidation theory.

Have no guaranteed stop on this share and there was a sudden drop at the end of the day starting to get a bit worried! - was just wondering if people had any thoughts on how tomorrows 3rdQ Interims will go?

i think there has been some odd activity on the books this past week. there's not much out on loan but there has certainly been a seller holding it back. don't expect anything at all nasty tomorrow, still see this heading north.

I have the divi date as the 30th Nov, so sp should increase up to that date, followed by the usual dip.

The interims are out ...... and they are excellent.

http://moneyam.uk-wire.com/cgi-bin/articles/200611150701060913M.html


PayPoint plc

Interim results
For the six months ended 30 September 2006



HIGHLIGHTS
6 months 6 months
ended ended
30 September 30 September
2006 2005
million million Increase
Revenue 71.0 54.1 31%
Net revenue (1,3) 25.8 21.3 21%
Operating profit 10.4 8.2 27%
Profit before tax 11.0 8.4 31%
11.3p 10.5p 8%

Basic earnings per share
Interim dividend 4.6p 3.0p 53%



Consumer transactions processed up 27% at 178 million with strong growth in
all sectors

Operating margins (2,3) increased to 40% from 38%

PayPoint terminal outlets have increased to over 16,000 up 16% on September
2005 and up 7% on March 2006

Exclusive TV licensing contract live since August 2006

Prompted consumer awareness now 60% up from 36% in the previous year (4)

David Newlands, Chairman of PayPoint, said 'Transaction volumes have continued
to drive strong revenue growth and the operational gearing delivers strong
profit growth to the bottom line. PayPoint's investment in new signage and the
publicity surrounding the TV Licensing win have improved consumer-prompted brand
awareness to 60%, which is driving an increase in market share in all sectors.
PayPoint's retail network continues to expand, as do PayPoint's Epos
relationships, in which PayPoint connects to the retailers' till systems.
Investment in new communication infrastructure and expansion of our operating
base in Welwyn Garden City have given us a sound base for future growth.

Our acquisition of Metacharge will enable PayPoint to offer an internet payment
solution alongside our physical payment collection network, allowing our clients
a more comprehensive payment proposition. We are confident that this acquisition
will provide us with further growth opportunities.'

Ian

it's the sort of company that you can't imagine posting duff results!

more good news: LONDON (AFX) - Paypoint, the cash machine operator, said it has signed a three-year contract with Somerfield which will enable Paypoint to provide mobile phone electronic top-ups through their till systems in the majority of stores across the country from Nov 2006.

Excelent.

only this stock could sit on the AM homepage all day saying "Paypoint raises divedend as profits soar" and still have low volume. mind you it'll probably spike next week in true PAY fashion.

PayPoint
Shares: 655p +32p
Questor says Buy

Television licenses may be just one part of PayPoint's business, but it is perfect example of how far the company has come. Now the sole cash providers of TV licenses for the BBC, PayPoint has more outlets than the Post Office and has managed to steal a march on the old GPO and high street banks when it comes to cash payments.

Through its network of 16,325 over-the-counter terminals, it can process congestion charge payments, recharge gas meter keys, and even top up mobile phones. With its yellow and purple logo adorning an increasing amount of corner shops and newsagents across the country, the company is becoming a force to be reckoned with.

But it is not just its terminals business where growth exists. It has a developing cash machine business, and made its first acquisition of an internet payment service business.

Chief executive Dominic Taylor hints that this will be the first of many. He is keen on the one hand to expand his product suite in the UK, while looking to central and eastern Europe as a potential growth area due to the cash nature of the economy and the lack of existing infrastructure.

Taylor and his team are cutting the mustard, with half-year results to September producing profit before tax of 11m against 8.4m in the same six months last time. Consumer transactions rose 27pc to 178m with net revenue up 21pc to 25.8m.

In spite of a forward price-earnings ratio of a slightly toppy 23 times, PayPoint is well worth backing thanks to its high growth potential.

I think I can hear a whooooosh coming....love it!

I hold this stock, but am very surprised by the erratic movement of the sp over the last year. I would have thought that a FTSE 250 stock, which is showing huge signs of growth, would have shown a much stronger, sustained upward trend. No complaints, but it seem to be two steps forward & one step back all the time.

Well it would have been a whoosh if that darned seller had not appeared yet again. Someone either has too much stock or no faith in the company, or even both. Has to be the former methinks.

I am told that there are some big traders sitting on quite hefty profits having bought at below 550p during that dip in the summer. They are the ones getting out at the moment hence the mildly subdued shareprice.
Having said that we are expecting at least two broker notes early next week that will be rather positive on the Company.
When the sellers are out of the way (and it should not be too long) then expect the rise to over 700p (barring any general market calamaties of course).

We were buying heavily (for trading purposes) on Monday and Tuesday at up to 625p and were sellers of this trading position yesterday at 652p and 655p.

The core holding remains intact and, indeed, if there is a dip to below 640p today or tomorrow, we could indeed be buying again.

The long term outlook is still superb.

Ian

Cheers Ian - i was wondering how long that selling could last. Can't complain as i also bought cheaply in the summer, sold at 630p and bought back at 600p, except i'm a minnow and my trades matter not a jot to the price!