HIGHLIGHTS

• In the traditional UK business⁴, net revenue was up 2% and operating profit was up 8%

• UK and Ireland terminal network expanded by nearly 700 sites to 22,669.

• Processed over 1.8 million Romanian bill payment transactions with 2,260 branded PayPoint sites.

• Collect+, our joint venture, started trading during the period, and already has over 3,500 sites live.

• Consumer satisfaction⁵ 97% (82% very satisfied).

• Profit before tax lower than prior period due to the investment in Collect+ and the much reduced interest on cash balances.

David Newlands, Chairman of PayPoint, said: “PayPoint has delivered first half operating profits ahead of market expectations, despite the economic downturn.  New products and services, developments in technology, and new contracts have strengthened the traditional business. We are continuing to invest in parcels, internet payments and Romania and these will contribute to future growth.  The outlook for the year is in line with market expectations.”

“We have again increased the dividend as there is ample capacity to do so without adversely affecting growth prospects.”

The condensed financial statements cover the 6 months from 30 March 2009 to 27 September 2009, the last Sunday in the month (2008: 6 months covering the period 31 March 2008 to 28 September 2008).

¹ Throughput represents payments made by consumers using the PayPoint service for bill and general payments, online, cash withdrawals from ATMs and the value of transactions via the internet.
² Net revenue is revenue less commissions paid to retail agents, acquiring bank charges and the cost of mobile top-ups where PayPoint is the principal. Net revenue and operating margin are measures which the directors believe assist with a better understanding of the underlying performance of the group. 
³ Operating profit excludes start up losses incurred in the current six months for our parcel joint venture Collect+
⁴ The group excluding PayPoint plc, PayPoint.net, PayPoint Ireland, Collect+ and PayPoint Romania.
⁵ UK terminal sites, source: Ipsos MORI September 2009.

To download the full Half yearly financial report pleaseclick here to download a pdf.

ABOUT PAYPOINT
PayPoint is the leading cash and internet payments company in the UK, with operations also in Ireland and Romania. It handles over £9.3billion from almost 550 million transactions annually for more than 6,000 clients and merchants. The company operates several businesses:

• The PayPoint branded retail network numbers over 22,600 terminals located in local shops (including Co-op, Spar, McColls, Costcutter, Sainsburys Local, One Stop, Londis and thousands of independents) in all parts of the UK and Ireland. The terminals process gas and electricity meter prepayments, cash bill payments, mobile phone top-ups, transport tickets, BBC TV licences and a wide variety of other payment types for most leading utilities, telecommunications suppliers and many consumer service companies;
• An ATM network which has over 2,300 ‘LINK’ branded machines across the UK, typically in convenience stores;
• PayPoint.net, an internet payment service provider, delivers secure online credit and debit card payments for over 5,200 web merchants, linking into all major UK acquiring banks;
• PayPoint Romania, a branded national retail network of over 2,260 terminals located in local shops which process cash bill payments for all the major utilities and mobile top-ups and a further 3,500 terminals that process mobile top-ups only; and
• Collect+, a joint venture with Home Delivery Network Limited, provides a parcel collection and drop off service at PayPoint retailers.

PayPoint floated on the London Stock Exchange in September 2004 and the company’s market capitalisation at 27 September was £318 million. PayPoint is widely recognised for its leadership in prepayment systems, smart technology and consumer service.

19 November 2009

Enquiries:

PayPoint plc 01707 600 300 
Dominic Taylor, Chief Executive
George Earle, Finance Director

Finsbury 020 7251 3801
Rollo Head
Don Hunter