24th May 2018 12:13
LONDON (Alliance News) - PayPoint PLC, a bill-paying service, on Thursday reported a drop in statutory profit, after the disposal of its PayByPhone and Drop & Collect businesses, but a mostly steady result from its continuing Retail network business as it rolls out its new platform.
For the year ended March 31, the company's pretax profit dropped 23% to GBP52.9 million from GBP69.1 million the year before. However, operating profit before impairments and business disposal rose 2.3% to GBP53.5 million from GBP52.3 million.
Revenue increased 0.8% to GBP213.5 million from GBP211.9 million.
In Retail networks, PayPoint's main operating business, revenue rose 5.0% to GBP213.5 million from GBP203.4 million and operating profit edged up 0.4% to GBP53.5 million from GBP53.3 million.
PayPoint said its new retail platform, PayPoint One, has been rolled out to more than 9,000 sites, with growth of about 70 pence in the average weekly PayPoint One service fee per site.
PayPoint won't pay a dividend from sale proceeds for the recent year, although it made a 38.9 pence per share such payout the year before. It is also paying a slightly lower additional dividend of 36.6p versus 36.7p year on year. PayPoint increased its ordinary dividend per share, however, by 2.0% to 45.9p from the 45.0p paid out the year before.
PayPoint's Chief Executive Officer Dominic Taylor said that in the next year the company's operating profit is likely to be hit by non-recurring items.
Items include the closure of the UK Department for Work & Pensions' "Simple Payment Service" worth approximately GBP4.0 million a year in lost net revenue and the second-year impact of lower Yodel Delivery Network Ltd parcel fees that will cost PayPoint GBP1.0 million in revenue.
"Despite these headwinds...the board anticipates a progression in profit before tax in this financial year," Taylor said.
Shares in PayPoint were up 2.5% at 939.00 pence Thursday.
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