HIGHLIGHTS
| 26 weeks ended 30 September 2013 |
27 weeks ended 30 September 2012 |
Increase2 | |
| Revenue | £102.2m | £101.7m | 0.4% |
| Net revenue1 | £54.1m | £49.3m | 9.7% |
| Gross margin | 45.0% | 41.2% | 3.8ppts |
| Operating profit | £20.9m | £18.9m | 10.9% |
| Profit before tax | £21.3m | £18.3m | 16.6% |
| Diluted earnings per share | 24.0p | 20.2p | 18.8% |
| Interim dividend per share | 11.4p | 10.2p | 11.8% |
Retail
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UK & Ireland retail network net revenue increased 9.4%, with continued strong growth in retail services supported by the expansion of the network
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Romanian bill payment transactions were 16.5 million, up 40.9%, increasing profitability
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Collect+ became profitable and is now available in over 5,500 sites with transactions up 72.2% to 5.7 million
e&m commerce (PayPoint.net and PayByPhone)
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Internet transactions have grown by 17.0%
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PayByPhone increased transactions to 14.7 million, up 43.1%
Group
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Profit growth was strong and ahead of expectations as a result of moving IT project and marketing expenditure3, to the second half
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Interim dividend declared of 11.4p, up 11.8%, reflects the board's confidence in the business
David Newlands, Chairman of PayPoint said:
"I am pleased to report strong growth in net revenue and operating profits in the first half of this financial year, demonstrating the quality of our retail channels. Our Collect+ joint venture is now profitable and we have strengthened our e&m commerce management team to address the substantial opportunities available in electronic commerce.
Looking ahead, our retail networks in the UK and Romania should continue to deliver profitable growth from our strong client base and breadth of services. We will continue to invest in network expansion, innovative technology and new services to improve the quality of these retail networks. This expenditure should enhance their competitive advantages and our retail yield. e&m commerce is an essential element of our strategy to provide multi-channel payments and services, placing us in fast growing markets and providing a bridge from cash to electronic payments.
Trading is in line with the company's expectations taking into account moving expenditure into the second half of the financial year, which has benefitted our first half results."
