29th Jan 2015 10:45
LONDON (Alliance News) - PayPoint PLC reported a rise in transaction volumes in the third quarter along with an uptick in revenue and said it expects to meet market expectations for the year, though it cautioned on the impact of changes to VAT rules.
The FTSE 250 payments company said overall transactions processed in the three months to the end of December, its financial third quarter, rose 5% to 216.9 million from 205.6 million a year earlier.
Revenue in the quarter rose by 2%, with strong retail revenue growth offset by declines in top-ups and in mobile and online.
The group did caution on the ruling made by UK tax authority HMRC that will mean some services are only partially exempt from VAT, as of March 1. The group said that a current business levels, the ruling will cost between GBP1 million and GBP2 million in annual irrecoverable VAT. It said the impact on the company in its next financial year will depend on the proportion of services deemed exempt.
"We expect to deliver results for the full year to March 2015 within the range of market expectations, despite lower than expected energy volumes in the third quarter," said Dominic Taylor, chief executive of PayPoint.
Shares in PayPoint were down 3.7% to 847.00 pence on Thursday, one of the worst performers in the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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