11th Jun 2026 11:20
(Alliance News) - PayPoint PLC on Thursday posted substantial profit growth in financial 2026, noting that the benefits of its restructuring plan are starting to filter through.
Shares in the Hertfordshire, England-based payments processor and retailing technology provider rose 2.6% to 570.00 pence on Thursday morning in London, but are down 29% over the past year.
PayPoint's pretax profit more than doubled to GBP55.5 million in the year ended March 31 from GBP26.3 million the year prior.
Total revenue rose to GBP337.0 million from GBP310.7 million. Net revenue, which measures total underlying revenue less commissions and the cost of revenue for items where PayPoint acts as principal, rose to GBP190.8 million from GBP187.7 million. Diluted earnings per share rose to 73.6 pence from 69.1p.
The company lifted its final dividend per share to 20.0p from 19.6p.
In parallel, it plans to continue a GBP30 million buyback programme over the course of financial 2027 and 2028. So far, this programme has reduced shares in issue by about 16%, with further reduction expected, for a total reduction in the region of 30%.
The company said cash generation remained strong. Looking ahead, it expects the new year to be one "of evolution for the business", with trading weighted towards the second half.
In March, PayPoint outlined a restructuring plan, which sees it dividing the business into four main units: Network Services, Digital Payments & Open Banking, Love2shop and Merchant Services.
"This will result in a better integrated and more transparent business with a simpler investment case," PayPoint said at the time.
In financial 2026, Network Services sales fell 2.0% on-year to GBP92.4 million. Digital Payments & Open Banking revenue improved 43% to GBP14.4 million and Love2shop sales advanced 3.5% to GBP53.5 million. Merchant Services revenue dropped 2.5% below the prior year's level to GBP31.6 million.
Chief Executive Nick Wiles added on Thursday: "The internal organisational steps to enable these changes are already well underway, driving greater performance ownership, a better harnessing of the group’s collective capabilities, strengthened execution and the unlocking of cost savings to support reallocation of investment into key growth areas. Together, these actions will enable a more accountable operating culture with a greater focus on maximising the growth opportunities in the business."
Wiles continued: "We believe the actions we are taking position the business to deliver a net revenue target growth rate of 5-8% per annum and provide the foundation for continued strong returns for shareholders through a combination of growing earnings, strong cash generation, dividends and share buybacks...Overall, the board remains confident in delivering further progress, exceeding the underlying profits achieved in FY26 and achieving results in line with market expectations."
Investec Bank PLC has forecast net revenue of GBP195.0 million in financial 2027 and pretax profit of GBP70.0 million.
By Holly Munks, Alliance News reporter
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