24th Jul 2019 11:14
(Alliance News) - PayPoint PLC on Wednesday said it expects to make progress in annual profit as it recorded revenue growth for the first three months of financial 2020.
The store payment services provider said revenue in the three months to the end of June increased by 3.6% to GBP28.7 million, with service fee growth of 31%, driven by the roll out of PayPoint One to 13,633 sites as at June 30 and a 2.8% improvement in the average weekly service fee.
PayPoint said UK parcel volumes increased by 12% to 5.6 million, due to new partner relationships converting to volumes, with three of the four new parcel partners now transacting.
UK bill payments net revenue was up by 7.5%, the company said, driven by strong growth in MultiPay and a robust performance in the legacy business.
In Romania, net revenue increased by 5.0%, due to improved client margins and growth in transactions.
PayPoint said the final ordinary dividend for the year ended March 31 of 23.6 pence per share will be paid in equal instalments of 11.8p per share on Monday next week and September 30. The additional dividend of 18.4p per share will be paid in equal instalments of 9.2p per share on the same dates.
"PayPoint has delivered a good financial and operating performance during the quarter," said Chief Executive Patrick Headon.
"The board remains confident that there will be a progression in profit before tax and exceptional items for the year ending March 31, 2020," added Headon.
PayPoint shares were trading 2.4% higher on Wednesday in London at 926.00 pence each.
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