12th Jun 2025 08:47
(Alliance News) - PayPoint PLC on Thursday reported an "encouraging start" to the new financial year, as it posted a stronger top line for financial 2025 and noted plans to extend its share buyback programme.
The Hertfordshire, England-based payments and retail technology group reported a 45% decline in pretax profit to GBP26.3 million for the financial year ended March 31, from GBP48.2 million a year earlier.
The weaker pretax earnings can be attributed to GBP41.7 million in adjusting items, which includes a GBP14.2 million claim settlement, as well GBP6.4 million in legal costs and a GBP9.6 million net decrease in fair value of investments tied to obconnect and Yodel.
On an underlying basis, pretax profit rose 10% to GBP68.0 million from GBP61.7 million.
Revenue advanced 1.4% to GBP310.7 million from GBP306.4 million, as PayPoint reported cross divisional growth.
Shopping divisional net revenue improved 1.2% to GBP65.2 million from GBP64.4 million, while E-commerce net revenue climbed 39% to GBP16.4 million from GBP11.8 million.
PayPoint noted it was a "record year for parcels transactions" which reached 133.4 million, up 33% from 100.1 million the previous year.
Payments & Banking net revenue grew 1.7% to GBP54.4 million from GBP53.5 million, while Love2shop net revenue edged up 0.8% to GBP51.7 million from GBP51.3 million.
The company declared a final dividend for financial 2025 of 19.6p per share, reflecting a 2.1% uplift from 19.2p on-year. This brought its total dividend for the financial year to 39.0p, up 2.1% from 38.2p.
PayPoint added that it plans to increase its share buyback programme to return at least GBP30 million per year to shareholders, extending the scheme to the end of March 2028.
Its shares were up 3.3% at 785.11 pence on Thursday morning in London.
On current trading, PayPoint reported an "encouraging start" to financial 2026, noting new contract wins, "particularly within the housing sector".
Chief Executive Nick Wiles said: "These results reflect both the resilience of our businesses in the current challenging economic environment and the impact of our growing capabilities as we unlock further opportunities and growth across our four business divisions.
Wiles added that the shareholder returns programme was "underpinned by our confidence and clear operational plans to deliver further progress in the current year".
By Christopher Ward, Alliance News reporter
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