Pasypoint end 2012 IMS

DividendMax Ltd.

Pasypoint end 2012 IMS

PayPoint plc
Interim Management Statement
24 January 2013

The board reports on events, transactions and trading since the half year results to 30 September 2012.

Performance1for the third quarter period ending 31 December 20122
Overall transactions processed for the quarter were 193 million, up 5% compared to 183 million for the same quarter last year.

Revenues of £55 million were up 4% on the same period last year but net revenues3, which exclude retailer commission and the cost of mobile top-ups, were up 18% to £28.7 million.  Strong growth in bill and general payments and retail services, partially offset a decline in net revenue from mobile top-ups.  The increase in bill and general payments includes set-up fees for the Simple Payment service for the Department for Work and Pensions which contributed 6 percentage points of the overall growth in net revenue.

UK and Irish bill and general payment transactions were 8% up on the same period last year predominantly driven by an increase in the number of new prepay meters installed as well as higher consumer energy use in colder weather.  Retail services transactions (from ATMs, debit / credit cards, parcels and mobile phone SIM cards) were up 23% on last year. Mobile top-ups continue to be adversely affected by the reduction in the prepaid sector.  UK and Irish retail sites at 31 December numbered 24,733, up 181 since the half year end. In Romania, we processed 6.6 million bill payments in the period, up 32% on last year, whereas mobile top-ups were broadly the same as last year.  We have increased our terminal estate since the year end by 177 sites to 7,179. Our Romanian business continues to grow profitably.

CollectPlus volume has grown 89% to 2.3 million transactions in the period, compared to 1.2 million in the same period last year, with a peak week of 222,000 transactions at Christmas.  We have increased the number of sites offering CollectPlus since the half year end by 285 to 5,181.

Internet transactions increased 18% to 24 million over last year, driven by new and existing merchants. PayByPhone continued its development and transactions processed in the period were 5.8 million, up 33% on last year.

Balance sheet
The group has maintained a strong balance sheet. Net cash (excluding client cash) at 31 December 2012 was £26.6 million, after payment of the interim dividend of £6.9m in the period, compared to £25.6 million at 30 September 2012.

Outlook
Dominic Taylor, PayPoint's Chief Executive, said:

"Overall trading since 30 September 2012 was in line with market expectations, taking seasonality of trading into account.  We are pleased with the growth across the group and continue to focus on driving improved returns on our invested capital."

1 PayPoint's auditors have not been requested to review the performance or financial position
2 The reported period of 1 October to 31 December 2012 contains 92 days.  Comparative data is given for the 91 day time period reported last year (i.e. 26 September to 25 December 2011). 
3 Net revenue is revenue less the cost of mobile top-ups and SIM cards where PayPoint is principal and costs incurred by PayPoint which are recharged to clients and merchants. These costs include retail agent commission, merchant service charges levied by card scheme sponsors and costs for the provision of call centres for PayByPhone clients.

Companies mentioned