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PayPoint plc Preliminary results Year ended 31 March 2017

Group news
Regulatory announcements

The full announcement is available here

 

STATUTORY HIGHLIGHTS

 

Year ended
31 March
2017

Year ended
31 March
2016

Change

Revenue

£211.9m

£212.6m

(0.3%)

Net revenue1

£123.9m

£123.6m

0.2%

Gross margin2

50.0%

49.9%

0.1ppts

Operating profit before impairments and business disposal

£52.3m

£50.3m

4.0%

Profit before tax

£69.1m

£8.2m

-

Earnings per share

87.5p

(3.1)p

-

Ordinary dividend per share 45.0p 42.4p 6.1%
Disposal proceeds dividend per share 38.9p 21.0p 85.3%
Additional dividend per share 36.7p - -

Total dividend per share

120.6p

63.4p

90.2%

Mobile and Online are included in our statutory results up to the date of their respective disposals resulting in this year’s performance not being directly comparable to last year. To more clearly review our financial performance, we have included highlights of our ongoing Retail networks in addition to the reported statutory highlights.

RETAIL NETWORKS HIGHLIGHTS3

 

Year ended
31 March
2017

Year ended
31 March
2016

Change

Revenue3

£203.4m

£196.4m

3.6%

Net revenue1

£117.5m

£110.7m

6.2%

Gross margin2

49.5%

48.2%

1.3ppts

Operating profit3

£53.3m

£52.8m

0.9%

Profit before tax3

£53.3m

£52.8m

0.9%

Earnings per share3

64.3p

62.5p

2.9% 

 

Strong delivery against our strategic priorities

  • PayPoint One, our new retail platform, successfully launched in June, with 3,600 sites at year end and 4,227 today
  • Continued growth in Retail networks of 3.2% to 40,500 sites, including 11,300 in Romania
  • Collect+ arrangement successfully restructured to allow PayPoint to serve other UK carriers; expected to drive a step change in our parcels business over time
  • Sale of Mobile completed in December 2016 for £26.5 million, with gross proceeds of 38.9 pence per share returned to shareholders

 

Financial highlights 

  • Good growth in core Retail networks 
  • Gross revenue3 grew by 3.6% to £203.4 million
  • Net revenue1 grew by 6.2% to £117.5 million 
  • Operating profit3 grew by 0.9% to £53.3 million   
  • Retail services net revenue1 grew to £39.9 million, an increase of 31.6%
  • Profit on sale of Mobile of £19.5 million. Mobile sale proceeds of £26.5 million returned to shareholders. Mobile goodwill of £30.8 million was fully impaired in 2016
  • Final ordinary dividend of 30.0 pence per share, total ordinary dividend of 45.0 pence per share, an increase of 6.1%
  • Additional dividend of 36.7 pence per share paid as part of commitment to return surplus cash to shareholders over a five year period to 2021. Total dividends of 120.6 pence per share paid to shareholders in the year to 31 March 2017
  • Cash and cash equivalents at year end of £53.1 million, net cash generated from operating activities of £42.2 million

 

Dominic Taylor, Chief Executive Officer, commented:

“We have continued to deliver a significant transition in our business to respond to the needs of our retail clients and the changing world of payments. Our transition has involved the sale of our Mobile business, a renegotiated agreement with our partner on Collect+ and, most importantly, launched our new terminal PayPoint One, which includes an industry-leading EPoS solution. This past year has seen further good growth in our core retail network, with net revenue up 6% and an increase in sites of 3%, up to 40,500. Looking beyond the current financial year, I see significant opportunities for our retail services business, accelerating the growth of ATM’s, parcels and EPoS and we will continue to work to build our retailer relations. Our strategy is supported by balance sheet strength and the ability to continue to make superior returns to shareholders”

 

Enquiries

PayPoint plc
Dominic Taylor, Chief Executive (telephone: 01707 600 317)
Rachel Kentleton, Finance Director (telephone: 07843 074 906)                

Finsbury (telephone: 0207 2513 801)
Rollo Head
Andy Parnis

A presentation for analysts is being held at 11.45am today (25 May 2017) at Canaccord Genuity Limited, 88 Wood Street, London, EC2V 7QR.  

The full announcement is available here

1. Net revenue is an alternative performance measure. Refer to note 1 to the financial information for a reconciliation to revenue.  

2. Gross margin is an alternative performance measure and is calculated by dividing gross profit by revenue. 

3. Retail networks consists of our UK, Ireland and Romanian retail businesses. A reconciliation, for each measure, from the statutory results to Retail networks is included in note 2 to the financial information.