26th Nov 2015 07:52
LONDON (Alliance News) - PayPoint PLC, which offers in store payment services as well as payments services, on Thursday reported a considerable drop in first-half pretax profit, as the company booked a GBP18.2 million goodwill impairment charge in relation to the online payments business it is seeking to sell.
Pretax profit plunged to GBP3.2 million in the six months ended September 30, compared with GBP22.5 million in the corresponding half the prior year. Revenue fell to GBP102.8 million from GBP104.3 million, while administrative expenses rose to GBP29.3 million from GBP27.8 million.
"Overall the results are in line with our expectations for the first half, with the performance from retail networks offset by losses in mobile and online payments, which we expect to sell in the second half of this financial year as announced in May this year. Offers on the online payments business have not met expectations and accordingly, we have impaired the entire goodwill on this business," Chief Executive Dominic Taylor said in a statement.
The company said the offers made for the online payments business were disappointing, and were due to the "potential buyer's uncertainty of the business's success with new products, which are at an early stage of their lifecycle".
Paypoint lifted its interim dividend to 14.2 pence per share from 12.4p, and Taylor said the increase "anticipates double digit growth in the dividend for the year as a whole and reflects our confidence in the business and its long term prospects".
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Paypoint